Active but limitedTax IncentiveGated / conditional
MIDA — Outcome-Based Incentive Framework (NIIF)
Tax Incentive — Performance-Linked
Outcome-based tax incentive tied to binding commitments on jobs, R&D spend and exports; negotiated individually for strategic investments.
Active but limited — NIIF (MIDA Outcome-Based Incentive) is operational since Q3 2025 per Budget 2025 announcement. Apply via MIDA. However, deals are negotiated individually for large-scale strategic investments; not a standard open-apply grant scheme. Semiconductor explicitly a focus sector.
Financial Parameters
- Total pool / mandate
- N/A (tax saving unlocked upon delivery)
- Ticket size
- Minimum tax benefit unlocked upon delivery of minimum outcome commitments – Full tax benefit unlocked upon full delivery of committed outcomes (jobs, R&D spend, exports)
- Cost of capital
- Tax relief proportional to outcomes delivered; no fixed upfront rate — incentives realised only when commitments met
- Tenure
- Outcome measurement: typically 3–5 years; incentive claim period following
- Shariah-compliant
- Both
Focus Areas
- Value chain segments
- IC Design & Embedded SystemsFabrication / FoundryAdvanced Packaging / OSATEquipment Manufacturing / Automation
- Use of proceeds
- CapExR&D
- Company stage
- Growth-stageEstablished / Mid-tier
Eligibility
- Ownership requirement
- Foreign and Malaysian; incorporated in Malaysia; engaged in NIMP 2030 strategic sectors
Growth-stage to established; must commit to binding outcome targets (headcount, R&D %, exports)
Application
- Application cycle
- Full rollout for manufacturing: early 2026; services: Q2 2026; rolling thereafter
Background
- Example recipients
- Companies under NSS pledging specific semiconductor employment & R&D targets
- Notes / source
- Budget 2025 announcement; full implementation 2026. Source: MIDA 2025, Malaysian Reserve