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Budget 2026 Enhances Malaysia’s Digital Backbone For AI-powered Future


Kuala lumpur: The Malaysia Internet Exchange (MyIX) has welcomed the MADANI Budget 2026 as a decisive step to strengthen Malaysia’s digital backbone, citing the government’s emphasis on submarine cable infrastructure, nationwide connectivity, 5G expansion, artificial intelligence (AI), and digital inclusion as critical enablers of the nation’s future.



According to BERNAMA News Agency, MyIX Chairman Chiew Kok Hin stated that the government’s commitment of more than RM4 billion in landmark digital infrastructure investments enables Malaysia to compete as a regional digital hub. He emphasized that global investments must be matched with resilient domestic interconnection to ensure the flow of benefits to the local population.



Chiew highlighted the ongoing construction of digital highways through submarine cables, AI cloud, and 5G networks, asserting that the true advantages will be realized when traffic flows locally and securely. He stated that MyIX’s role is to anchor these capacities, allowing every Malaysian to enjoy lower costs, smoother streaming, faster cloud access, and assured data sovereignty.



The MADANI Budget 2026 has allocated RM2 billion for the SALAM (Sambungan Kabel Dasar Laut Madani) submarine cable linking Johor, Sarawak, and Sabah, RM2 billion for a sovereign AI cloud, continued 5G rollout, MyDigital ID adoption, and global investments from Microsoft, Google, and Amazon Web Services. These companies are among MyIX’s global peering partners, supporting the exchange’s mission to enhance the speed, resilience, and affordability of Malaysia’s internet.



Chiew noted that the measures outlined in Budget 2026 reflect strong foresight, positioning Malaysia as a regional AI and digital hub. The government’s commitment to submarine cables, AI infrastructure, and 5G rollout is anticipated to unlock unprecedented capacity. MyIX’s role is to ensure that these investments translate into real benefits for Malaysians through efficient local traffic routing, thereby strengthening digital sovereignty while enabling inclusive growth.



Chiew also pointed out the focus on Sabah and Sarawak’s development, along with initiatives such as GovTech digitalisation, MyDigital ID expansion, and tax incentives for AI and cybersecurity adoption, which would broaden access to the digital economy nationwide. By localizing internet traffic, MyIX reduces reliance on foreign routing, ensuring connectivity gains are felt across the country, from rural areas to urban centers in the Klang Valley.



As Malaysia builds towards AI Nation 2030, Chiew emphasized that low-latency interconnection will be the invisible layer powering AI, 5G, and cloud adoption for government, businesses, and the population alike. MyIX operates across Kuala Lumpur, Cyberjaya, Johor Bahru, and Kuching, serving as key interconnection points for seamless traffic exchange. The exchange continues to deliver significant cost reductions, foreign exchange savings, and faster local internet speeds while enhancing national resilience and efficiency.



The Malaysian Communications and Multimedia Commission, which was instrumental in MyIX’s formation in 2006, continues to be actively engaged in the exchange.

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