Budget 2026: Malaysia On Progressive Path Towards AI Nation Status – Experts

KUALA LUMPUR, Oct 11 (Bernama) -- Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) Nation by 2030, a goal seen as achievable under Budget 2026.

Universiti Malaysia Kelantan (UMK) Institute of Artificial Intelligence and Big Data (AIBIG) director Dr Muhammad Akmal Remli said that while current directions in investment, research and talent development are encouraging, true success depends on effective implementation.

“In a fast-changing and uncertain technological landscape, good governance is crucial. If implementation is effective, I believe Malaysia can achieve its AI Nation target by 2030,” he told Bernama.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026 yesterday, announced an allocation of nearly RM5.9 billion to strengthen the AI sector, covering research, development and innovation across ministries.

Muhammad Akmal also highlighted the need to address the digital divide in AI access to ensure that both large corporations and small enterprises benefit equally.

“Big companies may quickly enjoy the advantages of AI adoption, while smaller enterprises or those less exposed risk being left behind. This gap must be closed to ensure inclusive AI development,” he said.

He welcomed the government’s announcement of an additional 50 per cent tax deduction for micro, small and medium enterprises (MSMEs) undertaking AI and cybersecurity training, describing it as a positive move to spur wider adoption.

“It not only helps reduce training costs but also signals that the government is serious about involving MSMEs in the digital economy,” he said.

He added that awareness and guidance efforts should be intensified to help MSMEs understand how AI can improve productivity and efficiency, serving as a foundation for broader digital transformation at the grassroots level.

Muhammad Akmal also welcomed the establishment of the Sovereign AI Cloud and AI Transformation Centre by the Malaysian Communications and Multimedia Commission (MCMC), but emphasised the need for effective coordination with existing entities such as MIMOS, the National AI Office (NAIO), the Malaysian Research Accelerator for Technology and Innovation (MRANTI) and universities.

“Each entity has its strengths, MIMOS in technology development, NAIO in policy, MRANTI in commercialisation and universities in research. What matters is that they complement, not compete, with one another,” he said, adding that Malaysia could emulate advanced countries that have enacted laws banning the unauthorised use of individuals’ images or videos for AI-generated content.

International Islamic University Malaysia (IIUM) Kulliyyah of Engineering lecturer Dr Yasir Mohd Mustafah said the government’s efforts to strengthen digitalisation and AI initiatives under the budget reflect a forward-looking approach towards realising Malaysia’s AI Nation aspiration.

He said the near RM5.9 billion for Research, Development, Commercialisation and Innovation (RDCI) activities is a strategic step to drive a high-technology economy and enhance data sovereignty through the Sovereign AI Cloud initiative.

“Every year, substantial funds are allocated for research and innovation. The government must ensure that these funds are optimally utilised to generate tangible impact,” he said.

-- BERNAMA