Budget 2026 Puts Cyber Resilience in Focus
The Prime Minister’s announcement for Budget 2026 highlights Malaysia’s continued drive to advance its digital economy, a journey where cybersecurity must remain at the core. Our latest Future of Cybersecurity in Asia Pacific and Japan 2025 report shows that 90% of Malaysian organisations are facing cybersecurity burnout, driven by escalating threats, resource shortages, and unclear strategies. Budget 2026 presents a timely opportunity to address these challenges directly.
AI is already reshaping the cybersecurity landscape. In Malaysia, 91% of organisations are using tools such as ChatGPT, copilots, and agentic AI, with 78% having formal AI strategies in place. While these tools enhance triage and response speed, they also introduce new risks, 36% of organisations report shadow AI use, and another 13% remain uncertain about its presence within their environments. This lack of oversight highlights the urgent need for strong governance and accountability in AI adoption.
The cost of burnout is real. According to our research, Malaysian organisations are losing an average of 5.6 hours per employee each week to stress and fatigue, an increase from last year. At the same time, resilience remains a key focus, with 93% of organisations planning to increase their cybersecurity budgets, and more than a quarter targeting double-digit growth.
We commend the government’s initiatives under Budget 2026 to strengthen national cybersecurity readiness, including the drafting of the Cybercrime Bill (RUU Jenayah Siber) to manage threats more comprehensively, the establishment of the Cybersecurity and Cryptology Development Centre under NACSA to reinforce digital sovereignty, and the RM12 million allocation to the National Scam Response Centre (NSRC), now led by the Royal Malaysia Police (PDRM), to improve the handling of financial scam cases.
These measures demonstrate a clear recognition that cybersecurity is central to sustaining Malaysia’s digital progress. Their impact will be greatest when paired with robust national frameworks, skilled talent, and closer public–private collaboration to operationalise these policies.
Cybersecurity is no longer just a technical issue; it is a strategic and cultural priority. With the right mix of policy, investment, and industry collaboration, Malaysia can safeguard its digital economy and set a benchmark for ASEAN and beyond.
