RM95.8 Billion AI-Driven Surge
Data centre and cloud-computing projects accounted for nearly half of the RM218.5 billion in approved investments in 1H 2026, powered by hyperscaler commitments across Johor and Greater Kuala Lumpur.
Invest in Malaysia
Your gateway to ASEAN. Discover a dynamic economy, investor-friendly policies, and high-growth opportunities in the heart of Southeast Asia.
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Approved investments 1H 2026
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Projects approved
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Why Invest in Malaysia?
A unique value proposition for investors seeking growth in Asia.
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Strategic Location
At the center of ASEAN, Malaysia provides access to over 680 million people and serves as a gateway to major Asian economies.
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Strong Fundamentals
Malaysia's economy is projected to expand 4.7% in 2026, outpacing both global and regional averages.
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Investor-Friendly Policies
100% foreign ownership is allowed in most manufacturing and many services sectors, with progressive liberalization.
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Skilled Workforce
A multilingual, educated workforce with strong technical capabilities supports high-value industries.
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Robust Infrastructure
Well-developed industrial parks, ports, digital infrastructure, and special economic zones support business operations.
Investment Performance
A track record of sustained investor confidence in 2026.
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Approved investments 1H 2026
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YoY growth
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Projects approved
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Investment Breakdown (1H 2026)
| Sector | Approved Investment (RM billion) | Share |
|---|---|---|
| Services | 149.6 | 68.5% |
| Manufacturing | 51.3 | 23.5% |
| Primary | 17.6 | 8.0% |
Top Foreign Sources
United States: RM33.1B
Singapore: RM25.9B
Japan: RM22.3B
China: RM16.5B
Cayman Islands: RM4.1B
Top Destinations
Selangor: RM70.0B
Johor: RM59.4B
Kuala Lumpur: RM26.6B
Penang: RM20.2B
Sarawak: RM10.8B
Key Insight
Five foreign sources supplied more than 80% of foreign investment. Data centres and cloud computing accounted for nearly half of approved investments in 1H 2026.
Key Sectors for Investment
High-growth industries driving Malaysia's investment landscape.
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Electrical & Electronics
The cornerstone of Malaysia's manufacturing investment. Strong semiconductor demand drives growth in integrated circuits, components, and circuit boards.
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Data Centres & Cloud
The most explosive growth area. Data centre and cloud projects attracted RM95.8 billion in 1H 2026 alone.
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Chemicals & Petrochemicals
Significant investment continues, particularly in sustainability-focused projects and green technology.
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Food Manufacturing
Secured RM4.9 billion in 1H 2026, a 40.9% increase YoY. Malaysia is positioning as a regional halal and high-value food hub.
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Green Technology
Sustainability-focused investments are increasingly prioritized, aligned with the National Investment Aspirations and NIMP 2030.
Investment Incentives
The New Incentive Framework (NIF), effective 1 March 2026 for manufacturing.
The NIF shifts from activity-based tax incentives to outcome-based incentives, awarded based on measurable contributions to Malaysia's economic and strategic objectives.
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Special Tax Rate (STR)
Designed for projects expected to generate high and earlier returns. Tax rates of 0% or 15% for up to 15 years.
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Investment Tax Allowance (ITA)
For capital-intensive projects with longer horizons. 30% to 100% allowance on qualifying capex for up to 10 years.
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Assessment Criteria
Economic complexity, high-value jobs, domestic supply chain linkages, industrial clusters, inclusivity, sustainability, and talent development.
Important Note
- Existing companies undertaking diversification activities may be eligible.
- Companies with existing incentive approvals continue under approved terms.
- Services sector framework followed in Q2 2026.
- Incentives are aligned with NIA and NIMP 2030.
Corporate Tax Overview
Malaysia's corporate income tax rates for Year of Assessment 2026.
| Company Type | Chargeable Income (MYR) | CIT Rate |
|---|---|---|
| Standard resident company | All levels | 24% |
| SME (paid-up capital β€ RM2.5m, gross income β€ RM50m) | First 150,000 | 15% |
| Next 450,000 | 17% | |
| In excess of 600,000 | 24% | |
| Non-resident company | All levels | 24% |
Global Minimum Tax
Malaysia implemented the OECD GloBE Rules, including MTT and QDMTT at 15%, effective for financial years beginning on or after 1 January 2025.
Petroleum Income Tax
Imposed at 38% on income from petroleum operations, with an effective rate of 25% for marginal fields.
Source
Based on PwC Malaysia Tax Summaries, 2026. Always consult a qualified tax advisor for your specific situation.
Foreign Ownership Rules
Malaysia's foreign ownership regime is generally liberal, with sector-specific exceptions.
| Sector | Foreign Ownership Limit |
|---|---|
| Manufacturing | 100% foreign ownership allowed since June 2003 for new and expansion projects, regardless of export share. |
| Distributive & retail trade | Minimum 30% Bumiputera equity required (3-year grace period). |
| Construction & engineering | Bumiputera ownership often required for G1βG7 license categories. |
| Oil & gas | Petronas SWEC-specific equity criteria; Bumiputera partnership often required. |
| Finance & banking | Generally 30% guideline for commercial banks; higher thresholds possible with BNM approval. |
| Capital markets | 12.5% of enlarged issued shares must be allocated to Bumiputera investors for IPO. |
| Professional services | Typically 70β100% foreign equity, depending on sub-sector. |
Key Consideration
- Regulators verify ownership during the licensing stage.
- Finalize your shareholding structure before incorporation.
- Changes afterward may risk incentive eligibility or compliance.
Johor-Singapore Special Economic Zone
One of Malaysia's most ambitious investment initiatives.
JS-SEZ at a Glance
- Area: 3,588 sq km, covering Iskandar Development Region and Pengerang.
- Location: Southern Johor, adjacent to Singapore.
- Twinning Model: Use Singapore for HQ and R&D while operating manufacturing in Johor.
- One-Stop Centre: Invest Malaysia Facilitation Centre Johor (IMFC-J).
- Special Corporate Tax Rate: For qualifying manufacturing and services activities.
- Singapore Support: MRA Grant and Enterprise Financing Scheme (EFS).
Notable Example
Agrocorp, a Singapore agri-commodities company, expanded its downstream capabilities in plant protein extraction by establishing a new plant in Johor with a Japanese partner, using technology developed by Agrocorp and the Singapore Institute of Technology.
Malaysia My Second Home (MM2H)
Long-term residency pathways for investors.
| Category | Fixed Deposit Requirement | Minimum Property Purchase |
|---|---|---|
| Silver | USD 150,000 | RM 600,000 |
| Gold | USD 500,000 | RM 1,000,000 |
| Platinum | USD 1,000,000 | RM 2,000,000 |
Forest City SFZ MM2H: A special pathway also exists, with 593 applicants approved between October 2024 and March 2026.
Getting Started
Your investment journey in five steps.
Engage with MIDA
Contact MIDA early to discuss your project and eligibility under the New Incentive Framework.
Determine Your Sector
Review foreign ownership rules for your specific industry before structuring.
Structure Your Investment
Finalize shareholding structure before incorporation to ensure compliance and incentive eligibility.
Consider Special Zones
Evaluate JS-SEZ and other zones for location-specific advantages.
Leverage Support
Explore MM2H for residency needs and government facilitation services.
Recent Investment News
Latest developments shaping Malaysia's investment landscape in 2026.
Data Centres
JS-SEZ
RM126.9 Billion in Committed FDI
The Johor-Singapore Special Economic Zone has drawn record foreign direct investment since its formal establishment, with Maybank and SMF signing an MOU to accelerate cross-border growth.
Semiconductor
AIXTRON Builds Penang Plant
German semiconductor equipment maker AIXTRON SE signed an agreement to develop a greenfield manufacturing facility in Penang, reinforcing Malaysia's position in the global chip supply chain.
Manufacturing
MondelΔz RM90 Million Crumb Tower
Launched a RM90 million Crumb Tower at its Cadbury Confectionery plant in Shah Alam, localizing chocolate crumb production and strengthening supply chain resilience.
Green Tech
RM12.4 Billion in Clean Energy Approvals
Solar, battery storage, and energy-efficiency projects attracted RM12.4 billion in approved investments in 1H 2026, aligned with the National Energy Transition Roadmap.
Trade
India-Malaysia Ties Deepen
India remains Malaysia's largest trading partner in Asia, with bilateral investment reaching US$5.6 billion in 2025 and both countries deepening cooperation through BRICS.