Budget 2026 To Improve Connectivity, Stimulate Orange Economy - Communications Ministry

KUALA LUMPUR, Oct 11 (Bernama) -- The Ministry of Communications is committed to strengthening the communications ecosystem and connectivity, following the 2026 Budget tabled by Prime Minister Datuk Seri Anwar Ibrahim yesterday.

The ministry has received a total allocation of almost RM2.56 billion to ensure that the people enjoy better communications infrastructure, strengthen national values, including strengthening the orange economy.

"The Ministry of Communications is confident that Budget 2026 can further improve communications connectivity, digital literacy and foster quality creative industry products," it said in a statement today.

The Ministry of Communications announced that RM770 million has been allocated for the implementation of the Point of Presence (PoP) project which aims to bridge the digital divide in rural areas.

In addition, RM110 million has been allocated in the form of incentives for local and international film producers to produce high-quality works, including RM10 million for the production of national content, while RM10 million is in the form of incentives for organising concerts by local and international artists in Malaysia in conjunction with Visit Malaysia Year 2026.

According to the Ministry of Communications, in an effort to expand the telecommunications infrastructure network, empower rural entrepreneurs and strengthen disaster preparedness, the government through the Malaysian Communications and Multimedia Commission (MCMC) has also allocated a total of RM3.99 billion.

Of this amount, RM2 billion is to develop the MADANI Submarine Cable Connection (SALAM) involving a submarine route from Sedili, Johor to Kuching and Sibu, Sarawak; then to Tuaran, Kudat, Pulau Banggi, Sandakan and Tawau, Sabah.

A total of RM780 million is for the National Digital Network Phase 2 (JENDELA 2) project to expand to 2,700 new locations, while RM650 million is to improve Internet connectivity in public hospitals, health clinics, mother and child clinics, community clinics and rural clinics.

In addition, a total of RM350 million is allocated to strengthen the National Information Dissemination Centre (NADI) which benefits rural entrepreneurs to increase income, and RM210 million to develop an Early Warning System (EWS) to strengthen disaster and crisis preparedness, thus reducing risks to life and property.

MCMC will also build the Sovereign AI Cloud with an investment of RM2 billion and establish the AI ​​Transformation Centre in collaboration with the Multimedia University of Malaysia (MMU) and the Centre of Excellence in Ethics for Emerging Technologies as a research and development centre and culturally sensitive AI.

-- BERNAMA