Quick review of AI, tax relief, digital skills, startup funding and MyDigital ID

Malaysia’s Budget 2027 includes several technology-related initiatives that may benefit individuals, students, entrepreneurs and SMEs.

1. RM30 Million for SME AI Adoption

MDEC will allocate RM30 million to help 4,000 SMEs adopt AI and automate business operations. The programme will also train and certify 5,000 AI professionals.

Businesses should monitor MDEC for eligibility and application details.

2. 100,000 More Free AI Subscriptions

The government will provide another 100,000 free AI subscriptions, including access to additional applications such as ChatGPT.

The initiative aims to help young Malaysians build digital skills. Eligibility and redemption requirements will apply.

3. AI Subscriptions Added to Tax Relief

AI software subscriptions will be included under lifestyle tax relief, subject to final rules and limits.

Taxpayers should keep receipts and check LHDN’s latest guidance before making a claim.

4. More Than 16,000 Free Digital Courses

Rakyat Digital offers access to more than 16,000 courses and Professional Certificate programmes through Coursera.

Topics include:

• AI and machine learning
• Programming
• Data analytics
• Digital business skills

Course availability and enrolment conditions may vary.

5. More Funding for Startups and Technology Businesses

Budget 2027 includes:

• RM450 million for startup investment through Jelawang Capital and Dana Perintis.
• RM41 million through Cradle Fund for startup development and commercialisation.
• RM270 million through ECF and P2P platforms for SMEs and social enterprises.
• RM2.1 billion to strengthen mid-tier companies in sectors such as digital technology, electronics and medical devices.

These are funding opportunities, not automatic grants. Applicants must meet the relevant requirements.

6. MyDigital ID Expansion

MyDigital ID has more than 14 million registered users accessing 203 public and private services.

The system supports secure online identity verification and may create opportunities for businesses involved in cybersecurity, authentication and system integration.

Conclusion

Malaysia Budget 2027 highlights the growing importance of AI, automation, digital skills and technology adoption. For Malaysian SMEs, investing in the right technology can improve productivity, streamline workflows, reduce manual tasks and support long-term business growth.

However, digitalisation goes beyond adopting AI. Reliable computers, stable networks, secure data backups and dependable business software are equally important for keeping daily operations running efficiently and minimising business disruptions.

For businesses using AutoCount accounting software, POS systems or e-Invoice solutions, this is an ideal time to review their existing IT infrastructure and software setup. Upgrading outdated computers, improving network performance, strengthening data protection can help reduce downtime, improve operational efficiency and prepare businesses for future digitalisation.