On 18 October 2023, the Malaysian Investment Development Authority (MIDA) organised an Investment Compliance BIZClinic 2023 at its headquarters, MIDA Sentral.

With three pivotal objectives, this event set out to redefine the way businesses and investors engage with the stakeholders especially government, and navigate Malaysia’s investment landscape:

Engaging key industry players

The BIZClinic opened with an enlightening briefing by En. Hafeez Hamdan, Senior Assistant Director of the Investment Compliance Division, illuminating the path to tax incentives provided by two fundamental legislations, namely the Promotion of Investment Act 1986 and the Income Tax Act 1967. These acts offer companies the gateway to either Pioneer Status (PS) or Investment Tax Allowance (ITA). Since March 2021, MIDA has embraced digital transformation, mandating that all applications be submitted through the InvestMalaysia portal. As of October 2023, pioneer certificates have made the leap into the digital realm, now featuring a Trustmark and an embedded QR code for heightened security. This marked the dawn of a new era in the investments environment, where companies could explore new avenues for success.

Creating a networking platform

In recognition of the evolving investment landscape, the BIZClinic provided a dynamic platform for businesses to engage directly with MIDA. In a world where policies and procedures are in constant flux, staying ahead is a necessity. This unique opportunity allowed businesses to build connections and forge a path to continuous success by keeping abreast of change.

Raising Awareness on Timely Applications

A critical facet of the event was to emphasise the importance of submitting post-incentive applications in a timely manner. Timely submissions open the door to unlocking the full potential of granted tax incentives. The BIZClinic did not just highlight the significance; it provided insights into the application procedures, guiding companies toward maximising their investment benefits.

This event brought together 65 participants representing 35 local and foreign companies, including industry leaders such as Kulim Hi-Tech Park Corporation, Sunway Medical Centre, Inari Technology, Fuji Electric, Gentari Renewables, and V-Tech Communication. These participants hailed the event for offering them direct access to the authority responsible for granting approvals, reducing their reliance on third-party intermediaries.

From 2020 to 2022, the Malaysian Government granted tax incentives to 3,249 projects in the manufacturing and services sectors, constituting 60% of the total approvals. However, adherence to incentive conditions is often overlooked, resulting, in some companies missing out on the benefits and potentially disrupting their tax planning and investment commitments.

To tackle these challenges, MIDA introduced the BIZClinic programme for selected companies. During one-on-one sessions, participating companies found the clarity they needed on application procedures and incentive conditions, which were effectively addressed by the respective officers. MIDA is already setting its sights on the future. Plans are underway to organise similar events next year, either at its headquarters or in collaboration with MIDA state offices.