The Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) are intensifying efforts to introduce policy reforms aimed at boosting investor confidence and solidifying Malaysia's position as a preferred investment destination amidst global trade uncertainties.

MITI acknowledges the need for effective strategies to stimulate private investment. A key initiative is the New Investment Incentive Framework (NIIF), set to be implemented in the third quarter of 2025. This framework will prioritize high-value activities and investments with significant economic spillover effects, introducing a new evaluation mechanism to offer better incentive rates for quality investments. The government's focus is on attracting investments that enhance economic complexity, create high-value jobs, and expand domestic supply chains, while also supporting new economic clusters and the environmental, social, and governance (ESG) agenda.