Budget 2027’s RM30 million AI fund for SMEs: what’s confirmed so far, and how to get ready

AI 29 Oct 2026 3 min read

Malaysia’s government wants small businesses to use AI, and it has now put money behind that. In the Budget 2027 speech on 9 October 2026, Prime Minister Anwar Ibrahim said an MDEC fund of RM30 million “will help 4,000 MSMEs adopt AI and automate their operations.” On 21 October, the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) made “AI for MSMEs” one of five priorities in its new SCALE Action Plan for 2027.

If you run a small business, here’s what has actually been announced, what hasn’t been published yet, and what you can do now.

What Budget 2027 confirmed

From the official Budget 2027 speech:

RM30 million through MDEC. MDEC is the Malaysia Digital Economy Corporation. The fund “will help 4,000 MSMEs adopt AI and automate their operations.” The same programme will also train and certify 5,000 AI professionals.
Software purchases keep a tax break. Accelerated Capital Allowances on ICT equipment and computer software packages are extended until 31 December 2030.
SMEs are the focus of 2027. The speech says MSMEs make up almost all businesses in Malaysia, contribute 40% of the economy and employ 8 million people. KUSKOP’s media statement the next day called 2027 “Tahun PMKS Malaysia” (Malaysia’s Year of MSMEs) and listed the RM30 million for AI and automation under “Anjakan Produktiviti” (productivity shift), the first part of its ABCD framework.

What KUSKOP’s SCALE plan adds

KUSKOP Minister Steven Sim announced the SCALE Action Plan 2027 at the SAMENTA SME CEO Forum 2026 on 21 October, as reported by Bernama. SCALE stands for SME Redefinition, Cash Flow Protection, AI for MSMEs, Local Content Requirement and Easing MSME Financing.

On AI, he said KUSKOP “will prioritise helping MSMEs adopt AI across different stages of business operations,” and that AI “could enable businesses to increase output and productivity without relying solely on longer working hours.”

What isn’t published yet

As of 29 October 2026, the budget speech doesn’t say how much each business can get, who qualifies, or how and when to apply. We couldn’t find those details on MDEC’s or KUSKOP’s official pages. So be careful with anyone who says they can “get you the grant” today. Wait for MDEC’s own announcement, and check MDEC’s website directly.

How to get ready now

You don’t need to wait for the fund to start thinking clearly about AI. Whatever form the programme takes, a clear plan will help.

1. Pick one job, not “AI” in general. Choose a task that eats hours every week, such as answering the same customer questions, sending quotes, or taking bookings.

2. Write down where you are today. How many customer messages a day? How long do people wait for a reply, especially after hours? These numbers show whether AI is helping later.

3. Get your information in order. AI that talks to customers is only as good as what you give it: prices, opening hours, services, policies. Put it in one clean document.

4. Decide when a person takes over. Complaints, refunds and anything unusual should go to your team. Good AI tools hand the chat over instead of guessing.

5. Keep your receipts. If you buy software, keep proper invoices. The extended Accelerated Capital Allowance covers computer software packages, so ask your accountant how it applies to you.

Where ThinkChat fits

For many Malaysian SMEs, customer chat is the easiest place to start with AI, because your customers are already messaging you. ThinkChat is a multi-channel AI Chat Agent, not a chatbot. WhatsApp is the main channel in Malaysia, connected through Meta’s official WhatsApp Business Platform API or a QR scan, and ThinkChat also works on other channels like Instagram, Facebook Messenger and website chat. It answers customers from the information you approve, and hands the chat to a person when a customer needs one.

Soft next step

Want an AI Chat Agent to answer your customers? Talk to Lyia on WhatsApp: +60 11-5515 9317.

Sources

Checked 29 October 2026.

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