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 Minister for Investment, Trade and Industry Liew Chin Tong said the NIIF builds on the national investment aspiration launched in 2022.
“This framework evaluates investments based on a six-point scorecard focusing on factors such as economic complexity, job creation and wage growth. For example, investments in less-developed states like Kelantan and Terengganu, or states that prioritize environmental, social and governance practices, will score higher,” he told reporters after the opening of HSBC’s first wealth center in Malaysia today.
Lew said the framework will focus only on attracting investment volumes and assessing their outcomes. “Our goal is to generate better economic outcomes, such as higher wages and stronger local supply chains, rather than simply calculating the ringgit value of investments.”
He said the government is also targeting foreign direct investment (FDI) which promotes domestic direct investment (DDI).
“Of course, we want FDI. I mean, we welcome FDI, we welcome domestic investment, but we also want to emphasize that we want more FDI which will generate stronger DDI. For example, we want investments that create a strong local supply chain,” Lew explained.
As part of this transformation, he said, the National Semiconductor Strategy sets targets including developing 10 Malaysian semiconductor companies with annual revenues of US$1 billion (RM4.4 billion) and another 100 with annual revenues of RM1 billion. Involved in developing companies.
“These are aspirations, difficult ones. We understand it is difficult, but this is an opportune time to pursue these lofty ideas to position Malaysia as a high-value investment destination,” Liew said.
HSBC opened its flagship wealth center at Menara IQ at the Tun Razak Exchange in Malaysia for HSBC’s Premier Elite and high-net-worth clients. HSBC said the launch is in line with the positive growth seen in Malaysia’s wealth market as the country moves towards achieving high-income status.
According to estimates, the value of liquid assets held by high net worth individuals in Malaysia stood at US$176.62 billion in 2024 and will grow at a compound annual growth rate of 6.1% from 2024 to 2028.
With Malaysia taking over the ASEAN chairmanship in 2025, the establishment of the major wealth center also aligns with the region’s growing importance as a wealth producer, investment destination and wealth management market, HSBC said.
The center was officially opened by Lew and witnessed by Datuk Omar Siddiq, CEO of HSBC Bank Malaysia, and Linda Yip, head of international wealth and country banking.
At the centre, Yip said Malaysia’s strong economic fundamentals provide a foundation for a growing wealth segment, which is vital to the country’s aspirations to become a high-income country. “Therefore, the time is right for HSBC to open its flagship wealth center in Malaysia.”
Yip said HSBC is seeing increasing demand for more sophisticated and specialized wealth solutions to help customers navigate life’s journey and achieve their goals.
HSBC also has wealth centers in mainland China, Hong Kong, Singapore and Taiwan.
