Budget 2026 Enhances Malaysia’s Digital Backbone For AI-powered Future -- MyIX

KUALA LUMPUR, Oct 13 (Bernama) -- The Malaysia Internet Exchange (MyIX) has welcomed the MADANI Budget 2026 as a decisive step to strengthen Malaysia’s digital backbone, citing the government’s emphasis on submarine cable infrastructure, nationwide connectivity, 5G expansion, artificial intelligence (AI) and digital inclusion as critical enablers of the nation’s future.

MyIX Chairman Chiew Kok Hin said the government’s commitment of more than RM4 billion in landmark digital infrastructure investments enables Malaysia to compete as a regional digital hub, adding that global investments must be matched with resilient domestic interconnection.

“As the digital highways are being built -- submarine cables, AI cloud and 5G networks -- the true benefits (will) only reach the rakyat when traffic flows locally and securely,” he said in a statement.

“At MyIX, our role is to anchor these capacities so that every Malaysian enjoys lower costs, smoother streaming, faster cloud access and assured data sovereignty,” he added.

Budget 2026 has allocated RM2 billion for the SALAM (Sambungan Kabel Dasar Laut Madani) submarine cable linking Johor, Sarawak and Sabah, RM2 billion for a sovereign AI cloud, continued 5G rollout, MyDigital ID adoption and global investments from Microsoft, Google and Amazon Web Services.

Amazon, Google and Microsoft are among MyIX’s global peering partners, supporting the exchange’s mission to enhance speed, resilience and affordability of Malaysia’s internet.

Measures outlined in Budget 2026 also reflected strong foresight, positioning Malaysia as a regional AI and digital hub, Chiew said.

“The government’s commitment to submarine cables, AI infrastructure and 5G rollout will unlock unprecedented capacity.

“Our role at MyIX is to ensure these investments are translated into real benefits for Malaysians through efficient local traffic routing. This is how we strengthen digital sovereignty while enabling inclusive growth,” he said.

Chiew said focus on Sabah and Sarawak’s development, together with initiatives such as GovTech digitalisation, MyDigital ID expansion and tax incentives for AI and cybersecurity adoption would further broaden access to the digital economy across the nation.

“By localising internet traffic, MyIX reduces reliance on foreign routing, ensuring connectivity gains are felt nationwide, from rural areas to urban centres in the Klang Valley. As Malaysia builds towards AI Nation 2030, low-latency interconnection will be the invisible layer powering AI, 5G and cloud adoption for government, businesses and the rakyat alike,” he said.

MyIX operates across Kuala Lumpur, Cyberjaya, Johor Bahru and Kuching, serving as key interconnection points for seamless traffic exchange.

The exchange continues to deliver significant cost reductions, foreign exchange savings and faster local internet speeds while enhancing national resilience and efficiency.

The Malaysian Communications and Multimedia Commission, instrumental in MyIX’s formation in 2006, continues to be actively engaged in the exchange.

-- BERNAMA