The government’s RM2 billion allocations for the Madani Submarine Cable Connection (SALAM) under Budget 2026 is poised to deliver a major boost to Malaysia’s digital economy, enhancing nationwide internet capacity and supporting the growth of next-generation industries.
The project, to be implemented by the Malaysian Communications and Multimedia Commission, will build a 3,190km submarine cable network linking Peninsular Malaysia with Sarawak and Sabah, ensuring faster, more reliable data connectivity nationwide.
Deputy Communications Minister Teo Nie Ching said the allocation reflects the government’s firm commitment to strengthening Malaysia’s digital backbone under the Malaysia Madani framework, ensuring equitable access and resilience in digital infrastructure.
“This investment is not just about expanding capacity; it’s about future-proofing Malaysia’s digital ecosystem. Demand for data continues to grow rapidly, especially with the rise of artificial intelligence (AI) technologies and cloud-based industries,” she said.
She shared that the SALAM network will replace the decade-old 1Malaysia People’s Cable System, which is nearing its capacity limits. The new infrastructure aims to eliminate data bottlenecks, improve latency and reduce connectivity costs — the key enablers for digital trade, e-commerce and AI-driven applications.
Announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026 on Oct 10, the SALAM project is also expected to attract foreign investment in data centres and digital infrastructure, supporting Malaysia’s ambitions to become a regional digital hub by the end of the decade.
