Budget 2027: Govt rolls out six initiatives to attract global firms, skilled talent

KUALA LUMPUR, Oct 9 — Prime Minister Datuk Seri Anwar Ibrahim said today the federal government will roll out several initiatives in 2027 to make it easier for global companies to operate in Malaysia and attract top skilled talent.

Tabling Budget 2027, Anwar outlined six initiatives to improve Malaysia’s business environment and competitiveness, amid renewed investor confidence in recent years.

“Reformasi Madani has helped restore investor confidence, with Malaysia rising to 15th place in the World Competitiveness Index in two years.

“Malaysia is also ranked as the top destination for digital nomads in the Rumavi Global Relocation Index 2026,” he told the Dewan Rakyat here.

Among other measures, Anwar said the existing Global Services Hub (GSH) incentive will be further improved starting January 2027.

GSH is a Malaysian government tax and business initiative administered by the Malaysian Investment Development Authority (Mida).

“New companies under the GSH incentive will enjoy a special five per cent tax rate on income from GSH activities.

“A five per cent tax rate on income exceeding the baseline income of existing Principal Hub or GSH companies will also be provided.

“The GSH incentive period will also be extended in five-year increments, up to a maximum of 30 years,” he said.

GSH companies managing treasury and fund activities will also be exempted from withholding tax on interest payments and stamp duty on intercompany loan agreements, which also extends to activities under the Johor-Singapore Special Economic Zone (JS-SEZ) package.

Anwar said existing DE Rantau Nomad Pass — Malaysia’s official long-stay digital nomad visa — holders who had reached the two-year limit will be allowed to stay and work remotely in Malaysia for an additional two years, subject to conditions.

Separately, spouses of expatriates holding Category I Employment Passes and Dependant Passes will also be allowed to work in Malaysia, subject to stipulated conditions beginning next year.

“This is aimed at ensuring Malaysia remains an attractive destination for global talent without requiring their spouses to sacrifice their careers,” he said.

Anwar also announced the introduction of the Malaysian Asean Business Entity (MyABE) status to help Malaysian companies develop across Asean.

“The Securities Commission, in collaboration with TalentCorp, will facilitate preliminary Employment Pass applications for listed MyABE companies, with a target processing time of five working days,” he said.

He said the government was also reviewing the Reinvestment Allowance including its eligibility criteria and incentive structure, to make it more targeted and improve industrial competitiveness.

The Reinvestment Allowance is an incentive provided to encourage reinvestment or continued investment by foreign and domestic investors.

Lastly, Anwar said the Securities Commission and Hong Kong regulators would cooperate to facilitate dual listings by Malaysian companies in both markets, providing matching grants to cover listing costs.