What happened?

Malaysia's Budget 2027, presented on 9 October 2026, proposes a revised Global Services Hub (GSH) incentive and additional treasury relief. These are proposals, not established new tax entitlements. The official budget speech sets the policy direction; Appendix 23 supplies the proposed conditions.

Key details

Appendix 23 proposes 5% for new-company GSH income; existing approved GSH/Principal Hub companies adding services face 15% at or below a baseline averaging the preceding three years' income and 5% above it. Five-year awards could reach 30 years, conditionally. Qualifying activities and at least two additional activities are required. Cash pooling via onshore intermediaries could receive withholding exemption on interest paid to non-residents and 100% stamp-duty exemption for foreign-currency intercompany loans. A new company must not have previously carried out GSH or Principal Hub activities.

Who is affected?

GCC groups assessing an ASEAN management, shared-services or treasury location have a reason to revisit their shortlist. This is an analytical reader relevance, not a claim that Gulf ownership alone qualifies. Map each proposed function and income stream to the final eligibility rules.

Effective date / timing

The proposed application trigger is MIDA receipt from 1 January 2027. It is not a blanket commencement date for every company's tax benefit. Implementation and approval must be confirmed before relying on the revised package.