Budget 2025: RM2.184 Bln Allocation For MITI Recognition Of NIMP 2030 Effectiveness
KUALA LUMPUR, Oct 19 (Bernama) -- The allocation of RM2.184 billion for the Ministry of Investment, Trade and Industry (MITI) in Budget 2025 is seen as a recognition of the effectiveness of the New Industrial Master Plan (NIMP) 2030 as a driver of Malaysian industry.
Its minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry also welcomed the New Investment Incentive Framework measures to be implemented in the third quarter of 2025 in addition to the allocation of RM200 million for the Strategic Joint Investment Fund (CoSIF2) and the NIMP Industrial Development Fund (NIDF3).
Other key measures include the allocation of RM1 billion investment from Khazanah Nasional Bhd (KNB) to strengthen Malaysia's position in the semiconductor sector which will continue to develop the industry and help seize opportunities in the global semiconductor industry, which is expected to be worth more than US$1 trillion by 2030.
"Regarding that, the expansion of tax incentives for integrated circuit design will also stimulate exports and increase complexity in the electrical and electronics (E&E) sector," he said in a statement today.
In addition to driving the country’s digitalisation, MITI welcomed the allocation of RM10 million to increase the use of artificial intelligence (AI) through collaboration with Malaysian academia and industry to strengthen digital innovation through the support of the National Artificial Intelligence Office (NAIO).
MITI said the allocation of RM10 million for the continuation of the CKD5 Electric Motorcycle Promotion Scheme which provides a rebate of up to RM2,400 will continue to be implemented by the Malaysia Automotive Robotics and IoT Institute (MARii) in its efforts to lead the electric vehicle (EV) industry.
"The use of EVs by Malaysians will also definitely be expanded by setting a price of less than RM100,000 for Malaysia's first EV being produced by Perodua," he said.
In order to foster the development of industrial talent, an allocation of RM200 million was given to KNB through the K-Youth Youth Development Program to produce 11,000 local talents for key sectors such as semiconductors.
"An additional allocation of RM20 million for MARA University of Technology (UiTM) to produce more E&E engineers, especially the participation of Bumiputera engineers in the semiconductor industry.
"In addition, special tax deductions for private higher education institutions (IPTS) and private skills training institutes that develop new courses in digital technology, AI, robotics, the Internet of Things (IoT), data science, fintech and sustainable technology," he said.
In terms of exports, Tengku Zafrul said Malaysian exporters can take advantage of the Exporter Sustainability Incentive Scheme managed by EXIM Bank through an allocation of RM750 million to support exports to the international market.
In addition, there is a grant of RM40 million through the Malaysian Foreign Trade Development Corporation (MATRADE) to explore new markets such as Africa, Latin America, and the Middle East.
"A sum of RM20 million has also been allocated to MATRADE to drive the development of the halal industry and new export opportunities for halal products and services to the international market," he added.
In the meantime, MITI is also looking positively at the merger of Halal Development Corporation Bhd (HDC) with MATRADE to coordinate and strengthen the promotion of halal trade.
"Next, for the implementation of productivity improvement initiatives, the Malaysian Productivity Corporation (MPC) will work closely with the Special Task Force on Agency Reform (STAR) to expand bureaucracy reform initiatives in all government agencies," he said.
-- BERNAMA
