PETALING JAYA: Cisco Malaysia has welcomed Budget 2026, saying the government’s focus on digital infrastructure, cybersecurity and workforce development will provide the foundations for the country to thrive in the AI era.
Managing director Chee Kheong Lee said the spending plan underscored Malaysia’s intent to build a “digitally empowered and innovation-driven economy.”
“The Budget 2026 underscores Malaysia’s strong commitment to building a digitally empowered and innovation-driven economy.
“We welcome the government’s continued focus on strengthening digital infrastructure, cybersecurity resilience, and upskilling the nation’s workforce, all of which are key pillars in advancing the Ekonomi Madani agenda,” he said.
Lee noted that measures such as the RM2 billion Sambungan Kabel Dasar Laut Madani (Salam) submarine cable project, the expansion of MyDigital ID and new investments in GovTech Malaysia would enhance nationwide connectivity and improve access to digital public services.
“These measures create the foundation for businesses of all sizes, including SMEs, to accelerate digital transformation, embrace AI-driven innovation, and improve productivity.
By fostering seamless, secure and inclusive digital infrastructure, Malaysia is strengthening its position as a regional hub for innovation, data and technology-driven growth, and Cisco is proud to play a key role in enabling that journey,” he said.
He pointed to Cisco’s own 2025 Networking Report, which found 96% of companies in Malaysia consider a modernised network critical for deploying AI, IoT and cloud.
“Continued investments into data centres, broadband and secure digital infrastructure, paired with workforce training, will be vital to ensuring equitable access and accelerating the country’s transition into an AI-powered economy,” he said.
On cybersecurity, Lee described AI as introducing “one of the most complex security challenges in history,” and welcomed the government’s announcement of a Cyber Security and Cryptology Development Centre (CSCDC) under National Cybersecurity Agency (Nacsa), alongside a RM700 million allocation for enforcement and security agencies.
“This reflects a long-term vision to protect national data and enhance cross-sector collaboration. Security is the foundation of a trusted digital economy,” he said.
Lee also praised the budget’s emphasis on digital skills, particularly the 50% additional tax deduction for SMEs investing in AI and cybersecurity training under NAICI.
“This will help develop the next generation of cyber and AI professionals, ensuring businesses remain secure and competitive,” he said, adding that Cisco’s Networking Academy has already trained more than 170,000 Malaysians in cybersecurity and digital skills.
He said government allocations, including RM180 million for high-impact industries, RM3 billion for HRD Corp-led training programmes and RM5.9 billion for research and innovation, were closely aligned with Cisco’s mission to accelerate Malaysia’s AI readiness.
“Cisco is proud to support the country’s ambitions as the critical infrastructure provider for the AI era, helping businesses modernise infrastructure, strengthen cybersecurity resilience and harness the power of AI and data as Malaysia charts its next phase of growth,” Lee said.
