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Among five areas of focus, is one that will see AI possibly playing a deeper role in driving economic success for the Malaysian state.
On 15 November 2024, Malaysia’s Chief Minister of Selangor, Dato' Seri Amirudin bin Shari, presented the Selangor Budget 2025.
The state’s 2025 budget focused five core areas of focus:
- Artificial Intelligence (AI) and education driving state economic development
- Supporting sustainable environment and quality infrastructure
- Cultivating a loving state
- Championing efficient governance and authority
- Setting up the culture economy and development of young generation
The Budget is expected to see an expenditure amounting to RM3bn, of which about 56.7% is expected to be allocated to 'managing expenses', and 43.3% to 'development expenses'.
In this article, we will focus on the first area of focus, i.e., AI human development and as catalysts for state economic development.
Selangor is poised to leverage AI to drive future economic growth. The state government aims to proactively anticipate technological advancements and establish a robust framework that fosters innovation, business development, and ultimately benefits its citizens. By doing so, Selangor seeks to enhance its industrial competitiveness on the global stage and accelerate human development as a catalyst for economic progress.
Additionally, Selangor's service sector will benefit from AI integration in healthcare, education, and finance. AI-powered solutions will be able to optimise operations, reduce inefficiencies, and enhance decision-making in both the public and private sectors.
The Selangor State Government also aspires to make this state the main region that explores the artificial intelligence sector and ensure attention and precise commitment is given to the development of AI.
Selangor enters AI Trailblazers programme
According to Dato' Seri Amirudin bin Shari, this pilot programme is a specific initiative to drive the application of AI in administrative systems, financial management, and business management, also emphasising the integration of existing systems.
“The programme that will be managed in collaboration with Google through Gemini products brings the current industrial and administrative solution concept with the main objective of producing artificial intelligence (AI) products,” the Chief Minister stated.
The programme will be managed in a 'Sandbox' concept, with a period programme for eight weeks with the participation of 50 participants representing the main sectors of administration and industry in Selangor.
Google’s AI Trailblazers programme, known as the AI Trailblazers initiative, is an initiative introduced by Google as a pilot project implemented with the Singapore government to promote generative AI innovation in both the business and public sectors of the country.
The pilot programme, it was added, was carried out as a collaboration between Singapore's Ministry of Digital Development and Information, Digital Industry Singapore, and Smart Nation and Digital Government Office with the objective of supporting their local organisations in developing practical AI solutions to deal with current problems.
The Chief Minister added that in Selangor, this initiative involves access to Google Cloud AI facilities such as high-performance GPUs and the Vertex AI platform, and the development of AI-based products will be implemented through the concept of "Innovation Sand Box Facilities".
Semiconductor
The semiconductor industry in the State of Selangor is growing rapidly, particularly in the integrated circuit (IC) design sector, it was pointed out.
Thus, the establishment Malaysia Semiconductor IC Design Park 1 in Puchong, by Selangor Information Technology & Digital Economy Corporation (SIDEC), is seen an important step.
"This park has attracted the participation of seven local and international IC companies and also received interest from eight companies including from China, India, the United States, Japan, Hong Kong, Taiwan and Brazil," the Chief Minister stated.
The project is set to provide 500 income-generating job opportunities, with a starting salary of between RM5,000 to RM6,000 for fresh graduates.
In addition, a total of 100 engineers will start working towards the end of 2024 and 200 people will be sent for training in China and India.
The Chief Minister highlighted that SIDEC also plans for another Malaysia Semiconductor IC Design Park 2 to be opened in Cyberjaya, to be launched in early 2025. At the same time, the Selangor Digital School will be upgraded to Advanced Semiconductor Academy of Malaysia (ASEM), with the aim to develop its 80,000 square foot campus in IC’S second design park.
As such, the Selangor State Government has stated that it will contribute RM50mn from the period of 2024 to 2029, in denominations of RM10mn per year, while the Federal Government, through the Ministry of Economy, has estimated to channel RM100mn.
Additionally, Selangor-based company PNSB Venture will also provide a total of RM100mn as part of the Perkasa Fund Selangor, to support the ecosystem semiconductors in the Klang Valley.
This effort is expected to generate more than RM100bn worth of national exports by 2030.
Education
In terms of education, the Selangor State Government proposed that for the year 2025, a total of RM79.95mn will be allocated as follows:
- RM69.35mn for an education programme,
- RM2.6mn for an development programme human and social capital, and
- RM8mn for an education programme under the Iltizam Selangor Penyayang (ISP) framework.
Dato’ Seri Amirudin bin Shari stated: "This entire provision is an additional RM2mn from the 2024 allocation."
"This demonstrates the State Government’s deep concern and commitment to nurturing the nation’s children, who are the hope of the future."
Further, the Education Reform Determination Programme, a collaborative effort between the Malaysian Ministry of Education (KPM) and the Government, will be implemented to drive education in Selangor.
The Chief Minister added that one of the key programmes for 2025 is a leadership programme for school students. This initiative aims to cultivate self-confidence, social skills, and leadership potential in young individuals. To support this programme, the government has allocated RM1 million.
Moreover, Dato’ Seri Amirudin bin Shari shared that in 2025, the focus will continue to strengthen STEM (science, technology, engineering, and mathematics) programmes at the school level. This initiative aims to spark interest in STEM fields among younger generations. To support this goal, the government has allocated RM1mn for the implementation of relevant STEM programmes.
The Government has also pledged to carry out the following initiatives:
- Restore religious schools
- Literacy and numeration intervention programmes for students to master 3M (reading, writing, calculation)
- Selangor State School Assistance programme
- Selangor State student development
- University fee basic assistance (BAYU)
- #KITASELANGOR book voucher
- Empowerment and development of higher education institutions under the State Government
- Selangor State Scholarship Fund
- Selangor Institute of Higher Studies (HPIPT) study prizes
- Selangor Smart Technical Skills and Specialisation Initiative Programme (IKTISASS)
Human and social capital development
The development of human and social capital is created with the aim to produce skilled human resources and have a good impact on the society and economy. The Chief Minister shared that as much as RM2.6mn will be allocated to human and social capital development, which is set to benefit various age groups and backgrounds.
In 2025, the State Government hopes to carry out a comprehensive study regarding domestic labour needs in comparison to the income of students from various educational institutions.
"This study is in line with the needs of the industry, and it can indirectly reduce the unemployment rate within the state of Selangor, [as well as] reduce the problem of matching jobs with the corresponding field of study later on," he highlighted.
The study will also ensure the State Government, through the appointed committee and the Selangor Jobs and Skills Council, will be able to explore new fields of study that will impact the future.
Last, a new Civil Servant Human Capital Development Programme will see a budget allocation of RM1mn, aiming to empower civil servants in the state by polishing their skills through high-impact courses both in the country and abroad.
For more details on this area and the other four cores, read the full speech here.
READ MORE: #Belanjawan2025: Key takeaways for HR & business leaders from Malaysia Budget 2025
Lead image / Selangor State Government Facebook
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