Malaysian sovereign wealth fund Khazanah Nasional and civil service pension fund Kumpulan Wang Persaraan (KWAP) will invest a total 550 million ringgit (US$135.22 million) in the Southeast Asian country’s semiconductor industry.
Prime Minister Anwar Ibrahim, who is also the finance minister, announced the funds’ investment plans in his 2026 national budget late last week.
He said the government will match the investments with grants up to 200 million ringgit for small and medium sized enterprises in the semiconductor industry.
“These funds will be channelled towards bolstering the capabilities of both local chipmakers and multinational companies,” Anwar said in his budget speech on October 10.
He also said Malaysia will launch an incubator programme to address the entry barriers faced by semiconductor startups due to substantial costs.
He said the programme will help early-stage startups gain mentorship, access to global financing, prototype creation at discounted rates, and a wider customer network.
Meanwhile, according to KWAP, the 550 million ringgit investment with Khazanah is a “strategic move to deepen collaboration” in the semiconductor industry.
“This will help strengthen Malaysia’s position as a global hub for high-value manufacturing and advanced technology,” the pension fund said in a statement on October 10.
KWAP managed 193.5 billion ringgit of assets as of end-2024, while Khazanah had a net asset value of 103.6 billion ringgit.
