diff --git a/crates/sui-proc-macros/src/lib.rs b/crates/sui-proc-macros/src/lib.rs
index ab0fca56a7f46..4cc49ce52e229 100644
--- a/crates/sui-proc-macros/src/lib.rs
+++ b/crates/sui-proc-macros/src/lib.rs
@@ -57,8 +57,7 @@ pub fn init_static_initializers(_args: TokenStream, item: TokenStream) -> TokenS
                     use sui_simulator::move_package::package_hooks::register_package_hooks;
 
                     register_package_hooks(Box::new(SuiPackageHooks {}));
-                    let mut path = PathBuf::from(env!("CARGO_MANIFEST_DIR"));
-                    path.extend(["..", "..", "examples", "move", "basics"]);
+                    let mut path = PathBuf::from(env!("SIMTEST_STATIC_INIT_MOVE"));
                     let mut build_config = BuildConfig::default();
 
                     build_config.config.install_dir = Some(TempDir::new().unwrap().into_path());
diff --git a/scripts/simtest/cargo-simtest b/scripts/simtest/cargo-simtest
index a93af53753134..57614f76405fe 100755
--- a/scripts/simtest/cargo-simtest
+++ b/scripts/simtest/cargo-simtest
@@ -96,6 +96,11 @@ fi
 # Must supply a new temp dir - the test is deterministic and can't choose one randomly itself.
 export TMPDIR=$(mktemp -d)
 
+# Set the example move package for the simtest static initializer
+# https://github.com/MystenLabs/sui/blob/7bc276d534c6c758ac2cfefe96431c2b1318ca01/crates/sui-proc-macros/src/lib.rs#L52
+root_dir=$(git rev-parse --show-toplevel)
+export SIMTEST_STATIC_INIT_MOVE=$root_dir"/examples/move/basics"
+
 cargo ${CARGO_COMMAND[@]} \
   --config "build.rustflags = [$RUST_FLAGS]" \
   "${cargo_patch_args[@]}" \