KUALA LUMPUR: The government should broaden existing AI training incentives in the upcoming Budget 2027 beyond micro, small and medium enterprises (MSMEs) to include larger companies and multinational companies (MNCs).
TP Malaysia and Thailand CEO Andy Rangel said under the current 2026 measure, eligible MSMEs can receive a further 50% tax deduction for recognised AI training expenses.
He said extending similar support to larger employers could encourage more companies with sizeable workforces to invest in digital and AI reskilling, helping Malaysia deepen its pool of future-ready talent while supporting continued business expansion.
“Malaysia has already demonstrated a forward-looking commitment to this transition through initiatives such as the National AI Office (NAIO) and incentives supporting investment, innovation and workforce development.
“Budget 2027 can build on this strong foundation by creating greater opportunities for businesses to invest in AI adoption and workforce reskilling at scale,” he told SunBiz.
Rangel said Malaysia is well positioned to strengthen its role as a regional base for business services, supported by a multilingual workforce, an established business ecosystem, and the ability to serve diverse markets.
The next phase of growth, however, should focus not only on attracting investment, but on drawing higher-value activities, technology and skills into the country, he said.
Down south, Rangel said Johor is one area where this opportunity is particularly evident.
Its proximity to Singapore, combined with access to Malaysia’s wider talent pool, gives businesses an attractive nearshore option for regional operations.
“Our recent expansion in Johor Bahru reflects the potential we see in the market, strengthening our ability to support customers across Singapore and Southeast Asia.
“Continued investment in connectivity, infrastructure and talent will be important to sustain this momentum,” he said.
Rangel added that talent development must remain central to this transition.
He said the customer experience industry, for example, is evolving beyond traditional communication and language capabilities.
Employees increasingly need digital fluency, problem-solving skills and the ability to work effectively with AI-enabled technologies.
Greater collaboration between industry, government and education providers can help training keep pace with these changing requirements, he said.
“At TP, we are already seeing how AI can move from experimentation into measurable operational impact. Across our global operations, including our Malaysia business, AI-enabled tools support employees with knowledge, automation and real-time guidance.
“In one client operation, this approach increased expert productivity by 16%, reduced average handle time by 10% and enabled 24% more customer interactions to be handled without increasing operational costs,” said Rangel.
These results illustrate why AI investment should be paired with workforce development and process transformation, he said.
He also emphasised that the goal is not simply to deploy technology, but to equip people to use it effectively, allowing AI to handle routine tasks while employees focus on complex, high-value interactions requiring judgement and empathy.
“Ultimately, Malaysia’s competitiveness will depend on the strength of the ecosystem it builds around investment.
“By continuing to support technology adoption, workforce development and higher-value activities, Budget 2027 can help Malaysia strengthen its position as a regional business services hub while creating more opportunities for Malaysian talent,” Rangel said further.
He said as Malaysia looks towards Budget 2027, the focus should therefore extend beyond attracting investment to maximising its wider economic value.
“By encouraging higher-value activities, supporting technology adoption and creating pathways for local talent to develop, Malaysia can strengthen its position as a regional business services destination while ensuring the benefits of growth are shared across the economy,” he said.
