Forecast an annual growth rate of 4.5% to 5.5%, primarily driven by domestic demand and comparable to the average growth rate of 5.1% (2021 – 2025).

Private investment (6.0%) and consumption (5.5%) are set to grow annually through 2030. The key sectors of growth are expected to be manufacturing (5.8%) and services (5.2%).

RM611 billion in investments are planned for the country, with RM227 billion for economic sectors; GLICs and GLCs will contribute RM120 billion to this effort.

The government will develop an AI-driven ecosystem through the National AI Action Plan 2030 to drive talent development, research and technology commercialization to support AI adoption.

The government aims for RM1 trillion in electrical and electronics exports by 2030 (up from over RM600 billion in 2024), led by the National Semiconductor Strategy to attract multinationals, grow local firms, and boost investment, R&D, and skills.

To support the digital economy, the government plans 98% 5G coverage and digitising public services with MyDigital ID and 95% online access.

13MP aims for 35% renewables by 2030, including new electricity markets, energy storage, smart grids, green hydrogen, and possibly nuclear energy under NETR.

Infrastructure efforts focus on ports, highways, rail, and shifting cargo to rail.

By 2030, 700,000 manufacturing jobs and 500,000 digital economy jobs are expected, with foreign worker reliance reduced to 10% and wage harmonisation extended to graduates and semi-skilled workers.

Governance initiatives target tax base expansion, targeted subsidies, prudent debt management, lowering fiscal deficit below 3%, and keeping debt under 60% of GDP.

• Tax Exemption for Foreign Sourced Income (FSI) – Extended for four years (1 Jan 2027–31 Dec 2030) for foreign-sourced dividends received by Malaysian resident companies, Limited Liability Partnerships (LLPs), unit trusts, cooperative societies, and trust bodies.
• Tax Exemption on Sustainable and Responsible Investment (SRI) Sukuk and Bond Grant Scheme – The SRI Sukuk and Bond Grant Scheme will be revised to increase the grant for external review costs from 90% to 100% (capped at RM300,000), extend the income tax exemption on the grant for three more years (2026-2028), and expand eligible instruments to include sukuk and bonds aligned with the ASEAN Taxonomy for Sustainable Finance, applicable to new applications received by the SC between 1 Jan 2026 to 31 Dec 2028.
• Tax Deduction on Listing Expenses – Up to RM1.5 million deductions given for expenses incurred for listings on Bursa Malaysia’s Main, ACE, and LEAP markets expanded to MSMEs in energy and utilities, extended from YA 2026–2030.
• Introduction of Carbon Tax – A carbon tax will be introduced starting in 2026, with an initial focus on the iron, steel and energy sectors.
• Tax Incentive for Training in Artificial Intelligence (AI) – Micro, Small and Medium Enterprises (MSMEs) that incur expenses on AI training recognised by the MyMahir National AI Council for Industry (NAICI) will be eligible for a further tax deduction of 50% once every two (2) years for applications received by Talent Corporation Malaysia Berhad from 1 Jan 2026 to 31 Dec 2027.
• Green Technology Investment – 100% Green Investment Tax Allowance for locally sourced MyHIJAU Mark-certified green tech products.

• Income Tax on Profit Distributions Received by Individual Partners of LLPs – Profit distributions from LLPs exceeding RM100,000 annually will be subject to a 2% tax on chargeable income effective from the YA 2026. The partners must report these profit distributions in their annual income tax returns.
• Income Tax Exemption for Individual Shareholders for VCC – Exemption of income tax on dividends paid, credited or distributed to individual shareholders at the first level from YA 2025 to YA 2035.

• Stamp Duty Exemption on Employment Contract – Wage threshold for stamp duty exemption on employment contracts to be increased from RM300 to RM3,000 per month for employment contracts executed from 1 Jan 2026.
• Stamp Duty on Property Ownership by Non-Citizens – The stamp duty rate on real property transfer instruments by non-citizen individuals (excluding permanent residents) and foreign companies is proposed to rise from 4% to 8%, effective for residential property transfers executed from 1 Jan 2026.
• Stamp Duty Exemption on Contract Notes for Exchange Traded Funds Listed on Bursa Malaysia – The existing stamp duty exemption given on contract notes for Exchange Traded Funds (ETFs) transactions is extended for another three (3) years, from 1 Jan 2026 to 31 Dec 2028.

• Accelerated Capital Allowance (ACA) on Capital Expenditure for Plant, Machinery and ICT Equipment – Initial allowance of 20% and annual allowance of 40% be given to the following qualifying capital expenditure incurred from 11 Oct 2025 to 31 Dec 2026 on procurement of heavy machinery, plant and general machinery acquire from local manufacturers, purchase of ICT equipment and computer software, consultation, licensing and incidental fees for the development of customised computer software.
• Fast-Tracking of Resident Pass-Talent (RP-T) – Under the Fast Track Scheme, the RP-T facilitates the swift and seamless processing of talent brought in by strategic investors, including exemption from the standard three (3) years Employment Pass requirement.
• Digital Tax Stamps – The Royal Malaysia Customs Department (RMCD) will introduce digital tax stamps with enhanced security features to prevent counterfeiting and reduce tax leakages at national entry points, supported by the Centralised Screening Complex CCTV system.