Kuala Lumpur, 29 October 2025 – Malaysia is accelerating its journey toward becoming a regional technology powerhouse with strategic initiatives under Budget 2026 that strengthen the nation’s position in semiconductors, green technology, and the digital economy, industry leaders said at the MDV NextWave 2025 Forum today.
Deputy Secretary-General of the Ministry of Science, Technology and Innovation (MOSTI), Norsham Abdul Latip, highlighted Malaysia’s rapid digital ecosystem growth, bolstered by major investments from 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,” said Norsham, in a speech delivered by MOSTI Under Secretary Aidawati Misdar.
She noted that Budget 2026 includes bold measures to advance Malaysia’s ambition of becoming an AI Nation by 2030, including:
- Establishment of the National Sovereign AI Cloud and AI Transformation Centre
- Creation of the National AI Office to coordinate national AI governance and innovation
- Allocation of RM5.9 billion for R&D and innovation and RM53 million under the Malaysia Digital Acceleration Grant to foster AI, blockchain, and quantum adoption
“These initiatives 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,” she said.
Deputy CEO (Investment Development) of the Malaysian Investment Development Authority (MIDA), Zalina Zainol, said Malaysia’s semiconductor sector continues to be a cornerstone of the national economy, contributing nearly one-third of manufacturing GDP and 40 percent of total exports.
Under the National Semiconductor Strategy (NSS), Budget 2026 allocates RM500 million to strengthen local R&D, encourage design and IP creation, and build incubator program for the electrical and electronics (E&E) ecosystem.
“In its first year, the NSS attracted RM54.2 billion in new semiconductor investments, showing sustained confidence in Malaysia’s role as a trusted hub in the global supply chain,” said Zalina.
She added that the country is now moving up the value chain toward high-value design, R&D, and IP creation — driven by major projects such as Infineon’s 200mm silicon carbide plant, Carsem’s AI-enabled packaging facility, and expansions by NXP, Syntiant, and Plexus.
Both Norsham and Zalina emphasized that green technology will be a critical pillar in Malaysia’s economic transformation and energy transition journey toward net-zero greenhouse gas emissions by 2050.
MOSTI is spearheading initiatives under the National Energy Transition Roadmap (NETR) and National Energy Transition Facility (NETF), mobilizing blended financing for 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,” said Norsham.
Zalina added that MIDA approved 1,708 green projects worth RM25.3 billion between 2024 and mid-2025, with nearly half coming from domestic investors — showing strong local participation in renewable energy, particularly solar, biomass, and battery energy storage systems.
The 2026 Budget also advances Malaysia’s digital transformation through the New Industrial Master Plan 2030, which targets converting 3,000 factories into smart factories and positioning Malaysia as a regional hub for generative AI.
“Malaysia is emerging as ASEAN’s Digital Gateway — a stable, trusted and well-connected hub linking global innovation networks across Asia,” said Zalina.
“With our strong governance and open business environment, the country offers the ideal base for technology companies to grow, collaborate and expand across the region.”
