To encourage private sector participation in national standardisation activities, the Government (with effective from assessment year 2004), offers a tax deduction for expenditure incurred by the private sector when participating in international standardization activities. Such participations must be verified and approved by the Department of Standards Malaysia (JSM), Ministry of International Trade and Industry (MITI).

To this effect, an amendment was also made to the Income Tax Act 1967 by introducing a provision of paragraph 34(6)(o) :

"(o) an amount equal to the expenditure incurred by a company in the relevant period for participating in international standardization activities approved by the Department of Standards Malaysia".