share on
Leaders from IPG Mediabrands, Alcon, ICT Zone, and Think City share their perspectives on how Budget 2026 will shape workforce development, support underserved communities, and accelerate Malaysia’s transition to a sustainable, future-ready economy.
Malaysia’s Prime Minister Anwar Ibrahim tabled the country’s fourth MADANI Budget on 10 October 2025 (Friday), themed the "People’s Budget", with a projected economic growth of 4 to 4.5% and a total allocation of RM470bn.
Among the key initiatives announced was the allocation of RM7.9bn to strengthen the TVET ecosystem, permanent placements for 4,500 contract doctors and nearly 1,000 nurses, and the introduction of i-Saraan Plus for gig, e-hailing, and p-hailing workers. On the business front, the introduction of the ASEAN Business Entity status and Investor Pass aims to attract regional investment, while AI Nation initiatives and carbon tax reforms signal Malaysia’s pivot toward digital and sustainable growth.
What do these measures mean for employers, HR professionals, and business leaders navigating the future of work? For HR professionals, this Budget could offer a clear signal: workforce development, inclusive hiring, and strategic talent mobility are central to Malaysia’s growth narrative.
In this feature, Priya Sunil hears from leaders to understand what Budget 2026 means for talent, inclusivity, and sustainable transformation.
Talent development
The RM7.9bn allocation for Technical and Vocational Education and Training (TVET) signals a strong push toward upskilling and future-proofing Malaysia’s workforce. Debica Sigamani (pictured above, centre), Chief Talent Officer, IPG Mediabrands, notes: "Budget 2026 points Malaysia toward a skills-led recovery, with strong allocations for TVET, HRD Corp training, and incentives in AI and green economy skills. I see it as our way out of stagnation in certain areas, which is not only through infrastructure spending, but through human capability.”
She adds that the real test lies in execution: "It’s not about just courses or numbers; it’s about outcomes. The real test will be how well industry, academia and government align not in intent, but in execution. If we get that right, this could finally shift us from a training economy to a talent economy."
Muhammad Hilman Rao Abdullah (pictured above, left), Head of HR East Asia, Alcon, echoes this, stating: "The 2026 Budget's major investment in TVET signifies the government continues commitment in driving national TVET agenda as one of the key priorities. It is no longer a least option but one of the important elements in driving talent development and strategic reforms in building future ready workforce."
Workforce inclusivity
Budget 2026 introduces targeted support for gig workers, micro-entrepreneurs, and underserved communities. Debica reflects: "Community projects, targeted aid and mobile services all push us closer to shared growth. Yet inclusivity isn’t just access; it’s agency. Gig workers, micro-entrepreneurs, and informal earners are no longer on the sidelines of Malaysia’s economy, they are the economy for many sectors."
She cautions that long-term frameworks for social protection are still lacking: "Budget 2026 is a good start in recognising this growing segment, but policy still needs to catch up with how Malaysians actually work – flexible, independent, and increasingly digital.
"When that happens, inclusivity will no longer be a policy ambition; it will be the baseline for modern workforce."
Hilman highlights the significance of the Gig Workers Bill and related budget measures: "The recent Gig Workers Bill that has been passed in Malaysia parliament has been a great milestone supports the government commitment to continuously to protect this group of workers. The budget outlines allocations to formalise protections while they are on duty, Budi 95 petrol subsidies to ease their financial burden, as well some rehabilitation centre for those work injury cases.
"Additionally, the Budget also aims to reduce inequality and strengthen social safety nets for all categories of the workforce in Malaysia."
Urban growth, and ESG & green tech
Think City welcomes Budget 2026’s emphasis on sustainable and inclusive city-making, saying it "reinforces the Malaysia's long-term commitment to shaping cities that are sustainable, liveable and inclusive as a foundation for national progress and shared prosperity."
Managing Director Dato’ Hamdan Abdul Majeed shares: "Budget 2026 moves the focus from growth for its own sake to growth that fosters quality of life." Success, he adds, will depend on implementation, monitoring and collaboration across all sectors – government, private enterprises, and communities alike.
Other notable initiatives he pointed out included the Warisan KL initiative and adaptive reuse of heritage landmarks; and infrastructure upgrades viewed as essential to reducing inequality and enhancing mobility.
Finally, to Tommy Lim (pictured above, right), CEO, ICT Zone Asia, the introduction of carbon pricing, green tax incentives and expanded financing support will push more organisations to adopt sustainable technologies.
He comments: "Our carbon-neutral computing services (CNCS) and MyHIJAU-certified Device-as-a-Service (DaaS 360) already align with the policies announced in the budget… Through our TechFin model, we make it easy for companies to upgrade to green-certified ICT solutions without heavy upfront costs."
Photos / Provided
share on
