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GREEN TECHNOLOGY & SUSTAINABILITY

Malaysia offers a comprehensive suite of incentives supporting companies transitioning to cleaner technologies, improving energy efficiency and investing in sustainable practices. These programmes include tax allowances for green technology assets, tax exemptions for certified green service providers, rebates for energy‑efficient equipment, dedicated research funding and financing facilities for high‑tech and low‑carbon initiatives.

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Programmes

Green Investment Tax Allowance (GITA)

Type:
Tax Allowance

Agency:
MIDA / MDEC

Target Group:
SME, Mid‑Tier, Large

Description:
A tax allowance on qualifying capital expenditure for green technology assets or projects, offset against up to 70% of statutory income. Covers GITA Project (Business), GITA Asset (Own Consumption), and GITA Solar Leasing, including expansions for green hydrogen and EV charging stations.

Sector:
Green technology assets

Eligibility:
SME, Mid‑Tier, Large companies

Amount / Benefit:
100% ITA on qualifying capital expenditure, claimable for up to 5 years (valid until 31 December 2026)

How to Apply:
Apply through MGTC; assets or projects must be certified by MGTC (MyHIJAU)

Green Income Tax Exemption (GITE)

Type:
Tax Exemption

Agency:
MIDA / MDEC

Target Group:
SME, Mid‑Tier, Large

Description:
An income tax exemption for companies providing qualifying green technology services or projects listed under the MyHIJAU Directory, including GITE Solar Leasing.

Sector:
Green technology services and projects

Eligibility:
SME, Mid‑Tier, Large companies

Amount / Benefit:
70% income tax exemption for up to 5 years (valid until 31 December 2026)

How to Apply:
Apply through MGTC.

NUR@PETRA (e‑Rebate)

Type:
Rebate

Agency:
PETRA / SEDA

Target Group:
Micro, SME, Mid‑Tier

Description:
An e‑rebate programme for the purchase of energy‑efficient electrical appliances such as air conditioners and refrigerators, extended to MSMEs and commercial or industrial sectors.

Sector:
Energy efficiency

Eligibility:
Micro enterprises, SMEs, Mid‑Tier companies

Amount / Benefit:
Up to RM400 per appliance

How to Apply:
Apply via the SEDA website (www.seda.gov.my/nur).

AIBE Fund

Type:
Research Fund / Grant

Agency:
Ministry of PETRA

Target Group:
Research Institutions

Description:
A grant administered by the Ministry of PETRA, funded by TNB and independent power producers (IPPs), to support research related to renewable energy, energy efficiency, rural electrification, and energy transition. Open to government agencies, research institutions, universities, private sector companies, and foreign companies partnered with a Malaysian IPP or government entity.

Sector:
Energy / Renewable Energy / R&D

Eligibility:
Research institutions, SMEs, Mid‑Tier, Large companies, Foreign companies (with local IPP or government partner)

Amount / Benefit:
Varies by project (e.g. RM20 million for RE Chair programme; RM50 million for NUR@PETRA); annual application window

How to Apply:
Submit proposals via the Ministry of PETRA portal during the annual application window; shortlisted applicants present to the PETRA Evaluation Committee.

High‑Tech and Green Facility (HTG)

Type:
Financing

Agency:
Bank Negara Malaysia

Target Group:
SME

Description:
A financing facility for companies adopting green technology or high‑tech solutions.

Sector:
Green technology, High‑tech

Eligibility:
SMEs, Mid‑Tier companies

Amount / Benefit:
Part of RM3.8 billion allocation by Bank Negara Malaysia

How to Apply:
Apply through participating banks.

Reinvestment Allowance (RA)

Type:
Tax Allowance

Agency:
MIDA / LHDN

Target Group:
SME

Description:
A tax allowance on qualifying capital expenditure incurred for reinvestment in expansion, modernisation, automation, or diversification activities.

Sector:
Manufacturing, Agriculture

Eligibility:
SMEs, Mid‑Tier, Large companies

Amount / Benefit:
60% QCE offset against 70% of statutory income; 15‑year period

How to Apply:
Apply through MIDA; company must have been in operation for at least 36 months.

New Incentive Framework (NIF)

Type:
Tax Incentive (Outcome‑Based)

Agency:
MIDA / MITI

Target Group:
SME

Description:
Malaysia’s flagship investment incentive framework replacing Pioneer Status and Investment Tax Allowance (ITA) under PIA 1986. Outcome‑based assessment using the NIA Scorecard, focusing on quality investment, technology transfer, supply chain resilience, and sustainability. Offers either statutory tax rate reduction or investment allowance based on performance outcomes.

Sector:
Manufacturing (from 1 March 2026), Services (from Q2 2026)

Eligibility:
SMEs, Mid‑Tier, Large companies

Amount / Benefit:
Tiered incentives including reduced corporate tax rate or ITA (capital expenditure allowance), with quantum determined by NIA scorecard assessment

How to Apply:
Apply via the NIA Invest Malaysia portal; refer to NIF Implementation Guidelines on MIDA and MITI websites.