The 2027 Budget is expected to strengthen Malaysia’s northern corridor as a hub for high-value investments, semiconductors, artificial intelligence (AI) and advanced manufacturing, according to NST.
The Northern Corridor Economic Region (NCER) welcomed the Budget announcement, saying its focus on technology, innovation, talent development and industrial growth would support the region’s economic development.
Northern Corridor Implementation Authority (NCIA) chief executive Datuk Mohamad Haris Kader Sultan said the measures match the NCER Strategic Development Plan 2026-2030, which prioritises high-value industries, human capital development, inclusive growth and competitiveness.
“The budget also recognises key economic projects and ecosystems across Perlis, Kedah, Penang and Perak,” he said.
In Penang, a RM100 million Strategic Investment Fund for semiconductor and advanced manufacturing companies is expected to reinforce the state’s position in the technology sector. Khazanah Nasional Bhd and InvestPenang will establish the fund, The Star reported. The 2027 Budget totals RM459.8 billion, with RM376.8 billion in operating expenditure and RM83 billion in development expenditure.
In Kedah, he said Kulim Hi-Tech Park would continue as a destination for global semiconductor investments and create skilled jobs, while Perlis would see infrastructure work at the Chuping Valley Industrial Area, a stronger NCER Agribio Economic Zone and upgrades to the Perlis Inland Port for agrotechnology and cross-border trade.
In Perak, the Lumut Maritime Industrial City and the Automotive Hi-Tech Valley in Tanjung Malim are expected to open investment opportunities in maritime, automotive and future mobility work, while supporting local vendor development.
NCER also welcomed RM1.2 billion in investments by Khazanah Nasional Bhd and the Retirement Fund Inc (KWAP) to strengthen local semiconductor companies, alongside the SemiconStart programme and measures to develop startups and AI capabilities.
Haris said the proposed Sovereign AI Cloud Malaysia, higher research and development funding and plans to develop 200,000 AI workers would create opportunities for the region to emerge as a regional digital innovation and technology hub. The Budget also allocated RM8 billion for technical and vocational education and training (TVET).
In his Budget 2027 speech, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the government would provide an additional 100,000 free AI subscriptions, expanding access to new AI applications including ChatGPT, and would develop a sovereign AI cloud to keep Malaysians’ data and the country’s strategic information under national control.
“NCIA will continue working with the federal and state governments, investors, industry players and academia to translate the budget initiatives into realised investments, quality jobs, talent development and sustainable, inclusive economic growth,” he added.
