“A New Step in the Digital Economy” – Wong Weng Yew on the 2026 Budget
Malaysia has attracted massive investments from international tech giants such as Microsoft, Google and Amazon Cloud Services (AWS) in the field of artificial intelligence (AI) and data centers, covering multi-billion ringgit projects and a national AI training program.
The government is driving growth in the northern region and strengthening ASEAN supply chains and digital connectivity through the RM2.7 billion Delapan project in Bukit Kayu Hitam.
Under the Malaysia Digital Acceleration Grant, the government has allocated RM53 million to promote research and development in blockchain, artificial intelligence and quantum technology, with MIMOS leading the innovation efforts.
This commentary was written by Mr. Wong Weng Yew, Founder and Managing Director of Extreme Broadband and Open DC, who is also a member of the Board of Directors of DE-CIX in Malaysia and Singapore. With his extensive experience in network solutions and data centre infrastructure, he provided expert insights on the digitalization and innovation agenda set out by Prime Minister Datuk Seri Anwar Anwar in the 2026 Budget.
The theme of the budget is “The Fourth MADANI Budget: People’s Budget”, which emphasizes the use of digitalisation and artificial intelligence to drive growth, innovation and competitiveness. This shows the government’s forward-looking layout for the future. However, Wong Weng Yew also pointed out that it is difficult to thrive under the traditional structure based on innovation, so if this ambition is to be truly realized, it is necessary to promote the modernization of the public system at the same time.
The 2026 Budget reflects the government’s strong commitment to strengthening the digital economy. With tech giants such as Microsoft, Google and AWS investing billions of ringgit in AI and data centers, Malaysia is steadily moving towards becoming a key hub for global digital infrastructure. These investments are not just an injection of capital, but also catalyze innovation, nurture local talent, and build long-term digital resilience for our country.
The government has demonstrated a strategic vision to promote balanced regional development through the implementation of the Delapan project (totaling RM2.7 billion) in Kedah, so that economic development is not limited to the Klang Valley. Building a northern growth hub connecting ASEAN’s supply chain and digital ecosystem will not only contribute to the inclusive development of the regional economy, but also prepare for the integration of cross-border data flows in the future. For industry players like Open DC, this means a new wave of opportunities. Open DC is also planning to further enhance digital connectivity in Southeast Asia through the upcoming Kedah D8-1 flagship data center project.
The government has allocated RM53 million in the budget through the Malaysian Digital Acceleration Fund to support the research and development of emerging technologies such as blockchain, artificial intelligence and quantum computing, demonstrating Malaysia’s ambition to continue to lead and innovate in cutting-edge technology fields. With Malaysia’s innovation in blockchain and deepfake detection technology, Malaysia will create a safer and more trustworthy digital future. This also echoes the core values of Open DC and DE-CIX – to drive innovation and connectivity based on trust, transparency, and sustainability.
Overall, the 2026 Budget demonstrates a balanced and pragmatic strategy to attract foreign investment while focusing on strengthening local competitiveness and ensuring national digital inclusion. For industry practitioners, the synergy of infrastructure, innovation and inclusion is key to Malaysia’s achievement of becoming ASEAN’s preferred digital hub. Looking ahead, Open DC will continue to support businesses and communities to move forward hand in hand with a robust, sustainable and highly connected digital infrastructure, helping Malaysia build a more resilient and inclusive digital economy ecosystem. ~ By The Page October 20, 2025 ~
