Budget 2027: Daythree sees boost for Malaysia’s regional digital services and AI ambitions
- ID
- 33975
- Status
- summarized
- Published
- 10 Oct 2026, 2:21 PM
- Fetched
- 10 Oct 2026, 2:44 PM
- Provider
- Digital News Asia
- Category
- malaysia-tech
- Original URL
- https://www.digitalnewsasia.com/business/budget-2027-daythree-sees-boost-malaysias-regional-digital-services-and-ai-ambitions
- Source URL
- https://www.digitalnewsasia.com/rss.xml
Summary
- Score
- 6.0
- Created
- 10 Oct 2026, 2:44 PM
- Tags
- Audience
- saas_startup_foundersdevelopers
What happened
Daythree Digital Bhd (founder and group MD Raymond Davadass) welcomed Budget 2027 measures that enhance Global Services Hub incentives from 2027 and introduce the MyABE initiative to help Malaysian companies expand into ASEAN, alongside a RM6 billion allocation for R&D and commercialisation and a goal of 200,000 skilled AI workers. The same filing context shows pressure: FY2025 revenue rose 2.1% to US$21.98m (RM89.83m) but swung to a RM466,000 net loss from a RM3.01m profit, and H1 2026 revenue fell to RM38.21m from RM42.62m with the net loss widening to RM3.12m from RM2.82m. Daythree says it serves clients across 12 Asia-Pacific markets in more than 20 languages and is integrating analytics, generative AI and agentic AI into its operations.
Why it matters
If you run a Malaysian delivery, BPO or services team selling into the region, the 2027 Global Services Hub incentive changes and MyABE are the two levers to check before you pick an entity structure or expansion market - but this article names the programmes without stating the incentive rates or eligibility, so treat it as a pointer to read the actual Budget 2027 documents, not as a plan. The financials are the caution: Daythree added generative and agentic AI while revenue fell to RM38.21m and losses widened to RM3.12m in H1 2026, which matches Davadass's own point that AI layered onto a weak operating model creates friction rather than margin.
Discussion angle
The GSH incentives and MyABE are meant to push Malaysian firms up the value chain, but Daythree's numbers show revenue down and losses widening while it invests in agentic AI - so what specifically would you change in your own delivery model in 2027: hire for governance and process ownership as Davadass argues, or cut scope on AI projects that don't touch the operating model?