THE Ministry of Communications has described Budget 2026 as a vital catalyst for advancing digital connectivity, reinforcing national identity through creative content, and strengthening the country’s position in the global digital and cultural landscape.
In a statement following the tabling of the Federal Budget by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, the Ministry confirmed it has been allocated nearly RM2.56 billion for initiatives designed to modernise infrastructure and stimulate the country’s orange economy — referring to the creative and cultural industries.
“This budget reaffirms our commitment to building a robust communications ecosystem while empowering the creative sector and strengthening national resilience,” the Ministry said.
A key focus will be the RM770 million Point of Presence (PoP) project, which aims to expand access to high-speed internet in underserved areas.
The government will also allocate RM110 million to attract high-quality film productions, including RM10 million specifically for content that reflects national identity and values. Another RM10 million will support concert promotions in conjunction with Visit Malaysia Year 2026, helping to position Malaysia as a cultural destination.
In addition to its direct allocation, the Ministry, through the Malaysian Communications and Multimedia Commission (MCMC), will oversee RM3.99 billion in targeted investments to expand telecommunication coverage, empower rural entrepreneurs, and bolster national readiness for emergencies.
This includes RM2 billion for the Sambungan Kabel Dasar Laut MADANI (SALAM) project — a major submarine cable system connecting Johor to Sarawak and Sabah, aimed at improving connectivity in East Malaysia. The second phase of the Jalinan Digital Negara (JENDELA 2) initiative will receive RM780 million to extend coverage to 2,700 additional sites.
To support public health services, RM650 million will be used to upgrade internet access at government hospitals and clinics across the country, including rural and maternal health facilities. A further RM350 million will go towards strengthening the National Information Dissemination Centres (NADI), helping rural entrepreneurs build digital capabilities and increase income.
An Early Warning System (EWS) will be developed with RM210 million to enhance the nation’s disaster response and risk mitigation capabilities.
Reflecting Malaysia’s growing ambitions in artificial intelligence, the MCMC will spearhead the development of a Sovereign AI Cloud, backed by RM2 billion in investment.
An AI Transformation Centre will also be established in partnership with Multimedia University (MMU) and the Centre of Excellence in Ethics for Emerging Technologies, with a focus on culturally aware and responsible AI research and development.
The Ministry expressed confidence that Budget 2026 would enhance national communications infrastructure, boost digital and media literacy, and elevate Malaysia’s creative economy on the global stage. - October11, 2025
