MSIA: Budget 2026 key to nation’s chip competitiveness


GEORGE TOWN: Malaysia’s semi­­conductor players say Budget 2026 could determine whether the country stays competitive in a global tech race now dominated by speed, talent and innovation.

Malaysia Semiconductor Indus­try Asso­ciation (MSIA) president Datuk Seri Wong Siew Hai (pic) said the budget indicates a strong intention to bolster the nation’s semiconductor foundation.

However, the effectiveness will hinge on the speed of delivery and coordination.

“Budget 2026 shows a strong commitment to Malaysia’s semiconductor foundation, but what matters now is execution to turn allocations into action and ma­ke ‘Made by Malaysia’ a global mark of trust and innovation,” he said.

He welcomed the government’s plan to channel RM550mil through Khazanah and the Retire­ment Fund Inc (KWAP) to foster ecosystem partnerships, alongside RM500mil in loans from Bank Pem­bangunan aimed at enhancing high-value research, development and design.

The new SemiconStart incubator for semiconductor startups is viewed as a positive initiative aimed at nurturing Malay­sian champions within the framework of the National Semiconductor Strategy (NSS).

This strategy aims to identify and support 110 local champions, of which 13 have already been identified.

Wong added that the incubator’s success will depend on access to foundry design kits, wafer runs, facilities and design infrastructure tools that are normally beyond the reach of startups.

“It must provide early-stage funding and customer access so that products address real market needs,” he added.

He also lauded the RM7.9bil allo­cation for TVET, including RM650mil for training in arti­fi­cial intelligence, electric vehicles and semiconductors, along with the RM200mil Strategic Co-­Invest­ment Fund and RM180mil NIMP Industrial Development Fund for small and medium enterprises.

However, Wong cautioned that policy consistency, reliable energy supply and timely project delivery, including the RM2bil Madani Submarine Cable, were crucial to sustaining investor confidence.

“Malaysia must now build depth beyond assembly and testing by fast-tracking the NSS with measurable milestones,” he said.

Chief Minister Chow Kon Yeow said although not all of Penang’s proposals were approved, several major projects have been included under the 13th Malaysia Plan.

“Penang is thankful for what has been approved. What has not been approved is still part of our continuous struggle.

“Development is a journey, and we must keep fighting for the projects that have yet to be realised,” he said.

Among the projects are the wide­ning of the North-South Ex­­pressway between Juru and Sungai Dua, the Kubang Semang Health Clinic, an Integrated Health Complex in Seberang Perai Tengah, and water supply up­­grades linking Titi Kerawang, Teluk Awak and the Teluk Bahang Dam.

He also expressed his support for the RM2.3bil allocation from Malaysia Airports Holdings Bhd aimed at enhancing airport efficiency, which is expected to benefit the Penang International Air­port.

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