Kuala Lampur:Budget 2027 presents an opportunity to enhance collaboration between the government and industry, thereby boosting Malaysia's artificial intelligence (AI) capabilities, according to Amazon Web Services (AWS), a subsidiary of Amazon.com.

According to BERNAMA News Agency, AWS Malaysia Country Manager Hussein Mohd Ali highlighted that the Malaysian government has designated AI as a growth sector under its 'Made by Malaysia' ambition. He emphasized the need for government direction, industry expertise, and business implementation to close the existing gap.

AWS's report, "Unlocking Malaysia's AI Potential 2026," revealed that Malaysia's AI adoption rate rose to 38 percent from 27 percent within a year, based on research involving 1,000 business leaders. This increase means more than 3.4 million businesses in Malaysia are now utilizing AI.

Hussein noted that 57 percent of Malaysian businesses sourced their AI capabilities from external consultants, while 69 percent considered locally based software providers more crucial than the underlying platforms in their AI adoption. He suggested that policies supporting this preference, such as procurement incentives, co-investment mechanisms, and incubation programs, could strengthen the local AI ecosystem and accelerate adoption.

Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister, is expected to present Budget 2027 on October 9.