KUALA LUMPUR, Oct 22 — Budget 2025 has set aside sizable funds, both fiscal and non-fiscal, towards ensuring the success of the National Semiconductor Strategy (NSS), a part of the New Industrial Master Plan 2030 (NIMP 2030).
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that among the initiatives announced in the budget are the RM1 billion sovereign fund for the electrical and electronics sector and high-value activities, as well as training funds allocated for several universities.
Apart from that, there are initiatives to support mid-tier companies as well as tax incentives for companies in the industry.
“I think we are on track (to achieve the target set in NIMP 2030). You have seen exports continue to grow in these sectors as well.
“And if you look at the just-announced report card yesterday for our NIMP 2030, we should see positive growth at this year-end, and growth in the manufacturing sector has contributed close to a five per cent increase to our gross domestic product this year,” he said during an interview with CNBC Asia Squawk Box today.
Tengku Zafrul was commenting on the progress of NSS and NIMP following the Budget 2025 announcement on Friday (October 18).
When asked how the new tax will help finance the bigger budget of RM421 billion, he said that apart from the tax on dividends as well as the larger scope of the Sales and Service Tax, emphasis is given on cost discipline, for instance, via the merging of several agencies under the Investment, Trade, and Industry Ministry (Miti).
“Yes, I am quite confident that we will meet the budget estimate. We have been meeting our deficit target, for example, and I think we will hopefully achieve it (fiscal target) in 2024 as well,” he said.
Miti will also continue with initiatives to drive trade and investments to spur the country’s growth.
— Bernama
