Budget 2027: Khazanah backs RM150 million semiconductor fund, RM250 million Bumiputera Growth Initiative

KUALA LUMPUR, 11 OCTOBER 2026 —

Khazanah Nasional will inject RM150 million into a semiconductor fund and RM250 million into a Bumiputera growth initiative under Budget 2027, its managing director said on Tuesday, as Malaysia seeks to bolster key industries amid global economic strains.

The allocations reflect the government’s push to strengthen domestic semiconductor capabilities and support Bumiputera entrepreneurship, according to Dato’ Amirul Feisal Wan Zahir. He noted that Budget 2027 arrives as Malaysia faces heightened geopolitical risks, supply chain disruptions, and rising fuel costs linked to the West Asia conflict.

Khazanah Nasional’s RM150 million semiconductor fund will target the development of Malaysia’s electronics and semiconductor sectors, while the RM250 million Bumiputera Growth Initiative aims to foster SMEs and entrepreneurship among Bumiputera communities. The state investment arm also highlighted the budget’s emphasis on infrastructure, energy transition, enterprise development, and talent cultivation as critical pillars for economic resilience.

The allocations align with Malaysia’s broader strategy to diversify its economy beyond commodities, particularly in high-tech manufacturing and inclusive growth. Dato’ Amirul Feisal Wan Zahir stressed that these initiatives will help mitigate risks from global volatility while positioning Malaysia as a competitive player in emerging industries.

For Malaysia, the fund injections signal continued government and state-backed support for strategic sectors, reinforcing efforts to attract investment and develop local expertise. The focus on semiconductors—an industry where Malaysia has existing strengths—could further solidify its role in global supply chains. Meanwhile, the Bumiputera Growth Initiative underscores the budget’s commitment to equitable economic development.

The next steps will depend on the formal announcement of Budget 2027, expected in October, where details on implementation timelines and additional funding mechanisms will be revealed. Khazanah Nasional’s role in executing these initiatives will be closely watched by industry stakeholders.

Related: Khazanah Nasional · Dato’ Amirul Feisal Wan Zahir