Malaysia’s Budget 2027 hands startups US$110.4M but the bigger cheques go elsewhere

Malaysia has allocated MYR450 million (US$110.4 million) to support startups through the National Fund of Funds Jelawang Capital and Dana Perintis, according to Prime Minister Anwar Ibrahim's Budget 2027 speech. This investment targets various stages of startups, from ideation to scaling up. However, the budget emphasizes strengthening mid-tier companies and semiconductors, with MYR2.1 billion (about US$515 million) earmarked for this sector.

Moreover, MYR1.2 billion (about US$294 million) will go to semiconductor companies, and MYR6 billion (about US$1.47 billion) is set aside for research, development, and commercialization. The startup line appears to be a smaller component in the overall budget. The government also announced measures to attract private capital, including MYR270 million (about US$66 million) for SMEs, mid-tier companies, and social enterprises through equity crowdfunding and peer-to-peer lending.

Additionally, income tax exemptions for individual investors on equity crowdfunding platforms and angel investments in early-stage tech startups have been extended until December 31, 2030.