The government aims to make Malaysia an Artificial Intelligence (AI)-based nation by 2030, through several strategic measures announced in the tabling of Budget 2026 today.
Prime Minister Datuk Seri Anwar Ibrahim said that to achieve this target, the government will strengthen investments in the research, development and technological innovation sectors.
Among the key initiatives announced include:
Allocation for R&D, Commercialisation and Innovation (RDCI) activities totaling almost RM5.9 billion.
Additional 50% tax deduction for SMEs that incur expenses on AI-related training costs.
Establishment of the Sovereign AI Cloud as a national data and processing infrastructure.
Malaysia Digital Acceleration Grant worth RM53 million to accelerate the adaptation of AI technology in various industrial sectors.
According to the Prime Minister, this step is important to ensure that Malaysia remains competitive in the regional digital economy and does not lag behind in the global transformation trend.
"Investing in AI is not just for technological advancement, but to open up new opportunities in jobs, businesses and more efficient delivery of public services," he said when presenting the 2026 Budget in the Dewan Rakyat.
