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, said CGS Malaysia.

The financial services provider said that implementing 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.

‘These incentives and priorities will be key in 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,’ it said in a statement today.

CGS Malaysia said 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 and tax incentives for export
enhancement to include IC design activities.

‘Together, these activities can potentially provide high-income jobs in different areas such as artificial intelligence (AI), robotics, the Internet of Things (IoT), data science, financial technology, and sustainable technology. It will also drive environmental, social, and governance-based (ESG) investments and promote carbon capture, utilisation, and storage (CCUS) activities,’ it said.

Besides this, ahead of Malaysia taking the helm of the ASEAN chairmanship next year, CGS Malaysia said Budget 2025 gives Malaysia the opportunity to strengthen the nation’s attractiveness by elevating supporting industries and states equitably.

It said that with all the economic activities happening locally, Malaysia could confidently move forward to drive regional economic cooperation and host the inaugural ASEAN-GCC + China Summit.

‘As a regional financial institution with strong ties to China, we are in a unique position to leverage our expertise to export these solutions
and promote Shariah-compliant Malaysian companies regionally, especially in China, and the RM100 million matching fund towards this is encouraging.

‘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,’ it said.

CGS Malaysia added that it is excited about the prospects for 2025 and looks forward to the government’s continued focus on 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,’ it said.

Source: BERNAMA News Agency