Senior economics lecturer at the National Defence University of Malaysia (UPNM), Nur Surayya Saudi, said the initiative shows that cybersecurity has become a pillar of national security and economic resilience.
She said investment in digitalisation, surveillance systems and drone integration will enhance situational awareness and strengthen Malaysia’s cybersecurity ecosystem under Nacsa.
“This move boosts Malaysia’s capacity for rapid deployment and integrated responses to hybrid and grey-zone threats, from cyberattacks to maritime incursions,” she told FMT.
Explaining the terminology, Surayya said hybrid threats are those that combine hacking, espionage and disinformation.
Grey-zone threats, on the other hand, encompass foreign maritime incursions in the South China Sea, cyber espionage, and covert influence operations designed to probe Malaysia’s sovereignty without triggering open conflict.
Surayya said Malaysia is especially exposed to these challenges given its strategic location and growing digital dependence.
“The (Budget 2026) allocation also supports the joint force headquarters through upgraded command-and-control systems and interoperable assets, ensuring seamless coordination among the army, navy and air force.”
However, Surayya lamented that Malaysia’s cybersecurity ecosystem remains fragmented, with over 15,000 skilled positions unfilled and continued reliance on foreign encryption technology.
“Developing local cryptology capabilities enhances digital sovereignty and reduces dependence on external providers,” she said.
Surayya said these initiatives reinforce sovereignty and also expand Malaysia’s defence industrial base, spurring local innovation, technology transfer and high-value employment.
Adam Leong, director of the Centre for Defence and International Security Studies at UPNM, agreed that Nacsa’s establishment was “a good step in enhancing Malaysia’s cybersecurity in view of the rapid development of cyber technology and its related security risks”.
He said Budget 2026 strikes a good balance between technology upgrades, capability building and personnel welfare.
In eastern Sabah, the Tun Sharifah Rodziah offshore base will be replaced with a new multi-purpose command platform under the Eastern Sabah Security Command to enhance maritime surveillance and readiness in the Eastern Sabah Security Zone.
Leong said the new base would serve as a “potent forward operation post” equipped with advanced sensors and communication systems to detect and deter illegal activities.
He said the introduction of a new medium-range air defence system and multi-role support ships will further strengthen Malaysia’s deterrence capabilities by expanding the armed forces’ operational reach and flexibility.