PRESS RELEASE
ALLOCATIONS IN BELANJAWAN MADANI 2026 SET TO SPUR MALAYSIA’S DIGITAL TRANSFORMATION
KUALA LUMPUR, 11 October 2025 — The Budget 2026 tabled by Prime Minister YAB Dato’ Seri Anwar Ibrahim marks a bold and visionary step by the MADANI Government towards building an AI Nation by 2030.
Belanjawan MADANI 2026 outlines key initiatives that will further strengthen Malaysia’s digital ecosystem and accelerate our transformation into a digitally driven, innovation-led economy.
Among the highlights is the RM53 million allocation for the Malaysia Digital Acceleration Grant, which will catalyse the growth and adoption of emerging technologies such as blockchain, artificial intelligence (AI), and quantum computing. These technologies are central to building an ecosystem that is future-ready and globally competitive. This initiative will empower more Malaysians and local businesses to embrace innovation and digital solutions, driving productivity and strengthening our national competitiveness.
The Government’s continued commitment to AI development is also reflected in the RM18.1 million allocation for the National AI Office (NAIO). This underscores the Office’s expanding role in shaping Malaysia’s AI strategies and policies, while fostering collaboration across ministries, government agencies, and the private sector. NAIO’s efforts are vital in ensuring Malaysia remains at the forefront of AI adoption and governance in the region.
Equally significant is the RM30 million allocation to strengthen cyber security in the country. This measure is both timely and strategic, as it focuses on enhancing digital trust — a cornerstone of our nation’s digital transformation. Strengthening digital trust involves not only bolstering cybersecurity resilience but also ensuring the protection of data, the confidentiality of information, and the integrity of systems that Malaysians rely on every day. This allocation will enable us to expand cybersecurity programmes, including the development of advanced cryptographic security services to protect individuals, businesses, and national infrastructure.
The budget also provides RM20 million to further develop the MyGOV Malaysia mobile application, supporting efforts to centralise and digitalise government services. This initiative will make public services more accessible, efficient, and cost-effective for the rakyat, ensuring that digital transformation brings tangible benefits to all Malaysians.
In addition, the Government’s recognition of Malaysia’s growing creative digital industry is reflected in the RM20 million seed fund for animation and digital game creators. This investment will help nurture local talent, promote innovation, and elevate Malaysia’s position in the global digital content arena. Our creative professionals have already achieved international acclaim, and this additional support will strengthen the ecosystem for future success stories.
The Budget also allocates RM5.9 billion for research, development, commercialisation, and innovation (R&D&C&I) activities across ministries—demonstrating the Government’s focus on driving high-value, knowledge-based growth in the era of rapid technological change.
A particularly forward-looking initiative is the proposal to establish a Sovereign AI Cloud, with a RM2 billion investment through the Malaysian Communications and Multimedia Commission (MCMC). This will lay the foundation for Malaysia’s secure, sovereign AI infrastructure — ensuring national data is protected while enabling innovation and large-scale AI applications.
To support workforce readiness, the Government has also announced an additional 50% tax deduction for micro-, small-, and medium-sized enterprises (MSMEs) undertaking AI and cybersecurity training courses accredited by the MyMahir National AI Council for Industry (NAICI), TalentCorp, and MyDIGITAL. This is a crucial step to help businesses build digital capabilities and enhance productivity in an increasingly technology-driven economy.
These measures together reinforce the Government’s commitment to a digital economy that is secure, inclusive, and progressive. It is now time for us to harness these opportunities and translate them into meaningful outcomes — ensuring that no Malaysian is left behind as we move closer to realising our shared vision of making Malaysia an AI Nation by 2030.
YB Gobind Singh Deo
Minister of Digital
#END#
Issued by:
Office of the Minister
Ministry of Digital
