KUALA LUMPUR, 10 September 2025 — Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister, announced that Budget 2026 will place high priority on cultivating highly skilled talent in cutting-edge technology sectors, particularly in artificial intelligence (AI) and semiconductors. Speaking at the 9th International Conference on Social Sciences and Humanities (ICOSH) in Putrajaya, Anwar said the budget will deliver increased allocations to accelerate talent development programmes and support burgeoning high-tech industries.
He underscored the importance of reviewing existing training outcomes and identifying gaps, noting that Malaysia must act swiftly to elevate youth capabilities and ensure the country can supply talent to meet global investor needs. Anwar cited Infineon Technologies’ investments in Kulim, Kedah, as emblematic of the opportunities emerging—and the responsibilities that come with them. “We must support large-scale investments by international companies, ensuring Malaysia has the skilled workforce they require,” he said.
To buttress technological education, the Prime Minister praised universities and the Higher Education Ministry for breaking bureaucratic barriers that previously delayed programme approval. He recalled pushing for an AI faculty over two years ago and commended the swift action taken to bring it to fruition. Anwar stressed that educational excellence must be paired with strong cultural values—including ethics, history, and religious understanding—so students can thrive both technically and morally.
These remarks echo the government’s strategic direction outlined in the 13th Malaysia Plan (13MP) and the National AI Action Plan 2030, which are guiding Budget 2026. According to the Ministry of Finance’s pre-budget statement, the upcoming budget will complement the education reform agenda by strengthening talent development, especially for high-value, high-growth (HGHV) sectors like semiconductors and AI. Earlier, analysts projected that Budget 2026 will allocate RM227 billion for semiconductor R&D and talent development, and extend substantial support for AI-driven MSMEs, including a 100% tax allowance and digital entrepreneur training targets.
By linking budget provisions directly to talent needs in strategic sectors, Anwar’s administration is signaling a renewed emphasis on innovation-led growth. With Budget 2026 scheduled for tabling on 10 October, all eyes are on how these strategic investments will translate into programmes, incentives, and institutional reforms that deliver long-term value for Malaysia’s digital economy.
