By Selangor Journal Team
SHAH ALAM, Oct 19 — The RM1 billion allocation announced in Budget 2025 to stimulate sectoral investment, as well as the government’s proactive measures to foster the growth of local semiconductor firms, reflects the federal administration’s commitment to developing the field.
The Selangor Information Technology and Digital Economy Corporation (Sidec) welcomed the move and said that the initiatives announced, especially the introduction of the National Strategic Semiconductor Plan (NSS), align with the ongoing efforts by the state government to support the growth of the semiconductor sector.
“Sidec applauds the government’s firm commitment to the semiconductor industry in the 2025 budget, particularly its inclusion of the NSS as a cornerstone initiative.
“Sidec’s ongoing efforts, including developing the Malaysian Semiconductor IC (Integrated Circuit) Design Park, are strongly aligned with the NSS and the broader strategic objectives outlined in the budget.
“We are further encouraged by the government’s proactive measures to foster the growth of local semiconductor companies, supported by the allocation of RM1 billion to stimulate sectoral investment. This commitment is bolstered by Khazanah (Nasional Bhd)’s additional RM1 billion injection, aimed at fortifying Malaysia’s semiconductor ecosystem,” said Sidec in a statement today.
Sidec said Khazanah’s RM1 billion investment, alongside the RM6 billion stimulus fund from the Retirement Fund Inc (KWAP), will enhance the country’s semiconductor landscape and potentially expand manufacturing capacity, drive innovation, and strengthen the semiconductor supply chain.
It said KWAP funds focused on infrastructure and private equity will benefit the semiconductor sector and contribute to broader economic growth.
“Moreover, they hold the potential to attract increased foreign direct investment, create high-skilled job opportunities, and promote the growth of supporting industries,” it said.
“However, ensuring success will require efficient capital allocation and addressing challenges such as global competition and talent shortages,” the statement read.
The state agency also welcomed the extension of tax incentives to key sectors crucial to driving the growth of the digital economy, such as IC design and tax incentives for educational programmes to build digital skills in AI, robotics, and fintech.
“These initiatives will play a pivotal role in cultivating a skilled talent pool, laying the groundwork for a robust AI ecosystem, and fostering a thriving digital economy.
“We also commend the substantial support provided for startups and innovation, particularly through the Strategic Co-Investment Fund and the National Investment Development Fund.
“These initiatives will significantly boost venture capital funding and support high-potential startups. The RM6 billion channelled through government-linked investment companies will further invigorate the tech startup ecosystem, accelerating Sidec’s efforts to scale local deep-tech and IC companies,” it said.
While Sidec supports the focus on venture capital funding, it said more transparency must be introduced in the allocation of funds, especially for early-stage startups.
“Clearer guidelines on fund distribution will be crucial to avoid bottlenecks and to ensure fair and equitable access for emerging tech entrepreneurs,” it said.
