Khazanah backs Budget 2027, pledges support for semiconductor growth and energy transition

Khazanah Nasional Berhad welcomed Malaysia's 2027 Budget, describing it as a people-centric plan that fortifies the nation's long-term competitiveness while tackling immediate concerns over living costs and wages. Managing director Datuk Amirul Feisal Wan Zahir highlighted that the budget came at a crucial time, with Malaysia grappling with geopolitical instability, supply chain disruptions, and rising fuel prices due to West Asia conflicts.

The budget, titled "Malaysia MADANI: Menggapai di Langit, Mengakar di Bumi," strikes a balance between economic growth and inclusivity, focusing on strategic sectors such as semiconductors, energy transition, infrastructure, enterprise development, and talent development, all of which are vital for bolstering Malaysia's industrial base, enhancing economic complexity, and creating higher-value opportunities for businesses and workers.

Khazanah expressed support for the government's emphasis on quality growth, including initiatives that benefit workers, youth, entrepreneurs, Bumiputera companies, micro, small, and medium enterprises (MSMEs), and communities facing economic and climate challenges. The sovereign wealth fund confirmed its backing for the government's decision to raise the living wage benchmark for GLIC and GLC employees to RM3,400 per month.

Additionally, Khazanah will continue restoration efforts under its Dana Warisan investments and collaborate with Penang and Selangor governments to bolster Malaysia's semiconductor and advanced manufacturing ecosystem by investing RM150 million in a Strategic Investment Fund. The fund aims to bolster high-potential Malaysian companies, aligning with Budget 2027's focus on vendor development, innovation, and market expansion.

Furthermore, Khazanah pledged to expand Dana Ciptawan to RM250 million, partnering with Teraju to aid Bumiputera and Malaysian mid-tier companies. The organization also commended Malaysia's ambitions in energy transition and climate resilience, citing Tenaga Nasional Berhad's investment in the national electricity grid and UEM Lestra's RM1 billion renewable energy investment as crucial elements of the country's energy security, affordability, and sustainability agenda.