MITI To Ensure MIDA Ecosystem Ready For New Performance-based Incentive Framework Starting 2026
KUALA LUMPUR, Oct 11 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) is committed to ensuring that the Malaysian Investment Development Authority (MIDA) ecosystem is fully prepared to implement the new Performance-Based Incentive Framework for the manufacturing sector in the early first quarter (1Q) of 2026, followed by the services sector in early 2Q of the same year.
The ministry said that the new Performance-Based Incentive Framework will balance efforts to attract high-growth activities that create high-value jobs and help narrow economic disparities between regions, in line with the objectives of the New Industrial Masterplan (NIMP 2030).
“MITI also welcomes efforts to streamline investor processes (Investor Pass) led by MIDA with a Multiple Entry Visa facility of up to 12 months; the continuation of the Residence Pass - Talent Fast Track initiative to rapidly attract strategic talent; and the ASEAN Business Entity (ABE) status.
“All of these measures will be supported by the Invest Malaysia Facilitation Centre (IMFC), which MIDA has so far established in Kuala Lumpur and Johor to facilitate the mobility of skilled talent and support the growth of Malaysian companies in the ASEAN region,” it said in a statement today.
Meanwhile, MITI will continue encouraging industry players and exporters to leverage the 18 existing free trade agreements (FTAs), including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
“The finalisation of FTA negotiations between Malaysia and South Korea is expected to be announced on the sidelines of the ASEAN–South Korea Summit at the end of this month,” it added.
In the Budget 2026 presentation yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced an allocation of RM1.898 billion to MITI, supporting efforts to raise the economic ceiling by positioning Malaysia as a competitive investment destination, encouraging quality investment and boosting exports.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the Budget 2026 allocation reflects the importance of investment, industrial development and trade in strengthening Malaysia’s economic competitiveness and resilience, particularly in light of various global geo-economic and geopolitical challenges.
He added that MITI consistently prioritises implementation, including reporting the progress and outcomes of projects through the MITI Report Card, which is presented every three months.
The Budget 2026 measures overseen by MITI will be implemented as effectively and quickly as possible, especially to improve people’s quality of life and create more opportunities for SMEs.
“MITI is also committed to ensuring Malaysia remains on a strong footing to achieve its goal of being among the world’s 12 most competitive economies by 2033,” Tengku Zafrul added.
-- BERNAMA