Category: News & Events

• The new facility is the largest DHL Express investment in Malaysia, to date
• The gateway is triple the size of its predecessor and can handle four times more shipment volume
• First fully automated sorting DHL Express gateway in Southeast Asia, further supporting intra-regional trade

Kuala Lumpur, Malaysia, 28 October 2024: DHL Express has unveiled an expanded Kuala Lumpur Gateway to better support businesses exporting out of and importing into Malaysia following significant increase in international trade. The new RM300 million (EUR60 million) facility represents the company’s largest local investment to date, and forms part of its strategy to bolster intra-Asia connectivity.  

Standing at 13,422 square metres, the enhanced Kuala Lumpur Gateway is thrice the size of its previous premise. It is also the first of its kind in Southeast Asia equipped with a fully automated sorting system. Combining the two kilometre-long conveyor belt and high-speed scanning system allows inbound and outbound shipments to be processed four times as fast, and achieve a peak throughput of 10,000 shipment pieces per hour. This translates to accelerated transit times and shorter delivery windows. 

“We are on a well-planned track to continuously strengthen our network in robust economies. We see rapidly rising cargo volumes in Malaysia, which also shows massive potential for a sustained uptrend, as the country emerges as a preferred omni-sourcing destination. The Kuala Lumpur Gateway enables our customers to better leverage import and export opportunities, especially via the facility’s busiest trade lanes including the United States, China, Hong Kong, Japan, Singapore, Australia, Germany, and the United Kingdom,” said Ken Lee, CEO for Asia Pacific, DHL Express.

“In 2023, Malaysia jumped 15 places in the World Bank Logistics Performance Index to 26th, among the best in ASEAN,” said YB Anthony Loke Siew Fook, Transport Minister of Malaysia. “These indicators attest to the vibrancy of our courier services sector, which is witnessing positive momentum and has the drivers for long-term growth in place. The expansion of the Kuala Lumpur Gateway is a vote of confidence and helps to reinforce our country’s role as a critical node in global supply chains.”

Connected by two dedicated aircraft to DHL’s Central Asia and South Asia Hubs, the Kuala Lumpur Gateway is a pivotal link for facilitating the smooth movement of goods between the Klang Valley and overseas markets. Kuala Lumpur and Selangor collectively account for a sizeable chunk of Malaysia’s trade, most recently contributing RM3.3 billion in export value and RM7 billion in import in August 2024. 

Optimised for security excellence, the facility has been certified TAPA Class A, the highest airfreight security standard awarded by the Transported Asset Protection Association. Housing more than 400 CCTV cameras, 24-hour surveillance, and state-of-the-art X-ray screening, the facility has also been certified for compliance under the Customs-Trade Partnership Against Terrorism (C-TPAT) programme.

Sustainability is a priority when designing the facility. Constructed in alignment with DHL Group’s guidelines for a carbon-neutral building, green technologies are installed across the complex. These include 500 kilowatt-peak solar panels, smart LED lighting, and energy-efficient systems for water and electricity. The approach towards clean operations extends to the use of electric vehicles at the facility, from forklifts and tow tractors to vans and scooters. This has led to the Kuala Lumpur Gateway achieving LEED (Leadership in Energy and Environmental Design) certification, the world’s most widely-used green building rating system.

“Through this offering, we boost our ability to support customers in navigating the evolving needs of cross-border shipping with wider and faster capacity,” said Julian Neo, Managing Director, DHL Express Malaysia and Brunei. “The upgraded Kuala Lumpur Gateway demonstrates our commitment to keep investing in the flexibility, agility, and resilience of our supply chain capabilities. The new, larger facility is ideally positioned to extend accessibility and complement our footprint in the more than 220 countries and territories we serve worldwide.”

Located at the KLIA Air Cargo Terminal 1 (KACT1), the Kuala Lumpur Gateway is one of five similar facilities in DHL Express Malaysia’s aviation and ground network. This includes 20 service centres, about 170 retail points of sale, more than 300 pick-up and delivery vehicles, over 60 weekly flights, four dedicated aircrafts, and a 1,300-strong workforce.

The facility’s opening was officiated today by the Prime Minister of Malaysia, YAB Dato’ Seri Anwar bin Ibrahim. YB Anthony also attended alongside approximately 400 industry authorities, partners, and customers.

KUALA LUMPUR, 28 October 2024 – Zurich Life Insurance Malaysia Berhad (ZLIMB) is pleased to announce the appointment of Pauline Teoh as its new Chief Executive Officer, effective 1 November 2024. Pauline brings over 25 years of experience in the insurance industry, having held multiple senior leadership roles across the APAC region with leading financial institutions. 

Junior Cho, Country CEO/Head of Zurich Malaysia, said, “We are excited to welcome Pauline as the new CEO of ZLIMB. Her extensive experience, industry knowledge, and strong leadership skills make her the ideal person to drive ZLIMB’s business through growth, diversification, simplification and innovation. Pauline will report to me and be part of our leadership council to align with the OneZurich approach under Zurich Malaysia.”

“Pauline’s dedication to delivering customer-focused solutions aligns perfectly with Zurich Malaysia’s mission to provide innovative insurance products that meet the evolving needs of Malaysians. We are confident that she will play a pivotal role in spearheading initiatives that strengthen ZLIMB’s competitive edge in the insurance sector.” Cho added.

Pauline is highly regarded in the insurance industry, with a proven record in driving business growth, digital transformation, partnership management, sales and distribution, and financial risk management. Pauline holds a Bachelor of Mathematics, Actuarial Science and Economics from the University of Waterloo, Canada and is a Fellow of the Society of Actuaries.

Commenting on her appointment, Pauline Teoh said, “I am honoured to lead ZLIMB and look forward to contributing to the company’s continued success. Zurich Malaysia’s dedication to innovation and customer-centricity resonates with my own values, and I am excited to work with the team to continue delivering best-in-class solutions that truly care for what matters most to Malaysians, as we create a brighter future together.”

For more information about ZLIMB and its offerings, kindly visit https://www.zurich.com.my/.

KUALA LUMPUR, 24 OCTOBER 2024 — Sime Kansai Paints Sdn Bhd (Sime Kansai Paints) and Majlis Amanah Rakyat (MARA) have taken a significant step toward transforming technical and vocational education and training (TVET) in Malaysia with their recent signing of a Memorandum of Understanding (MoU). Witnessed by Deputy Prime Minister, Dato’ Seri Dr. Ahmad Zahid Bin Hamidi, and the Chairman of MARA, Datuk Wira Dr Asyraf Wajdi bin Dato’ Dusuki, this partnership is set to raise the standards of education and practical training at Institut Kemahiran Mara (IKM) outposts nationwide, contributing to Malaysia’s National TVET Policy 2030.

The local automotive sector has experienced strong growth over the year, as evidenced by the Malaysian Automobile Association (MAA) increasing its car sales forecast for 2024 by 3.38%, following strong sales in the first half of the year. Unfortunately, this remains moot should the industry’s need for skilled workers remain unmet. The Malaysia Automotive, Robotics, and IoT Institute (MARii) has noted a significant gap in the supply of workers proficient in these advanced skills, which hampers the industry’s progress.

 

By leveraging Sime Kansai Paints’ market leadership in Automotive Coatings in Malaysia, this MoU initiative seeks to foster a skilled workforce at the tertiary level offering opportunities for TVET students to upskill their capabilities to ensure they are ready for the workforce upon graduating. Beginning with Institut Kemahiran MARA Kota Kinabalu, the collaboration between both parties aligns with Malaysia’s broader goals under the National TVET Policy 2030 to equip TVET students with relevant skill-enhancing curricula to create more job opportunities and enhance employability for TVET students in the nation. 

 

Mr. Tan Seng Yang, Managing Director of Sime Kansai Paints Sdn Bhd, emphasised the importance of this collaboration, sharing: “This MoU represents more than just a collaboration. It is an initiative between both parties to elevate and set the new standard for TVET education as we aim to cultivate a highly skilled workforce for the automotive refinishing industry. By incorporating real market practices into our training programs, we are strengthening the relevance of TVET courses and empowering students to tackle future challenges confidently.”

 

The MoU will also see Sime Kansai Paints play an active advisory role to Institut Kemahiran MARA Kota Kinabalu while providing job opportunities within its extensive network — including collaborations with some of Malaysia’s leading automotive companies. At the same time, they will be developing standard operating procedures (SOPs) and providing centres with industrial equipment for students to develop deeper theoretical knowledge and technical experience. This includes programmes covering areas such as industry certification (Industry Certified Painter), colour matching, paint application, trainer certification courses, and more. In addition to giving students an industry-ready education, the practical sessions will also enable students to be up to date with the latest trends and work processes within the industry.  

 

Sime Kansai Paints, a joint venture between Kansai Paint Co., Ltd., Japan and Sime Darby Motors, operates Malaysia’s first waterborne automotive coatings plant at its state-of-the-art facility in Bukit Raja, Klang. As part of their efforts to foster a brighter future for aspiring automotive professionals, Sime Kansai Paints will be participating in the Worldskills Malaysia Sabah 2024 event next month, serving as a panel judge for the event’s Car Painting category. 

 

KUALA LUMPUR, 21 OCTOBER 2024 – Talent Corporation Malaysia Berhad (TalentCorp) welcomes the progressive initiatives presented in Budget 2025, which aim to position Malaysia as a leader in technology, sustainability and innovation. The initiatives strike a crucial balance between driving economic progress and promoting the well-being of the people, ensuring that societal needs remain a priority. With a strong emphasis on government efficiency and improving public services, Budget 2025 sets the foundation for a more resilient nation ready for long-term success.

“Aligned with national goals, allocations in Budget 2025 support TalentCorp’s ongoing efforts to cultivate a skilled and resilient workforce capable of meeting evolving industry needs. As the strategic think tank of the Ministry of Human Resources (KESUMA), we collaborate closely with stakeholders to align Malaysia’s talent development strategies with the nation’s growth ambitions. Initiatives such as the MyMAHIR Future Skills Talent Council (FSTC) and the Malaysia Critical Occupations List (MyCOL) play crucial roles in identifying and addressing skills gaps, and taking steps to build a globally competitive workforce,” commented Thomas Mathew, Group Chief Executive Officer, Talent Corporation Malaysia Berhad.

Bridging Talent Gaps through Structured Internships

A prominent measure in Budget 2025 is the extension of the National Structured Internship Programme (MySIP) until 2030, now also incorporating students interning in regulatory bodies. This expansion aims to provide young talents with critical hands-on experience, enhancing their employability and ensuring a stronger alignment between education and industry requirements. The focus on expanding internship opportunities reflects a broader strategy to bridge the gap between academia and the professional world.

Another key initiative that supports this strategy is the Internship Matching Grant for SMEs and Start-ups (LiKES). Launched in March 2024, LiKES has received an additional RM10 million to support quality internships, particularly in STEM fields. By early October 2024, over 774 companies had registered under LiKES, hiring 6,000 interns across Malaysia. This funding aims to empower SMEs and start-ups, especially those outside major urban areas, providing them with the resources to nurture young talent and drive innovation.

Preparing the Workforce for a Changing Landscape

In parallel, the RM7.5 billion allocation towards Technical and Vocational Education and Training (TVET) is evidence of the government’s commitment to workforce readiness, with a focus on key sectors such as Maintenance, Repair and Overhaul (MRO), Electric Vehicles (EV), aerospace, and Artificial Intelligence (AI) to prepare Malaysians for the evolving landscape of emerging industries and economic demands. 

“By equipping the workforce with specialised skills, the government aims to future-proof Malaysia’s talent pool and strengthen its competitiveness in high-value industries. TalentCorp remains dedicated to supporting these efforts through initiatives that nurture high-value employment opportunities and foster a resilient talent ecosystem,” he added.

Promoting Work-Life Sustainability and Inclusive Practices

Budget 2025 extends tax incentives for employers hiring women returning to work after a career break. These incentives, valid for applications from 1 January 2018 to 31 December 2027, offer a 50% additional deduction on employment expenses for a 12-month period, encouraging greater female workforce participation.

Recognising the challenges faced by working caregivers, the government has introduced a 50% additional deduction for employers who provide paid caregiving leave of up to 12 months. This policy aligns with Malaysia’s broader care economy efforts to support job retention and promote work-life balance for employees fulfilling caregiving responsibilities for children, ill or disabled family members.

To further enhance workplace flexibility, Budget 2025 offers a one-off tax incentive for employers investing in capacity building and digital tools to implement flexible work arrangements (FWA). The expenses eligible for the incentive are capped at RM500,000 and must be verified by TalentCorp. “We are further playing a part in supporting work-life balance through TalentCorp’s Work-Life Sustainability advocacy programme, where we offer free workshops to assist employers in effectively implementing FWAs, reinforcing our commitment to fostering a healthier and balanced workforce,” Thomas Mathew remarked. 

Commited to Long-Term Success

Looking ahead, TalentCorp is geared up to maintain a robust pace in empowering Malaysia’s workforce to adapt and thrive in an evolving economic landscape. “By collaborating with industry leaders and stakeholders, we aim to catalyse a talent ecosystem that integrates innovation, sustainability and inclusivity, positioning Malaysia as a global hub for talent and innovation,” he concluded.

18 October 2024

As Malaysia gears up for 2025, the need for robust reforms to bolster its position as a leading business hub in Southeast Asia is more pressing than ever. Members of the Institute of Chartered Accountants in England and Wales (ICAEW) Kevin Foo, Elliot Chaw, Anitha Poopalasingam, Dr. Lim Kim-Hwa, and Dato’ Megat Iskandar Shah highlighted key initiatives which could significantly enhance Malaysia’s global competitiveness while ensuring sustainable economic growth.

Enhancing the Business Environment

The recently tabled Budget 2025 aims to enhance Malaysia’s global competitiveness by improving the “Ease of Doing Business” and catalysing the areas of emphasis for the New Industrial Master Plan (NIMP) 2030 to attract new businesses and expand existing investments.

Kevin Foo, Partner at KPMG in Malaysia and Past Chairman of the ICAEW Members’ Society Malaysian Chapter emphasises Malaysia’s strategic advantages as a thriving hub for investment, underscored by its dynamic economy and diverse, multilingual population. However, he cautions that as global markets evolve and competition intensifies, Malaysia must refine its business environment to retain its appeal to multinational corporations. Budget 2025 marks a pivotal opportunity to enact these reforms, advocating for a more streamlined approach to facilitate business growth.

Elliot Chaw, Associate Director of Corporate Tax Advisory at KPMG in Malaysia adds that one of the standout initiatives is the launch of the Forest City Special Financial Zone, introducing Malaysia’s first family office framework outside Labuan. This initiative aims to attract high-net-worth individuals through a well-structured legal and tax framework, fostering confidence and reinvestment in the national economy. Such a framework could serve as a sandbox for innovative financial solutions, encouraging families to manage their wealth while contributing to Malaysia’s economic growth.

 

Clarity and Consistency in Regulations

The importance of having a stable and transparent regulatory system cannot be overstated. Both Foo and Chaw agree that any inconsistencies in the regulations and practices across states could hinder foreign investments, especially in large-scale developments. They suggest that harmonising processes for licensing, environmental approvals, and land-use permits in a digital, single window platform would reduce delays and create a more favourable investment climate. A stable environment with clear “rules of the game” will bolster investor confidence and attract long-term commitments from both domestic and foreign investors.

 

Immigration Reforms: Attracting Global Talent

Reforming Malaysia’s immigration policies is vital for staying competitive in the global race for talent. Foo and Chaw assert that “Simplifying and expediting work visa and residency programme, particularly for investors and specialised talent, will strengthen Malaysia’s appeal as a business hub.” Drawing parallels with Singapore’s Tech Pass, they suggest a fast-track residency programme for skilled foreign workers, investors, and entrepreneurs which could significantly enhance Malaysia’s competitiveness.

 

Streamlining the Investment Processes

Anitha Poopalasingam, former Senior Director of Group Internal Audit at Maybank stresses the importance of streamlining the investment approval process and establishing a new investment fund to attract foreign direct investment. “Reducing approval times will enhance efficiency, making it easier for investors to navigate regulatory requirements,” she explains. A clear and efficient investment framework will not only boost investor confidence but also drive job creation and economic growth.

 

Poopalasingam highlights that targeted investment funds can focus on specific sectors aligned with national priorities, such as technology and renewable energy, creating a diverse business ecosystem. “By promoting sector-specific investments, we can drive growth in key areas and support local SMEs which are vital to Malaysia’s economy,” she states.

 

Promoting Sustainability and Green Growth

In line with the Ekonomi MADANI framework, the Ministry of Finance is spearheading initiatives to synergise efforts across government-linked entities to catalyse growth in key economic sectors. Poopalasingam notes, “The focus on renewable energy helps diversify Malaysia’s economy, making it more resilient to global market fluctuations.” Investments in renewable energy not only address immediate environmental concerns but also ensure long-term economic viability.

 

Digital Infrastructure Investment

As outlined in Mission 2 of NIMP 2030, Budget 2025 also proposes to augment local innovation and technology to enable effective competition on both the regional and global fronts. This involves leveraging automation, artificial intelligence and machine learning to boost productivity, streamline costs and foster sustainable growth across sectors.

CEO of Cammillion and Fellow in Finance at Cambridge University Dr Lim Kim-Hwa emphasises the importance of staying at the forefront of the digital revolution. “While hardware investment is essential, the application of digital technology is equally important. We must focus on how the digital economy can enhance competitiveness as well as disintermediate and thus reduce time and distance to market,” he explains. Improving digital connectivity, especially in rural areas is crucial for promoting inclusiveness and allowing all sectors of society to benefit from the global digital economy.

To effectively connect rural areas, Dr Lim advocates for adapting education and training programmes to deliver the required upskilling. “Integrating digital education into the curriculum will prepare the workforce for emerging opportunities in the digital landscape,” he adds.

 

Empowering SMEs through Ekonomi MADANI

Dato’ Megat Iskandar Shah, Partner and Deputy Assurance Leader at Ernst & Young Malaysia, highlights the crucial role that SMEs play under the Ekonomi MADANI framework. “SMEs are the backbone of Malaysia’s economy, representing 97% of businesses and nearly half of the workforce. Ensuring their growth and sustainability is vital to the nation’s economic trajectory, particularly in accessing financing and expanding export readiness.”

 

Megat stresses that while existing government initiatives provide support, more innovative financing solutions are needed to bridge current gaps. “Alternative financing options like digital lending platforms and venture capital can better cater to the unique needs of SMEs, helping them access funds more efficiently and participate in high-value sectors aligned with NIMP 2030.”

 

On enhancing export readiness, Megat stresses the need to equip SMEs with the right tools and training to compete globally. “Expanding trade facilitation services, improving digital infrastructure, and investing in workforce development, particularly in digital skills, are critical to boosting international competitiveness and driving innovation. By preparing SMEs for the demands of the digital economy, we can unlock new growth opportunities and enhance productivity across sectors.”

 

He concludes by emphasising the need for stronger collaboration between SMEs, government agencies, and financial institutions to drive long-term growth. By working together, these entities can ensure that SMEs fully capitalise on the opportunities presented by the Ekonomi MADANI framework, contributing significantly to Malaysia’s future economic success.

 

A Call for Decisive Action

In conclusion, Budget 2025 presents an opportunity for Malaysia to enact crucial reforms that will strengthen its global competitiveness. By simplifying business operations, enhancing regulatory frameworks, and investing in digital infrastructure and sustainability, Malaysia can attract foreign investment, generate jobs, and foster innovation. As the country navigates an increasingly interconnected world, now is the time for decisive action to secure Malaysia’s future as a thriving, competitive economy. ICAEW believes that chartered accountancy can be a force for positive change. By sharing insight, expertise and understanding, the professional organisation hopes to continue helping create sustainable economies and a better future for all.

Budget 2025 was the largest Budget allocation ever at RM421 billion, with the objective of revitalizing the economy, catalyzing transformative change and improving the overall well-being of the Rakyat. The Budget strikes a strategic balance, reinforcing the nation’s commitment to fiscal resilience while navigating the challenges of the global and regional economic landscape and setting the foundation for long-term growth.

Riding the wave of robust growth from 2.9% in Q4 of 2023 to 5.9% in Q2 of 2024 and with a vision to further invigorate the economy to achieve a leading status in Asia, Budget 2025 has unveiled impactful and targeted measures, charting a course for sustainable prosperity and enhanced competitiveness.

Fiscal Sustainability, Economic Growth, and Debt Management

The Government has increasingly demonstrated its commitment to fiscal discipline, as evidenced by the enactment of the Public Finance and Fiscal Responsibility Act in December 2023 and the continued emphasis on reducing the fiscal deficit and national debt levels.

Following the rationalization of the diesel subsidy, Budget 2025 provides additional clarity on the Government’s approach and timeline for addressing the RON95 petrol subsidy. The RON95 rationalization exercise will be implemented in mid-2025 in a manner similar to the targeted electricity subsidy program, such that 85% of the Rakyat will not be adversely impacted. The savings from this exercise will be channeled to public welfare.  Whilst rationalization is fraught with complexities, we commend the Government for its efforts in taking this necessary and urgent action.

Broadening the tax base

In light of the decision not to reintroduce Goods and Services Tax (GST) at this stage, as expected, the Government will mobilize various other levers to bolster revenue collection. These include a 2% tax on dividend income exceeding RM100,000 received by individual shareholders (from the year of assessment 2025) and the expansion of the Sales Tax and Service Tax (SST) (effective May 2025) to encompass additional services and non-essential goods.

It is encouraging that the Government will involve stakeholders from the relevant industries to seek feedback before finalizing the SST scope expansion and tax rates, which will smoothen the implementation of the progressive SST system and avoid any unintended consequences.

In addition, there were other proposed tax measures such as carbon tax on iron and steel, and energy sectors (in 2026) and increase in the “sugar tax” starting from 1 January 2025. The revenue from such taxes will be earmarked for specific purposes (e.g. to finance research and green technology programs, cover public health expenditure).

Competitiveness in the Global Landscape

One of the key themes of the Budget is to attract more impactful investments, by introducing the New Investment Incentive Framework (NIIF) which focuses on high-value activities with positive economic spillover to the nation, moving away from existing incentives based on specific products. The NIIF is expected to be implemented in the third quarter of 2025.

Specific focus areas include the diversification of the Electrical and Electronics (E&E) sector through high-value-added activities, creating high-level income job opportunities in the field of artificial intelligence (AI), strengthening the local supply chain and primary sector ecosystems, state-specific economic clusters and ESG-driven investments. Through this more targeted approach, it is hoped that the implementation will attract the right kind of investments. We look forward to the details of the new framework.

The Government has noted that the introduction of Global Minimum Tax (GMT) rules in Malaysia will result in additional top-up taxes on low-taxed income of large multinational groups of companies, which may negatively impact the investment environment. To address this, the Government has committed to streamlining existing tax incentives, introducing non-tax incentives and studying the introduction of a “Strategic Investment Tax Credit”.  We expect this credit to be designed as a ‘Qualified Refundable Tax Credit’ (QRTC) that would be less affected by GMT rules, to give Malaysia a competitive edge in attracting foreign direct investments.

In parallel, there is also continued focus on public service reforms and good governance, including the proposed public administration efficiency commitment Bill which will cover three critical areas i.e. reducing bureaucracy, expediting processes, and improving service delivery.

These initiatives are a continuation of measures from previous MADANI Budgets to enhance Malaysia’s competitiveness. The results of the efforts taken to-date are evident from the increase of foreign direct investment (FDI) numbers, with Malaysia’s ASEAN ranking improving from 6th to 4th between 2020 and 2022.

Redistributing income and reducing inequality

Malaysia is poised to enact a series of fiscal reforms to strengthen its economy and advance its vision for sustainable and inclusive growth. In response to the rising cost of living and to narrow the wage gap, the Government plans to increase the minimum wage to RM1,700 and further enhance various cash assistance programs, as well as maintaining the RON95 subsidy for 85% of the Rakyat.

To boost national productivity and encourage inclusiveness, the Government is introducing incentives to expand the workforce while supporting diverse family and work arrangements. Employers will benefit from a 50% additional tax deduction for hiring women returning to work, implementing flexible work arrangements, and providing additional paid caregiving leave for employees caring for children or ill or disabled family members. We are optimistic that these incentives will accelerate an upward trend in female labor force participation.

Special tax rates will be introduced in 21 economic sectors in states such as Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, aimed at reducing regional economic disparities and promoting equitable development throughout the country. Various financing facilities are available to support the women, youth and people with disabilities to venture into business. These measures reflect Malaysia’s dedication to creating a robust economy that benefits all citizens.

Digital economy and Artificial Intelligence

Budget 2025 marks a significant step in Malaysia’s journey towards a digital future, with a series of initiatives aimed at strengthening the digital economy and accelerating the adoption of AI. These targeted measures, together with the USD16.9 billion of digital investments already secured by the country, will help propel Malaysia to the forefront of the digital economy and AI, ensuring the nation’s readiness for the opportunities and challenges of the digital age.

Recognizing the importance of digital skills, the proposed NIIF will include incentives to encourage development of qualifying new courses for AI, robotics, Internet of Things (IoT), data science, FinTech, and sustainable technology at Private Higher Education Institutions and private skills training institutions over the next 5 years.

To support digitalization of various industries, the Government has also announced tax incentives such as accelerated capital allowance to encourage use of drones and AI technology in plantation operations, thereby reducing dependence on foreign labor. Investors in Smart Logistics Complexes (SLCs) will be incentivized with a proposed 60% investment tax allowance for a period of 5 years, to be utilized against 70% of statutory income, aimed at stimulating growth and activity in this critical area. These initiatives underscore Malaysia’s dedication to maintaining a competitive edge in the digital era and equipping its workforce for the future.

In conclusion, Budget 2025 is a testament to the Government’s decisive policy making. This expansionary budget reflects a strong commitment to steering the nation towards a sustainable and thriving future by catalyzing growth in key sectors, revitalizing the economy and prospering the Rakyat. We look forward to the positive outcomes these initiatives will bring to the nation.