Incentives
Incentives for New Investments
The direct tax incentives grant partial or total relief from income tax payment for a specified period, while indirect tax incentives are in the form of exemptions from import duty and excise duty.
To support and promote high-value investments in Malaysia, the Malaysian Investment Development Authority (MIDA) offers two principal tax incentives: Pioneer Status (PS) and the Investment Tax Allowance (ITA). These incentives are designed to attract both local and foreign investors to participate in strategic and priority sectors of the economy.
For more information, please visit https://www.mida.gov.my/setting-up-content/incentives/
These are the 2 Major Tax Incentives:
Pioneer Status is a tax incentive that offers eligible companies a partial income tax exemption of up to 70% for a period of five years. This incentive is given to companies engaged in promoted activities or producing promoted products that contribute to Malaysia’s industrial and economic development. The exemption allows businesses to reinvest more capital into growth and operations.
Investment Tax Allowance provides an alternative tax benefit to companies that may not qualify for Pioneer Status. Under ITA, eligible companies can claim an allowance of up to 60% on qualifying capital expenditures for a period of five years. This allowance can be offset against 70% of the statutory income, helping companies reduce their taxable income while encouraging investment in machinery, equipment, and facilities.
MM2H and PVIP
Malaysia My Second Home (MM2H) – Sabah Programme
The Sabah-MM2H programme offers long-term residency for eligible foreigners seeking a second home in a peaceful and nature-rich destination. With a 10-year renewable visa, attractive fixed deposit schemes, and the ability to bring dependents, the programme supports lifestyle-based migration. Participants are required to invest in high-rise residential property in Sabah and benefit from flexibility in family inclusion, healthcare, and education access.
For more information, please visit https://sabahmm2h.sabahtourism.com
Premium Visa Programme (PVIP) – Sabah
The PVIP Sabah is an exclusive residency-by-investment programme targeting global high-net-worth individuals. With a projected RM100 million in state revenue and RM1 billion in property investments, it offers a 20-year residency, minimal restrictions on property ownership, and the ability to invest and create jobs in Sabah. Tailored for investors, this initiative positions Sabah as a premium destination for long-term settlement and capital inflow.
For more information, please visit https://www.pvip.gov.my
