Good news is awaiting the semiconductor industry in the 2026 budget to be tabled on Oct 10, says finance minister II Amir Hamzah Azizan.
Amir said the government views the semiconductor industry as being crucial and is, therefore, committed to supporting its growth.
“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,” he told reporters on the sidelines of a pre-budget stakeholder engagement session with industry players at Broadcom Warehouse, Bandar Cassia, here.
On the progress of budget preparations, Amir said his ministry had completed consultations with all ministries and government agencies, and taken in proposals from the state governments.
He said his ministry is currently collecting input from focus group discussions with various stakeholder groups for incorporation in the annual budget.
According to Asean Briefing, Malaysia’s semiconductor exports were robust in 2024, reaching RM575 billion, or US$130 billion.
The country contributes about 13% of the world’s semiconductor testing and packaging, with increasing investments in integrated circuit design aimed at establishing a major IC design hub.
No plans to review price rounding mechanism
Amir said the government has no current plans to review the mechanism rounding the prices of goods to the nearest five sen, a practice that has been in place since 2008.
He said the current system is functioning well and is not disrupting business operations.
“I think the current system still applies. Let the system continue as it does not affect existing businesses,” he said.
Amir was commenting on reports suggesting that the mechanism should be reviewed as it disadvantages consumers and benefits merchants, especially now that most payments are made online.
The rounding mechanism was officially adopted on April 1, 2008 to facilitate cash transactions following the withdrawal of one sen coins from circulation.
