Miti pushes Budget 2027 funding to boost semiconductor sector

GEORGE TOWN — The Ministry of Investment, Trade and Industry (Miti) is pressing for dedicated funding in the 2027 Budget to accelerate growth in Malaysia's semiconductor sector, a key pillar of the country's economic diversification strategy.

The ministry has tabled 11 initiatives to the Finance Ministry targeting increased investment in semiconductor manufacturing, research and development, and talent development. The proposals seek to position Malaysia as a competitive player in the global semiconductor supply chain and boost high-value exports amid intensifying regional competition.

The initiatives address infrastructure gaps, workforce skills development, and incentives for domestic and foreign semiconductor manufacturers. Officials have emphasized that semiconductor manufacturing represents a significant opportunity for Malaysia to capture higher-value segments of the electronics industry.

Miti's submission comes as Malaysia seeks to leverage its existing strengths in electronics manufacturing while positioning itself strategically within global supply chain realignment. The budget allocation would support both established manufacturers and emerging firms in the sector.