Malaysia Industry Policy

2026-07-16
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
16 Jul, 2026 Renewable Energy Malaysia's Large Scale Solar 6 (LSS6) programme will offer 2,500MW of solar generation capacity, 1,250MW of battery energy storage system (BESS) capacity and an additional 150MW of solar capacity reserved for Bumiputera companies, with projects targeted to achieve full commercial operation by 31 December 2029. The programme is expected to attract RM13 billion to RM15 billion in private investment, create 15,000 to 20,000 jobs during development and construction, and reduce carbon dioxide emissions by approximately 2.6 million tonnes annually through three competitive bidding packages focused on high-demand regions in Peninsular Malaysia.
29 Jun, 2026 Pharmaceutical Ministry of Health Malaysia will enforce mandatory reporting from Jul. 1, 2026 requiring product registration holders to notify potential medicine supply disruptions at least six months in advance or immediately upon unexpected disruption, with the National Pharmaceutical Regulatory Agency publishing the data in a public Medicine Shortage and Discontinuation Database. The policy aims to strengthen imported medicine supply chain stability through early warning disclosure, supplier diversification, and enhanced logistics and contingency stock management, particularly for Sabah’s healthcare system.
29 Jun, 2026 Transport Ministry of Transport Malaysia will roll out a phased telematics system initiative for commercial vehicles from 2026 to 2028, starting with a voluntary adoption and industry advocacy phase (2026–2027), followed by development of a centralised Commercial Vehicle Driver Database and telematics data integration (2027–2028), and a potential mandatory requirement for licensing from 2028 subject to readiness. The system, involving GPS, sensors and real-time behavioural monitoring such as speed, fatigue and alcohol/drug detection, will be offered on a subscription basis at RM60–RM300 per vehicle per month, with five approved pilot providers including Theta Edge Bhd, and is intended to strengthen enforcement and road safety monitoring through integration with JPJ, PDRM and MIROS.
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.