PUTRAJAYA: The government will prioritise developing high-skilled talent in emerging technologies under the 2026 Budget, which will be tabled on Oct 10.

Prime Minister Datuk Seri Anwar Ibrahim said artificial intelligence (AI) and semiconductors would be among the key focus areas to meet the growing demands of high-tech industries.

"This will be one of our priorities in the upcoming budget next month, InshaAllah.

"We need to re-evaluate our achievements and determine what support is needed so that progress can be accelerated, particularly in training and welfare programmes to elevate the dignity and capabilities of our children," he said.

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Anwar, who is also finance minister, said this after launching the 2025 International Conference on Social Sciences and Humanities here today.

Also present was Higher Education Minister Datuk Seri Dr Zambry Abd Kadir.

Anwar said the move was crucial to support major investments by international companies such as Infineon Technologies, which has invested in Kulim, Kedah, adding that it would also ensure Malaysia could supply the skilled workforce required.

He commended universities and ministries for fast-tracking the establishment of AI faculties, overcoming bureaucratic hurdles that had previously delayed approvals for new programmes.

He recalled challenging Zambry more than two years ago to establish an AI faculty immediately to meet emerging needs.

"Traditionally, the university was bound by the usual process: a paper from the department would go to the dean, then to the board of studies.

"I would then have to bring it to the Higher Education Ministry, which would take six months to review the finances. Only after a year and a half would approval finally be granted. That was the old way.

"That is why I increased the allocation — not from the existing provision but by adding more — to meet the demand," he said.

Anwar stressed that talent development programmes in AI, digital technologies, and electrical and electronics must be accelerated to prevent Malaysia from falling behind in global competition.

"This change is happening too quickly. All parties must act in line with current needs to ensure our children are equipped with the right skills to meet industry demands," he said.