The Malaysia Digital Economy Corporation (MDEC) has welcomed the Budget 2026 as a decisive step forward in positioning Malaysia as an artificial intelligence (AI)-driven nation by 2030, calling it a “strategic whole-of-nation catalyst” that aligns technology, talent and innovation with national priorities.
MDEC Chief Executive Officer Anuar Fariz Fadzil described the Budget, unveiled by Prime Minister Datuk Seri Anwar Ibrahim and strengthened by Digital Minister Gobind Singh Deo, as a bold yet pragmatic framework to build a secure, inclusive and innovation-led digital economy.
“This Budget recognises that building our digital and AI future requires collective effort. It channels strategic investments into advanced technologies, research and talent development, turning Malaysia’s AI Nation 2030 vision into actionable reality,” Anuar Fariz said.
Among the key allocations under Budget 2026, MDEC highlighted RM53 million for the Malaysia Digital Acceleration Grant (MDAG), RM18 million for the National AI Office, RM2 billion for MCMC to establish a Sovereign AI Cloud, RM30 million for CyberSecurity Malaysia and RM7 million for MIMOS to spearhead blockchain innovation and deepfake detection initiatives.
These allocations, Anuar Fariz said, are designed to strengthen Malaysia’s digital foundations and accelerate adoption of NextGen technologies such as AI, blockchain and quantum computing, driving both industrial transformation and global competitiveness.
He also underscored the RM5.9 billion allocation for R&D, commercialisation and innovation as pivotal in expanding Malaysia’s innovation pipeline and positioning the nation as a regional hub for emerging technologies.
“The Budget’s RM20 million fund for the local animation and digital games sector reflects growing government recognition of the creative economy’s role in driving digital exports.
“The Orange Economy alone is projected to add RM32 billion to GDP by 2030. Success stories like Upin & Ipin Universe and the momentum from ‘Level Up KL 2025’ show that Malaysian creativity and technology can compete on a global stage,” Anuar Fariz noted.
To strengthen talent readiness, MDEC also lauded the 50% tax deduction for SMEs investing in AI and cybersecurity training, aligning with the agency’s mission to upskill Malaysians and expand participation in the digital economy.
Complementing these initiatives are transformative digital infrastructure projects, including the RM2 billion SALAM Cable and Sovereign AI Cloud, which Anuar said will not only bolster Malaysia’s connectivity but also elevate the country’s role as a regional digital contributor.
“Budget 2026 sets a clear direction for execution. MDEC will continue to serve as the bridge between policy and practice ensuring that every initiative translates into measurable outcomes that advance Malaysia’s AI and digital ambitions,” Anuar Fariz emphasised.
