Malaysia fact sheet

Malaysian Investment Development Authority (MIDA)
Malaysia External Trade Development Corporation (MATRADE)
Malaysia Digital Economy Corporation (MDEC)

For high-value tech manufacturers Pioneer Status (PS)

Income tax exemption of 70-100% on statutory income for 5 to 10 years.

Investment Tax Allowance (ITA)

Allowance of 60-100% on qualifying capital expenditure used for approved project incurred within 5-10 years.

Pharmaceuticals manufacturers in high tech products

Income tax rate of 0-10% for the first 10 years; income tax rate of 10% for the subsequent 10 years.

Principal Hub
New Company

• 0% tax rate for up to 10 years (5+5) – Tier 1
• 5% tax rate for up to 10 years (5+5) – Tier 2

Existing Company

• 10% tax rate for up to 5 years.

MSC Malaysia Status

• 100% tax exemption for 5 years (Tier 1 & 2) and extendable for another 5 years.
• 70% tax exemption for 5 years (Tier 3), extendable if company changes to Tier 1 or 2 and fulfils the conditions imposed.

National Economic Recovery Plan
New company in manufacturing sector with fixed assets of:

• MYR300-500 million: 0% tax rate for 10 years.
• More than MYR500 million: 0% tax rate for 15 years.

World Economic Outlook (2023); World Bank; UNESCO Institute of Statistics; International Labour Organization: Global Wage Report 2022-2023; Asian Development Bank; Malaysian Investment Development Authority (MIDA); Inland Revenue Board of Malaysia; Malaysia Digital Economy Corporation

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.