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**Calls for Stronger Local Interconnection to Maximise Digital Investments**

Upgraded infrastructure will boost data sovereignty, lower costs, and support Malaysia’s rise as a regional digital hub.

The Malaysia Internet Exchange (MyIX) has welcomed the Madani Budget 2026 as a decisive step towards strengthening Malaysia’s digital backbone. The government’s focus on submarine cable infrastructure, nationwide connectivity, 5G expansion, artificial intelligence, and digital inclusion are seen as critical enablers of the nation’s future.

MyIX Chairman Chiew Kok Hin highlighted that the government’s commitment of more than US$880 million (RM4 billion) in digital infrastructure investments demonstrates Malaysia’s readiness to compete as a regional digital hub. However, he emphasized that global investments must be matched by resilient domestic interconnection.

> “As digital highways such as submarine cables, AI clouds, and 5G networks are being built, the true benefits only reach the rakyat when traffic flows locally and securely. At MyIX, our role is to anchor these capacities so that every Malaysian enjoys lower costs, smoother streaming, faster cloud access, and assured data sovereignty,” Chiew said.

The Budget allocates US$440 million (RM2 billion) for the Sambungan Kabel Dasar Laut Madani (SALAM) submarine cable, linking Johor, Sarawak, and Sabah. Additionally, another US$440 million (RM2 billion) is designated for a Sovereign AI Cloud, alongside continued 5G rollout, MyDigital ID adoption, and global investments from Microsoft, Google, and Amazon Web Services.

Chiew noted that Amazon, Google, and Microsoft are among MyIX’s global peering partners, supporting the exchange’s mission to enhance the speed, resilience, and affordability of Malaysia’s internet.

The measures outlined in Budget 2026 reflect strong foresight and position Malaysia as an emerging regional AI and digital hub. Chiew added:

> “The government’s commitment to submarine cables, AI infrastructure, and 5G rollout will unlock unprecedented capacity. At MyIX, our role is to ensure these investments translate into real benefits for Malaysians through efficient local traffic routing. This is how we strengthen digital sovereignty while enabling inclusive growth.”

He also highlighted the Budget’s focus on the development of Sabah and Sarawak, alongside initiatives such as GovTech digitalisation, MyDigital ID expansion, and tax incentives for AI and cybersecurity adoption. These steps will further broaden access to the digital economy nationwide.

> “By localising internet traffic, MyIX reduces reliance on foreign routing and ensures that connectivity gains are felt across the nation—from rural areas to urban centres in the Klang Valley. As Malaysia builds towards AI Nation 2030, low-latency interconnection will be the invisible layer powering AI, 5G, and cloud adoption for government, businesses, and the rakyat alike,” Chiew explained.

Currently, MyIX operates across Kuala Lumpur, Cyberjaya, Johor Bahru, and Kuching, serving as key interconnection points for seamless traffic exchange. The exchange continues to deliver significant cost reductions, foreign exchange savings, and faster local internet speeds, while enhancing national resilience and efficiency.

The Malaysian Communications and Multimedia Commission (MCMC), which was instrumental in MyIX’s formation in 2006, remains actively engaged in the exchange’s ongoing development.
https://www.digitalnewsasia.com/digital-economy/myix-budget-2026-enhances-malaysias-digital-backbone-ai-powered-future