'Global minimum tax shifts MNCs' investment focus to skilled talent'
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The implementation of the global minimum tax is prompting multinational companies (MNCs) to shift their focus from tax incentives to attracting skilled talent, according to the Malaysian Investment Development Authority (Mida). Malaysia and its regional peers have adopted the new tax policy, which mandates MNCs to pay a minimum effective tax rate of 15%, regardless of the location of their investments.
Tengku Datuk Seri Zafrul Abdul Aziz, Mida chairman, emphasized during the Tax Budget and Me 2027 conference that talent investment is now the primary driver for MNCs choosing Malaysia over other destinations. He explained that investors are not only investing in Malaysia's infrastructure, such as semiconductor plants and chip design centers, but also in the country's human capital.
Mida chairman stressed that these investors expect to see the promised benefits materialize, like clean financial practices, earned incentives, and adherence to tax obligations. Furthermore, Tengku Zafrul highlighted that the 2027 Budget reflected the Malaysian government's commitment to progressive taxation, providing relief for the middle class, lower taxes for small businesses, slightly higher rates for high earners, and additional assistance for those repaying their National Higher Education Fund Corp loans.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
