- Set to advance Malaysia’s modern management forward of ASEAN 2025
- opportunities to keep investing in the nation, both from local and foreign owners
Malaysia Digital Economy Corporation ( MDEC ) has described the National Budget 2025, themed’ Madani Economy: Negara Makmur, Rakyat Sejahtera’, as a forward-thinking budget that further strengthens the foundation of the nation’s digital economy.
Anuar Fariz Fadzil ( pic ), MDEC CEO said the budget provides significant support to further accelerate Malaysia’s digitalisation, encourage adoption of artificial intelligence ( AI ) and drive inclusive growth.
As Malaysia prepares to take over ASEAN 2025, the Madani Budget 2025 comes at a suitable period, according to Anuar.
With its own proper initiatives in place, Malaysia is “foreign ready” and well-equipped to foster local collaboration in crucial fields like AI, the online economy, and innovation, thereby enhancing our position in ASEAN and beyond. According to him, the proposed budget offers opportunities for both local and foreign owners to keep investing in Malaysia, particularly in high-value activities like online services.
The small and medium business ( SME) area in the country also stands to gain from initiatives to adopt digital tools for increased productivity and operational efficiency.
” As Digital Minister Gobind Singh Deo stated, the Budget builds upon the solid foundations of Malaysia’s modern economy”, Anuar added. Gobind recently stated that the digital economy is projected to account for 25.5 % of the country’s GDP by 2025 or even surpass the estimates made by the government a few years ago. Piko is more optimistic and stated that it anticipates meeting the objective by 2024.
In a speech released by his government on Saturday, Gobind had described the Madani Budget 2025 as “one that prioritizes the well-being and growth of the rakyat.”
” The efforts in Budget 2025 may continue to support the Ministry of Digital in leading digital conversion work, creating an efficient and secure national modern habitat, boosting the country’s modern economy and narrowing the socio-economic divide among Malaysians”, he added.
Stressing on Malaysia’s important advantages, Anuar emphasised its strategic location, cultural and English-speaking labor, investor-friendly culture and steady pro-business state.
A significant highlight of Budget 2025 was the successful attraction of US$ 16.9 billion ( RM72.7 billion ) in investments from global tech leaders, including Amazon Web Services, Microsoft, Google and Oracle. This achievement, which was the result of a concerted effort between ministries and organizations, including MDEC, highlights Malaysia’s position as a regional hub for sky infrastructure and a major player in the world’s modern economy.
Establishing the ASEAN AI Safe Network
On the AI front, Anuar said the government’s US$ 2.33 million ( RM10 million ) allocation to the National AI Office and RM50 million for AI education demonstrates a strong commitment to advancing AI and building a skilled talent pipeline.
” These efforts will promote AI adoption and guarantee Malaysia leads the region in AI development and social development,” Anuar said. Our commitment to developing social AI comes to life in our leadership in creating the ASEAN AI Safe Network.
” MDEC is committed to working alongside the government to ensure that AI systems are deployed ethically and responsibly, securing Malaysia’s online coming through collaboration among education, business, public institutions and the rakyat”, he added.
Anuar added that the Digital ID initiative will be crucial in enhancing digital trust and security by offering businesses and the rakyat a secure, trustworthy method of online identity verification.
The introduction of Digital ID will improve access to digital services and increase confidence in online transactions, reducing fraud, and improving the overall digital economy. This initiative will be crucial in supporting Malaysia’s efforts to advance its position as a leader in the region’s secure digital services, according to Anuar.
Empowering SMEs, startups and entrepreneurs
The RM1 billion National Fund-of-Funds and RM1 billion Pioneer Fund by KWAP are key initiatives to support Malaysia’s startup ecosystem.
]RM1 = US$ 0.232 ]
” MDEC welcomes the additional RM65 million for Cradle Fund to expand regional and global potential for local startups, as well as the RM15 million matching grant to encourage collaboration between government-linked companies ( GLCs ) and startups through corporate venture capital,” Anuar said.
The government’s commitment to cultivating a” culture of innovation” among the Raykat and businesses aligns firmly with MDEC’s goal of making Malaysia an incubator for startup innovation in the ASEAN region.
The MDEC Founders Centre of Excellence ( FOX ) initiative has proved to be a smashing success by providing crucial resources with mentorship and infrastructure support. Anwar Ibrahim, the prime minister, cited Vitrox Bhd as an illustration of the success of this initiative.
Vitrox, founded by two engineers from Universiti Sains Malaysia ( USM) and guided by MDEC’s GAIN programme, has grown into a global player in the electronics industry, serving markets across Asia, Europe and the United States.
” MDEC stands ready to support these transformative initiatives, working closely with entrepreneurs, businesses and communities to ensure Malaysia’s digital economy continues to thrive and create opportunities for all”, Anuar concluded.