New Incentive Framework To Ensure Inflows Of High-Quality Investments -- Liew
KUALA LUMPUR, March 11 (Bernama) -- The implementation of the New Incentive Framework (NIF), which commences on March 1, will ensure the inflows of high-quality investments to support the transformation towards a high-income and innovation-based economy.
Deputy Finance Minister Liew Chin Tong said the NIF also aims to create more high-income job opportunities for the people, in addition to driving development in underdeveloped areas.
“The implementation of NIF will also strengthen compliance and assessment mechanisms to ensure that every company that receives tax incentives fulfils their commitments through more systematic coordination,” he told the Dewan Negara today.
The NIF implementation for the manufacturing sector began on March 1, while for the services sector, it is expected to start in the second quarter of this year.
He was replying to Senator Azahar Hassan’s question about the streamlining of financial and tax incentives to attract quality investments and create high-value jobs.
Liew said the introduction of NIF is in line with the changing global economic landscape and the need to increase people's productivity and income.
“The government has reassessed the provision of financial and tax incentives to be more targeted, high-impact, and provide optimal economic returns,” he said.
Liew said the rate, type, and duration of incentives have now been adjusted under an outcome-based approach, based on an assessment of investor commitment using the National Investment Aspirations Scorecard.
“Key evaluation criteria include economic complexity, high-value job creation, strengthening local value chains, development of new and existing clusters, increased inclusivity, and environmental, social and governance practices.
“This approach ensures that the incentives provided directly support high-quality investments and create more high-income jobs for Malaysians,” he said.
-- BERNAMA