**Calls for Stronger Local Interconnection to Maximise Digital Investments in Malaysia**
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 (AI), and digital inclusion are seen as critical enablers of the nation’s digital 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. He emphasized that global investments need to be complemented by resilient domestic interconnection networks to maximize benefits for Malaysians.
> “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 stated.
### Key Budget Allocations for Digital Infrastructure
The Madani Budget 2026 allocates significant funding towards strategic digital infrastructure projects, including:
– **US$440 million (RM2 billion)** for the Sambungan Kabel Dasar Laut Madani (SALAM) submarine cable, linking Johor, Sarawak, and Sabah.
– **US$440 million (RM2 billion)** for a Sovereign AI Cloud.
– Continued investment in 5G rollout and MyDigital ID adoption.
– Support for global investments from major technology players such as Microsoft, Google, and Amazon Web Services.
Chiew noted that Amazon, Google, and Microsoft are among MyIX’s global peering partners, bolstering the exchange’s mission to enhance internet speed, resilience, and affordability across Malaysia.
### Positioning Malaysia as a Regional Digital and AI Hub
According to Chiew, the measures outlined in Budget 2026 reflect strong foresight and position Malaysia as an emerging regional AI and digital hub.
> “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 added.
The Budget also highlights development efforts in Sabah and Sarawak alongside initiatives such as GovTech digitalisation, MyDigital ID expansion, and tax incentives for AI and cybersecurity adoption. These initiatives aim to broaden nationwide access to the digital economy.
### Enhancing Digital Sovereignty Through Localised Internet Traffic
By localising internet traffic, MyIX helps reduce reliance on foreign routing and ensures that connectivity improvements benefit the entire nation—from rural communities 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,” explained Chiew.
### Current Operations and Impact of MyIX
MyIX currently 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 operational efficiency.
The Malaysian Communications and Multimedia Commission (MCMC), instrumental in MyIX’s formation in 2006, remains actively engaged in supporting the exchange’s ongoing development.
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**About MyIX**
The Malaysia Internet Exchange (MyIX) is a not-for-profit organisation dedicated to improving internet infrastructure by enabling direct local interconnection among networks in Malaysia. This reduces dependency on international bandwidth, lowering costs and improving internet performance for the nation.
https://www.digitalnewsasia.com/digital-economy/myix-budget-2026-enhances-malaysias-digital-backbone-ai-powered-future