KUALA LUMPUR: The government will introduce a New Investment Incentive Framework (NIIF) in the third quarter of this year to attract high-value investments and develop homegrown technology.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said the government is committed to transforming "Made in Malaysia" producers into "Made by Malaysia" innovators.
Speaking in the Dewan Rakyat today, Liew said the new strategy aims to transform Malaysian micro, small and medium enterprises (MSMEs) from being support players for foreign multinational corporations (MNCs) into home-grown, technology-driven companies capable of competing globally.
"A shift in mindset is necessary, as small companies and MSMEs have long been viewed merely as supporting players for foreign MNCs," Liew said.
"The new thinking focuses on the capabilities of Malaysian companies and their potential to become home-grown, technology-based MNCs that can play a major role on the global stage."
Liew was responding to a question from Datuk Seri Dr Wee Jeck Seng (BN–Tanjung Piai) on the government's plan to ensure trade, supply chains, and the SME sector are not adversely affected by US retaliatory tariffs.
The ministry, together with the Finance Ministry, will launch the NIIF to attract high-value investments and ensure they deliver tangible benefits, such as quality job creation and the development of local ecosystems and technologies.
To ensure MSMEs benefit from these investments, Liew said the government will also consider strengthening localisation requirements for foreign investors to build a resilient ecosystem that allows local companies to benefit from spillover effects.
Following the 19 per cent tariff rate imposed on Malaysia, Liew said the ministry and its agency, the Malaysia External Trade Development Corporation (MATRADE), have taken mitigation measures by diversifying the country's export markets.
This includes exploring new destinations and strengthening Malaysia's export network in emerging markets across Central Asia, South Asia, the Middle East, the African continent, and Asean.
Liew said the government is committed to enhancing national resilience by fostering the growth of advanced local technology companies in strategic sectors like semiconductors, to position Malaysia as an "indispensable middle power" within global supply chains.
The US reduced its tariff on imports from Malaysia to 19 per cent on Aug 1, down from the originally planned 25 per cent.
The revised tariff will apply to goods imported for consumption or removed from warehouses for consumption effective from Aug 8.
Source: https://www.nst.com.my/news/nation/2025/08/1256296/new-investment-plan-drive-made-malaysia-push