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Press Release

Budget 2026 Commentary

Datuk Hajah Nik Amlizan Mohamed, Chief Executive Officer, KWAP

KWAP welcomes the 2026 National Budget, which continues to advance the Ekonomi MADANI vision of building a more competitive, inclusive and sustainable Malaysia. As we enter the first year of the 13th Malaysia Plan, the Government’s strong commitment to the Belanjawan Rakyat aimed at uplifting livelihoods and enhancing shared prosperity reflects a clear focus on strengthening the nation’s economic foundations while improving the well-being of all Malaysians.

Through our GEAR-uP initiatives via Dana Pemacu and Dana Perintis, KWAP remains committed to mobilising capital that strengthens Malaysia’s investment ecosystem and catalyses the next engines of national growth.

To this end, RM1.2 billion has been allocated under Dana Pemacu to build a vibrant domestic investment landscape, focusing on high-growth sectors such as energy transition, food security, and the digital economy, all of which align with the Budget’s emphasis on innovation-driven and value-creating industries.

Complementing this, the combined investment under KWAP’s Dana Perintis and Khazanah’s Jelawang Capital will increase to RM750 million (from RM550 million) to accelerate Malaysia’s start-up and innovation ecosystem, nurturing enterprises that contribute to technological advancement and job creation.

At the same time, KWAP and Khazanah Nasional Berhad will jointly invest RM550 million in the semiconductor ecosystem, a strategic move to deepen collaboration between local firms and multinational players, strengthening Malaysia’s position as a global hub for high-value manufacturing and advanced technology.

Additionally, in a strategic collaboration with the Penang Islamic Religious Council, as part of KWAP’s commitment of RM300 million, to a senior living project on Baitulmal land in Kepala Batas, Penang, while also assessing similar projects elsewhere to benefit more elderly Malaysians from low-income households.

In addition, KWAP is pleased to allocate RM20 million for a micro-financing programme designed to foster entrepreneurship among pensioners, enabling them to remain economically active and supplement their post-retirement income. This reflects our continued commitment as “Teman Persaraan Anda.”

The Budget’s emphasis on digitalisation opens new opportunities to create a more inclusive and connected economy. This ensures that Malaysians across all segments benefit from the nation’s transition towards higher-value growth.

As we move forward, KWAP will continue to invest with purpose – strengthening the nation’s financial resilience while uplifting the lives of those we serve.

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