Mosti to leverage RM1.29 bil Budget 2027 allocation to boost semiconductor, startups

The Ministry of Science, Technology and Innovation (Mosti) will deploy its RM1.29 billion Budget 2027 allocation to accelerate growth in Malaysia’s semiconductor sector, artificial intelligence (AI), the startup ecosystem, and the commercialisation of local research and innovation. The allocation underscores the government’s intent to transform Malaysia from a technology consumer into a creator and owner of cutting-edge solutions, while generating high-value jobs and tangible benefits for the rakyat.

Emphasising the Budget 2027 theme of “Menggapai Di Langit, Mengakar Di Bumi” (Reaching for the Skies, While Anchored on Our Values), the ministry highlighted a focus on practical, people-centric outcomes from innovation. The total RM1.29 billion allocation for 2027 consists of RM775.46 million for operating expenditure and RM516.93 million for development expenditure—an increase of RM16.49 million or 1.29% from 2026’s RM1.28 billion.

Under Budget 2027, Mosti will carry out 61 projects aligned with the Second Rolling Plan of the 13th Malaysia Plan. These initiatives span research, development, commercialisation and innovation (R&D&C&I), strategic technology, and industry ecosystem strengthening, with the aim of advancing inclusive and sustainable development in science, technology and innovation nationwide.

Key programmes and allocations

• Semiconductor and startup ecosystem
  • RM10 million to the Malaysian Technology Development Corporation (MTDC) for follow-on equity financing via the SemiconStart Programme, supporting high-potential semiconductor ventures and related supply-chain players.
  • RM10 million to Kumpulan Modal Perdana for the pilot of the Fund for Ownership, Resilience, Growth & Emerging Technologies (FORGE), catalysing early-stage deep-tech investments and domestic technology ownership.
  • RM41 million to Cradle Fund Sdn Bhd to implement the Malaysian Startup Ecosystem Roadmap 2026–2030 (SUPER 2.0), targeting 5,500 active startups and 5,000 skilled job opportunities. This includes support through the CIP Spark and CIP Sprint programmes to help founders validate, build and scale solutions.
  • RM2 million for the GLC Innovation Workshop (BIG) Programme to link corporations with startups and SMEs in the oil palm sector, deploying IoT, robotics and data analytics to lift productivity and reduce reliance on manual labour.
• Strategic technology and space
  • RM7.5 million to the Malaysian Space Agency (MYSA) for computing infrastructure, a space AI laboratory and an Integrated GeoAI Analytics Platform, strengthening national capabilities in disaster management, food security and border control through advanced geospatial intelligence.
• Community-focused sustainability and circular economy
  • RM4 million to NanoMalaysia Bhd for the Cerah Madani initiative, aimed at lowering community energy costs through nanotechnology-enabled solutions and renewable innovations.
  • RM2.5 million to Bioeconomy Corporation to scale up the recycling of used fishing nets via four regional hubs and 30 community collection centres, creating additional income opportunities for more than 2,000 fishermen while reducing marine waste.

Mosti’s approach blends targeted financing, capability-building and technology adoption to close gaps from research labs to market-ready products. By strengthening the pipeline across R&D, pilots, and commercial deployment, the ministry aims to anchor more intellectual property, high-value manufacturing and technology services within Malaysia.

The ministry also reaffirmed its commitment to inclusive science, technology and innovation outreach in 2027—bringing practical applications of technology to communities, humanising innovation, and mainstreaming digital and deep-tech capabilities across sectors. Effective execution of the Budget 2027 allocation is expected to maximise both economic and social outcomes, reinforcing Malaysia’s trajectory toward a competitive and sustainable, technology-creating nation.