Budget 2025 set to strengthen Malaysian semiconductor industry: Association

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KUALA LUMPUR: Malaysia's semiconductor industry is set to solidify further with various commendable initiatives outlined under Budget 2025, including ...

Malaysia's semiconductor industry is set to solidify further with various commendable initiatives outlined under Budget 2025, including the Supply Chain Resilience Initiative and the New Investment Incentive Framework.

“These efforts aim to bolster the country's competitiveness in the semiconductor sector and the measures outlined in the budget lay a solid foundation for long-term growth and resilience within the industry,” he told Bernama. The expansionary budget also involved the introduction of the New Investment Incentive Framework, including a strategic investment fund worth RM1 billion aimed at enhancing the capacity of local talent and encouraging high value activities to be carried out in the country. This framework, which focuses on high value activities as opposed to existing incentives based on specific products, is expected to be implemented in the third quarter of next year.

In efforts to reduce the economic gap between regions, special income tax incentives will be offered for investments in 21 economic sectors in Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, subject to the success of economic spillovers.

 

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