Digital Minister Gobind Singh Deo announced today at the Petaling Jaya Startup Festival 2026 that Malaysia will focus on expanding the use of artificial intelligence (AI) technology and consider incentives to promote wider AI adoption in the 2027 Budget to be tabled in October 2026 [1, 2, 3].
Launched about three weeks before the announcement, AI Malaysia is an initiative by the Ministry of Digital to mobilise expertise and develop AI infrastructure across all sectors in the country [1, 2, 3]. The minister said, "Not just experts, we also need to ensure that we can build infrastructure in AI Malaysia that can support every sector in Malaysia for AI to move forward" [1].
Gobind Singh Deo highlighted the challenges posed by the high cost of AI technologies. He explained that the government will aim to lower barriers especially for micro, small, and medium enterprises (MSMEs) through incentives or support programs. "We need to look at how technology can help small traders, especially micro, small, and medium enterprises. This is something I will also pay attention to," he said [1].
The Petaling Jaya Startup Festival 2026 runs from August 15 to 16, featuring around 100 booths and expects to attract about 2,000 participants. The event provides a platform to strengthen Malaysia's startup ecosystem, identify new talent, and connect startups with investors [1, 2, 3].
The minister underscored that the adoption of AI and related infrastructure development will be key priorities in the upcoming 2027 Budget, echoing his statement in Malay, "因此，对于今年10月提呈的2027年财案，这将会是我关注的重点" [3].
Malaysia’s next step will be the formal tabling of the 2027 Budget in October 2026, which will include new policies and incentives related to AI adoption across sectors [1, 2, 3].
