MDEC praises Madani Budget for boosting digital growth

The Malaysia Digital Economy Corporation (MDEC) has welcomed the recently announced National Budget 2025 as a significant step towards accelerating the country’s digital transformation.

Chief Executive Officer Anuar Fariz Fadzil called the budget “forward-thinking” and said it strengthens the nation’s position as a digital hub, especially with initiatives promoting AI adoption and digital infrastructure.

MDEC emphasised that the budget is well-timed as Malaysia gears up to chair ASEAN in 2025.

Anuar explained, “The Madani Budget 2025 comes at an apt time as Malaysia prepares to chair ASEAN 2025,” and highlighted that it will further position the country as a leader in digital innovation.

This support is critical as Malaysia strives to attract investments and strengthen regional partnerships in AI, digital services, and innovation.

MDEC: Digital economy on the rise

The Madani Budget 2025 includes strategic measures to support Malaysia’s thriving digital economy, which is expected to exceed 25.5% of the national GDP by the end of 2025.

MDEC noted the importance of continued investment in digital infrastructure and AI technologies to ensure the country remains competitive in the global market.

The budget’s focus on these areas is essential to building a more resilient and inclusive economy.

Anuar highlighted the budget’s initiatives aimed at small and medium enterprises (SMEs), stating, “The nation’s SME community stands to benefit from digital tools, enabling them to survive and thrive in an increasingly competitive global economy.”

With digital tools becoming crucial for business efficiency, this support could empower SMEs to embrace digitalisation and enhance productivity.

Additionally, Malaysia has successfully attracted $16.9 billion in investments from major tech companies such as AWS, Microsoft, and Google.

This is a testament to the country’s growing influence as a regional digital gateway, supported by collaborative efforts between ministries and agencies, including MDEC.

Advancing AI and innovation

Another key highlight of Budget 2025 is the government’s strong commitment to AI development.

With RM10 million allocated to the National AI Office and RM50 million for AI education, Malaysia is taking significant steps toward becoming a leader in AI innovation within the region.

MDEC supports this focus on AI, which aligns with its goal of ensuring the ethical and responsible deployment of emerging technologies.

“Our leadership in establishing the ASEAN AI Safe Network brings to life our proactive approach to ethical AI development,” Anuar said.

He stressed the importance of collaboration between academia, industry, and the government to create a robust AI ecosystem that benefits society at large.

MDEC is also excited about the government’s Digital ID initiative, which aims to enhance trust in online services and transactions.

This digital identification system is expected to play a crucial role in building a more secure digital environment, reducing fraud, and streamlining access to services.

MDEC empowering startups and entrepreneurs

Startups are another focus of the Madani Budget 2025, with RM1 billion each allocated for the National Fund-of-Funds and the Pioneer Fund by KWAP.

These funds are designed to support the growth of Malaysia’s startup ecosystem, offering much-needed financial resources to fuel innovation.

MDEC is equally thrilled about the RM65 million boost to Cradle Fund, which will help local startups expand their global presence.

Anuar praised the government’s efforts to foster a “culture of innovation” and cited the success of MDEC’s Founders Centre of Excellence (FOX) programme.

This initiative has already empowered numerous local startups by providing mentorship, infrastructure, and critical resources.

Anuar concluded, “MDEC stands ready to support these transformative initiatives, working closely with entrepreneurs, businesses, and communities to ensure Malaysia’s digital economy continues to thrive.”

MDEC’s positive response to the Madani Budget 2025 reflects its commitment to driving digital growth and AI innovation in Malaysia.

With strong support for SMEs, startups, and advanced technologies, the nation is well-positioned to remain competitive in the global digital landscape.