Budget 2026, the first under the 13th Malaysia Plan, doesn’t seek applause. It arrives quietly but with purpose.

Beneath its calm tone lies a plan to stabilise the economy while preparing Malaysia for a future shaped by digital change and demographic shifts that require both innovation and empathy.

Economic growth is projected to remain between 4 and 4.5 per cent next year, while the fiscal deficit is expected to narrow to about 3.8 per cent of GDP.

The numbers are cautious but sensible in a world still wrestling with inflation and uncertainty. This is a budget that values quiet confidence over noise and prefers focus over showmanship.

Beyond fiscal management, Budget 2026 marks a turning point in Malaysia’s long-term trajectory.

The focus on Digital Empowerment, Innovation and Artificial Intelligence marks a new phase in the country’s development story.

For the first time, digitalisation stands not as a policy add-on but as a core national strategy, charting a path where progress is measured not only by technology but by how it uplifts people.

Digital sovereignty and the test of confidence

Budget 2026 shows Malaysia’s determination to move from using technology to creating it. The mention of algorithms and ethics in the same context shows ambition, but ambition alone will not secure digital sovereignty.

The real question is whether Malaysia can build systems that reflect its own values while staying connected to the wider world.

The creation of the National Artificial Intelligence Office (NAIO) is a clear first step. It signals that AI is no longer just a technical issue but a matter of national interest.

Still, policies can only set direction. Confidence must come from people who believe their nation can lead in this space.

That belief takes time to grow, especially when most of our digital platforms are still foreign-owned.

Partnerships with Microsoft, Google, and AWS, worth around US$4 billion, will boost infrastructure and training.

Yet reliance on global players comes with a trade-off. Malaysia must learn to cooperate without becoming dependent. True sovereignty is not isolation. It is the ability to set rules on your own soil.

The plan to develop a Sovereign AI Cloud and launch ILMU, the first Malaysian language model, reflects a deeper intention.

It shows that Malaysia wants to build intelligence that understands its people, their languages, culture, and worldview.

The idea is inspiring, but it will take persistence to turn it into reality. Digital sovereignty must outlast budget cycles and political terms.

Technology alone does not make a nation sovereign. Trust does. Malaysians must know who owns their data, who profits from it, and how it is protected. A sovereign cloud without ethics is only infrastructure without integrity.

Budget 2026 plants the seed of confidence. Whether it grows into genuine independence depends on how well Malaysia links technology with education, governance, and public trust.

Ethical AI and the measure of maturity

If 2026 is the year Malaysia embraces artificial intelligence, it should also be the year it defines its conscience. AI is not neutral. It mirrors the intentions and blind spots of those who create it.

The idea of culturally aware AI is not just rhetoric. It represents Malaysia’s effort to build intelligence with a sense of humanity.

The RM53 million allocation under the Geran Pecutan Digital Malaysia and the creation of the Centre of Excellence in Ethics for Emerging Technologies are strong signals.

They show that the government wants innovation with accountability. Globally, ethical debates often come after the damage is done, after misinformation spreads or algorithms discriminate.

Malaysia’s decision to move early reflects foresight and maturity in navigating the digital age.

But frameworks alone are not enough. People must understand what responsible AI means in daily life.

They should know when they are interacting with a human or a machine, how their data is collected and what choices they have.

Without awareness, even the best laws remain distant from the people they are meant to protect.

This is where communication professionals, educators and policymakers share responsibility.

They must explain technology in a language that invites trust. When Malaysians can see how ethics guide innovation, confidence will follow.

Budget 2026 reminds us that progress without conscience is progress without peace. Malaysia’s AI journey may move slower than some, but it moves with intention and that is worth more than speed.

Digital inclusion and the meaning of citizenship

Malaysia once measured digital progress by the number of towers built and cables laid, rather than by how people truly benefited.

Budget 2026 redefines that measure of success, treating connectivity not as a privilege but as a fundamental right.

The SALAM project or Sambungan Kabel Dasar Laut Madani will connect Peninsular Malaysia, Sarawak and Sabah through 3,190 kilometres of undersea cable worth RM2 billion.

The project is significant, but the connection itself is not the ultimate goal. True inclusion begins when access turns into empowerment, when connectivity enables people to participate fully in society.

The MyDigital ID initiative, which aims to register 15 million Malaysians by the end of 2025, is a bold move toward digital citizenship.

Paired with Kiosk Madani for smaller towns, it brings government services closer to people. Still, convenience must be balanced with care.

Citizens should feel that their data is safe and that technology works for them, not the other way around.

Infrastructure is only part of the story. One in three rural households still faces poor connectivity, and many small businesses struggle to go digital.

When daily life moves online, those left behind are excluded in silence. Bridging this gap requires not just investment but education.

Community centres and universities must help people learn how to think critically about what they see online, how to protect their privacy and how to use digital tools creatively. Digitalisation should strengthen democracy, not just productivity.

The budget suggests that inclusion is measured not by signal strength, but by human confidence.

A society that navigates the digital world with skill and awareness is one that is harder to divide and easier to empower.

Social equity and the new face of compassion

Every budget carries a moral question. Who benefits from progress?

Budget 2026 continues the push for subsidy reform and income support, but does something more meaningful. It treats opportunity itself as a form of equity.

Access to digital training, data, and AI tools is now as important as access to roads or electricity once was.

The RM7.9 billion allocation for Technical and Vocational Education and Training (TVET) and upskilling is crucial.

Training 10,000 students from tahfiz and pondok schools in AI-related fields may sound symbolic, but it sends a clear message.

It says the digital economy is for everyone, not just the privileged. It connects tradition with technology in a way that broadens the idea of progress.

At the same time, programmes like Kampung Angkat Madani and Sejahtera Madani show that growth is most meaningful when it reaches communities often left behind. Policy becomes human when people can feel it in their daily lives.

Malaysia is also becoming an ageing nation. By 2030, seniors will make up about 15 per cent of the population, yet most conversations about technology still focus on the young.

Digital tools can help older Malaysians stay connected and independent, but design must come with empathy. Innovation should not exclude those who need it most.

Budget 2026 reminds us that compassion is not charity. It is a strategy. Economies that care build resilience and trust. Growth means little if only a few can keep up.

Communication and trust as national infrastructure

Every reform in Budget 2026 rests on one invisible foundation: trust.

A nation can modernise its systems, but transformation will remain mechanical unless people understand and believe in it.

When Malaysians hear about AI Cloud or Digital ID, they must feel that these tools serve them, not monitor them. Trust cannot be demanded. It must be earned through openness.

Technology changes how people behave, and communication changes how they believe.

Policies are only as strong as the stories that explain them. This is where Malaysia’s communication ecosystem becomes essential.

The media, educators, and content creators must help the public see digital reform as something that touches everyday life.

Campaigns should not only inform but also involve people, giving them space to question, learn, and take part.

Budget 2026 offers more than numbers. It invites a conversation about what kind of digital society Malaysia wants to build.

A country that can explain its progress clearly will always stand on stronger ground.

When policies are communicated honestly and technology is guided by empathy, transformation becomes not just structural but personal.

Final thoughts

Budget 2026 speaks in a quiet tone but with firm direction. It favours purpose over spectacle, inviting Malaysians to envision a future where artificial and human intelligence evolve side by side.

Progress will not be measured only by economic figures but by how well technology serves people. If Malaysia can make its innovation human, its ethics visible, and its communication sincere, this budget will be remembered not for its volume but for its vision.

Budget 2026 reminds us that modern leadership demands empathy as much as efficiency.

Its true success will not be measured in charts or figures, but in how deeply Malaysians feel included in the nation’s story of progress.

-- BERNAMA

Assoc Prof Dr Izzal Asnira Zolkepli is the Secretary-General of the Malaysian Association of Communication Educators (MACE) and an Associate Professor at the School of Communication, Universiti Sains Malaysia (USM).