MIDA Strengthens Nordic Engagement Through New Incentive Framework

KUALA LUMPUR, May 22 (Bernama) -- The Malaysian Investment Development Authority (MIDA) is intensifying engagement with Nordic investors to position Malaysia’s New Incentive Framework (NIF) and broader facilitation ecosystem as key advantages for high-quality foreign investment.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Nordic companies are well placed to participate in Malaysia’s green economy agenda, particularly in renewable energy, battery and energy storage systems, and environmental technologies.

“I firmly believe that many of the companies from Nordic countries have very good technology when it comes to the environment and renewable energy.

“We hope that Nordic companies can also reap these opportunities as Malaysia pushes ahead with its renewable energy expansion and sustainability agenda,” he said during a fireside chat at a networking event hosted by OCBC Bank and the Nordic Chambers and Council on Thursday.

The session was moderated by Danish Chamber of Commerce Board Member and Taylor’s University adjunct professor, Prof Dr Ong Kian Ming.

The event drew senior representation from the Danish Chamber of Commerce, the Swedish Chamber of Commerce, the Malaysia Norway Business Council and the European Chamber of Commerce, alongside Nordic corporates with an established Malaysian presence. 

Sikh Shamsul Ibrahim said the NIF, introduced in March 2026, reflects Malaysia’s shift toward attracting investments that generate stronger spillover benefits for the domestic economy, including higher-value jobs, localisation, and stronger supply-chain participation by Malaysian companies.

“Not just big capital that they are bringing to Malaysia. But as far as jobs, for example, we want to know what sort of skillset is being brought into Malaysia,” he added.

The framework adopts a scorecard-based assessment covering economic complexity, high-income jobs, industrial linkages, research and development, as well as environmental, social and governance considerations.

It replaces the Promotion of Investments Act 1986 for manufacturing incentives, which Sikh Shamsul Ibrahim said was effective in earlier decades but is no longer suited to current economic priorities.

“It may have been very good, or yes, it was effective in the 80s and 90s. At that point, we just wanted investment to come in. But now, it is no longer appropriate,” he said.

Sikh Shamsul Ibrahim added that MIDA continues to engage business associations, chambers and consultants to support investors as they familiarise themselves with the new framework.

The NIF officially took effect for the manufacturing sector on March 1, 2026, with the services sector phased to follow in the third quarter of 2026.

-- BERNAMA