by Adj. (Practice) Prof. Alex Liew, Chairman
PIKOM welcomes Belanjawan MADANI 2027 as a broad programme supporting national resilience and digital economy growth. Its emphasis on AI adoption, connectivity, talent and Malaysian enterprise development addresses several priorities raised in PIKOM’s Budget memorandum. Effective delivery must now translate these commitments into productivity gains, skilled employment and stronger local technology capabilities.
“The test of Budget 2027 is how effectively its measures help businesses grow and Malaysians participate in the digital economy. We welcome the direction and encourage clear implementation timelines, accessible support and measurable outcomes,” said PIKOM Chairman, Adj. (Practice) Prof. Alex Liew.
Practical AI adoption and national capability
PIKOM welcomes MDEC’s RM30 million fund to help 4,000 MSMEs adopt AI and automate operations, alongside training and certification for 5,000 AI professionals. This is consistent with PIKOM’s call for outcome-based adoption support. Assistance should cover business assessment, data preparation, integration, cybersecurity and employee training, with qualified Malaysian providers participating in delivery.
The additional 100,000 free AI subscriptions for young people, including access to applications such as ChatGPT, and the expansion of lifestyle tax relief to AI subscriptions can widen adoption. Practical guidance and follow-up support should help users apply these tools safely and sustain usage. Results should be assessed through time saved, lower error rates, cost savings and improved business performance.
PIKOM supports the planned Sovereign AI Cloud to keep citizens’ data and strategic information under Malaysian control. Clear governance, security and interoperability requirements, together with local supplier development, will be essential. The allocation of nearly RM15 million to AI Malaysia Berhad towards a safe and ethical ecosystem and the target of 200,000 AI-skilled personnel also supports national capability development.
Connectivity and inclusive digitalisation
JENDELA, described in the speech as involving RM5 billion in investment, will prioritise 4G coverage in all Orang Asli villages, internet access along 7,000 kilometres of roads and 1,700 kilometres of railway, and the SALAM submarine cable. PIKOM welcomes these priorities and urges attention to reliability, affordability, devices and digital literacy.
The RM142 million allocation to strengthen NADI can support online entrepreneurship. The extension of Accelerated Capital Allowance for expenditure on local plant and machinery, and ICT equipment and software, until 31 December 2030 also encourages modernisation. Implementation support should help businesses turn purchases into sustained productivity gains.
Malaysian enterprises investment and market access
The one-percentage-point reduction in MSME income-tax rates—to 14% on the first RM150,000 of chargeable income and 16% on the next band up to RM600,000—can strengthen eligible businesses’ capacity to reinvest in technology and people.
PIKOM welcomes RM450 million in startup investment through Jelawang Capital and Dana Perintis, RM2.1 billion through the NIMP, Pemacu and MTC funds for mid-tier companies in sectors including digital and E&E, and RM41 million for Cradle Fund. The RM50 million UniVC fund can help bring university research to market. Transparent procurement pilots and pathways to commercial contracts would complement these measures and help Malaysian firms build reference customers.
MATRADE’s RM60 million allocation for overseas market development and BPMB’s RM1 billion financing for MSME export expansion can support eligible technology exporters. Assistance should address certification, localisation and regional partnerships. Enhanced Global Services Hub incentives from 1 January 2027 can also strengthen Malaysia’s position in global business services, with emphasis on higher-value activities and Malaysian career development.
PIKOM welcomes the positioning of Penang as a national centre for technology financing, supported by the RM100 million Strategic Investment Fund to be established by Khazanah and Invest Penang for semiconductor and advanced manufacturing companies in their early growth stages. This can strengthen domestic innovation, local supply chains and skilled employment. Digital infrastructure investment should also prioritise energy and water efficiency.
Talent development and digital trust
The RM8 billion cross-ministry TVET allocation, HRD Corp’s RM3 billion fund for three million training opportunities, and free access to more than 16,000 courses and professional certificate programmes through Rakyat Digital and Coursera can widen skills development. Industry-led training should connect participants to applied projects and jobs in AI, cloud, cybersecurity, data and software, with placement, retention and wage progression tracked.
PIKOM welcomes the National Scam Response Centre’s proposed AI verification application, stronger analytics against online child exploitation and expanded school internet-safety education. Local data-protection technology to address quantum-computing threats also supports longer-term preparedness. These initiatives should be complemented by affordable SME cyber assessments, baseline controls and incident-response support.
The proposed E-Commerce Bill can strengthen platform accountability and fair competition. Industry consultation should ensure that obligations protect consumers and remain proportionate to business size and risk.
Implementation and continuing industry priorities
PIKOM encourages agencies to publish eligibility rules, delivery timelines and outcome indicators. The association stands ready to support implementation and industry participation.
“PIKOM welcomes the announcements. However, several proposals we submitted for consideration in our Budget 2027 memorandum have yet to be specifically addressed in the speech. These include a time-bound moratorium and review of USP contributions for qualifying Cloud Service Providers, faster processing of eligible service-tax refunds for digital services, and a controlled ICT procurement price-adjustment mechanism for exceptional component price movements. We will continue engaging the Government on these outstanding priorities to improve business cash flow and competitiveness,” Liew added.
