30/12/2025

BIZ & FINANCE

BIZ & FINANCE TUESDAY | DEC 30, 2025 15 Five business and technology trends to look out for in 2026

AS WE enter 2026, technology trends show enterprises embedding arti ficial intelligence (AI) directly into their core business models, un locking new revenue streams and accelerating innovation at scale. Organisations are moving beyond early experimentation and building AI that is governed, explainable and aligned to national and enterprise priorities. From sovereign models to quantum-powered AI, the region is shaping an AI ecosystem that is both innovative and trusted. An IBM study shows how these shifts are paving the way for enterprises to grow strategically and sustainably. What’s most exciting about Malaysia is that AI innovation is no longer siloed by industry. Its transferable value across sectors is accelerating AI maturity across the region, enabling enterprises to leapfrog traditional development cycles and compete at a higher level. “As we look to 2026, uncertainty isn’t holding us back – it’s propelling us forward. The organisations that rise are embracing technologies that bring speed, resilience and clarity. We expect AI to shift from ex perimental to essential. With sovereign AI becoming the foun dation of trusted innovation and quantum computing emerging as the next leap, the future is no longer something to predict – it’s something we can shape,” said IBM Malaysia country general manager and country leader Dickson Woo. In its new report, Five Trends for 2026 , the IBM Institute for Business Value identifies the forces that will redefine competitive advantage for the year ahead. From turning vola tility into opportunity, to building AI resilience, to preparing for quantum powered ecosystems, one message cuts through: the future belongs to organisations that can adapt – fast. TREND NO. 1 Fast decision-making will turn disruption into opportunity, but success depends on AI that can act, not just assist. 0 95% of executives say they increasingly need to make fast decisions, and 96% said the highest stakes decisions they made in 2025 were the right ones. 0 90% of executives say they’ll lose

o IBM institute identifies the forces that will redefine competitive advantage in the year ahead

0 95% of executives say consumer trust in their AI will define the success of new products and services. 0 Two-thirds would switch brands – and half would pay more – to avoid hidden AI. TREND NO. 4 Employees no longer fear AI, they want to embrace it, even if that means their roles will change significantly. 0 61% of employees expect their roles will change significantly in 2026 due to new technologies and even more (81%) are confident they’ll keep up with future advances. 0 63% of employees would work with an AI agent, and nearly half (48%) would be comfortable being managed by one. 0 61% of employees say AI makes their job less mundane and more strategic. TREND NO. 5 Quantum advantage will demand strength in numbers. The timeline to act is shorter than it seems; preparing today is essential for organisations to take advantage of how quantum computing is poised to transform entire industries. 0 Quantum-ready organisations (QROs) are three times as likely to belong to multiple ecosystems as other organisations. 0 79% of executives say ecosystem partners accelerate technology adoption, and 77% say data from these partners improves business outcomes. 0 89% of executives say that eco system partners will help limit the impact of disruption. Service quality has also emerged as a decisive factor shaping trust, loyalty, and spending behaviour. The study found that nearly half of Malaysian shoppers stop buying from the same seller after facing a delivery issue, while poor fulfilment and slow response times contribute to cart abandonment and platform switching. “At this stage of market maturity, service quality is no longer a nice-to have. It is a key driver of growth. “Consistent service builds confi dence and repeat behaviour, while poor experiences quickly erode trust,” said Juda. Importantly, the consumer survey also showed that buyers respond positively to better service. A majority indicated they would shop again or spend more with sellers who provide timely updates and responsive support, while 82% said they are willing to pay more for consistently AI as a business transformation

their edge if they can’t operate in real time. TREND NO. 2 AI sovereignty is an organisation’s ability to control and govern its AI systems, data, and infrastructure at all times. Alongside global large language models, indigenous models and sovereign infrastructure are rising to meet needs around data sovereignty, multilingual proficiency, cultural nuance and national security. This signals a structural shift in the global AI landscape. 0 93% of executives say AI sovereignty must be part of their 2026 business strategy. 0 The sovereign cloud market in Asia-Pacific is projected to grow from US$37 billion in 2023 to US$169 billion by 2028. 0 Spending in regulated industries like banking alone will rise from US$14 billion in 2023 to US$66 billion (RM268 billion) in 2028, a near fivefold increase. TREND NO. 3 Customer trust is the ultimate currency, and transparency provides room for innovation. Organisations should incorporate transparency into AI-enabled pro duct design from the start and clearly demonstrate the value customers receive in exchange for sharing their data. 0 56% of consumers say they’re so excited about cutting-edge, AI enabled services that they’d accept flaws. 0 89% of consumers say they want to know when they’re interacting with AI.

The region is shaping an AI ecosystem that is both innovative and trusted.

driver for industries The recent IBM report, APAC AI Outlook 2026: Transferable Value across Industries , highlights a funda mental shift in how APAC enterprises are now deploying AI. Beyond cost reduction, organisations are lever aging AI to drive growth, business model reinvention, and new revenue streams. Banking AI is reshaping banking business models and enabling new revenue streams. For example, AI-enabled embedded finance and trust-as-a service, powered by predictive risk and compliance, are opening new pathways for growth. Hyper personalised conversational banking is emerging through AI-powered super apps, while agentic mesh architectures help institutions tackle technical debt and improve agility. Manufacturing AI enables predictive autonomous operations, real-time optimisation, and mass personalisation through digital twins. Sustainable, AI-driven supply ecosystems allow manu

According to the Department of Statistics Malaysia, e-commerce revenue rose 1.9% to RM937.5 billion in the first nine months of 2025, reflecting continued expansion. However, Juda cautioned that resilience alone will not be sufficient as regional peers also accelerate investments in infra-structure, innovation, and execution capabilities. Drawing on regional benchmarks and real-time consumer insights, Milieu Insight helps industry players understand shifting buyer needs and identify which improvements in ser vice and logistics will drive measur able outcomes. Juda said Malaysia’s competi tiveness in the next phase will hinge on how effectively platforms, logistics providers, and policymakers align investment and execution across the ecosystem. – Bernama facturers to optimise resources, track emissions, and align suppliers to environmental goals. Telecommunications Operators are adopting an agentic AI operating layer that supports self managing networks and accelerates product innovation. AI-driven data monetisation ecosystems are emerging as new revenue engines, while AI native 5G unlocks new revenue from IoT, immersive experiences, and autonomous systems. Energy and utilities AI is powering the energy transition by enhancing grid stability, integrating renewables, boosting asset efficiency, and reducing emissions across sectors. Advancements in Green AI are reducing energy consumption and emissions across the entire value chain. Public sector Democratising AI expands access to affordable, responsive public services – from finance and agriculture to health care and education, while strengthened governance frameworks reinforce accountability, safety, and public trust.

M’sian e-commerce resilient, future growth to focus on service quality KUALA LUMPUR: Malaysia’s e-com merce sector remains resilient despite shifting consumer behaviour and global economic uncertainty, with the next phase of growth expected to focus more on execution than expansion, particularly in providing consistent, affordable and reliable services. delivery fees, and more than half reported that rising shipping charges have led them to cut back on online spending. better delivery services. Sellers, particularly micro, small, and medium enterprises (MSMEs), echo these concerns. While demand remains relatively stable, rising logistics costs and inconsistent fulfilment performance are increasingly cited as barriers to sustainable growth. fees, provided the return on invest ment is clear. Sellers also explicitly affirmed the value of buyer-centric policies, linking them to larger basket sizes, repeat purchases, and stronger ratings.

Another Milieu Insight’s study, titled “Malaysian e-commerce sellers want more: Smarter tools, stronger policies, faster growth,” found that 51% of sellers identify shipping costs as a key challenge, while logistics failures directly contribute to lost sales, negative reviews, and declining buyer loyalty. “Importantly, sellers are not resistant to investment. They are willing to co-invest in platforms, tools, and ecosystem improvements, but only when better logistics and service quality clearly translate into real commercial outcomes,” she said. The seller survey also revealed that two-thirds of Malaysian sellers agree they should contribute to long-term ecosystem growth, including platform

Milieu Insight co-founder and chief commercial officer Juda Kanaprach said Malaysia’s high e-commerce adoption has entered a more mature phase, where buyer and seller expect ations are increasingly converging. The market is no longer driven solely by novelty or price, but by reliability and value. “Consumers continue to rely on online platforms for essential and value driven purchases, while sellers are becoming more measured, prioritising sustainability over rapid growth. “What is striking is that both sides are asking for the same things -- lower costs, reliable logistics, and consistent service quality,” she told Bernama. From the consumer’s perspective,

logistics costs and reliability have become central to purchasing be haviour. Milieu Insight’s consumer study, “Beyond the hype: Malaysians want speed and smarter shopping in 2025,” found that while discounts remain the top motivator for online purchases, free or low-cost shipping ranks second, cited by 66% of respondents. At the same time, 67% want lower Juda says Malaysia’s high e-commerce adoption has entered a more mature phase.