The Malaysian government has announced a comprehensive budget focused on boosting technological innovation, economic growth, and social welfare, with a particular emphasis on advancing AI, digital transformation, and supporting local industries.

MCMC will also focus on blockchain solutions and deepfake detection technologies, supporting emerging tech development, including the creation of ILMU, Malaysia’s first AI language model.

Significant investments include RM200 million for SME matching grants, RM180 million for high-impact industries, and RM550 million from Khazanah and KWAP for semiconductor development, alongside incentives like venture capital tax benefits.

To strengthen national AI infrastructure, the government will develop a Sovereign AI Cloud through the Malaysian Communications and Multimedia Commission (MCMC), which will also establish an AI Transformation Centre and a Centre of Excellence in Ethics for Emerging Technologies.

The budget aims to make AI a national priority, supporting the National Artificial Intelligence Office (NAIO) and local universities in AI education, with a focus on semiconductors, medicine, cryptology, and broader tech ecosystems.

In addition, the government plans to digitize public services through expanding MyDigital ID across sectors, and introduce digital, environmental, and social reforms to improve governance and public service delivery.

Transport sector initiatives include procuring electric buses, upgrading airports, developing new service routes, and finalizing speed regulations for heavy vehicles to promote low-carbon transportation and improve safety.

Infrastructure upgrades across roads and transit facilities are also underway to support sustainable mobility and reduce road accidents.

The budget includes efforts to enhance safety and modernize the transportation network, aligning with Malaysia’s green technology goals.

Youth and sports development is allocated RM580 million for national sports events, youth training programs, and inclusive policies for individuals aged 15 to 30, with initiatives like the K-Youth Programme.

These efforts aim to foster national progress, support NGOs and para-athletes, and redefine youth as part of Malaysia’s broader development strategy.

The budget emphasizes technological innovation and economic empowerment, aligning with the theme 'Driving the Madani Economy: Empowering the People,' while maintaining fiscal discipline.

Cultural and tourism sectors will benefit from grants, incentives, and infrastructure improvements to promote domestic tourism, preserve heritage, and support arts entrepreneurs.

Efforts include promoting arts, heritage, and cultural activities, alongside initiatives to enhance healthcare facilities nationwide.

The government will debate the Supply Bill 2026 over eight days, focusing on policies to support economic growth and public welfare.