KUALA LUMPUR: The 2027 Budget reinforces Malaysia's commitment to strengthening its digital economy through investments in connectivity, artificial intelligence (AI) and cybersecurity, the Malaysian Communications and Multimedia Commission (MCMC) and analysts say.

The initiatives aim to expand digital access, improve public services and boost economic competitiveness. However, analysts say effective implementation, domestic technology development and private sector participation will be crucial to achieving these goals.

Among the key initiatives are RM5 billion for the National Digital Network Plan (JENDELA), RM1 billion for the national digital healthcare ecosystem and RM142 million to strengthen National Information Dissemination Centres (NADI)

The JENDELA allocation will expand high-quality Internet coverage in rural and remote areas, including Orang Asli villages. It will also improve connectivity along 7,000km of roads and highways, and 1,700km of rail routes nationwide

The National Digital Healthcare Ecosystem and Connectivity Initiative (PERSADA) will improve digital infrastructure and connectivity in the healthcare sector. It will support the expansion of Electronic Medical Records, telehealth services and drone deliveries of medicines to improve access to healthcare in rural and remote areas. The NADI allocation will strengthen its role as a digital community hub by providing training in digital skills and AI, while supporting local economic development and entrepreneurship

The Madani Submarine Cable System (SALAM) will increase network capacity and resilience between Peninsular Malaysia, Sabah and Sarawak. WiFi at public higher education institutions and a Sovereign AI Cloud are also expected to improve connectivity and strengthen data sovereignty.

MCMC will intensify its Safe Internet Campaign in schools nationwide and continue efforts to combat digital fraud. These include blocking more than 5.7 billion scam-related calls and short message service messages.MCMC said the initiatives would help ensure digital investments deliver tangible benefits to the people, industry and country.Nusantara Academy for Strategic Research senior fellow Prof Azmi Hassan said the government's commitment was clearer when allocations across ministries and digital infrastructure projects were considered together, rather than focusing solely on the Digital Ministry's RM1.36 billion allocation.

"The government has shown its commitment through the combined allocations for ministries, education, infrastructure and AI to ensure Malaysia does not fall too far behind in the digital economy," he told Business Times.Azmi welcomed the additional 100,000 free AI subscriptions, saying these could widen access to technology and improve young people's employability.He said the RM142 million allocation for NADI could help smaand medium enterprises explore new opportunities through its online business platform. However, he said the initiatives' success should be measured by the number of jobs created and the foreign direct investment attracted to AI and other digital industries.Institute of Strategic and International Studies Malaysia chairman Datuk Prof Dr Mohd Faiz Abdullah said the next challenge was ensuring businesses translated access to digital technology into productivity gains.