PETALING JAYA: Malaysia Digital Economy Corporation (MDEC) has described Budget 2025, themed Madani Economy: Negara Makmur, Rakyat Sejahtera, presented by Prime Minister Datuk Seri Anwar Ibrahim last Friday, as a ‘forward-thinking’ Vudget that further strengthens the foundation of the nation’s digital economy.
MDEC CEO Anuar Fariz Fadzil said the Budget provides significant support to further accelerate Malaysia’s digitalisation, encourage adoption of artificial intelligence (AI) and drive inclusive growth, further positioning Malaysia as a leading digital hub within the Asean region.
“The Madani Budget 2025 comes at an apt time as Malaysia prepares to chair Asean 2025,” said Anuar.
“With strategic initiatives in place, Malaysia is ‘future ready’ and well-equipped to drive regional collaboration in key areas such as AI, the digital economy and innovation, strengthening our role in Asean and beyond. The proposed budget provides incentives to both local and foreign investors to continue investing in Malaysia, especially in highvalue activities including digital services,” he added.
The nation’s small and medium enterprise (SME) community also stands to benefit from initiatives to embrace digital tools for greater productivity and operational efficiencies, thereby enabling SMEs to ‘survive and thrive’ in an increasingly competitive global economy.
“As Digital Minister Gobind Singh Deo stated, the Budget builds upon the strong foundations of Malaysia’s digital economy, with growth expected to exceed the 25.5% contribution to national economy GDP by end-2025,” Anuar added.
Gobind has described the Madani Budget 2025 as “one that prioritises the wellbeing and prosperity of the rakyat”.
“The initiatives in Budget 2025 will continue to support the Ministry of Digital in leading digital transformation efforts, creating an efficient and secure national digital ecosystem, boosting the country’s digital economy and narrowing the socio-economic gap among Malaysians,” he said in a statement on Saturday.
Anuar said the Madani government is strategically leveraging Malaysia’s strengths to further drive digital transformation and economic growth of the country.
“Malaysia’s key strengths are, among others, our strategic location, multicultural and English-speaking workforce, investor-friendly environment and stable government.”
A significant highlight of Budget 2025 was the successful attraction of US$16.9 billion in investments from global technology giants, including AWS, Microsoft, Google and Oracle. This achievement, a result of a collaborative effort among ministries and agencies – including MDEC – underscores Malaysia’s status as a regional gateway for cloud infrastructure and a key player in the global digital economy.
“These investments will catalyse job opportunities for the rakyat, while upskilling initiatives and the establishment of centres of excellence are set to enhance Malaysia’s standing within Southeast Asia’s digital landscape,” said Anuar.
On the AI front, Anuar said the government’s RM10 million allocations to the National AI Office and RM50 million for AI education demonstrates a strong commitment to advancing AI and building a skilled talent pipeline.
“These efforts will accelerate AI adoption and ensure Malaysia leads in AI innovation and ethical development across the region,” said Anuar.
“Our leadership in establishing the Asean AI Safe Network also brings to life our proactive approach to ethical AI development. “MDEC is committed to working alongside the government to ensure that AI technologies
are deployed ethically and responsibly, securing Malaysia’s digital future through collaboration among academia, industry, public institutions and the rakyat.”
Anuar also said the Digital ID initiative is set to play a crucial role in enhancing digital trust and security, providing the rakyat and businesses with a secure, reliable method for online identity verification.
“The introduction of Digital ID will further streamline access to digital services and strengthen confidence in online transactions, reducing fraud and boosting the overall digital economy,” said Anuar. “This initiative will be crucial in supporting Malaysia’s digital transformation efforts and positioning the nation as a leader in secure digital services
across the region.”
The RM1 billion National Fund-of-Funds and RM1 billion Pioneer Fund by KWAP are key initiatives to support Malaysia’s startup ecosystem.
“MDEC welcomes the additional RM65 million for Cradle Fund to expand regional and global potential for local startups, as well as the RM15 million matching grant to encourage collaboration between government-linked companies (GLCs) and startups through corporate venture capital,” Anuar said.
“The government’s commitment to nurturing a ‘culture of innovation’ among the rakyat and businesses is in deep alignment with MDEC’s mission to position Malaysia as a hub for startup innovation in the Asean region.”
MDEC’s Founders Centre of Excellence (FOX) programme has proven to be a resounding success, empowering local startups by providing critical resources mentorship and infrastructure support.
The prime minister has cited Vitrox Bhd as an example of the success of such initiatives.
Vitrox, founded by two engineers from Universiti Sains Malaysia and guided by MDEC’s GAIN programme, has grown into a global player in the electronics industry, serving markets across Asia, Europe and the United States.
“MDEC stands ready to support these transformative initiatives, working closely with entrepreneurs, businesses and communities to ensure Malaysia’s digital economy continues to thrive and create opportunities for all,” Anuar said.
