KUALA LUMPUR: The government will introduce a New Investment Incentive Framework for high-value economic activities.
Prime Minister Datuk Seri Anwar Ibrahim said the new framework would be implemented in the third quarter of 2025.
Anwar who tabled the 2025 Budget (Belanjawan 2025) in the Dewan Rakyat said tax incentives for the electrical and electronics sector would be broadened to integrated circuit design activities to boost exports.
"To help create high-value jobs in the field of Artificial Intelligence, special tax breaks will be given to private universities to develop new courses related to digital, AI, robotics and Internet of Things subjects."
Anwar also announced the establishment of economic clusters based on each state's unique strengths and tax incentives in 21 economic sectors in various states.
He also announced a RM100 million matching grant to support the development of local suppliers within the electrical and electronics sector, speciality chemicals and medical devices sectors.
Tax incentives such as investment tax allowances or income tax exemptions will also be provided for carbon capture, utilisation, and storage activities.