{"id":15712,"date":"2024-10-22T21:27:38","date_gmt":"2024-10-22T13:27:38","guid":{"rendered":"https:\/\/www.mydigital.gov.my\/?p=15712"},"modified":"2024-11-07T21:47:25","modified_gmt":"2024-11-07T13:47:25","slug":"budget-2025-accelerates-malaysias-transformation-in-ai","status":"publish","type":"post","link":"https:\/\/www.mydigital.gov.my\/bm\/budget-2025-accelerates-malaysias-transformation-in-ai\/","title":{"rendered":"Budget 2025 Accelerates Malaysia\u2019s Transformation in AI"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"15712\" class=\"elementor elementor-15712\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3d042da main-page-title e-flex e-con-boxed e-con e-parent\" data-id=\"3d042da\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;background_motion_fx_motion_fx_scrolling&quot;:&quot;yes&quot;,&quot;background_motion_fx_translateY_effect&quot;:&quot;yes&quot;,&quot;background_motion_fx_translateY_speed&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:4,&quot;sizes&quot;:[]},&quot;background_motion_fx_translateY_affectedRange&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:{&quot;start&quot;:0,&quot;end&quot;:100}},&quot;background_motion_fx_devices&quot;:[&quot;desktop&quot;,&quot;tablet&quot;,&quot;mobile&quot;]}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-0d6c836 e-con-full e-flex e-con e-parent\" data-id=\"0d6c836\" data-element_type=\"container\" data-settings=\"{&quot;position&quot;:&quot;absolute&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0ec5547 elementor-widget elementor-widget-ld_particles\" data-id=\"0ec5547\" data-element_type=\"widget\" data-widget_type=\"ld_particles.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\t\t<div class=\"ld-particles-container pos-rel w-100   lqd-particle-618b615377878\">\n\t\t\t<div class=\"ld-particles-inner lqd-overlay pointer-events-none\" id=\"lqd-particle-618b615377878\" data-particles=\"true\" data-particles-options='{\"particles\":{\"number\":{\"value\":25},\"color\":{\"value\":[\"#FDA44C\",\"#604CFD\",\"#0FBBB4\",\"#F85976\"]},\"shape\":{\"type\":[\"circle\"]},\"opacity\":{\"value\":1},\"size\":{\"value\":4},\"move\":{\"enable\":true,\"direction\":\"none\",\"out_mode\":\"bounce\"}},\"interactivity\":[],\"retina_detect\":true}'><\/div>\t\n\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4bab129 e-con-full e-flex e-con e-parent\" data-id=\"4bab129\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-36b9f2e elementor-widget elementor-widget-hub_fancy_heading\" data-id=\"36b9f2e\" data-element_type=\"widget\" data-widget_type=\"hub_fancy_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\t\t<div id=\"ld-fancy-heading-6a135c659b43d\" class=\"ld-fancy-heading pos-rel\">\n\t\t\t<h2 class=\"ld-fh-element d-inline-block pos-rel  elementor-heading-title lqd-highlight-classic lqd-highlight-grow-left h2\"  > Budget 2025 Accelerates Malaysia\u2019s Transformation in AI<\/h2>\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-11b8fcae page-breadcrumb e-flex e-con-boxed e-con e-parent\" data-id=\"11b8fcae\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-402381a0 page-breadcrumb e-flex e-con-boxed e-con e-parent\" data-id=\"402381a0\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-250395c5 elementor-widget elementor-widget-ld_breadcrumb\" data-id=\"250395c5\" data-element_type=\"widget\" data-widget_type=\"ld_breadcrumb.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"lqd-breadcrumb-wrapper\"><nav role=\"navigation\" aria-label=\"Breadcrumbs\" class=\"breadcrumbs\"><ol class=\"breadcrumb reset-ul inline-nav inline-ul comma-sep-li\"><li class=\"breadcrumb-item active\"><a href=\"https:\/\/www.mydigital.gov.my\/bm\" rel=\"home\"><span>Laman Utama<\/span><\/a><\/li><\/ol><\/nav><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-91de357 e-flex e-con-boxed e-con e-parent\" data-id=\"91de357\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-1842677 e-con-full e-flex e-con e-parent\" data-id=\"1842677\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-27482ce elementor-widget elementor-widget-text-editor\" data-id=\"27482ce\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h4 style=\"text-align: center;\"><span style=\"font-size: 24px;\"><strong>Budget 2025 Accelerates Malaysia\u2019s Transformation in AI<\/strong><\/span><\/h4>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-142b459 elementor-widget elementor-widget-text-editor\" data-id=\"142b459\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-size: 18px;\">MyDIGITAL Corporation to Establish the National Artificial Intelligence Office <br \/>and Lead the Proposal for ASEAN AI Safety Network<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d60870c elementor-widget elementor-widget-text-editor\" data-id=\"d60870c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Putrajaya, Malaysia, 22 October 2024<\/strong> \u2013 MyDIGITAL Corporation welcomes the Budget 2025 announcement viewing it as a significant step forward in positioning Malaysia as a regional leader in AI-driven innovation, economic growth, and quality of life enhancement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-87b35ee elementor-widget elementor-widget-text-editor\" data-id=\"87b35ee\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Aligned with the Ministry of Digital\u2019s efforts to create a trusted, secure, and innovative digital ecosystem, Adrian Marcellus, CEO of MyDIGITAL Corporation, commented, &#8220;Budget 2025 fosters a conducive environment for accelerating AI adoption. With the support of incentives and R&amp;D initiatives, companies can enhance their competitive edge, scale operations, and drive Malaysia&#8217;s digital transformation.&#8221;<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-588e752 elementor-widget elementor-widget-text-editor\" data-id=\"588e752\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>He also emphasised the pivotal role of the <em>ASEAN AI Safety Network<\/em>, stating, &#8220;The allocation for this network underscores Malaysia&#8217;s leadership in ensuring the safe and ethical development of AI across ASEAN member states. This initiative reflects our commitment to fostering responsible AI practices that mitigate risks and unlock AI\u2019s economic potential for the region.&#8221;<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9386d94 elementor-widget elementor-widget-text-editor\" data-id=\"9386d94\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Furthermore, the RM10 million allocation for the establishment of the <em>National Artificial Intelligence Office (NAIO)<\/em> will be instrumental in positioning Malaysia as an AI leader. &#8220;NAIO will serve as a central authority, ensuring coordinated and strategic alignment of Malaysia\u2019s AI efforts,&#8221; he added.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bfa8d35 elementor-widget elementor-widget-text-editor\" data-id=\"bfa8d35\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Driving the Growth of AI Adoption<\/strong><\/p>\n<p>Budget 2025 places a strong emphasis on promoting high-tech sectors, including AI, robotics, and the Internet of Things (IoT). Companies can benefit from tax incentives and R&amp;D support, encouraging local talent development and collaboration across industries to boost technological advancements and operational efficiency.<\/p>\n<p>Key opportunities for companies in Malaysia include (see details in Appendix below:)<\/p>\n<ul>\n<li><strong>Tax Incentives for High-Tech Companies<\/strong>: Special tax deductions for training, development, and job creation.<\/li>\n<li><strong>Incentives for R&amp;D and Innovation<\/strong>: Double tax deductions for AI-related R&amp;D and strategic investment fund for talent development.<\/li>\n<li><strong>Skilled Foreign Talent<\/strong>: Simplified processes for hiring foreign graduates in AI and other advanced technologies.<\/li>\n<li><strong>Educational Collaborations<\/strong>: Strategic partnerships with universities and TVET institutions for specialised training programmes.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7879ca9 elementor-widget elementor-widget-text-editor\" data-id=\"7879ca9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>ASEAN AI Safety Network<\/strong><\/p>\n<p>The proposal for the formation of <em>ASEAN AI Safety Network<\/em> is integral to institutionalising the AI governance and ethics principles as endorsed by the ASEAN Digital Ministers. It will support the implementation of the forthcoming ASEAN Responsible AI Roadmap (2025-2030) and facilitate collaboration among governments, businesses, academia, and civil society in ASEAN and with Dialogue Partners, for the exchange of best practices and multi-stakeholder partnerships.<\/p>\n<p><strong>National Artificial Intelligence Office (NAIO)<\/strong><\/p>\n<p>Forum <em>National Artificial Intelligence Office<\/em> (NAIO) serves as a central authority to unify efforts in enhancing the use and development of AI technology in the country. It will be incubated in MyDIGITAL Corporation in its first year of operation.<\/p>\n<p>NAIO will coordinate the continuity of strategies and implementation of artificial intelligence technology through the AI Technology Action Plan 2026 &#8211; 2030, which is aimed at increasing innovation and competitiveness of Malaysia&#8217;s AI ecosystem.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e4e30a9 elementor-widget elementor-widget-text-editor\" data-id=\"e4e30a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">-END-<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d6c73f elementor-widget elementor-widget-text-editor\" data-id=\"5d6c73f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Mengenai MyDIGITAL Corporation<\/strong><\/p><p>MyDIGITAL Corporation is a monitoring agency and operates as a Strategic Change Management Office under the Ministry of Digital, overseeing the implementation of the Malaysia Digital Economy Blueprint (MDEB) and the National 4IR Policy. It serves as the secretariat to the National Digital Economy and 4IR Council, chaired by the Prime Minister, and hosts the Malaysia Centre for the Fourth Industrial Revolution (MYCentre4IR) in collaboration with the World Economic Forum. MyDIGITAL is a dynamic platform aimed at accelerating the adoption of 4IR technologies and fostering innovation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d3e7cb elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile elementor-widget elementor-widget-text-editor\" data-id=\"7d3e7cb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Media Contact:<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1157631e e-con-full e-flex e-con e-parent\" data-id=\"1157631e\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-29642fc elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile e-flex e-con-boxed e-con e-parent\" data-id=\"29642fc\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6cf469f9 elementor-widget elementor-widget-text-editor\" data-id=\"6cf469f9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>MyDIGITAL Corporation<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <br \/>Norhani Ahmad Jaya<br \/><a href=\"mailto:norhani.aj@mydigital.gov.my\">norhani.aj@mydigital.gov.my<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-754fb47b e-flex e-con-boxed e-con e-parent\" data-id=\"754fb47b\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-49896517 elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile elementor-widget elementor-widget-text-editor\" data-id=\"49896517\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>MyDIGITAL Corporation<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<br \/>Yu Wui Wui<br \/><a href=\"mailto:wuiwui.yu@mydigital.gov.my\">wuiwui.yu@mydigital.gov.my<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a26c11c elementor-widget elementor-widget-text-editor\" data-id=\"a26c11c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>APPENDIX<\/strong><br \/><strong>Malaysia Budget 2025: Opportunities for Companies in AI<\/strong><\/p><ul><li><strong>TAX INCENTIVES FOR HIGH-TECH COMPANIES<\/strong><br \/><ul><li><strong>Training and Development<\/strong>: Companies can benefit from special tax deductions if they develop new courses or engage in training related to emerging technologies such as AI, robotics, digital technologies, IoT, and sustainable technologies. This incentive will encourage universities and private training institutes to collaborate with AI firms, fostering a more skilled workforce.<br \/><br \/><\/li><li><strong>Job Creation:<\/strong> Companies offering high-paying jobs, especially in fields like AI and data science, will receive targeted tax incentives. This encourages companies to hire local talent and upskill their workforce in cutting-edge technologies, thus benefiting from financial relief through tax breaks.<\/li><\/ul><\/li><\/ul><p>\u00a0<\/p><ul><li><strong>INCENTIVES FOR R&amp;D AND INNOVATION<\/strong><br \/><ul><li><strong>Investment in AI R&amp;D:<\/strong> Companies that engage in research and development (R&amp;D) to create new AI-driven products or services can benefit from double tax deductions on R&amp;D expenses. This policy aims to support local innovation and product development, ensuring that companies can reinvest saved funds into furthering AI advancements.<br \/><br \/><\/li><li><strong>Strategic Investment Fund:<\/strong> A new strategic investment fund worth RM1 billion has been established to increase the capacity of local talent and encourage companies to engage in high-value activities. Companies focusing on creating technologies related to smart manufacturing, health tech, and green solutions can tap into this fund.<\/li><\/ul><\/li><\/ul><p>\u00a0<\/p><ul><li><strong>SKILLED FOREIGN TALENT<\/strong><br \/><ul><li>\u00a0<strong>Easier Hiring of Foreign Graduates:<\/strong> Companies will also benefit from a simplified process for hiring foreign graduates from local universities. The Malaysian Investment Development Authority (MIDA) will streamline the process for issuing employment passes for skilled workers in strategic sectors like AI, making it easier to fill talent gaps.<\/li><\/ul><\/li><\/ul><p>\u00a0<\/p><ul><li><strong>EDUCATIONAL COLLABORATIONS<\/strong><br \/><ul><li><strong>Strategic Collaborations with Universities and TVET:<\/strong> Companies can collaborate with public universities and Technical and Vocational Education and Training (TVET) institutions to offer specialised training programmes. This can help build a steady pipeline of skilled AI workers and innovators, with government support to co-develop educational content and internships tailored to the sector.<br \/><br \/><\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-140f4a63 e-flex e-con-boxed e-con e-parent\" data-id=\"140f4a63\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-4ed000b9 e-con-full e-flex e-con e-parent\" data-id=\"4ed000b9\" data-element_type=\"container\">\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>KUALA LUMPUR, 17 July 2023 \u2014 MyDIGITAL Corporation and Microsoft recently concluded their joint skilling pilot program through the MyDIGITAL<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-15712","post","type-post","status-publish","format-standard","hentry","category-27"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - 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