by Tan Aik Keong (AK)
With Malaysia's 2025 budget announcement approaching, the tech industry has real expectations of government support. Against a backdrop of a booming global digital economy, Malaysia needs to invest more heavily in tech to stay competitive. Here's what the industry is hoping to see from a technology perspective.
Digital talent development
The need for digital talent development is urgent. As technology advances, demand for highly skilled talent is rising sharply — and Malaysia's current talent pipeline still falls short. Government should invest further in the education system, particularly in disciplines and training programmes tied to Industry 4.0, AI, big data and blockchain. Strengthening ties between universities and industry, through internships and scholarships, would help build the talent pool the future digital economy needs.
AI development funding
Investment in AI development needs to grow. AI is seen as a key engine of future economic growth, and if Malaysia wants a real seat at that table globally, government needs to strongly back the local AI industry's development. The industry is calling for a dedicated fund to support AI startups' R&D and commercialisation, along with more international collaboration in AI to help local businesses and research institutions access frontier technology and global market resources.
Digitalisation grants for SMEs
Digital transformation funding is a strong ask from the business community too. SMEs face funding gaps and technical bottlenecks in going digital; government could help by offering subsidies, tax relief or low-interest loans to support their transformation — lifting operational efficiency while pushing the country's broader economic digitalisation forward.
E-invoicing support
E-invoicing adoption should also be a budget priority. E-invoicing simplifies financial management, cuts human error and improves operational transparency — but many businesses, SMEs especially, lack the resources to implement it. The industry suggests government provide funding or technical support to help businesses transition, and consider legislating broader e-invoicing adoption to ensure consistent uptake across industries and lift overall market efficiency and transparency.
Digital infrastructure
On infrastructure, the industry hopes government will keep improving the country's digital backbone — particularly high-speed internet coverage and cybersecurity, both foundational to the digital economy. Government could partner with private companies to push full 5G rollout, ensuring both urban and rural areas get quality internet access. And as cyberattacks keep rising, cybersecurity matters more than ever — the industry hopes to see more support for cybersecurity R&D and talent development, building out a robust security framework.
Startup support
Government support for startups matters enormously too. Startups are a source of innovation and a key driver of future economic growth. The industry is calling for a more accommodating policy environment and stronger financial support for startups — specifically, a dedicated startup fund offering seed capital and early-stage investment to companies with real innovation potential, alongside support for incubators and accelerators offering training and resource-matching to help startups grow quickly and reach market. Measures like these would help Malaysia build a more dynamic startup ecosystem, spurring domestic innovation and drawing in top global entrepreneurs and investors.
Closing
Overall, Budget 2025 carries real weight for Malaysia's tech development. The industry is calling on government to step up support across digital talent development, AI development, digitalisation funding, e-invoicing adoption, infrastructure and startup support. These measures would help drive Malaysia's digital economy forward comprehensively, helping it stand out globally — and building not just sustained economic growth, but a more prosperous, more intelligent future for the next generation.
Part of the AK AI Corner column. Originally published in Oriental Daily (东方日报) on Sep 1, 2024.