A total of RM75 million has been committed to boost Penang’s technology ecosystem — RM50 million from the state for a new technology fund, and RM25 million from the Federal Government for a national automation, testing and equipment (ATE) campus in Batu Kawan, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir and Penang Chief Minister Chow Kon Yeow announced at the KL20 @ Penang 2026 summit at the Penang Waterfront Convention Centre.
Where the RM75mil goes
| Allocation | Who funds it | What it is |
|---|---|---|
| RM25 million | Federal Government, under the 13th Malaysia Plan (13MP) | National automation, testing and equipment (ATE) campus in Batu Kawan; the Penang state government has provided 10 acres of land for the campus |
| RM50 million | Penang state government | New state technology fund (the Penang Strategic Technology Fund) to improve access to capital for startups and scaling companies |
Penang’s RM50 million fund answers a direct complaint from companies: access to capital. Chief Minister Chow Kon Yeow said the state has committed to the fund as a start and hopes it will grow with participation from parties beyond the state government, so that startups and companies in Penang and throughout Malaysia can tap it.
The RM25 million ATE campus allocation was approved under 13MP and channelled through the Economy Ministry, Akmal Nasrullah said, with the campus proposal modelled on the Netherlands’ and built on land provided by the state. The campus will focus on talent development, technology qualification, and the joint development, testing and adoption of Malaysian-made ATE solutions. He added that the RM25 million is on top of the RM50 million previously channelled by the Federal Government for Penang Silicon Design @5km+ (PSD @5km+) in Bayan Lepas, an initiative covering integrated circuit design, artificial intelligence, edge computing and innovation through talent development, shared infrastructure, incubation and commercialisation — including about 30,000 square feet of incubation space.
The Federal Government is also providing RM12.3 million through 2030 for the Penang STEM Talent Blueprint, targeting 100,000 students, per the reports. The announcements align with the National Semiconductor Strategy, which targets at least RM500 billion in investment, and support Malaysia’s shift from “Made in Malaysia” to “Made by Malaysia”. Between 2020 and 2025, Penang recorded RM25 billion in approved manufacturing investments in the machinery and equipment sector — about 40% of Malaysia’s total in that segment.
The ecosystem the money lands on
Chow said the current ecosystem involves around 30 Tier-1 companies and 20 Bursa Malaysia-listed companies, which together have a combined market value of about RM49 billion as at September 2026 and generate about RM5 billion in revenue. (On the number of supporting companies the two reports conflict: The Star’s 29 September recap says 18, while The Sun’s 24 September report from the summit says 80. We quote neither as settled.)
The wider federal picture under 13MP
Akmal Nasrullah framed Penang’s allocations inside a larger national push: RM9.25 billion allocated under 13MP to strengthen industrial development and move Malaysia into higher value activities. Of that, RM4.9 billion goes to an Industrial Development Fund to attract multinational corporations and companies to Malaysia, RM3.3 billion to a Strategic Co-Investment Fund for government grants and co-investment, and RM1 billion to the semiconductor sector — including a collaboration with ARM to bring intellectual property and design capabilities to Malaysia.
“Malaysia has to move to the higher value chain in order for us to go for ‘Made by Malaysia’, rather than ‘Made in Malaysia’.”— Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir, at KL20 @ Penang 2026, as reported by The Star
He also stressed the need to transition research and development into production, and said Penang’s five decades of semiconductor experience place the state in a strong position to help drive that transition. KL20 is a national initiative aimed at positioning Malaysia as a global hub for investment, startups, technology and innovation; its Penang chapter focuses on strengthening the state’s semiconductor and E&E ecosystem in higher value activities.
Sources: The Star, “RM75mil for tech development in Penang” by Lo Tern Chern (29 September 2026) · New Straits Times, “RM25m allocated for National ATE Campus in Batu Kawan” (September 2026) · The Sun, “Putrajaya allocates RM25 million for National Automation, Testing and Equipment Campus in Penang” (24 September 2026)
Figures and quotes were read from the published report above on 29 September 2026. Fund commitments are announcements at the summit; disbursement mechanisms were not detailed in the report.
