KUALA LUMPUR, Sept 2 — The government is finalising a new tax incentive framework to attract more high-value investments, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the framework will assess the effectiveness of any tax incentive grants through a targeted, flexible approach that is relevant to economic changes and the business landscape.
“Each investment proposal will be evaluated using the National Investment Aspiration Scorecard, which measures the quality of the investment, including economic spillovers and the creation of high-value jobs,” he said during the winding-up speech on the 13th Malaysia Plan (13MP) in Dewan Negara today.
Amir Hamzah said the government is committed to strengthening the country's fiscal position by reducing new borrowings, lowering the deficit, and expanding revenue through more targeted tax measures.
New government borrowings, he noted, decreased to RM76.8 billion last year, compared with RM99.4 billion in 2022, while the deficit is expected to fall to around three per cent in the medium term.
He said the expansion of the sales and service tax (SST), including on premium goods and financial services, as well as the implementation of e-invoicing and AI-based smart scanning technology, will also improve national revenue collection and enhance public spending efficiency.
Regarding the country’s economic prospects, the minister said the gross domestic product (GDP) is expected to grow between 4 and 4.8 per cent this year, with an average growth of 4.5 to 5.5 per cent annually throughout the 13MP period, supported by public investments worth RM611 billion in high-impact sectors.
“The 13MP demands high discipline in fiscal management. It is a responsibility that must be shouldered together to ensure the country’s financial position remains sustainable,” Amir Hamzah added.
