The Madani Budget 2025 sets the stage for Malaysia to strengthen its leadership in digital transformation amidst the backdrop of a strong focus in artificial intelligence and the upcoming chairmanship of ASEAN.
IBM Malaysia managing director and technology leader Dickson Woo (pic) said that, with a strong focus on AI and digital innovation, Malaysia is positioning itself as a regional hub for technological advancements, aligning with the nation’s broader goal of ensuring sustainable growth through technology.
“Malaysia’s commitment to AI and digital transformation is a testament to its forward-thinking approach,” said Woo. “By prioritising AI, Malaysia is setting the stage to become a leader in the region, not only in adopting AI but in shaping its future applications across various industries.”
The AI-focused initiatives announced in the budget include a RM10 million allocation to the National AI Office (NAIO) and RM50 million dedicated to expanding AI education in research universities.
“These investments demonstrate the government’s commitment to advancing AI technologies and building a competitive talent pipeline, which will be critical as Malaysia takes on a regional leadership role during its ASEAN chairmanship,” said Woo.
He added that AI has progressively emerged as a central enabler of modern business operations, empowering organisations to innovate faster and operate more efficiently.
“We have witnessed the transformative impact of AI firsthand,” said Woo. “At IBM, our watsonx platform exemplifies how AI can be operationalised to drive business success. With watsonx, organisations can build, scale, and deploy AI models tailored to their specific needs.
Through IBM watsonx platform, businesses will have access to the toolset, technology, infrastructure, and consulting expertise to build their own available AI models and deploy them at scale in a more trustworthy and open environment to drive business success.
“IBM is dedicated to AI for business and we believe in the power of the open-source community. This week, IBM is announcing the third generation of Granite – comprising small, highly capable Large language models (LLMs) that build on IBM’s strategy to give clients flexible, trustworthy, and cost-effective AI models for businesses.”
”By leveraging AI, businesses can automate processes, enhance customer experiences, and boost productivity, setting the stage for long-term growth.”
Digital Minister Gobind Singh Deo stated that the budget builds upon the strong foundations of Malaysia’s digital economy, with growth expected to exceed the 25.5% contribution to the national economy GDP by end-2025.
In this light, IBM is also encouraged by the government’s strong emphasis on training and education, which is essential for developing a future-ready workforce.
The Madani Budget 2025 includes several initiatives aimed at upskilling Malaysians in digital technologies, such as AI and data science, in line with the nation’s digital transformation goals. The greatest value that AI brings to the table, is its ability to drive productivity and efficiency while liberating humans to pursue more cognitively valuable activities.
“Hence it is imperative that everyone in the economy, be digitally enabled with AI skills,” said Woo.
The budget allocates RM50 million for AI education in research universities and RM120 million to improve internet access in public universities, schools, and training institutions, ensuring that digital skills become an integral part of the national education system.
As part of IBM’s public-private partnership efforts, the SkillsBuild initiative collaborates with institutions such as Politeknik Balik Pulau (PBU) and non-profit organisation SOLS Foundation to offer practical training and digital credentials.
This programme aligns closely with the government’s goal of upskilling the nation by equipping students and professionals with industry-relevant skills in AI, data science, and cybersecurity.
“As a key component of Malaysia’s broader digital talent strategy, SkillsBuild plays a pivotal role in preparing the next generation to capitalise on the opportunities created by digital transformation,” said Woo.
He added that IBM’s partnership with the Education Ministry is key to creating an ecosystem that teaches essential digital skills while fostering innovation and creativity among students.
In support of a more inclusive workforce, IBM has also committed to training 1 million women and girls across the Asia-Pacific region, including Malaysia, as part of its global goal to skill 30 million people by 2030. To date, 650,000 women and girls have benefitted from the programme.
Woo emphasised that IBM remains encouraged by government policies that continue to attract investments from tech giants like IBM.
“This is why IBM has been in Malaysia for over six and a half decades. We are proud to continue being part of Malaysia’s transformation journey into becoming a digitally-driven, high-income nation and a regional leader in the digital economy,” Woo concluded.
