Budget 2024 To Bolster Malaysia’s Digital Economy & Industries

Malaysia Digital Economy Corporation (MDEC) has announced that they welcome the mandate by the Minister Of Communications And Digital, YB Fahmi Fadzil, on the Budget 2024 announcement themed ‘Economic Reform, Empowering People’ in line with MDEC’s mission for a more inclusive, equitable, and sustainable growth of the digital economy.

The Malaysian games industry has grown with the presence of industry giants like Sony Playstation, Larian Studios, Codemasters Studios, and Bandai Namco. The initial allocation of RM20 million for pioneering research and development of artificial intelligence (AI) at the University of Technology Malaysia (UTM) marks a promising stride towards nurturing talent for AI development and digital content production.

On incentives, the RM30 million allocation serves as a catalyst for global game developers based in Malaysia, encouraging the creation of new local intellectual properties (IPs). An additional RM60 million has been allocated to the Digital Content Fund, dedicated to promoting local IPs that celebrate Malaysian culture and content.

In addition, the RM165 million allocation will bolster MSMEs through initiatives such as digital grants, the Shop Malaysia Online programme for online businesses, and the expansion of Digital Economic Centers (PEDi) across all state assemblies. This allocation aligns with MDEC’s overarching goal of enhancing competitiveness through automation and digitisation, catalysing business growth.

In line with the recently unveiled New Industrial Master Plan 2030 (NIMP 2030), Budget 2024 introduces comprehensive measures to support targeted startups, MSMEs, and entrepreneurs on their digitalisation journey. This includes enhancing ongoing efforts with financing tools, matching grants, funding support, capability development, and mentoring programmes to accelerate digital adoption.

These strategic enhancements, complemented by the supportive framework of NIMP 2030, featuring tax incentives for ‘high growth, high value’ companies and streamlined funding mechanisms for international investors in the manufacturing and electrical and electronic sectors, will lead to a surge in career opportunities within the digital economy.