Malaysia's Budget 2027: AI for the rakyat

9 Oct 2026

The Budget proposes tax relief for AI software subscriptions, 100,000 more free AI subscriptions for young people, a sovereign AI cloud and help for 4,000 MSMEs to adopt AI.

Key AI measures in the Prime Minister's Budget 2027 speech:

  • Lifestyle tax relief to be broadened to include AI software subscriptions.
  • Another 100,000 free AI subscriptions for young people, extended to apps such as ChatGPT.
  • A sovereign AI cloud is being planned so that national data stays under Malaysian control.
  • AI Malaysia Berhad: almost RM15 million towards a safe, ethical AI ecosystem and a target of 200,000 AI-skilled workers.
  • MDEC: RM30 million to help 4,000 MSMEs adopt AI and automate, and to train and certify 5,000 AI professionals.
  • Scam checker: the National Scam Response Centre will build an AI app to check suspicious numbers, bank accounts or links before you pay.
  • Rakyat Digital offers free access to more than 16,000 Coursera courses.

These are Budget proposals; confirm the detail with LHDN or your tax adviser before you claim relief.

Sources

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