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Wednesday, July 22, 2026
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Budget 2025: Malaysia strengthens focus on AI development

KUALA LUMPUR: Malaysia continues to place strong emphasis on the development of artificial intelligence (AI) technology, with a significant allocation announced in Budget 2025 tabled by Prime Minister Datuk Seri Anwar Ibrahim on Friday.

Under the national budget themed ‘Reinvigorating the Economy, Driving Reforms, Prospering the Rakyat’, several research universities such as Universiti Kebangsaan Malaysia (UKM) and Universiti Putra Malaysia (UPM) have been tasked with advancing this field with an allocation of RM50 million.

UKM vice-chancellor Prof Datuk Dr Mohd Ekhwan Toriman said the university’s selection to lead AI for translation, aimed to elevate Bahasa Melayu as a language of knowledge, is a responsibility that must be fulfilled with excellence.

“Through the Ikhtiar 40 initiative, UKM will spearhead interactive AI technology to create more accurate and comprehensive Malay translation systems. This initiative aims to develop the Malay Large Language Model (LLM-BM) application specifically for the public sector in Malaysia.

“This is crucial to meet national needs and to support the increased use of AI-based language technology in public services. Although existing LLMs have significantly aided natural language processing (NLP), there are notable shortcomings in their applications for Bahasa Melayu,” he told Bernama.

Mohd Ekhwan said the development of LLM-BM will be based at UKM’s Faculty of Information Science and Technology as a collaborative hub, while the Faculty of Social Sciences and Humanities’ Language Studies Department will oversee linguistic reviews. The project will also collaborate with the Universiti Teknologi Malaysia (UTM) AI Faculty as the coordinating centre.

Meanwhile, UPM vice-chancellor Prof Datuk Dr Ahmad Farhan Mohamad Sadullah described the establishment of the Malaysian Cryptology Technology and Management Centre in collaboration with the National Cyber Security Agency (NACSA) to develop quantum computing AI as preparation for addressing complex cybersecurity threats as a recognition for the university.

“UPM will leverage its expertise in AI, quantum computing, cryptography and other related fields from various faculties and research institutes to ensure the successful launch and growth of the Malaysian Cryptology Technology and Management Centre to support the nation’s effort in tackling cyber security challenges.

“We are also grateful to the Higher Education Ministry (MOHE), NACSA and the Digital Ministry for recognising UPM’s contributions and to our industry partners who continue to serve as a testament to our capabilities in this field,” he said.

Under Budget 2025, the government will continue to nurture research, development, commercialisation and innovation activities, with R&D funds raised to RM600 million under MOHE and the Science, Technology and Innovation Ministry.

In addition, the Malaysia Science Endowment (MSE) Trust Fund will receive RM170 million, which will be utilised to provide matching grants for private bodies and industries to drive R&D programmes.

The Malaysia Techlympics programme, with an allocation of RM10 million, will be enhanced to stimulate the development of homegrown talents in robotics and AI technology.

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