By Laurence Si

"The Budget 2025 tabled by the Government of Malaysia today, with a significant allocation of RM421 billion, demonstrates their continued commitment in building a sustainable, resilient, and inclusive economy for the people. Microsoft welcomes the Government's strategic focus on AI in Budget 2025, recognizing that AI adoption in Malaysia will be a critical driver of growth. Support for enterprises, especially MSMEs, to harness transformative digital and AI technologies will enhance the country's globally competitiveness and resilience, fueling our journey toward high-income nation status.

Microsoft also commends the commitment to creating positive outcomes for Malaysia through driving AI innovation and responsible adoption, with an allocation of RM10 million to the National AI Office (NAIO). Strengthening the local AI ecosystem will enable Malaysia to unlock multiples of benefits from the growing investments in digital infrastructure, positioning the country as a regional digital powerhouse. The ASEAN AI Safe initiative further paves the way for Malaysia's chairmanship of ASEAN, fostering collaborative efforts to realize transformative AI benefits responsibly across the region.

We're also encouraged by the budget's emphasis on AI readiness, increasing allocations for research and innovation in AI for universities. In addition, the expansion of R&D funding to RM600 million will be instrumental for tapping into next-generation opportunities at the intersection of AI and science, empowering local researchers to tackle complex challenges and unlock exponential benefits across society.

Microsoft is committed to partnering with the government to drive responsible AI innovation, enabling a future where digital transformation benefits everyone."

The author is the managing director of Microsoft Malaysia