Kuala lumpur: The Malaysia Semiconductor Industry Association (MSIA) hopes Budget 2026 will include a strategic announcement to fund key initiatives that support the ‘Made by Malaysia’ agenda. MSIA president Datuk Seri Wong Siew Hai said the strategy aligns with strengthening the country’s competitive edge and advancing the goals of the National Semiconductor Strategy (NSS).

According to BERNAMA News Agency, Wong emphasized that the government should continue enhancing the ease of doing business by ensuring faster approvals for investment incentives, updating the Licensed Manufacturing Warehouse (LMW) framework to include R and D and design firms, and facilitating material movement between different entities within LMWs and Free Industrial Zones (FIZs).

Wong said MSIA is seeking relief on stamp duty, including exemptions for employment and intercompany contracts, deferments, and clearer guidelines. The association is also calling for Sales and Service Tax (SST) relief through broader business-to-business exemptions, support for capital-intensive industries, and investment-linked incentives for energy efficiency and automation.

He said MSIA hopes that the government will introduce the policies to diversify export markets, grants for supply chain resilience, and the introduction of a qualified refundable tax credit to offset the impact of the global minimum tax and sustain Malaysia’s investment competitiveness.

Wong stated that the industry requires special government funding to improve Science, Technology, Engineering, and Mathematics (STEM) and artificial intelligence (AI) education in schools and universities. MSIA also recommends focusing resources on public universities as semiconductor centres of excellence, to ensure resources are not spread too thin and are better utilized to support the industry.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table Budget 2026 in Parliament on Oct 10.