Malaysia on progressive path towards AI nation status: experts

Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) nation by 2030, a goal seen as achievable under Budget 2026 - the Malaysian Government’s fiscal and policy framework for 2026.

Dr Muhammad Akmal Remli, Director of the Institute of Artificial Intelligence and Big Data (AIBIG) under the University of Malaysia Kelantan (UMK), said that while current directions in investment, research and talent development are encouraging, true success depends on effective implementation.

According to him, Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced an allocation of nearly 5.9 billion MYR (1.4 billion USD) to strengthen the AI sector.

However, the technology sector is changing rapidly and there may be many unexpected factors that affect Malaysia's goal of becoming an AI nation by 2030.

Muhammad Akmal also highlighted the need to address the digital divide in AI access to ensure that both large corporations and small enterprises benefit equally. He said big companies may quickly enjoy the advantages of AI adoption, while smaller enterprises or those less exposed risk being left behind.

He welcomed the government’s announcement of an additional 50% tax deduction for micro, small and medium enterprises (MSMEs) undertaking AI and cybersecurity training, describing it as a positive move to spur wider adoption.

Muhammad Akmal also welcomed the establishment of the Sovereign AI Cloud and AI Transformation Centre by the Malaysian Communications and Multimedia Commission (MCMC), but emphasised the need for effective coordination with existing entities such as MIMOS, the National AI Office (NAIO), the Malaysian Research Accelerator for Technology and Innovation (MRANTI) and universities.

Dr Yasir Mohd Mustafah, a lecturer from International Islamic University Malaysia (IIUM) Kulliyyah of Engineering, said the government’s efforts to strengthen digitalisation and AI initiatives under the budget reflect a forward-looking approach towards realising Malaysia’s AI Nation aspiration.

He said the nearly 5.9 billion MYR for Research, Development, Commercialisation and Innovation (RDCI) activities is a strategic step to drive a high-technology economy and enhance data sovereignty through the Sovereign AI Cloud initiative.