Ong Chin Seong, chairman of Pikom, the national tech association of Malaysia, said the budget contains some notable additions such as the RM1 billion allocation for venture capital to support tech startups.

“This will foster innovation and empower local startups to scale, especially in high-growth areas like artificial intelligence (AI) and robotics,” he said in a statement today.

Ong also applauded the 50% tax deduction for companies hiring women returning to the workforce, as it encourages greater participation of women with digital skills in the tech sector.

However, there was no significant increase in public sector digitalisation or a comprehensive roadmap for technology-driven transformation.

Ong also said the allocation for digitalisation of small and medium enterprises was halved, from RM100 million to RM50 million.

He said many SMEs remain under-digitalised.

“We had recommended increasing the grant to RM20,000 for small businesses and providing tailored funds for mid-sized companies to support digital marketing and automation investments with a double tax deduction in their digitalisation expenses,” he said.

He also voiced disappointment over the absence of dedicated export support for tech companies.

While export funds through Matrade and EXIM Bank were mentioned, Ong said Pikom called for a specific brand promotion grant to help local companies expand internationally.

“These measures would better position Malaysia’s tech industry on the global stage,” he said.