Private investment is an important component of the overall economy, and has played an important role in the industrial and economic development of the nation. Sustaining private investment, made up of domestic and foreign investments, is needed to expand and diversify Malaysia’s industrial base through the processes of raising productivity capacity, accelerating technological progress, creating high-income paying jobs, and increasing exports.
MIDA strives to attract quality investments towards harnessing the true potential of businesses in the country. These investments, particularly incentivised projects, benefit Malaysia in the form of job creation for the Rakyat, the procurement of goods and services provided by small businesses and SMEs in the local supply chain, collaborations with local universities and research institutes, and the creation of structured internship and training programmes, amongst others.
The compliance and monitoring of conditions imposed on investment projects are one of the most critical elements in the complete cycle of investment promotion and attraction. MIDA, through its Investment Compliance Division has been entrusted to assess and monitor post-incentive applications from the Ministry of International Trade and Industry (MITI) since 2011. The evaluation of post-incentive applications is governed under the Promotion of Investments Act (PIA) 1986 and the Income Tax Act 1967.
Throughout the years, MIDA has undertaken various facilitation engagements with the business community to increase their awareness levels as well as to ensure their compliance with the conditions imposed on investment projects.
The agency encourages investors to practice good governance and to implement robust compliance measures through the facilitation of information exchange and coordination with institutions engaged in or connected with industrial development activities. To further enhance MIDA’s role in assisting investors, senior representatives from key ministries/agencies such as the Ministry of Human Resources, the Immigration Department of Malaysia, the Royal Malaysian Customs Department, the Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad are stationed in MIDA’s headquarters in Kuala Lumpur Sentral to advise investors on government policies and procedures.
Moving forward, the role of compliance and monitoring will be further strengthened under the National Investment Aspirations (NIAs) to ensure the approved investments will be aligned to the NIAs’ pillars. Additionally, a more robust monitoring system will be put in place to better assess the compliance of investors towards their commitments. With such mechanisms, investors that set foot in the country will contribute towards a prosperous, inclusive, and sustainable Malaysia.
For more information regarding post-incentive applications and procedures, investors are welcome to get in touch with the Investment Compliance Division of MIDA or call +603-2263 2596 for enquiries.