KUALA LUMPUR (Nov 6): Malaysia is set to launch a new investment incentive scheme by mid-2025, that aims to introduce stricter regulations for foreign investors to meet localisation requirements.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said the ministry is currently working with the Malaysian Investment Development Authority (Mida) and the Ministry of Finance (MOF) to propose the new scheme.

“This aligns with the National Investment Aspirations (NIA), as we will impose stricter rules to ensure that foreign direct investment benefits the local economy,” Liew told the Dewan Rakyat during an oral question-and-answer session on Wednesday.

Liew was responding to Bayan Baru Member of Parliament Sim Tze Tzin, who asked if the government would follow Indonesia’s approach of suspending sales of Apple’s iPhone 16 for allegedly failing to meet domestic content requirements.

In response, Liew stated that Malaysia might not adopt as stringent a measure as Indonesia, given Malaysia’s relatively smaller domestic market compared to the archipelagic state.

Indonesia’s population size exceeds 260 million, while Malaysia’s is just over 34 million.

“In drafting any policy, Malaysia needs to consider both the domestic and international markets,” Liew noted.

Nevertheless, Liew emphasised that under the current policy, Mida requires foreign firms receiving incentives from the authority to adhere to localisation programmes. These requirements include purchasing equipment locally or partnering with local contractors, as part of efforts to boost the domestic economy. 

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