Malaysia’s Budget 2026 outlines several key initiatives by the government in its race to future-proof the economy through technology and sustainability.
According to Kenanga Research, the budget marks a strategic shift from “big-ticket” construction projects to nurturing “big ideas” in technology, energy transition, and the wellbeing of Malaysians.
Among the highlights of Budget 2026, tabled on Oct 10, are the RM53 million allocation for the Malaysia Digital Acceleration Grant – aimed at driving growth and adoption of emerging technologies such as blockchain, AI, and quantum computing – RM18.1 million for the National AI Office, and RM30 million to strengthen cybersecurity. Attention is also on the energy sector, with the highly anticipated introduction of a carbon tax in 2026.
Three major industry players have expressed optimism about the new national budget.
Measat chief operating officer Yau Chyong Lim praised the government’s investment in digital infrastructure, including JENDELA 2, to expand high-speed and affordable internet access nationwide.
“Measat supports balanced development through our multi-orbit satellite solutions, enabling access to essential government services such as healthcare, education, and financial aid programmes, contributing to inclusive economic growth,” said Yau.
“We also welcome the Malaysian Communications and Multimedia Commission’s funding to enhance connectivity in public healthcare facilities, supporting digital healthcare delivery and telehealth services in local communities.
“Measat stands ready to support the government in enhancing connectivity, strengthening primary healthcare, and digitalising public services through telemedicine and electronic health records – preparing the healthcare system to meet the needs of an ageing population,” he added.
Grab Malaysia managing director Adelene Foo said the company is advancing practical AI to improve everyday experiences for driver-, delivery-, and merchant-partners, as well as consumers.
“This includes AI-enabled hyperlocal mapping for better address accuracy and routing, an AI Driver Companion feature to help drivers find demand faster, and the AI Merchant Assistant – a tool that drives growth and streamlines operations for micro-, small-, and medium-enterprises.
“This aligns with the government’s push under Budget 2026 to accelerate AI adoption and strengthen digital infrastructure. As Malaysia advances its growth agenda, we will continue investing in our partners and products so that more Malaysians can earn, trade, and move with confidence in the digital economy,” she said.
Foo added that Grab remains committed to working with the government and like-minded stakeholders to future-proof the nation.
Gentari also lauded the government’s continued commitment to advancing Malaysia’s energy transition and inclusive economic growth under Budget 2026.
“This year’s Budget sends a clear and consistent signal that Malaysia remains steadfast in its pursuit of a low-carbon economy, reaffirming the direction set through the National Energy Transition Roadmap (NETR),” said Gentari chief executive officer Sushil Purohit in his post-Budget commentary.
“The measures outlined reinforce ongoing efforts to scale renewable energy and accelerate the shift towards sustainable mobility – areas central to Gentari’s focus in supporting Malaysia’s clean energy ambitions – while providing long-term confidence to investors and industry players.
“The Budget’s focus on expanding renewable energy capacity and strengthening grid modernisation is timely. Continued investments in large-scale solar deployment and cross-border power integration will accelerate Malaysia’s clean energy transition. These efforts align closely with Gentari’s mission to deliver scalable renewable energy and help achieve Malaysia’s target of 70 per cent renewable capacity by 2050.”
Sushil said the renewed RM150 million allocation under the NETR reflects the government’s commitment to accelerating industry-led transition projects.
“Initiatives such as Project VMS (Vietnam–Malaysia–Singapore) highlight how regional collaboration can advance this vision, positioning Malaysia as both a partner and a clean energy connector within Asean.
“Equally important are measures to advance green mobility, including the continued development of EV-charging infrastructure and the rationalisation of fuel subsidies to channel savings towards sustainable transport. These policies will strengthen public confidence in electric mobility and encourage continued private-sector investment.”
Supporting this agenda, Sushil said Gentari is working to expand accessible charging infrastructure and enhance user experience through digital platforms that enable seamless regional connectivity.
“The government’s plan to introduce a carbon tax aligned with the National Carbon Market Policy and the forthcoming Climate Change Act marks a significant milestone in Malaysia’s climate agenda.
“Transparent carbon policies and pricing mechanisms will encourage industries to adopt low-carbon technologies and strengthen Malaysia’s competitiveness in global clean energy supply chains. Collaboration between industry and government will be critical to ensure the practical and balanced implementation of decarbonisation solutions.
“In pursuing a just and inclusive transition, Gentari is encouraged by the government’s continued support for green-skills training and SME participation across clean energy value chains. Notably, allocations through the Human Resource Development Corporation (HRD Corp) to enhance training in high-tech, digital, and energy transition sectors – together with funding via the Skills Development Fund Corporation for programmes in electric vehicle, AI, and semiconductor fields – will help equip Malaysians with future-ready capabilities.
“These initiatives ensure the transition not only creates economic opportunities but also delivers shared benefits to local communities, promoting sustainable job creation and ensuring equitable outcomes for all Malaysians,” he added.
