KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has announced a major push to strengthen the digital infrastructure and artificial intelligence (AI) ecosystem under Budget 2026, with new initiatives aimed at improving connectivity, disaster readiness, and rural entrepreneurship.
The Malaysian Communications and Multimedia Commission (MCMC) will receive billions of ringgit to roll out a series of projects spanning health, security, business, and research.
Anwar said RM650 million has been allocated to improve internet access across public hospitals, health clinics, maternal and child health centres, community clinics, and rural facilities.
To enhance disaster preparedness, RM210 million will be used to build an Early Warning System (EWS) designed to reduce risks to lives and property during crises.
Another RM350 million will go to strengthen NADI Centres, which provide training and digital facilities for rural communities. The government said the funds will help guide small entrepreneurs to increase their incomes through online businesses.
The government also announced RM780 million for Jendela 2, the second phase of the National Digital Network Plan launched in September 2025. The project will expand high-speed broadband to 2,700 new locations, with a focus on rural areas long underserved by existing networks.
In one of the biggest announcements, Anwar confirmed the creation of a Sovereign AI Cloud with a RM2 billion investment led by MCMC.
The project is expected to support local innovation while ensuring data security and national ownership of key AI infrastructure.
Alongside this, the government will establish an AI Transformation Centre in partnership with Multimedia University, as well as a Centre of Excellence in Ethics for Emerging Technologies to drive culturally sensitive AI research and development.
To close the digital divide, MCMC will also roll out the Sambungan Kabel Dasar Laut Madani (Salam) project — a 3,190km undersea cable system linking Peninsular Malaysia, Sarawak, and Sabah.
Costing RM2 billion, the cable will connect Sedili in Johor to Kuching and Sibu in Sarawak, and onwards to Tuaran, Kudat, Pulau Banggi, Sandakan, and Tawau in Sabah.
Anwar said the project would ensure Sabah, Sarawak, and the peninsula enjoy equal access to high-quality digital infrastructure, a long-standing demand from East Malaysian states. — October 10, 2025