PUTRAJAYA – Malaysia’s Fifth MADANI Budget, themed “Reaching for the Sky, Rooted in the Earth”, underscores the government’s commitment to accelerating the country’s digital transformation and positioning Malaysia as an inclusive AI-powered nation by 2030.
Presented by Prime Minister Datuk Seri Anwar Ibrahim on October 9, 2026, the budget places a strong emphasis on strengthening the national digital ecosystem, developing local technology talent and building a future-ready workforce under the Malaysia Digital framework.
The Ministry of Digital will play a key role in driving these initiatives, with a focus on developing an ethical and sustainable artificial intelligence (AI) ecosystem, strengthening digital infrastructure and expanding access to digital skills nationwide.
As part of efforts to advance ethical AI development, Malaysia AI Berhad will be strengthened, with priorities including high-skilled talent development, enhanced digital infrastructure and the establishment of an efficient and secure AI governance ecosystem. These efforts aim to develop 200,000 skilled AI professionals in the country.
To support the growth of local businesses, funding through the Malaysia Digital Economy Corporation (MDEC) will help 4,000 micro, small and medium enterprises (MSMEs) adopt AI technologies and automate their operations. The initiative will also support the training and certification of 5,000 AI professionals.
The government is also extending opportunities for local and international talent through an extension of the DE Rantau Pass. Existing DE Rantau Nomad Pass holders who have reached the current maximum stay of two years will be eligible for an additional two years to continue living and working remotely in Malaysia.
In efforts to bridge the digital divide, the government will introduce a digitalisation initiative for traditional Islamic religious schools, or sekolah pondok, through a collaboration between the Department of Islamic Development Malaysia (JAKIM) and MDEC. The programme will provide digital devices and skills training for teachers and students at more than 300 schools nationwide.
Meanwhile, digital skills development initiatives for the public, particularly young people, will be expanded through an additional 100,000 free AI subscriptions covering popular AI applications, including ChatGPT.
The Digital People’s Platform will also provide free access to more than 16,000 digital courses and professional certificates through Coursera, enabling Malaysians to acquire new skills and strengthen their competitiveness in the digital economy.
These measures reflect the budget’s theme, “Reaching for the Sky, Rooted in the Earth”, by balancing Malaysia’s ambition to compete at the forefront of global technological advancement with a commitment to ensuring that the benefits of digital development reach all segments of society.
The Ministry of Digital welcomed the budget’s commitments and reaffirmed its readiness to mobilise the necessary resources and capabilities to accelerate the country’s digital transformation agenda.
The initiatives are expected to strengthen Malaysia’s digital ecosystem, expand access to emerging technologies and advance the country’s ambition to become a robust and inclusive AI Nation by 2030.
-MINUTESMY
