Briefing and Engagement Session on the New Incentive Framework (NIF)

The Briefing and Engagement Session on the New Incentive Framework (NIF) with Investment Promotion Agencies and Corridor Authorities was held at the Bunga Raya Room, MITI Tower, Kuala Lumpur.

The session was chaired by Datuk Bahria Mohd Tamil, Deputy Secretary General (Investment and Management) of the Ministry of Investment, Trade and Industry (MITI). The briefing provided a comprehensive overview of the implementation of the New Incentive Framework (NIF), as announced in Budget 2026, and outlined the transition from the existing incentive landscape towards a more structured, transparent and outcome-based approach.

Key highlights included the tiered and outcome-based incentive structure, the option between the Special Tax Rate (STR) and Investment Tax Allowance (ITA), the adoption of the NIA Scorecard as an eligibility assessment tool, and a clear focus on strategic sectors such as Electrical & Electronics (E&E), medical devices and other high-impact industries.

With the full implementation of the NIF for the manufacturing sector effective 1 March 2026, the framework is expected to strengthen Malaysia’s competitiveness in attracting high-quality investments while supporting the country’s structural economic transformation towards a high-income and sustainable economy.

Invest Melaka Berhad remains committed to align with national policy directions to ensure investors in Melaka are well-positioned to benefit from the enhanced incentive framework.