BUDGET 2026 has delivered a decisive push for the nation’s innovation agenda, prioritising artificial intelligence, digital transformation and high-technology industry development.
Deputy secretary-general of the Science, Technology and Innovation Ministry (Mosti), Norsham Abdul Latip, said the country’s digital ecosystem is progressing rapidly, supported by significant investments from global technology leaders including 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.
Organised by Malaysia Debt Ventures Bhd, the forum showcased the national technology agenda and economic priorities under the 13th Malaysia Plan, alongside post-Budget perspectives from industry and government leaders.
Norsham highlighted initiatives under the Budget such as the National Sovereign AI Cloud, the AI Transformation Centre and the establishment of the National AI Office, describing them as “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.
He also emphasised Malaysia’s strategic focus on Ciptaan Malaysia, or Malaysian Invention, transforming local research and development into commercially viable products and services. Central to this effort is MySTI, the official national trustmark for innovation, which certifies that products are locally developed, meet quality standards and are ready for scale.
Under the National Semiconductor Strategy, RM500 million has been allocated to support high value-added activities including research and development by local companies, and incubator programmes to strengthen the electrical and electronics ecosystem.
"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 energy will be a critical pillar for technological development, as Malaysia pursues net-zero greenhouse gas emissions by 2050 with ambitious renewable energy targets.
"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 including hydrogen, battery storage, 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 added. - October 29, 2025
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