MALAYSIA: Seeking to spur further Islamic finance innovations, the 2025 Malaysian Budget allots RM100 million (US$23.21 million) in matching funds to phase out dependency on Shariah compliance products that are similar to conventional counterparts. Another RM10 million is allotted to seek enhancements from International Islamic University of Malaysia and INCEIF University. Income tax exemption for 2025 to 2028 will be granted to commercial entities conducting Islamic financial activities, particularly in digital technology, at the Labuan International Business and Financial Centre.
Other incentives announced include a New Investment Incentive Framework 2025, RM300 million (US$69.64 million) to support venture capital fund managers in sovereign fund Khazanah Nasional’s Fund of Funds, RM1 billion (US$232.13 million) over four years to be disbursed by Dana Perintis managed by national Retirement Fund (KWAP) to accelerate development in the local startup ecosystem and RM1 billion till 2026 with the Green Technology Financing Scheme.
