The Government has directed Development Finance Institutions (DFIs) to allocate RM1 billion in grants and payments to help local companies accelerate automation and digitalisation efforts, as part of the initiatives under Budget 2026.
Prime Minister Datuk Seri Anwar Ibrahim, in tabling the Budget in Parliament today, said the move aims to strengthen the competitiveness of Malaysian enterprises and prepare them for the next phase of industrial transformation amid rapid technological advancements.
The RM1 billion allocation will be distributed through key DFIs, including Bank Pembangunan Malaysia Berhad (BPMB), SME Bank, and EXIM Bank, with the focus on providing both financial assistance and incentive-based funding for businesses adopting digital solutions, robotics, and process automation.
“Our goal is to build a resilient and future-ready economy where Malaysian companies can compete effectively in global value chains,” Anwar said. “Through this allocation, we are empowering local firms—particularly SMEs—to modernise their operations, improve productivity, and embrace innovation.”
The programme is expected to benefit businesses across key growth sectors such as manufacturing, logistics, and services, especially small and medium enterprises (SMEs) seeking to transition toward Industry 4.0 standards.
The details on the funding mechanisms and application procedures are expected to be announced by the Ministry of Investment, Trade and Industry (MITI) and Bank Negara Malaysia in collaboration with the DFIs in the coming weeks.
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