KUCHING: Malaysia’s Budget 2026 strengthens the nation’s digital push with new investments in connectivity, cybersecurity and AI talent, reinforcing its position as a regional innovation hub, said Chee Kheong Lee.
The Cisco Malaysia’s Managing Director said the budget reflects Malaysia’s strong commitment to advancing the Ekonomi MADANI agenda through technology-driven growth, workforce upskilling, and national cyber resilience.
“The Budget 2026 underscores Malaysia’s strong commitment to building a digitally empowered and innovation-driven economy.
“We welcome the government’s continued focus on strengthening digital infrastructure, cybersecurity resilience, and upskilling the nation’s workforce, all of which are key pillars in advancing the MADANI economy agenda,” he said.
He added that Cisco supports the country’s ambitions as a critical infrastructure provider for the AI era, helping businesses modernise systems, strengthen cybersecurity, and harness the power of AI and data as Malaysia enters its next phase of growth.
He said sustained investments in projects such as the RM2-billion ‘Sambungan Kabel Dasar Laut MADANI’ (SALAM) submarine cable, the expansion of MyDigital ID, and further funding for GovTech Malaysia will enhance connectivity and improve access to digital public services nationwide.
“These measures create the foundation for businesses of all sizes, including SMEs, to accelerate digital transformation, embrace AI-driven innovation, and improve productivity,” he said.
According to Cisco’s 2025 Networking Report, 96 per cent of companies in Malaysia consider a modernised network critical for deploying AI, IoT and cloud technologies.
Chee said continued investment in data centres, broadband and secure digital infrastructure, together with workforce training, will ensure equitable access and support Malaysia’s transition into an AI-powered economy.
He said Cisco’s Country Digital Acceleration Programme continues to work with local partners to modernise infrastructure and advance 5G technologies.
“Our company is also introducing AI-ready solutions such as Secure AI Factory with NVIDIA and AI Canvas, an intelligent workspace that integrates telemetry, AI insights and collaboration tools to simplify network management,” he said.
On cybersecurity, Chee said the government’s focus on strengthening national cyber resilience comes at the right time as AI introduces complex new security challenges.
“AI introduces one of the most complex cybersecurity challenges in history.
“Budget 2026’s focus on strengthening national cyber resilience, including securing government systems, protecting critical infrastructure, and enhancing enforcement capabilities, reaffirms that security is the foundation of a trusted digital economy,” he said.
He welcomed the establishment of the Cyber Security and Cryptology Development Centre (CSCDC) under NACSA, describing it as a crucial step in reinforcing Malaysia’s digital sovereignty and defence capabilities.
The RM700-million allocation to strengthen enforcement and security agencies, he said, also reflects the government’s seriousness in protecting national and digital resilience.
On human capital, Chee said AI has the potential to augment human capabilities, and the government’s investment in digital literacy and skills will ensure more Malaysians can participate meaningfully in the digital economy.
He highlighted initiatives such as ‘Ikhtiar MADANI untuk Rakyat’ and ‘Perkhidmatan Bergerak MADANI’, which aim to expand digital access and inclusion nationwide.
He also welcomed the 50 per cent additional tax deduction for SMEs investing in AI and cybersecurity training under the National AI Council for Industry (NAICI), saying it would help develop the next generation of cyber and AI professionals.
“The government’s investment of RM180 million for high-impact industries, RM3 billion for HRD Corp-led training programmes, and RM5.9 billion for R&D and innovation, reflects its commitment to developing Malaysia’s AI and digital innovation ecosystem,” he said.
He added that these initiatives align closely with Cisco’s mission to accelerate Malaysia’s AI readiness through secure infrastructure, skills development and collaboration.
He shared that Cisco’s global Networking Academy has already trained more than 170,000 Malaysians in cybersecurity and digital skills, empowering local talent to thrive in an AI-driven economy.
