Malaysia Industry Policy

2026-06-04
Category: Government
Frequency: Daily

Explore key sectors, investment incentives, and regulatory frameworks shaping Malaysia's industrial landscape

Explore key sectors, investment incentives, and regulatory frameworks shaping Malaysia's industrial landscape.

Date Category Details
4 Jun, 2026 Financial The Securities Commission Malaysia has issued a new Practice Note requiring trust companies that operate investment-style trust structures involving capital market products to obtain a Capital Markets Services Licence (CMSL), unless such activities are solely incidental to a conventional trust business focused on estate administration or succession planning. Effective May 22, the guidance clarifies that trust companies offering investment-driven structures with projected returns and primary exposure to capital market products fall under securities regulation, while those investing only in non-capital market assets such as fixed deposits, real estate, investment-linked insurance and gold remain outside the Securities Commission’s licensing framework.
1 Jun, 2026 Budget The federal government has increased the interim special grant for Sabah to RM1.5 billion in 2026 from RM600 million previously, as a temporary measure pending the finalisation of Sabah’s 40% revenue entitlement under the Malaysia Agreement 1963 (MA63). Prime Minister Datuk Seri Anwar Ibrahim said the final mechanism and amount are still being negotiated between federal and state authorities, while reaffirming that total federal financial support to Sabah includes higher development spending and rising subsidy allocations.
26 May, 2026 Precious Metal Malaysia has imposed a 10% import duty on gold bar shipments,
13 May, 2026 Property The Real Estate and Housing Developers’ Association (Rehda) Malaysia has expressed support for the proposed introduction of an Option to Purchase (OTP) mechanism under a new Real Property Development Act that will replace the Housing Development (Control and Licensing) Act 1966. The proposal was announced by Housing and Local Government Minister Nga Kor Ming, with Rehda stating its general support despite details of the mechanism not yet being finalised. Under the proposed OTP framework, both property buyers and developers would be allowed to withdraw from a transaction before a sale and purchase agreement is signed. The mechanism is intended to give buyers flexibility to reconsider their purchase decisions if circumstances change, while also allowing developers to exit projects that may no longer be commercially or financially viable. Rehda noted that developers could also use the system to assess genuine market demand before committing to binding agreements and construction.
6 May, 2026 Automotive Ministry of Investment, Trade and Industry Malaysia will enforce new rules from 1 July 2026 for fully imported electric vehicles (CBU EVs), requiring a minimum cost, insurance and freight (CIF) value of RM200,000 and a revised minimum motor power of 180kW, down from 200kW previously. The changes follow the end of a four-year franchise approved permit exemption period on 31 December 2025, which had allowed EV imports under more relaxed conditions, including a lower price threshold introduced in 2022. After the exemption ends, imported EVs will again be subject to import duty, excise duty and 10% sales and service tax on top of CIF value, increasing retail prices. Remaining stock, including units already in transit or at ports, can still be cleared under the previous exemption terms until fully sold.
4 May, 2026 Oil & Gas The Malaysian government will begin producing B15 biodiesel through 19 licensed plants starting 1 June 2026, as part of efforts to reduce diesel costs and expand the use of palm oil-based fuel. The rollout will be implemented in stages, with plans to progress from B15 to B20 and potentially up to B50 within two to three years, while managing crude palm oil price impacts on production costs. The initiative is also positioned to support the rural economy by linking palm oil production with energy development, with agencies such as Felcra, Ketengah, and Kesedar expected to play a role in its expansion.
30 Apr, 2026 Transport Malaysia and Singapore will expand their cross-border licensed taxi services from 4 May 2026 under the Cross-Border Taxi Scheme to improve travel flexibility and connectivity between the two countries. Licensed taxis will be allowed to drop off passengers anywhere in Singapore and in designated areas in Malaysia, including Johor Bahru, Iskandar Puteri, Forest City, Kulai, and Senai. Both countries will also increase the quota by 100 taxis each, raising the total from 200 to 300 per side.
10 Apr, 2026 Semiconductor Malaysia has launched the MyChipStart programme to accelerate the development of local integrated circuit (IC) design companies as part of efforts to move the country up the semiconductor value chain. The initiative is anchored under the National Industrial Master Plan 2030 and the National Semiconductor Strategy, and focuses on strengthening upstream activities such as chip and IC design beyond Malaysia’s traditional strengths in assembly, testing, and packaging. The programme will be implemented under the 13th Malaysia Plan with an annual allocation of about RM17 million, supporting local firms from ideation to validation and testing stages. It also provides access to expensive electronic design automation tools and shared facilities at Penang Silicon Design @5km+ in Bayan Lepas, where resources will be centrally shared rather than individually owned, with firms required to pass evaluation criteria including proof of concept and market viability.
10 Apr, 2026 Construction The government is considering a proposal to activate the variation-of-price (VOP) mechanism for construction materials due to rising costs linked to the global energy crisis. Contractors have reported material price increases of about 20% to 30%, and the proposal will be submitted to the Finance Ministry and the Economy Ministry for approval after reviewing official data from the Department of Statistics Malaysia. Deputy Works Minister Ahmad Maslan said contractors may also request some project time extensions due to higher costs, but full work stoppages will not be allowed under contract rules. Limited slowdown of work may be considered depending on conditions, but projects must continue operating.
28 Mar, 2026 Transport Road Transport Department Malaysia introduced new guidelines for driving institutes under the Road Transport Act 1987 and Motor Vehicles (Driving Schools) Rules 1992, allowing training circuits to be built in multi-storey buildings, warehouses and commercial premises to address land constraints in urban areas. These facilities, limited to cars and motorcycles, must meet strict safety and structural requirements. The guidelines also remove the minimum distance between institutes and minimum land size requirements, with approvals now based on capacity and readiness of existing operators. Driving institutes are also no longer restricted by geographic zones and can enrol candidates nationwide, while applications are open for proposals including the conversion of unused land, buildings and shopping malls into training centres.