Malaysia (Commonwealth Union)_ In a significant move to enhance Malaysia’s position in the global economy, Prime Minister Datuk Seri Anwar Ibrahim recently announced an increase in funding for artificial intelligence (AI)-related education as part of the 2025 Budget. Accordingly, the government has allocated RM50 million specifically for expanding AI education across all research universities, a marked increase from the RM20 million designated in the previous year. This initiative aligns with the nation’s ambition to become a high-income economy, fostering research and development (R&D) in key technology sectors.
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The Malaysian education sector, which has received an overall allocation of RM18 billion for 2025, up from RM16.3 billion in 2024, aims to stimulate growth in areas such as AI, robotics, and cybersecurity. Accordingly, Datuk Parmjit Singh, president of the Malaysian Association of Private Colleges and Universities, emphasized that this funding highlights the government’s recognition of the pivotal role that private higher education institutions (IPTS) play in nurturing talent and attracting foreign investments. Furthermore, Prime Minister Anwar’s vision for AI education is underscored by the establishment of the first Faculty of Artificial Intelligence at Universiti Teknologi Malaysia, marking a significant milestone in the country’s educational landscape. Anwar stated, “This gives us hope that our educational institutions are heading towards excellence,” noting that universities are increasingly focusing on applying AI to solve real-world problems.
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Additionally, various universities are also set to take on specialized roles in advancing AI. For instance, Universiti Malaya aims to utilize AI in medical research to tackle diseases like cancer, while Universiti Putra Malaysia is collaborating with the National Cyber Security Agency (Nacsa) to establish the Malaysian Cryptology Technology and Management Centre. This initiative will focus on quantum computing and the complexities of cybersecurity threats, highlighting the government’s commitment to integrating advanced technologies into educational frameworks. Furthermore, Universiti Sains Malaysia is poised to explore semiconductor technology, reinforcing Malaysia’s status as a global semiconductor hub through partnerships with industry leaders such as Intel and Infineon. Meanwhile, Universiti Kebangsaan Malaysia is leading initiatives in AI translation, promoting the Malay language as a key medium in scientific discourse.
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The government’s commitment to enhancing education extends beyond funding. The total R&D fund has been increased to RM600 million, facilitating further research initiatives. An additional RM170 million has also been earmarked for the Malaysia Science Endowment (MSE) Trust Fund, which aims to provide matching grants for private entities and industries that support educational programs. In tandem with these developments, the Malaysia Techlympics programme has received a dedicated allocation of RM10 million. This initiative seeks to cultivate local expertise in robotics and AI technology, reinforcing the government’s strategy to nurture a skilled workforce capable of meeting future challenges.
In a broader context, Prime Minister Anwar announced a RM635 million allocation to upgrade infrastructure across public higher education institutions (IPTA). This funding will address the urgent need to replace outdated equipment and improve Internet access, ensuring that students and educators are equipped with the necessary tools for a modern educational experience. Moreover, the government has allocated RM4 billion for scholarships, loans, and educational allowances, with specific emphasis on supporting students pursuing STEM disciplines. The National Higher Education Fund Corporation (PTPTN) will also contribute RM500 million to further bolster educational opportunities in these fields.
To ensure inclusivity, government-linked investment companies (GLIC) and government-linked companies (GLC) will prioritize scholarship allocations for students from low- and middle-income families. This initiative aims to reduce barriers to education and foster a diverse talent pool in the technology sector. In addition to these educational investments, the government plans to extend individual tax relief on savings in the National Education Savings Scheme (SSPN) for an additional three years. Furthermore, the Madani Literacy Programme will be implemented by Permodalan Nasional Berhad, providing new students entering higher education with a free ASB account to encourage financial literacy.
As Malaysia moves forward, the expansion of AI-related education stands as a testament to the government’s commitment to cultivating a knowledge-based economy. By investing in advanced technologies and education, Malaysia is positioning itself as a leader in innovation, ultimately striving for a prosperous and high-income future. The proactive measures outlined in Budget 2025 reflect a strategic vision that not only enhances educational opportunities but also prepares the nation to meet the demands of an increasingly technology-driven world.
