Budget 2026: Accelerating Malaysia’s Digital Transformation for All

PUTRAJAYA, 17 October 2025: The Belanjawan MADANI 2026, tabled by Prime Minister YAB Dato’ Seri Anwar Ibrahim, reaffirms Malaysia’s commitment to building an AI Nation by 2030. The allocations within this Budget strongly support the strategic direction of the Malaysia Digital Economy Blueprint (MDEB) and the National Fourth Industrial Revolution Policy (N4IRP), underscoring the Government’s continued commitment to building a digitally driven, innovation-led, and inclusive economy.

MyDIGITAL Corporation views the allocations in Budget 2026 as pivotal in turning Malaysia’s digital ambitions into concrete progress for the Government, industry, and rakyat.

“Belanjawan MADANI 2026 bridges vision and delivery. It signals Malaysia’s readiness to harness artificial intelligence (AI), data, and digital innovation as engines of inclusive and sustainable growth. MyDIGITAL Corporation will continue working closely with the Ministry of Digital and our partners across sectors to ensure that this transformation empowers every Malaysian,” said Chief Executive Officer Adrian Marcellus.

Driving Malaysia’s Digital Future

Budget 2026 lays stronger foundations across seven strategic areas in advancing the AI Nation 2030 vision. MyDIGITAL Corporation complements these national efforts through policy coordination and ecosystem enablement guided by the MDEB and the N4IRP.

1. Digital Government: Expansion of MyDigital ID and the GovTech Malaysia Unit will streamline and secure access to public services, strengthening integration and citizen
2. Digital Infrastructure: The establishment of the Sovereign AI Cloud and continued investment in the MADANI Submarine Cable Connection (SALAM) will enhance Malaysia’s data sovereignty, resilience, and connectivity — forming the backbone of national AI capability.
3. Digital Industry Enablement: Incentives such as the ASEAN Business Entity (ABE) framework and co-investment mechanisms will empower innovation-led industries and attract high-value digital investments.
4. Digital Talent: Initiatives under Technical and Vocational Education and Training (TVET), HRD Corp, and GiatMARA will continue to expand Malaysia’s digital and AI skills The proposed additional 50% tax deduction for micro, small, and medium enterprises (MSMEs) on AI and cybersecurity training expenses, accredited by the MyMahir National AI Council for Industry (NAICI) — jointly led by TalentCorp and MyDIGITAL Corporation — will further strengthen workforce readiness, enhance productivity, and sustain competitiveness in a technology-driven economy. Complementing these efforts, MyDIGITAL Corporation’s Rakyat Digital programme promotes digital literacy and inclusion at the community level, while the Executive Digital Leadership Programme builds digital leadership capacity across the public and private sectors.
5. Digital Society: The expansion of the National Information Dissemination Centre (NADI) and mobile digital units will ensure equitable access, fostering inclusion and opportunity nationwide. In partnership with the United Nations Development Programme (UNDP), MyDIGITAL Corporation is developing the Digital Inclusivity Index Malaysia (DIIM), or Indeks Keterangkuman Digital Malaysia (MyIKD), to benchmark and close Malaysia’s digital divide through data-driven insights on connectivity, affordability, skills, and adoption, ensuring that every Malaysian benefits from the nation’s digital transformation.
6. Digital Trust: Strengthening cybersecurity and data protection, alongside the Digital Trust & Data Security Strategy 2026-2030, will safeguard Malaysia’s digital progress and reinforce confidence in public digital systems. Reinforcing Malaysia’s leadership in AI governance, the Malaysia Centre for the Fourth Industrial Revolution (MYCentre4IR), hosted by MyDIGITAL Corporation, is spearheading the development of ASEAN AI Safety Network (ASEAN AI SAFE), endorsed at the 5^th ASEAN Digital Ministers’ Meeting (ADGMIN) in Bangkok in 2025, to advance regional collaboration on safe and responsible AI. A formal declaration of the ASEAN AI SAFE is expected at the 47^th ASEAN Leaders Summit in October 2025, ahead of its operational launch in 2026.
7. Digital Innovation: Investments in AI, blockchain, and quantum research will position Malaysia as a regional innovation leader, accelerating its transition to a high-value digital economy.

Empowering Every Malaysian

Through the implementation of the MDEB and under the guidance of MED4IRN, MyDIGITAL Corporation will ensure that the digital initiatives introduced under Belanjawan MADANI 2026 are realised through a whole-of-nation approach:

• For Government: Streamlined and data-driven public
• For Industry: Competitive, innovation-led
• For Citizens: Equitable access to digital

Together with the Ministry of Digital, MyDIGITAL Corporation is committed to translating these policies into tangible results — advancing Malaysia’s transformation towards a sustainable, secure, and AI-powered economy.