Kuala lumpur: The government has unveiled a comprehensive strategy aimed at mitigating the effects of US retaliatory tariffs on Malaysia, ensuring that foreign direct investment (FDI) remains robust and the national economy is shielded from potential adverse impacts, as announced by the Ministry of Investment, Trade and Industry (MITI).

According to BERNAMA News Agency, MITI has outlined several proactive measures through its agency, the Malaysian Investment Development Authority (MIDA). These measures include upgrading the industrial infrastructure landscape, bolstering local supply chains and ecosystems, and improving the ease of doing business to attract more investment into Malaysia.

Furthermore, the government is focusing on talent and workforce development in high-tech sectors, intensifying research activities, and introducing an Automation Capital Allowance to promote the adoption of automation and Industry 4.0 technologies in the manufacturing and services sectors. Additional investment incentives comprise a carbon tax for sectors like iron and steel, reinvestment incentives under the New Industrial Masterplan (NIMP) 2030, and the Investment Tax Allowance.

MITI's response came in reaction to Senator Robert Lau Hui Yew's inquiry regarding the trade war's impact on US investments and the government's strategies to minimize the economic fallout.

The ministry also emphasized efforts to streamline the investment process by providing project facilitation services and information through platforms like the MySite Selection portal and the Malaysia Investment Facilitation Centre.

Additionally, MITI continues to work on expanding market access for Malaysian goods and services, strengthening trade relations with existing markets, and leveraging 18 free trade agreements to attract foreign investment.

MITI reaffirmed its commitment to bolstering international trade and FDI in alignment with the 13th Malaysia Plan (13MP) and related policies such as the New Industrial Masterplan (NIMP 2030), the National Trade Action Plan, the National Semiconductor Strategy, Industry 4.0, and the Green Investment Strategy (GIS).