Kuala lumpur: IBM Malaysia Sdn Bhd is advocating for the upcoming Budget 2026 to deliver more focused incentives to boost artificial intelligence (AI) adoption, a move seen as pivotal for accelerating digital transformation across critical sectors of the Malaysian economy.

According to BERNAMA News Agency, IBM Malaysia’s country general manager and technology leader, Dickson Woo, emphasized the need for these incentives to encourage broader implementation of AI, especially within the nation’s Critical National Information Infrastructure (CNII) sectors. Woo expressed confidence that the proposed budget enhancements would significantly advance Malaysia’s AI journey, impacting key sectors such as banking, retail, government, and utilities, which are vital for national growth.

Woo also highlighted the importance of supporting small and medium enterprises (SMEs) in the digital and technology sectors. He pointed out that many SMEs face challenges in affording substantial investments in assets and infrastructure and often have limited access to cloud computing. He believes that targeted budget allocations could stimulate digital strategies and AI adoption among these smaller enterprises, ensuring that the benefits of digitalisation extend to a wider segment of the population.

Prime Minister Datuk Seri Anwar Ibrahim, concurrently serving as the Finance Minister, is set to present Budget 2026 in Parliament on October 10, 2025. Anwar has been a proponent of AI integration, with the nation’s strategic goal of becoming an AI-driven economy by 2030. As part of this vision, Malaysia plans to create a sovereign AI cloud to bolster government services and drive digital development nationwide.