KUALA LUMPUR: The government’s measures and incentives under Budget 2025 prioritise the nation’s competitiveness, especially in positioning Malaysia as an investment and business destination, and a strong trading partner.
Chief Executive Officer of CGS International Securities Malaysia (CGS MY) Azizah Mohd Yatim said the implementation of the strategic and high-impact Investment Incentive Framework next year will add to the attractiveness of the country’s semiconductor, automation and technology companies and industries, and related ecosystems.
She said these incentives and priorities will be key to retaining existing multinationals, and attracting more multinational enterprises (MNEs) to invest in the country, across different states, through the economic clusters established based on state-specific advantages.
“The framework will also support the diversification of the sectors through high-value added activities such as integrated circuit (IC) design services and advanced materials, tax incentives for export enhancement to include IC design activities.
“Together, these activities can potentially provide high-income jobs in the different areas such as Artificial Intelligence (AI), robotics, the Internet of Things (IoT), data science, FinTech, and sustainable technology. It will also drive ESG-based investments and promote CCUS (Carbon Capture, Utilisation, and Storage) activities,” she said.
Azizah said CGS MY also welcomes the government’s approval of Forest City as a Duty-Free Island to support local tourism and economic activities.
She said the tax incentive package for the Forest City Special Financial Zone will boost financial services activities, such as global financial business services and Fintech.
“Ahead of Malaysia taking the helm of the Asean Chairmanship next year, Budget 2025 gives Malaysia the opportunity to strengthen the nation’s attractiveness by elevating supporting industries and states, equitably.
“With all the economic activities happening locally, Malaysia can confidently move forward to drive regional economic cooperation and host the inaugural Asean-GCC + China Summit,” she said.
At the same time, Azizah said CGS MY also welcomes the government’s allocation of the RM100 million matching fund to encourage the development of new Islamic finance solutions grounded in Islamic values, reducing reliance on Shariah-compliant products that closely resemble conventional ones.
“As a regional financial institution with strong ties to China we are in a unique position to leverage on our expertise to export these solutions and promote Shariah-compliant Malaysian companies regionally, especially in China.
“On this front, we look forward to working with our partners to develop innovative Shariah-compliant solutions for Malaysians, as well as to cater to the regional needs within our footprint.
“We are excited about the prospects for 2025 and are looking forward to the continued focus by the government in executing its plans. This consistency and stability will provide local and global investors the comfort and confidence to invest in the country. We are confident that the flow-through of these investments will buoy company performance and income levels of all Malaysians,” she added.
