Govt Committed To Strengthening Semiconductor Sector In Budget 2026 - Amir Hamzah
BATU KAWAN, Sept 22 (Bernama) -- The government has assured that the semiconductor industry will receive increased attention under Budget 2026, scheduled for tabling in parliament on Oct 10, in line with the aspirations of the National Semiconductor Strategy (NSS).
Finance Minister II, Datuk Seri Amir Hamzah Azizan, stated that the semiconductor industry is a major contributor to the national economy, with more than 40% of Malaysia's exports coming from the electrical and electronics (E&E) and semiconductor segments.
"So, in terms of the government, we have a role to play in how to stimulate, deepen, and support the development of this industry in the future. I believe in this budget, we will place greater emphasis on important industries like semiconductors, and there will be news of the government’s commitment to further boost this segment," he told reporters after chairing the Penang leg of the Budget 2026 Roadshow programme today.
He explained that the government’s approach is not only focused on increasing investments but also on enhancing the “complexity” within the semiconductor sector so that Malaysia remains relevant in the global supply chain. “This complexity doesn’t mean we want to make things more difficult, but we aim to increase the level of sophistication in this industry. As complexity rises, our ecosystem broadens, opportunities increase, and job prospects for Malaysians will also grow,” he added.
Amir Hamzah, who is also the Acting Economy Minister, said the government has received various proposals to strengthen the local semiconductor ecosystem, including efforts to deepen and expand the sector’s value chain, during today's engagement session with industry players.
The programme is part of the government’s engagement initiative to obtain direct feedback from industry players and local stakeholders, which will serve as key input in the drafting of Budget 2026. The Batu Kawan session marked the seventh state-level roadshow, with upcoming sessions scheduled in Negeri Sembilan, Selangor, and Melaka next week.
Amir Hamzah revealed that the budget preparation process is now entering the stage of refining proposals and assessing impact from focus groups, including semiconductor industry players in Penang, following earlier discussions and proposals from federal and state government agencies.
Responding to a question on the challenges posed by US tariffs on the semiconductor industry, he explained that most industry players in Malaysia are from Western countries.
“So if we look at the developments, the tariffs don’t significantly pressure investments made by Western countries. For instance, in the tariffs introduced by the US, there are exemptions provided for certain sectors, especially those that have reinvested in the US.
“What’s also important is that within our ecosystem, we have strong industry players, a solid local industry base, a good talent pool, and we’ve consistently been seen as a reliable supplier globally. This will help us in the future as well,” he said.
— BERNAMA