Malaysia steps up AI and innovation efforts under 2026 Budget
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KUALA LUMPUR: The 2026 Budget delivers a decisive push for Malaysia’s innovation agenda, reinforcing national priorities in artificial intelligence (AI), digital transformation and high-technology industry development.
Science, Technology and Innovation Ministry (Mosti) deputy secretary-general Norsham Abdul Latip said the digital ecosystem is advancing rapidly, catalysed by landmark investments from global technology leaders such as Microsoft, Google and Amazon Web Services.
“These strategic partnerships signal strong confidence in Malaysia’s tech trajectory and position the nation as a rising hub for digital innovation in the region,” he said in a speech delivered by Mosti under secretary Aidawati Misdar at the MDV NextWave 2025 Forum here today.
Organised by Malaysia Debt Ventures Bhd, the forum highlighted national technology agenda and economic priorities in line with the 13th Malaysia Plan, while featuring post-2026 Budget perspectives from industry and government leaders.
Norsham said initiatives under the budget including the National Sovereign AI Cloud, the AI Transformation Centre and the establishment of the National AI Office, mark a bold step in Malaysia’s journey toward becoming an “AI Nation by 2030”.
“They reflect our ambition not merely to adopt emerging technologies, but to lead in shaping strategic domains such as artificial intelligence, cloud infrastructure and digital governance,” he said.
Equally important, he said, is Malaysia’s strategic shift toward Ciptaan Malaysia (Malaysian Invention), transforming homegrown research and development (R&D) into commercially viable products and services.
Central to this effort is MySTI, Malaysia’s official trustmark for innovation, which certifies that a product or solution is locally developed, meets defined quality standards and is ready for scale.
Under the National Semiconductor Strategy, RM500 million has been allocated to support high value-added activities such as R&D, particularly among local companies strengthening the electrical and electronics (E&E) ecosystem, along with incubator programmes to boost the semiconductor industry.
“The 2026 Budget also expands access to export financing, enabling innovative Malaysian companies to scale internationally and compete in global markets,” Norsham said.
He added that among the many domains where technology will define Malaysia’s future, energy stands out as a critical pillar.
Malaysia has committed to achieving net-zero greenhouse gas emissions by 2050, underpinned by ambitious targets for renewable energy expansion and carbon intensity reduction.
“Technology and innovation will play a central role in driving this transition, enabling smarter grids, cleaner fuels and more efficient energy systems that support Malaysia’s journey toward a low-carbon, sustainable economy,” he said.
Mosti, through the National Energy Transition Roadmap and the National Energy Transition Facility, is mobilising blended financing to accelerate clean energy solutions ranging from hydrogen and battery storage to smart grids and low-carbon manufacturing.
“This effort is supported by complementary measures such as carbon pricing and the Green Technology Financing Scheme, making the energy transition not just a climate agenda, but a growth strategy that opens new value chains and creates high-skilled jobs,” Norsham said.