Industry Leaders Applaud Budget 2027’s Bold Digital, AI Push
KUALA LUMPUR, Oct 11 (Bernama) -- Malaysia’s digital industry has welcomed Budget 2027 as a significant step forward in accelerating the nation’s digital transformation and artificial intelligence (AI) ambitions, praising its comprehensive focus on the digital economy, infrastructure, rakyat and government.
Industry leaders said the initiatives outlined in the budget have the potential to strengthen business competitiveness, drive AI adoption, enhance connectivity and modernise public services, while ensuring that more Malaysians benefit from the digital economy.
Malaysian Digital Association (MDA) president Nicholas Sagau described Budget 2027 as a clear signal of Malaysia’s determination to position itself as a leading digital and AI-driven economy.
"Budget 2027 reflects Malaysia’s strong commitment to digital transformation and AI advancement. While investments in data centres, infrastructure and policy frameworks are important, what is particularly encouraging is the emphasis on equipping Malaysians with the skills and tools needed to thrive in an AI-powered future," he said in a statement.
Nicholas noted that the true value of the budget would ultimately depend on how effectively businesses and individuals translate these opportunities into practical outcomes.
"The real opportunity lies in turning these initiatives into meaningful AI adoption, higher productivity and new avenues for economic growth," he said.
He welcomed measures such as the provision of 100,000 additional free AI subscriptions for young Malaysians, access to more than 16,000 digital courses and certifications, and initiatives aimed at developing AI-ready talent.
"Success should not be measured solely by the number of subscriptions or courses offered. It should be reflected in how Malaysians leverage these opportunities to build careers, improve productivity and create new economic opportunities," he added.
Strong Infrastructure Key to Sustaining Growth
Malaysia Internet Exchange (MyIX) chairman Chiew Kok Hin said continued investment in digital infrastructure remains essential to support the country’s growing digital ecosystem.
Among the initiatives welcomed by MyIX were the ongoing implementation of JENDELA, the rollout of the MADANI Submarine Cable (SALAM), and plans to develop a Sovereign AI Cloud.
"Reliable, affordable and secure connectivity forms the backbone of digital transformation. Strengthening our infrastructure will help businesses expand, improve access to digital services and ensure communities outside major urban centres are not left behind," said Chiew.
He noted that peak internet traffic at MyIX has increased nearly 10,000-fold since 2006, highlighting the rapid growth in demand for connectivity and digital services.
Beyond network infrastructure, MyIX is also advancing digital inclusion through its Digital Classroom CSR Programme, which provides smart boards to schools, particularly in underserved communities, to improve digital learning opportunities.
Internet Alliance president Dr Sunny Ooi welcomed the budget’s strong emphasis on digital government, particularly the RM947.29 million allocation for Digital Government Services and the target of making 85 per cent of government services fully available online by 2027.
"Digital government is ultimately about making life easier for citizens and businesses. Efficient online services reduce paperwork, shorten processing times and lower administrative costs while improving transparency and the quality of public service delivery," he said.
Ooi pointed to the growing adoption of MyDigital ID, which has surpassed 14 million registered users across 203 public and private services, as evidence of the country's readiness for seamless and secure digital transactions.
He added that broader adoption of AI, automation and integrated government systems could further improve efficiency and reduce bureaucracy.
At the same time, Ooi welcomed opportunities for local technology providers to collaborate with the government to build secure, reliable, and user-friendly digital services.
"Such partnerships can strengthen domestic industry capabilities while ensuring digital initiatives deliver tangible benefits to the rakyat,” he said.
Ooi also praised the RM30 million allocation through the Malaysia Digital Economy Corporation (MDEC) to accelerate AI adoption and automation among 4,000 micro, small and medium enterprises (MSMEs), alongside programmes to train 5,000 AI professionals.
"AI is fundamentally a productivity tool, particularly for SMEs operating with limited manpower and resources.
"By automating repetitive processes, improving customer engagement, streamlining operations and analysing business data more effectively, companies can lower costs, boost efficiency and focus on growth,” he said.
He believed the initiatives could help smaller businesses overcome common barriers to AI adoption while preparing the workforce for a technology-driven future.
"This is about enabling Malaysian SMEs to do more with less, become more competitive and move into higher-value activities," he added.
Industry associations agreed that close collaboration between the public and private sectors will be crucial in translating Budget 2027's digital ambitions into measurable outcomes, particularly in productivity gains, talent development and national competitiveness.
They also acknowledged the leadership of Digital Minister Gobind Singh Deo in driving Malaysia’s aspiration to become an AI Nation by 2030, especially through his focus on building a holistic digital ecosystem encompassing infrastructure, innovation, talent, and responsible AI adoption.
Ooi, in particular, said Gobind has provided a clear direction for Malaysia's digital and AI journey, with Budget 2027 giving further momentum to that vision.
“The priority now is execution. Industry stands ready to work alongside the government to ensure these initiatives deliver real and lasting benefits for businesses, the rakyat and the economy," he said.
-- BERNAMA