Malaysia is gearing up to become an AI-driven nation by 2030 under the Budget 2026 Malaysia MADANI framework.
To accelerate this vision, the government has allocated around RM5.9 billion for Research, Development, Commercialisation, and Innovation (RDCI) activities. Small and medium enterprises (SMEs) will also benefit from an additional 50% tax deduction on expenses related to AI training costs, empowering local businesses to adopt and integrate artificial intelligence into their operations.
The government will also establish a Sovereign AI Cloud to strengthen national data sovereignty and digital infrastructure, alongside introducing the Malaysia Digital Acceleration Grant worth RM53 million to boost innovation and digital growth across key sectors.
