PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim today announced that Malaysia must move beyond being merely a consumer nation and become a creator of technology, innovation, and products that can compete on the global stage.
Presenting Budget 2026, Anwar said under Tekad Empat: Memacu Produk Ciptaan Malaysia, the government’s focus is to strengthen Ciptaan Malaysia and ensure that products “Made by Malaysia” penetrate export markets.
“Malaysia cannot remain merely a user. We must create — develop products and services, and lead in technology and digitalisation,” he said when tabling the budget in Parliament.
Anwar emphasised that the country’s future prosperity depends on its ability to master artificial intelligence (AI) and innovation.
Under the National Artificial Intelligence Office (NAIO) and the country’s first Faculty of Artificial Intelligence at Universiti Teknologi Malaysia (UTM), efforts will be intensified to nurture local expertise.
Malaysian universities will continue advancing AI in critical areas, including semiconductors at Universiti Sains Malaysia (USM), medical technology at Universiti Malaya (UM), and cryptology at Universiti Putra Malaysia (UPM), with Multimedia University (MMU) also contributing to research and development.
He also highlighted a major milestone with the launch of Intelek Luhur Malaysia Untukmu (ILMU), the nation’s first Bahasa Malaysia AI language model, developed in collaboration between Universiti Malaya and YTL AI Labs.
Anwar said Malaysia is already attracting significant AI-related investments and data centre projects from global technology giants such as Microsoft, Google, and Amazon Web Services (AWS).
Microsoft will invest USD 2.2 billion to develop the Malaysia West Cloud Region, as well as train 800,000 Malaysians through its AI for Malaysia’s Future programme and establish a National AI Innovation Centre.
Google will invest USD 2 billion to build a new data centre and Google Cloud region in Selangor and will expand its AI@Work 2.0 programme for civil servants.
Meanwhile, AWS will support the digitalisation of small and medium enterprises (SMEs) through the use of machine learning and big data analytics.
To position Malaysia as an AI nation by 2030, the government will continue to advance research, development, commercialisation, and innovation (RDCI) with an allocation of nearly RM5.9 billion across ministries.
The NAIO will receive RM20 million to develop high-skilled AI talent, strengthen digital infrastructure, and build an efficient national AI ecosystem.
In addition, the government will offer a 50 percent additional tax deduction to SMEs for recognised AI and cybersecurity training under the MyMahir National AI Council for Industry (NAICI), jointly led by TalentCorp and MyDigital.
The Malaysian Communications and Multimedia Commission (MCMC) will build a Sovereign AI Cloud worth RM2 billion and establish an AI Transformation Centre in partnership with Multimedia University and the Centre of Excellence in Ethics for Emerging Technologies to serve as a hub for AI and R&D activities.
A total of RM53 million will be channelled through the Malaysia Digital Acceleration Grant to accelerate adoption of emerging technologies such as blockchain, AI, and quantum computing, while MIMOS will develop blockchain and deepfake detection technologies.
To encourage a culture of science, technology, and innovation among youth, the government has allocated RM15 million for initiatives including Malaysia Techlympics, National Science Week, Rehlah Sains, and Science on Wheels.
“Malaysia must no longer be satisfied with consuming what others create. We must produce, innovate, and lead,” Anwar said, stressing that Budget 2026 marks a crucial step in steering Malaysia toward becoming a technology-driven and innovation-led nation.
