Budget 2025 to accelerate Malaysia’s digitalisation, AI adoption
20 Oct 2024
The Budget 2025 provides significant support to further accelerate Malaysia’s digitalisation, encourage the adoption of artificial intelligence (AI) and drive inclusive growth, said the Malaysia Digital Economy Corporation (MDEC).
The support will further position Malaysia as a leading digital hub within the Asean region.
Its chief executive officer Anuar Fariz Fadzil said the Budget 2025 is apt as Malaysia prepares to chair Asean next year.
“With strategic initiatives in place, Malaysia is ‘future ready’ and well-equipped to drive regional collaboration in key areas such as AI, the digital economy and innovation, and strengthening our role in Asean and beyond,” he said in a statement today.
Anuar said the proposed budget provides incentives to both local and foreign investors to continue investing in Malaysia, especially in high-value activities, including digital services.
He added that the nation’s small and medium enterprise (SME) community also stands to benefit from initiatives to embrace digital tools for greater productivity and operational efficiencies, enabling SMEs to survive and thrive in an increasingly competitive global economy.
The RM1 billion allocation for the National Fund-of-Funds and RM1 billion Pioneer Fund by the Retirement Fund Inc are key initiatives to support Malaysia’s startup ecosystem.
“We also welcome the additional RM65 million for Cradle Fund to expand regional and global potential for local startups, as well as the RM15 million matching grant to encourage collaboration between government-linked companies and startups through corporate venture capital,” Anuar said.
A significant highlight of Budget 2025 was the successful attraction of US$16.9 billion (RM72.6 billion) in investments from global technology giants, including Amazon Web Services, Microsoft, Google, and Oracle.
“These investments will catalyse job opportunities for the rakyat while upskilling initiatives and the establishment of centres of excellence are set to enhance Malaysia’s standing within Southeast Asia’s digital landscape,” he said.
On the AI front, the government’s RM10 million allocations to the National AI Office and RM50 million for AI education demonstrate a strong commitment to advancing AI and building a skilled talent pipeline.
“These efforts will accelerate AI adoption and ensure Malaysia leads in AI innovation and ethical development across the region,” Anuar said.
Source: Bernama
