KUALA LUMPUR, October 10 — Malaysia is setting its sights on becoming a fully-fledged AI Nation by 2030, with the government unveiling a series of strategic initiatives and investments under Budget 2026 to accelerate artificial intelligence development.
Among them is a RM20 million allocation to the National Artificial Intelligence Office (NAIO) to nurture high-skilled talent, strengthen digital infrastructure, and build a robust AI ecosystem. Local universities are also aligning with this national agenda — with UTM enhancing its AI faculty, USM focusing on semiconductors, UM on medical technology, and UPM on cryptology.
The government also announced the upcoming launch of ILMU, Malaysia’s first national AI language model, developed in collaboration between Universiti Malaya (UM) and YTL AI Labs. To support this transformation, the Malaysian Communications and Multimedia Commission (MCMC) will receive RM2 billion to establish a sovereign AI cloud computing infrastructure based in Malaysia.
This initiative aims to strengthen national AI capabilities, ensure data sovereignty, and reduce reliance on foreign technologies, while supporting public sector innovation and digital transformation. The government said these measures will form the backbone of Malaysia’s journey towards becoming an AI-driven nation, with further details expected as the Budget 2026 discussions progress.
