KUALA LUMPUR: Malaysia’s digital industry has welcomed Budget 2027 for its comprehensive approach to advancing the country’s digital and artificial intelligence (AI) ambitions, with initiatives spanning four key areas — the digital economy, digital infrastructure, digital rakyat and digital government.
Industry associations said the measures could strengthen business competitiveness, accelerate AI adoption, improve connectivity and public services, and enable more Malaysians to benefit from digital transformation.
Malaysian Digital Association (MDA) president Nicholas Sagau (centre in pic) said that the Budget recognised the importance of developing digital capabilities alongside investments in technology.
“Budget 2027 signals Malaysia’s strong digital and AI ambitions. Beyond investments in data centres, infrastructure and policy frameworks, I’m particularly encouraged by the focus on equipping Malaysians with AI skills and tools.
“The real opportunity is turning these initiatives into practical AI adoption, greater productivity and new growth opportunities for businesses and Malaysians alike,” he said.
Nicholas welcomed initiatives including 100,000 additional free AI subscriptions for young Malaysians, access to more than 16,000 digital courses and certifications, and support for developing AI-skilled talent.
“Beyond the number of AI subscriptions and courses offered, the real measure of success is how effectively Malaysians turn these opportunities into practical AI skills, better careers and new economic opportunities,” Nicholas said.
Malaysia Internet Exchange (MyIX) chairman Chiew Kok Hin (left in pic) said that continued investments in digital infrastructure were essential to sustaining Malaysia’s digital growth.
He welcomed the continued implementation of JENDELA, the rollout of the MADANI Submarine Cable (SALAM) and plans for a Sovereign AI Cloud.
“Reliable, affordable and secure connectivity is fundamental to digital transformation. Strengthening our infrastructure will help businesses expand, improve access to digital services and ensure that communities beyond major urban centres are not left behind,” Chiew said.
Peak internet traffic at MyIX had grown nearly 10,000-fold since 2006, reflecting increasing demand for connectivity. Beyond infrastructure, MyIX was supporting digital inclusion through its Digital Classroom CSR Programme, providing smart boards to schools, particularly those in underserved communities, to enhance digital learning.
On talent development, Chiew said MyIX was helping develop the next generation of Malaysian network professionals through APNIC-related training, its Fellowship Programme, and a Talent Development Programme.
“These initiatives would help build the local expertise needed to support Malaysia’s expanding digital infrastructure and growing demand for advanced technologies, including AI and cloud computing,” said Chiew.
Internet Alliance president Dr Sunny Ooi praised Budget 2027’s emphasis on digital government, particularly the RM947.29 million allocation for Digital Government Services and the target of making 85% of government services available end-to-end online by 2027.
“Digital government is about making life easier for the rakyat and businesses. More efficient online services mean less paperwork, faster processes and lower administrative costs, while improving transparency and the overall quality of public service delivery,” he said.
Ooi said that the growing adoption of MyDigital ID, which has surpassed 14 million registered users across 203 public and private services, demonstrated the potential for secure and seamless digital transactions.
He added that wider adoption of AI, automation and integrated government systems could further improve efficiency and reduce bureaucracy.
He also welcomed opportunities for local technology providers to work with the government to develop secure, reliable and accessible digital services, saying such partnerships could strengthen domestic industry capabilities while ensuring the Budget’s initiatives deliver tangible benefits to Malaysians.
Ooi also welcomed the RM30 million allocation through the Malaysia Digital Economy Corporation (MDEC) to support AI adoption and automation among 4,000 micro, small and medium enterprises (MSMEs), alongside training for 5,000 AI professionals.
“AI is fundamentally a productivity tool, particularly for SMEs operating with limited manpower and resources.
“By automating repetitive tasks, improving customer service, streamlining operations and analysing business data, companies can reduce costs, improve efficiency and focus more resources on growing their businesses,” he said.
“The initiatives could help smaller businesses overcome barriers to AI adoption, while equipping the workforce with the skills needed to use these technologies effectively. This is about enabling Malaysian SMEs to do more with less, become more competitive and move into higher-value activities,” he added.
The associations agreed that closer collaboration between government and industry would be essential in translating Budget 2027’s initiatives into measurable outcomes, particularly in improving productivity, developing digital talent and strengthening Malaysia’s digital competitiveness.
They also acknowledged Digital Minister Gobind Singh Deo’s leadership in advancing Malaysia’s ambition to become an AI Nation by 2030, particularly his emphasis on building a comprehensive digital ecosystem encompassing infrastructure, talent, innovation and responsible AI adoption.
“Gobind has provided a clear direction for Malaysia’s digital and AI ambitions. Budget 2027 provides further impetus to these efforts, but what matters now is execution. Industry stands ready to work with the government to turn these initiatives into tangible benefits for businesses, the rakyat and the economy,” Ooi said.