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

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim arrives at the Parliament building to table the 2026 Budget, accompanied by his wife Datuk Seri Dr Wan Azizah Wan Ismail (right) and Finance Minister II Datuk Seri Amir Hamzah Azizan (left), in Kuala Lumpur on October 9, 2026. — Picture By Raymond Manuel

By Malay Mail

First Published: Saturday, 10 Oct 2026 2:59 PM MYT

KUALA LUMPUR, Oct 10 — Khazanah Nasional Berhad today welcomed the Malaysia Madani Budget 2027, describing it as a people-centric blueprint that strengthens the country’s long-term competitiveness while addressing immediate concerns over the cost of living and wages.

In a statement following the tabling of the budget by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, Khazanah managing director Datuk Amirul Feisal Wan Zahir said the spending plan arrived at a critical juncture as Malaysia navigates geopolitical uncertainty, supply chain disruptions and elevated fuel prices linked to the ongoing conflict in West Asia.

He said Budget 2027, themed “Malaysia MADANI: Menggapai di Langit, Mengakar di Bumi”, balances economic growth with inclusivity by focusing on strategic sectors such as semiconductors, energy transition, infrastructure, enterprise development and talent development.

According to Amirul Feisal, these priorities are essential for strengthening Malaysia’s industrial base, increasing economic complexity and creating higher-value opportunities for businesses and workers.

“Importantly, the Budget places emphasis not only on growth, but on quality growth,” he said.

Khazanah also welcomed measures aimed at ensuring broader participation in national development, including initiatives benefiting workers, youth, entrepreneurs, Bumiputera companies, micro, small and medium enterprises (MSMEs), and communities facing economic and climate-related challenges.

The sovereign wealth fund said it fully supports the government’s move to raise the living wage benchmark for employees of government-linked investment companies (GLICs) and government-linked companies (GLCs) to RM3,400 per month, in line with efforts to increase labour’s share of gross domestic product (GDP).

On heritage conservation, Amirul Feisal said Khazanah would continue restoration work under its Dana Warisan investments through the broader Warisan KL initiative, including ongoing projects at the Bangunan Sultan Abdul Samad Complex and Carcosa.

Khazanah also announced a collaboration with the Penang and Selangor state governments to strengthen Malaysia’s semiconductor and advanced manufacturing ecosystem.

Under the initiative, Penang, Selangor and Khazanah will each contribute RM50 million to a Strategic Investment Fund, bringing the fund’s initial size to RM150 million.

The fund is aimed at supporting the growth of high-potential Malaysian companies, while complementing Budget 2027’s emphasis on vendor development, innovation and market expansion.

In support of Bumiputera business growth, Khazanah said Dana Ciptawan will be expanded to RM250 million in collaboration with Teraju to assist Bumiputera and Malaysian mid-tier companies.

The fund also welcomed government 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 key enablers of Malaysia’s energy security, affordability and sustainability agenda.

Amirul Feisal said Khazanah remains committed to supporting national development through initiatives such as Dana Impak, Jelawang Capital, Dana Ciptawan, Dana Warisan, K-Youth, Bakat Madani and Yayasan Hasanah.

He said the organisation would continue working with other GLICs under the Ministry of Finance’s GEAR-uP programme to mobilise capital through disciplined investments, catalytic partnerships and impact-driven programmes that contribute to Malaysia’s long-term competitiveness.