Kuala lumpur: The rapid evolution of technology in the telecommunications industry underscores the need for the government to continue providing support for more collaboration in 5G technology among enterprises.
According to BERNAMA News Agency, GlobalData Plc senior principal analyst for technology, Alfie Amir, hopes that the upcoming Budget 2026 could focus on several areas, namely wider collaboration platforms such as innovation labs, enhanced financial incentives especially for small and medium enterprises (SMEs), as well as expanded programmes to develop talent and skill set. “This can provide enterprises access to new technologies and drive adoption, and at the same time lower the barriers for new technology deployment,” he stated.
Amir also emphasized that wider programmes will develop talent and skills in key technologies such as cybersecurity, cloud, and artificial intelligence (AI), while tightening regulations can address market concerns around privacy and security. He explained that 5G has been a key technology for telecommunications companies globally to innovate, differentiate, and drive business across both consumer and enterprise segments. “The wholesale approach in Malaysia is limiting innovation with the local telcos; therefore, Budget 2026 could focus on 5G collaborations to drive the development of new use cases,” he added.
Despite the ongoing Jalinan Digital Negara (JENDELA) initiatives to boost connectivity in underserved areas, Malaysia’s infrastructure is advanced and covers nearly the whole country. Local telcos are proactive in enhancing their network capabilities, so there are no new critical areas for government budget allocation in connectivity. However, Amir suggested that the government could consider budgets for smart cities in underserved areas to benefit state governments, city councils, and locals.
Commenting on the telecommunications industry performance, Amir noted that the Malaysian telecom market’s growth was flat in the first half of 2025, reflecting a maturing market similar to trends in developed economies. GlobalData Telecom Forecast estimates a slight decline in overall telecommunications services by -1.9% year-on-year, from RM31.9 billion to RM31.3 billion for the full year. Digital and ICT services like cloud, Internet of Things (IoT), cybersecurity, and managed services have become key growth engines for telcos, offsetting declines in traditional services like mobile, broadband, and network connectivity.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table the Budget 2026 in Parliament on Oct 10.