Jakarta:Budget 2027 includes semiconductor-related initiatives aimed at advancing Malaysia's position in the global semiconductor value chain. These initiatives focus on enhancing innovation, intellectual property creation, and developing high-value technologies, as stated by the Malaysia Semiconductor Industry Association (MSIA).

According to BERNAMA News Agency, these efforts align with the National Semiconductor Strategy, which seeks to transition Malaysia from back-end activities such as assembly and testing to higher-value front-end segments, including integrated circuit (IC) design and wafer fabrication. The President of MSIA, Datuk Seri Wong Siew Hai, emphasized that these measures would support the commercialization of innovations in areas like IC design and advanced packaging, enabling Malaysian companies to strengthen their technological capabilities.

Wong also highlighted the need for policies to attract top global talent to support innovation and development in the country. Kearney Malaysia's country head, Keat Yap, added that support for IC design companies should include funding for capital-intensive stages such as prototype fabrication and testing, ensuring alignment with industry demand.

Yap proposed that enhancing the global services hub incentive by allowing extensions in five-year increments, up to 30 years, could provide long-term certainty for multinational companies. This could stimulate the local economy by creating demand for Malaysian suppliers and specialized service providers.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim presented Budget 2027, which totals RM459.8 billion, including federal operating and development expenditures. The budget outlines semiconductor-related initiatives to attract global investments to the Kulim Hi-Tech Park and the creation of a RM100 million Strategic Investment Fund by Khazanah Nasional Bhd and InvestPenang.