Putrajaya: According to Economy Minister Datuk Seri Rafizi Ramli, a significant simplification of the country’s research and development (R&D) tax incentives will be included in the 13th Malaysia Plan (13MP), alongside reforms to the subsidy system. It is said that there are plans to do so.
He said the changes aim to address long-standing concerns about the complexity and accessibility of existing mechanisms to support innovation and business growth.
“The new R&D tax incentives will streamline the process and remove unnecessary bureaucratic hurdles that have prevented businesses, especially small and medium-sized enterprises, from fully benefiting from such programs.
“The focus is to make the system user-friendly and make it easy for businesses to understand and claim these incentives,” Rafizi said during a 13MP engagement session with industry stakeholders today. Ta.
In addition to reforming the tax incentives system, Rafizi revealed that the plan also includes a comprehensive review of the subsidy system.
“This initiative aims to reduce the layers of complexity that currently prevent businesses from accessing vital funding. “By simplifying the application process and eligibility criteria, the government aims to make it more inclusive and efficient. We aim to facilitate the allocation of resources.
Rafizi said the reforms are part of a broader strategy to strengthen the country’s competitiveness in global markets while ensuring effective use of public resources.
“The new measures include clearer guidelines and improved communication with stakeholders to ensure that businesses understand how to operate the latest systems.The goal is to ensure that these “It’s about building trust and confidence among businesses that incentives and grants can provide meaningful support,” he explained.
Rafiji said businesses and industry groups have been advocating for these reforms for years, pointing to barriers posed by overly complex processes. “We hope these updates will reduce frustration and encourage broader participation across sectors.”
The government will soon announce details about the implementation schedule and specific changes to R&D tax incentives and grants.
Rafizi pointed out that despite allocating more than RM1 billion annually for research and development, there is still a significant gap in converting research into market-ready innovations.
He shared that the Ministry, alongside the Ministry of Investment, Trade and Industry, is working on a comprehensive plan to strengthen the commercialization of research and development and foster cooperation between academia, public institutions and the private sector. .
“This initiative, which will be submitted to Cabinet in the coming months, will play a key role in positioning Malaysia as a leader in high-value industries and global competitiveness,” he added.
Additionally, Rafizi said the 13th MP will not only focus on reforming the R&D tax system and subsidy system, but will also address broader institutional challenges to strengthen the country’s economic structure.
“We are taking a sectoral approach to economic reforms, including an energy transition plan under the National Energy Policy. These reforms will support Malaysia’s economic growth and ability to adapt to global changes. The aim is to build a strong foundation for
The Minister said optimizing Malaysia’s supply chain and logistics system is one of the key focuses, adding that inefficiencies in the supply chain, such as high logistics costs when moving goods between regions unnecessarily, are He pointed out that this was hindering economic efficiency.
“The government plans to deliver a regional distribution system that minimizes costs and improves pricing transparency by investing in infrastructure, data systems and regulatory frameworks. The initiative is part of a broader strategy to streamline the movement of goods and ensure supply chain consistency, he added.
Rafiji also said small and medium-sized enterprises face challenges in scaling up and integrating into larger value chains.
“Efforts to strengthen the SME sector will focus on addressing structural barriers and creating opportunities for growth, enabling SMEs to continue to drive innovation and economic resilience,” he said. he added.