KUALA LUMPUR: The government will ensure that investments entering the country, including the establishment of data centres, are of high quality and capable of generating economic spillovers and provide high-income job opportunities for the people.
Treasury Secretary-General, Datuk Johan Mahmood Merican told Berita Harian in an exclusive interview, that this effort aligns with the government's commitment through the 2025 Budget to reform the investment incentive framework.
This approach aims to prioritise investments that focus not only on quantity but also on quality and their impact on the national economy, he said.
He explained that while data centre investments may seem attractive due to their capital expenditure, they may not yield significant economic spillovers unless accompanied by commitments to support technological development, bolster local micro, small, and medium enterprises (MSMEs), and create quality job opportunities.
"For instance, investments like NVIDIA, which are encouraged to come to Malaysia, are required to contribute to the artificial intelligence (AI) technology ecosystem. This approach ensures economic spillovers that benefit the people," he said.
Johan added that the reformed incentive framework for foreign investors will include conditions such as generating quality jobs and opening opportunities for MSMEs to participate directly in the investment ecosystem.
When presenting the 2025 Budget, the Prime Minister emphasised the need for a new approach to attracting investments. Datuk Seri Anwar Ibrahim said that previous investment incentives often neglected the economic spillovers that benefit the people.
The Prime Minister stressed that investments, such as the establishment of data centres, should not take precedence unless they contribute to high-income job creation or knowledge-sharing with local talent.
"The government is now focusing on investments that generate added value for the people and the national economy. This new approach ensures that incentives provided do not solely benefit investor companies," Johan said.
He also said that the implementation of a New Investment Incentive Framework, expected to be introduced in the third quarter of 2025, will focus on high-value activities instead of being product-specific as before.
This approach, Johan explained, reflects the government's commitment to driving inclusive and sustainable economic growth while ensuring that every investment received positively impacts the people and strengthens the local economic ecosystem.
"In every investment received, the government will ensure there are economic spillovers that can improve the people's living standards and strengthen the country's global competitiveness," he said.