MCMC to build RM2 billion 'sovereign AI cloud' under Malaysia's AI Nation 2030 vision

To position Malaysia as an AI-driven nation by 2030, the government is advancing efforts in research, development, commercialisation and innovation.

KOUSALYA SELVAM
By  KOUSALYA SELVAM
10 Oct 2025 05:38pm
Photo for illustration purposes only.
Photo for illustration purposes only.

SHAH ALAM - The Malaysian Communications and Multimedia Commission (MCMC) will develop a sovereign AI cloud with an investment of RM2 billion, as part of the government’s plan to transform the nation into a regional artificial intelligence (AI) powerhouse under the "AI Nation by 2030" agenda.

Announcing the initiative during the tabling of Budget 2026, Finance Minister Datuk Seri Anwar Ibrahim said the sovereign AI cloud aimed to strengthen Malaysia’s data sovereignty, improve national AI capabilities and support the growth of local industries through secure and efficient data infrastructure.

"To position Malaysia as an AI-driven nation by 2030, we are advancing in research, development, commercialisation and innovation," he said.

To encourage AI adoption among small and medium industries, the government will introduce an additional 50 per cent tax cut for companies investing in AI and cybersecurity training approved by the National AI Council for Industry, an initiative led by TalentCorp and MyDigital under the MyMahir programme.

The government has also allocated RM5.9 billion across ministries to boost research, development, commercialisation and innovation activities, alongside RM20 million for the National Artificial Intelligence Office to develop skilled AI talent, strengthen digital infrastructure and build an efficient AI ecosystem.

"MCMC will establish an AI Transformation Centre in collaboration with Multimedia University and the Centre of Excellence in Ethics for Emerging Technologies, serving as a cultural and ethical research and development hub for AI," he added.

Meanwhile, Mimos will focus on developing blockchain and deepfake detection technologies.

To accelerate digital growth, the government has allocated RM53 million under the Malaysia Digital Acceleration Grant, aimed at promoting technologies such as blockchain, AI and quantum computing.

Another RM15 million will go towards nurturing science, technology and innovation among youth through programmes like Malaysia Techlympics, National Science Week, Rehlah Sains (Science Excursion) and Science on Wheels.

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Budget 2026
Finance Minister
Anwar Ibrahim
AI Nation
2030

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