MyDIGITALCorporation welcomes the Budget 2025 announcement viewing it as a significant step forward in positioning Malaysia as a regional leader in AI-driven innovation, economic growth, and quality of life enhancement.
Aligned with the Ministry of Digital’s efforts to create a trusted, secure, and innovative digital ecosystem, Adrian Marcellus, CEO of MyDIGITAL Corporation, commented, “Budget 2025 fosters a conducive environment for accelerating AI adoption. With the support of incentives and R&D initiatives, companies can enhance their competitive edge, scale operations, and drive Malaysia’s digital transformation.”
He also emphasised the pivotal role of the ASEAN AI Safety Network, stating, “The allocation for this network underscores Malaysia’s leadership in ensuring the safe and ethical development of AI across ASEAN member states. This initiative reflects our commitment to fostering responsible AI practices that mitigate risks and unlock AI’s economic potential for the region.”
Furthermore, the RM10 million allocation for the establishment of the National Artificial Intelligence Office (NAIO) will be instrumental in positioning Malaysia as an AI leader. “NAIO will serve as a central authority, ensuring coordinated and strategic alignment of Malaysia’s AI efforts,” he added.
Driving the Growth of AI Adoption
Budget 2025 places a strong emphasis on promoting high-tech sectors, including AI, robotics, and the Internet of Things (IoT). Companies can benefit from tax incentives and R&D support, encouraging local talent development and collaboration across industries to boost technological advancements and operational efficiency.
Key opportunities for companies in Malaysia include(see details in Appendix on page 4):
• Tax Incentives for High-Tech Companies: Special tax deductions for training, development, and job creation.
• Incentives for R&D and Innovation: Double tax deductions for AI-related R&D and strategic investment fund for talent development.
• Skilled Foreign Talent: Simplified processes for hiring foreign graduates in AI and other advanced technologies.
• Educational Collaborations: Strategic partnerships with universities and TVET institutions for specialised training programmes.
ASEAN AI Safety Network
The proposal for the formation of ASEAN AI Safety Network is integral to institutionalising the AI governance and ethics principles as endorsed by the ASEAN Digital Ministers. It will support the implementation of the forthcoming ASEAN Responsible AI Roadmap (2025-2030) and facilitate collaboration among governments, businesses, academia, and civil society in ASEAN and with Dialogue Partners, for the exchange of best practices and multi-stakeholder partnerships.
National Artificial Intelligence Office (NAIO)
The National Artificial Intelligence Office (NAIO) serves as a central authority to unify efforts in enhancing the use and development of AI technology in the country. It will be incubated in MyDIGITAL Corporation in its first year of operation.
NAIO will coordinate the continuity of strategies and implementation of artificial intelligence technology through the AI Technology Action Plan 2026 – 2030, which is aimed at increasing innovation and competitiveness of Malaysia’s AI ecosystem.
