The Malaysian government’s decision not to impose capital gains tax (CGT) and taxes on foreign-sourced income (FSI) on unit trusts aims to attract more investments by both foreign investors and Malaysians. Second Finance Minister Datuk Seri Amir Hamzah Azizan announced the exemptions until 2026 for FSI and 2028 for CGT. This move follows comprehensive feedback and concerns raised, particularly regarding the impact on unit trusts. Economists view these exemptions as strategies to stimulate economic growth and encourage domestic investment. Learn more about the implications of these exemptions from Renganathan Kannan our Executive Director.