Malaysia Semiconductor Industry Association Proposes Significant Tax Breaks and R&D Deductions in 2027 Budget

The Malaysia Semiconductor Industry Association (MSIA) has proposed a tenfold increase in the expenditure limit for automation capital allowance and a 200% tax deduction for research and development (R&D) expenditure in the upcoming federal 2027 budget. These recommendations aim to bolster Malaysia's competitiveness in attracting investment, technology, and talent amidst intense global competition within the semiconductor industry.