Its president, Wong Siew Hai, said this would encourage and retain talent in Malaysia, Bernama reported.
Wong said education was key and proposed special government funding to improve science, technology, engineering and mathematics (STEM) and artificial intelligence education in schools and universities.
“We need to encourage more students to pursue STEM studies, and to strengthen the talent pipeline by providing tax relief and incentives for parents of students pursuing STEM,” he said.
He said it was necessary to ensure resources are not spread too thin and are better utilised to support the industry.
Wong suggested that the government allow the use of foreign STEM graduates and global expertise to fill immediate gaps and support Malaysia’s pursuit of advanced design and development for greater innovation success.
On a separate note, he said the association is seeking relief on stamp duty, including exemptions for employment and intercompany contracts, deferments, and clearer guidelines as part of its wishlist for the 2026 budget.
He also called for sales and service tax relief through broader business-to-business exemptions, support for capital-intensive industries, and investment-linked incentives for energy efficiency and automation.
He said these and the introduction of a qualified refundable tax credit to offset the impact of the global minimum tax and grants for supply chain resilience would help sustain Malaysia’s investment competitiveness.
“The Malaysia Semiconductor Industry Association also hopes that the government will introduce policies to diversify export markets and fund key initiatives that support the ‘Made by Malaysia’ agenda.
“Budget 2026 is a golden opportunity for Malaysia to move from ‘Made in Malaysia’ to ‘Made by Malaysia’,” he said.
“By delivering targeted cost relief, talent incentives, and stronger support for research, development, commercialisation, and innovation, we can accelerate the implementation of the national semiconductor strategy and secure Malaysia’s place as a global semiconductor powerhouse.”
Prime Minister Anwar Ibrahim, who is also the finance minister, is scheduled to table the 2026 budget in the Dewan Rakyat on Oct 10.