Malaysia Prioritizes Tech Talent Development in Budget 2026, Focus on AI and Semiconductors

Government to Prioritize Development of Highly Skilled Tech Talent in Budget 2026 - PM Anwar

PUTRAJAYA, Sept 10 – The Malaysian government will prioritize the cultivation of highly skilled talents in emerging technology sectors through the upcoming Budget 2026, announced Prime Minister Datuk Seri Anwar Ibrahim. As both the Prime Minister and Minister of Finance, Anwar highlighted that special attention will be given to artificial intelligence (AI) and upstream semiconductor industries, which are critical for the country's high-tech growth.

"This is a key priority for Budget 2026. We need to review our past achievements and identify what is necessary to accelerate training and welfare programs that improve the capabilities and dignity of our younger generation," he said during the opening of the 9th International Conference on Social Sciences and Humanities (ICOSH).

Meeting Industry Demands with Skilled Workforce

Anwar stressed the importance of producing capable young professionals trained in engineering and AI to support significant investments by global companies like Infineon Technologies, which is expanding operations in Kulim and Melaka. Ensuring Malaysia has a ready pool of skilled workers is critical to attract and sustain such investments.

To achieve this, the government will allocate additional funds to fast-track training initiatives and develop new skill sets in AI, digital technologies, and engineering. Agencies and ministries are urged to focus on preparing youths equipped to meet industry demands.

Fostering Collaboration Between Academia and Industry

The Prime Minister emphasized that efforts to build talent cannot rely solely on academia. Strong partnerships between universities and the industry are essential for relevant and timely skill development.

He also called for a streamlined, faster approval process for new academic programs and funding at higher education institutions, moving away from bureaucratic delays. "I proposed over two years ago that the Faculty of AI be established immediately to meet current needs, as traditional university procedures typically take six months," Anwar explained.

He acknowledged the progress made by universities and the Ministry of Higher Education in expediting the establishment of the AI Faculty, which overcame previous administrative hurdles and set a precedent for future initiatives.

Looking Ahead

With Budget 2026, Malaysia aims to strengthen its position in key technology sectors by nurturing a workforce ready for the future. This approach supports both national development goals and the requirements of international tech investors.

For professionals involved in government or policymaking, understanding these priorities is essential to support and align with national strategies. Those interested in AI training opportunities can explore practical courses that align with industry needs at Complete AI Training.