Malaysia offers one of the most attractive incentives packages in the ASEAN region. Tax incentives and other facilities for the manufacturing sector are provided for in the Promotion of Investment Act 1986, Income Tax Act 1967, Custom Act 1967, Sales Tax Act 1972 and Excise Act 1976.

Aside from the Federal Government's incentives, Sarawak on its own, offers special investment incentives. These include the competitive price of industrial land, generous rebate on the price of industrial land and flexible terms of payment with low initial down payment. Foreign companies may also own industrial land.