AI in Budget 2027, sovereign AI cloud, RM30 million via MDEC and a scam-checking app
A sovereign AI cloud, RM30 million through MDEC for 4,000 MSMEs, an AI app to check for scams and 100,000 free AI subscriptions. Every AI and digital measure in Budget 2027.
Artificial intelligence (AI) gets special attention in Budget 2027, which Prime Minister Datuk Seri Anwar Ibrahim tabled in the Dewan Rakyat on Friday, 9 October. AI, the digital economy and semiconductors are listed under high-value economic priorities, in line with Malaysia's goal of becoming an AI Nation by 2030.
Here are the AI and digital measures that were announced.
Sovereign AI cloud
The government plans to build a sovereign AI cloud so that citizens' data and the country's strategic information stay under Malaysian control. Its cost and timeline for 2027 were not detailed in reports on the budget tabling.
RM30 million via MDEC to help MSMEs use AI
- RM30 million will be channelled through the Malaysia Digital Economy Corporation (MDEC).
- The target: helping 4,000 micro, small and medium enterprises (MSMEs) adopt AI and automate their operations.
- 5,000 AI professionals will be trained and certified.
AI app to check for scams
The government will develop an AI app to detect scams. It will let the public check suspicious phone numbers, bank accounts or links before making a transaction. The app's name and launch date have not been announced.
100,000 more free AI subscriptions
Young people will get 100,000 more free AI subscriptions, and the list of apps is being expanded to include ChatGPT. For who qualifies and how to apply, see Free AI subscriptions 2027 including ChatGPT, who qualifies and how to apply.
AI Malaysia Berhad and 200,000 AI-skilled workers
AI Malaysia Berhad, an agency under the Digital Ministry, receives nearly RM15 million to strengthen a safe and ethical AI ecosystem. This supports the target of producing 200,000 AI-skilled workers.
RM6 billion for R&D and commercialisation
RM6 billion is allocated to step up research, development and the commercialisation of inventions across ministries. AI is one of the areas covered, not the whole allocation. A breakdown by ministry has not been reported.
Devices and digital training for pondok schools
JAKIM (the Department of Islamic Development Malaysia) and MDEC will provide devices and digital skills training to teachers and students at more than 300 pondok schools nationwide, according to The Star. The programme was earlier piloted at six pondok institutions in Perak, Penang, Kelantan, Negeri Sembilan, Kedah and Pahang.
AI and digital measures at a glance
| Measure | Amount or target |
|---|---|
| Sovereign AI cloud | Planned, cost not yet detailed |
| MDEC, AI for MSMEs | RM30 million, 4,000 MSMEs, 5,000 AI professionals |
| AI Malaysia Berhad | Nearly RM15 million, target of 200,000 AI-skilled workers |
| Free AI subscriptions | 100,000 more, including ChatGPT |
| AI scam-checking app | To be developed |
| R&D and commercialisation | RM6 billion across ministries |
| Pondok schools | Devices and training, more than 300 schools |
Frequently asked questions
What is a sovereign AI cloud?
An AI cloud facility the government plans to build so that citizens' data and the country's strategic information stay under Malaysian control.
How much is MDEC getting for AI in Budget 2027?
RM30 million, to help 4,000 MSMEs adopt AI and automation, and to train and certify 5,000 AI professionals.
When will the AI scam-checking app launch?
No date has been announced. The government said the app will let people check phone numbers, bank accounts and links before a transaction.
How much is allocated for R&D in Budget 2027?
RM6 billion, for research, development and the commercialisation of inventions across ministries.
More on Budget 2027
- Full summary: Budget 2027, what changes for your wallet
- Free AI subscriptions: Free AI subscriptions 2027 including ChatGPT, who qualifies and how to apply
- School aid: BAP 2027 rises to RM200, Form Six allowance set at RM2,500
- Income tax: Tax relief 2027, the RM12,000 limit and the list of new claims
Sources
- The Rakyat Post, Budget 2027: Sovereign AI Cloud Planned, 100,000 More Free AI Subscriptions, AI App To Check Scams
- The Star, Budget 2027: RM6bil allocated to boost research, development and commercialisation across ministries
- The Star, Budget 2027: Islamic affairs allocation rises to RM3.1bil
- Bernama, Digital Ministry Pushes AI Nation Goal Under Budget 2027
- Bernama, Belanjawan 2027: Kementerian Digital Perkukuh Ekosistem AI Negara
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