The Malaysian government has released the Guideline for the Application of Tax Incentive for Smart Logistics Complex (SLC) on 15 January 2025, setting out the eligibility and requirements to qualify for the tax incentive as announced in the Budget 2025. In this summary, we break down the tax incentive, who will qualify, and what are the criteria and conditions in order to benefit from this Smart Logistics Complex tax incentive for multinational corporations (MNCs) and local players.[1]

Please feel free to contact us at Alvarez & Marsal Tax in Southeast Asia for in-depth discussions on how we can support you.

Malaysia’s logistics market offers strong investment potential, backed by a strategic location, well-developed infrastructure, and government-driven initiatives to enhance industry competitiveness. The introduction of the Smart Logistics Complex tax incentive further strengthens Malaysia’s appeal to investors by encouraging capital inflows into high-value logistics technologies such as automation, artificial intelligence (AI), and the Internet of Things (IoT). These advancements are crucial for propelling the sector toward Industry 4.0, improving supply chain efficiency, and reinforcing Malaysia’s position as a leading regional logistics hub.

The Smart Logistics Complex tax incentive is designed to generate spillover advantages for local industry players. By attracting multinational corporations (MNCs) and large domestic firms, the incentive stimulates demand for locally sourced raw materials, components and, notably, services. The incentive aligns with Malaysia’s broader investment objectives by reinforcing its position as a regional logistics hub and supporting the country’s long-term economic transformation.

How Alvarez & Marsal Tax Can Help

Alvarez & Marsal Tax provides expert guidance to help businesses evaluate and capitalize on available tax incentives. With a team of seasoned professionals, we offer practical insights to assess, prepare and apply for tax incentives. From strategic analysis and regulatory navigation to ensuring compliance, we are here to support your business every step of the way.

For more information, please contact us at Alvarez & Marsal Tax in Southeast Asia to help navigate your organization’s interest in tax incentives.

[1] Malaysian Investment Development Authority, “Guideline for the Application of Tax Incentive for Smart Logistics Complex,” January 15, 2025, https://www.mida.gov.my/wp-content/uploads/2025/02/Smart-Logistics-Complex-Incentive-SLC.pdf