KUALA LUMPUR, Oct 10 — The Madani government is doubling its efforts to support high-value sectors in 2026 with high allocations in SMEs, peer-to-peer and equity crowdfunding, Prime Minister Datuk Seri Anwar Ibrahim announced during the tabling of Budget 2026 today.
The government will allocate RM200 million in the Strategic Co-Investment Fund that will provide matching funds to SMEs and mid-sized companies that strengthen the supply chain of key sectors through the Equity Crowdfunding (ECF) and Peer-to-Peer Lending (P2P) platforms.
Another RM180 million will be allocated to the NIMP Industrial Development Fund to finance industrial development programmes under high-impact sectors such as pharmaceuticals, semiconductors, AI, digital and sustainability.
“Khazanah and KWAP will invest RM550 million in the semiconductor ecosystem to enhance collaboration between local firms and multinational corporations and under the National Semiconductor Strategy (NSS), Malaysia Development Bank (BPMD) will provide a RM500 million loan to support high value-added activities such as research and development primarily by local companies that support the electrical and electronics ecosystem,” said Anwar.
“Semiconductor startups often face the obstacle of high prototyping costs. Malaysia will launch SemiconStart, an incubator programme by Malaysian Technology Development Corporation (MTDC) in collaboration with global incubators,” he added.
In addition, Anwar said that startups contribute RM1 billion to KDNK and generate 82,000 job opportunities. In line with the aspirations of the Malaysian Capital Market Development Plan, investments from the KWAP Pioneer Fund and Jelawang Capital Khazanah have been increased to RM750 million from RM550 million.
The Cradle Fund, with RM55 million in capital, will implement the Equity Investment Programme and expand the GLC Innovation Workshop to the private sector.
“The government plans to enhance existing venture capital incentives for a 10-year period through special tax rates and dividend tax exemptions. Since its introduction, MyCIF has attracted over RM6 billion in ECF and P2P capital into the SME sector, helping companies to grow globally,” said Anwar.
“RM30 million has been prepared to expand MyCIF in Asean in the food, agriculture, agrotech and high economic impact sectors.
Apart from that, logistically, Anwar said the renovation of the Sultan Azlan Shah airport in Perak and the Ismail Petra airport in Kota Bharu are underway.
RM2.3 billion has been allocated for airports in Penang, Kota Kinabalu, Tawau and Miri expected to be ready by 2028.
The short take-off and landing ports in Marudi and Redang are also expected to be ready by 2027.
