PETALING JAYA: Several cost and cash-flow issues affecting technology firms remain unresolved under Budget 2027, including a proposed review of Universal Service Provision (UPS) contributions for qualifying cloud service providers, the National Tech Association of Malaysia (Pikom) said.
Pikom chairman Prof Alex Liew said several proposals the association submitted in its Budget 2027 memorandum were not specifically addressed in the budget speech, despite broader measures to support the digital economy.
“Pikom welcomes the announcements. However, several proposals we submitted for consideration in our Budget 2027 memorandum have not been specifically addressed in the speech.
“These include a time-bound moratorium and review of USP contributions for qualifying cloud service providers, faster processing of eligible service-tax refunds for digital services, and a controlled ICT procurement price-adjustment mechanism for exceptional component price movements.
“We will continue engaging the government on these outstanding priorities to improve business cash flow and competitiveness,” he said in a statement yesterday.
Liew said Pikom welcomed the announcement as a broad programme supporting national resilience and digital economy growth, particularly through measures on artificial intelligence (AI) adoption, connectivity, talent and Malaysian enterprise development.
“The test of Budget 2027 is how effectively its measures help businesses grow, and Malaysians participate in the digital economy.
“We welcome the direction and encourage clear implementation timelines, accessible support and measurable outcomes,” he said.
The association also backed the Malaysia Digital Economy Corporation (MDEC)’s RM30 million fund to help 4,000 MSMEs adopt AI and automate operations, along with training and certification for 5,000 AI professionals.
“Assistance should cover business assessment, data preparation, integration, cybersecurity and employee training, with qualified Malaysian providers participating in delivery.
“The additional 100,000 free AI subscriptions for young people, including access to applications such as ChatGPT, and the expansion of lifestyle tax relief to AI subscriptions can widen adoption.
“Practical guidance and follow-up support should help users apply these tools safely and sustain usage. Results should be assessed through time saved, lower error rates, cost savings and improved business performance,” he said.
Pikom also supported the planned Sovereign AI cloud to keep citizens’ data and strategic information under Malaysian control.
Liew said clear governance, security and interoperability requirements, together with local supplier development, would be essential.
He also welcomed the RM100 million Strategic Investment Fund to be established by Khazanah and InvestPenang for semiconductor and advanced manufacturing companies in their early growth stages.
“The fund can strengthen domestic innovation, local supply chains and skilled employment,” he said.
Pikom said agencies should publish eligibility rules, delivery timelines and outcome indicators to ensure Budget 2027 measures translate into productivity gains, skilled employment and stronger local technology capabilities.
Prime Minister Datuk Seri Anwar Ibrahim announced the measures when tabling Budget 2027 in the Dewan Rakyat yesterday.
They included a RM30 million allocation through MDEC to help 4,000 MSMEs adopt AI and automate operations, training and certification for 5,000 AI professionals, 100,000 free AI subscriptions for young people, and the planned Sovereign AI Cloud.
Anwar also announced a RM100 million Strategic Investment Fund by Khazanah and InvestPenang for early-stage semiconductor and advanced manufacturing companies, along with broader support for start-ups, technology exporters, and connectivity expansion under JENDELA.
