BATU KAWAN, 22 September 2025 – Malaysia’s semiconductor industry is set to receive a boost in the upcoming 2026 national budget, with Finance Minister II Amir Hamzah Azizan hinting at measures to support the sector’s growth.
Speaking at a pre-budget stakeholder engagement session with industry players at Broadcom Warehouse, Bandar Cassia, Amir underscored the government’s commitment to the sector, describing it as “crucial.”
“I think we will give more emphasis to crucial industries like semiconductors. God willing, there will be (good) news showing the government’s commitment to spurring this sector’s growth. But let us be patient and let our prime minister table (the budget). I do not want to bypass my boss during these engagement sessions with industry players,” Amir told reporters.
Budget Preparations and Industry Role
Amir confirmed that consultations with ministries, agencies, and state governments have been completed, with additional input being gathered from focus group discussions for incorporation into the budget, to be tabled on October 10.
Malaysia’s semiconductor industry continues to perform strongly. According to ASEAN Briefing, the country recorded RM575 billion (US$130 billion) in semiconductor exports in 2024. Malaysia currently contributes about 13% of the world’s semiconductor testing and packaging, while investments in integrated circuit design are rising as the country positions itself as a major IC design hub.
No Review of Price Rounding Mechanism
Separately, Amir said the government has no plans to review the price rounding mechanism, which rounds cash transactions to the nearest five sen. The system, introduced on April 1, 2008 after the withdrawal of one sen coins, remains unchanged despite calls for reassessment.
“I think the current system still applies. Let the system continue as it does not affect existing businesses,” he said, dismissing concerns that the mechanism disadvantages consumers in an era of digital payments.
