KUALA LUMPUR: The Ministry of Finance in collaboration with the Ministry of Investment, Trade and Industry and the Malaysian Investment Development Authority will announce the New Investment Incentive Framework (NIIF) by the middle of this year.
Deputy Investment, Trade, and Industry Minister Liew Chin Tong said the NIIF builds on the National Investment Aspiration introduced in 2022.
“This framework evaluates investments based on a six-point scorecard, focusing on factors like economic complexity, job creation, and wage growth. For instance, investments in less-developed states like Kelantan and Terengganu, or those prioritising environmental, social, and governance practices, will score higher,” he told reporters after officiating the opening of HSBC’s first wealth centre in Malaysia today.
Liew said the framework will shift the focus from only attracting investment volumes to assessing their outcomes. “We aim to generate better economic results, such as higher wages and stronger local supply chains, rather than just counting the ringgit value of investments.”
The government is also targeting foreign direct investments (FDI) that boost domestic direct investments (DDI), he said.
“Of course, we want FDI. I mean, we welcome FDI, we welcome domestic investment, but we also want to stress that we want more FDI that will generate stronger DDI. For instance, we want to have investments that create a strong local supply chain,” Liew explained.
As part of this shift, he said, the National Semiconductor Strategy sets goals, including developing 10 Malaysian semiconductor companies with annual revenues of US$1 billion (RM4.4 billion) each and another 100 companies with annual revenues of RM1 billion.
“These are aspirations, difficult. We understand this is difficult, but this is an opportune time for us to pursue these lofty ideas to position Malaysia as a high-value investment destination,” Liew said.
HSBC opened its flagship wealth centre in Malaysia at Menara IQ at the Tun Razak Exchange for HSBC’s Premier Elite and high-net-worth clients. HSBC said the opening aligns with the positive growth seen in Malaysia’s wealth market, as the country progresses towards achieving high-income status.
According to estimates, the value of liquid assets held by high-net-worth individuals in Malaysia in 2024 stood at US$176.62 billion and will increase at a compound annual growth rate of 6.1% from 2024 to 2028.
With Malaysia assuming the Asean chairmanship in 2025, the establishment of the flagship wealth centre also aligns with the region’s growing importance as a wealth producer, investment destination, and wealth management market, HSBC said.
The centre was officially opened by Liew and witnessed by HSBC Bank Malaysia CEO Datuk Omar Siddiq and international wealth and premier banking country head Linda Yip.
On the centre, Yip said Malaysia’s strong economic fundamentals provide a foundation for the growing wealth segment, which is important to the country’s aspirations to become a high-income nation. “Therefore, the timing is right for HSBC to open its flagship Wealth Centre in Malaysia.”
Yip said HSBC sees increasing demand for more sophisticated and specialised wealth solutions to help customers navigate life’s journey and achieve their goals.
HSBC also has wealth centres in mainland China, Hong Kong, Singapore, and Taiwan.
