byAdj.(Practice)Prof.AlexLiew,Chairman
PIKOMwelcomesBelanjawanMADANI2027asabroadprogrammesupportingnationalresilienceanddigitaleconomygrowth.ItsemphasisonAIadoption,connectivity,talentandMalaysianenterprisedevelopmentaddressesseveralprioritiesraisedinPIKOM’sBudgetmemorandum.Effectivedeliverymustnowtranslatethesecommitmentsintoproductivitygains,skilledemploymentandstrongerlocaltechnologycapabilities.
“ThetestofBudget2027ishoweffectivelyitsmeasureshelpbusinessesgrowandMalaysiansparticipateinthedigitaleconomy.Wewelcomethedirectionandencourageclearimplementationtimelines,accessiblesupportandmeasurableoutcomes,”saidPIKOMChairman,Adj.(Practice)Prof.AlexLiew.
PracticalAIadoptionandnationalcapability
PIKOMwelcomesMDEC’sRM30millionfundtohelp4,000MSMEsadoptAIandautomateoperations,alongsidetrainingandcertificationfor5,000AIprofessionals.ThisisconsistentwithPIKOM’scallforoutcome-basedadoptionsupport.Assistanceshouldcoverbusinessassessment,datapreparation,integration,cybersecurityandemployeetraining,withqualifiedMalaysianprovidersparticipatingindelivery.
Theadditional100,000freeAIsubscriptionsforyoungpeople,includingaccesstoapplicationssuchasChatGPT,andtheexpansionoflifestyletaxrelieftoAIsubscriptionscanwidenadoption.Practicalguidanceandfollow-upsupportshouldhelpusersapplythesetoolssafelyandsustainusage.Resultsshouldbeassessedthroughtimesaved,lowererrorrates,costsavingsandimprovedbusinessperformance.
PIKOMsupportstheplannedSovereignAICloudtokeepcitizens’dataandstrategicinformationunderMalaysiancontrol.Cleargovernance,securityandinteroperabilityrequirements,togetherwithlocalsupplierdevelopment,willbeessential.TheallocationofnearlyRM15milliontoAIMalaysiaBerhadtowardsasafeandethicalecosystemandthetargetof200,000AI-skilledpersonnelalsosupportsnationalcapabilitydevelopment.
Connectivityandinclusivedigitalisation
JENDELA,describedinthespeechasinvolvingRM5billionininvestment,willprioritise4GcoverageinallOrangAslivillages,internetaccessalong7,000kilometresofroadsand1,700kilometresofrailway,andtheSALAMsubmarinecable.PIKOMwelcomestheseprioritiesandurgesattentiontoreliability,affordability,devicesanddigitalliteracy.
TheRM142millionallocationtostrengthenNADIcansupportonlineentrepreneurship.TheextensionofAcceleratedCapitalAllowanceforexpenditureonlocalplantandmachinery,andICTequipmentandsoftware,until31December2030alsoencouragesmodernisation.Implementationsupportshouldhelpbusinessesturnpurchasesintosustainedproductivitygains.
Malaysianenterprisesinvestmentandmarketaccess
Theone-percentage-pointreductioninMSMEincome-taxrates—to14%onthefirstRM150,000ofchargeableincomeand16%onthenextbanduptoRM600,000—canstrengtheneligiblebusinesses’capacitytoreinvestintechnologyandpeople.
PIKOMwelcomesRM450millioninstartupinvestmentthroughJelawangCapitalandDanaPerintis,RM2.1billionthroughtheNIMP,PemacuandMTCfundsformid-tiercompaniesinsectorsincludingdigitalandE&E,andRM41millionforCradleFund.TheRM50millionUniVCfundcanhelpbringuniversityresearchtomarket.TransparentprocurementpilotsandpathwaystocommercialcontractswouldcomplementthesemeasuresandhelpMalaysianfirmsbuildreferencecustomers.
MATRADE’sRM60millionallocationforoverseasmarketdevelopmentandBPMB’sRM1billionfinancingforMSMEexportexpansioncansupporteligibletechnologyexporters.Assistanceshouldaddresscertification,localisationandregionalpartnerships.EnhancedGlobalServicesHubincentivesfrom1January2027canalsostrengthenMalaysia’spositioninglobalbusinessservices,withemphasisonhigher-valueactivitiesandMalaysiancareerdevelopment.
PIKOMwelcomesthepositioningofPenangasanationalcentrefortechnologyfinancing,supportedbytheRM100millionStrategicInvestmentFundtobeestablishedbyKhazanahandInvestPenangforsemiconductorandadvancedmanufacturingcompaniesintheirearlygrowthstages.Thiscanstrengthendomesticinnovation,localsupplychainsandskilledemployment.Digitalinfrastructureinvestmentshouldalsoprioritiseenergyandwaterefficiency.
Talentdevelopmentanddigitaltrust
TheRM8billioncross-ministryTVETallocation,HRDCorp’sRM3billionfundforthreemilliontrainingopportunities,andfreeaccesstomorethan16,000coursesandprofessionalcertificateprogrammesthroughRakyatDigitalandCourseracanwidenskillsdevelopment.Industry-ledtrainingshouldconnectparticipantstoappliedprojectsandjobsinAI,cloud,cybersecurity,dataandsoftware,withplacement,retentionandwageprogressiontracked.
PIKOMwelcomestheNationalScamResponseCentre’sproposedAIverificationapplication,strongeranalyticsagainstonlinechildexploitationandexpandedschoolinternet-safetyeducation.Localdata-protectiontechnologytoaddressquantum-computingthreatsalsosupportslonger-termpreparedness.TheseinitiativesshouldbecomplementedbyaffordableSMEcyberassessments,baselinecontrolsandincident-responsesupport.
TheproposedE-CommerceBillcanstrengthenplatformaccountabilityandfaircompetition.Industryconsultationshouldensurethatobligationsprotectconsumersandremainproportionatetobusinesssizeandrisk.
Implementationandcontinuingindustrypriorities
PIKOMencouragesagenciestopublisheligibilityrules,deliverytimelinesandoutcomeindicators.Theassociationstandsreadytosupportimplementationandindustryparticipation.
“PIKOMwelcomestheannouncements.However,severalproposalswesubmittedforconsiderationinourBudget2027memorandumhaveyettobespecificallyaddressedinthespeech.Theseincludeatime-boundmoratoriumandreviewofUSPcontributionsforqualifyingCloudServiceProviders,fasterprocessingofeligibleservice-taxrefundsfordigitalservices,andacontrolledICTprocurementprice-adjustmentmechanismforexceptionalcomponentpricemovements.WewillcontinueengagingtheGovernmentontheseoutstandingprioritiestoimprovebusinesscashflowandcompetitiveness,”Liewadded.
