Budget 2026 Should Promote 5G Collaboration In Enterprises - GlobalData

By Anas Abu Hassan

KUALA LUMPUR, Oct 6 (Bernama) -- The rapid evolution of technology in the telecommunications industry underscores the need for the government to continue providing support for more collaboration in 5G technology among enterprises.

As such, GlobalData Plc senior principal analyst for technology, Alfie Amir hopes that the upcoming Budget 2026 could focus on several areas, namely wider collaboration platforms such as innovation labs, enhanced financial incentives especially for small and medium enterprises (SMEs), as well as expanded programmes to develop talent and skill set.

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"This can provide enterprises access to new technologies and drive adoption, and at the same time lower the barriers for new technology deployment.

"In addition, wider programmes will develop talent and skills, especially in key technologies such as cybersecurity, cloud and artificial intelligence (AI), and tightening regulations can address market concerns around privacy and security," he told Bernama.

Explaining further, Alfie said that 5G has been a key technology for telecommunication companies (telcos) globally to innovate, differentiate, and drive business across both the consumer and enterprise segments.

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"The wholesale approach in Malaysia is limiting innovation with the local telcos; therefore, Budget 2026 could focus on 5G collaborations to drive the development of new use cases," he said.

Nevertheless, he noted that apart from the ongoing Jalinan Digital Negara (JENDELA) initiatives to boost connectivity, especially in the underserved areas, Malaysia's infrastructure is somewhat advanced and covers nearly the whole country.

"Besides, local telcos are proactive in enhancing their network capabilities; hence, there are no new critical areas for the government to allocate budgets in connectivity and underserved areas.

"However, the government could consider allocating budgets for smart cities in underserved areas to benefit both state governments and city councils, as well as the locals," he added.

Commenting on the telecommunications industry performance this year, Alfie noted that the Malaysian telecom market’s growth was flat in the first half of 2025 at a low single digit, reflecting a maturing market in line with a similar trend in developed economies.

GlobalData Telecom Forecast estimates that the trend will continue for the remainder of the year, while the full year forecast is expected to see a slight decline in the overall telecommunications services (mobile and fixed-line services) by -1.9 per cent year-on-year, from RM31.9 billion to RM31.3 billion.

"Digital and information and communications technology (ICT) services such as cloud, Internet of Things (IoT), cybersecurity and managed services, have become the key growth engine for telcos.

"Although the total enterprise ICT market is expected to grow 15.5 per cent to RM61.9 billion in 2025, the increase was tempered by the decline in traditional services like mobile, broadband, and network connectivity," added Alfie.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table the Budget 2026 in Parliament on Oct 10.

-- BERNAMA