Tax in Motion Issue 3/2026
30 Jan 2026
New Incentive Framework
Malaysia’s New Incentive Framework (NIF) marks a major reform of the nation’s investment incentive regime. First introduced under Budget 2025, it takes a tiered and outcome‑based approach designed to replace the traditional promoted‑list approach under the Promotion of Investments Act 1986 (PIA 1986).
The NIF is anchored on the National Investment Aspirations (NIA) and aligned closely with the New Industrial Master Plan (NIMP) 2030, ensuring that incentives support measurable, strategic economic outcomes.
The NIF is being implemented in phases, beginning with the manufacturing sector from 1 March 2026, followed by the services sector in Q2 of 2026. Following this, the following has been released:
- FAQ about the New Incentive Framework
- Guidelines on Tax Incentives for New Investment in the Manufacturing Sector under the New Incentive Framework
With this transition, new tax incentive applications under the PIA 1986 will no longer be accepted after 28 February 2026 (3pm), effectively phasing out the PIA for new applications while maintaining it solely for existing approved incentives.
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Tax in Motion Issue 3/2026
Tax in Motion is a newsletter issued by PricewaterhouseCoopers Taxation Services Sdn Bhd.Whilst every care has been taken in compiling this newsletter, we make no representations orwarranty (expressed or implied) about the accuracy, suitability, reliability or completeness of theinformation for any purpose. PricewaterhouseCoopers Taxation Services Sdn Bhd, its employeesand agents accept no liability, and disclaim all responsibility, for the consequences of anyoneacting, or refraining to act, in reliance on the information contained in this publication or for anydecision based on it. Recipients should not act upon it without seeking specific professionaladvice tailored to your circumstances, requirements or needs.
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