Cautious optimism over Malaysia's ambition to become AI-driven nation

The Sun

10 hours ago

PETALING JAYA: Malaysia's bold plan to become an AI-driven nation by 2030 unveiled under the 13th Malaysia Plan (13MP) has drawn cautious optimism from both industry and academia, who agree the roadmap is ambitious but achievable if executed effectively.
Prime Minister Datuk Seri Anwar Ibrahim's 13MP positions AI (artificial intelligence) as a key driver of Malaysia's transition to a high-value digital economy, anchored by initiatives such as the National AI Action Plan, MyDigital ID and major foreign investments in AI and cloud infrastructure.
Cybersecurity firm LGMS Bhd's chairman, Fong Choong Fook, said the initiatives signal a turning point for Malaysia's digital ecosystem.
'Malaysia's tech ecosystem stands to gain the most from three key areas in the 13MP,' he said, citing the acceleration of the National AI Action Plan, the full digitalisation of public services by 2030, and major foreign investments as game-changers.
'First, the acceleration of the National AI Action Plan and full digitalisation of public services will unlock huge demand for AI, cybersecurity and GovTech solutions,' Fong explained.
'Second, the MyDigital ID and unified GovTech gateway are critical where they lay the digital infrastructure needed for secure transactions, identity management and seamless service delivery.'
Fong noted that large-scale foreign commitments are already reshaping Malaysia's digital landscape.
'Major investments like Microsoft's RM10 billion AI and cloud initiative and ByteDance's RM10 billion data centre and AI hub in Johor signal strong global confidence and will directly fuel job creation and knowledge transfer,' he said.
Despite these positive developments, Fong cautioned that several structural challenges must be addressed to fully realise RMK13's ambitions.
'Talent remains the biggest bottleneck. We're seeing a lot of reskilling efforts, but these must be laser-focused on industry-relevant AI and digital capabilities,' he said.
He also highlighted weaknesses in Malaysia's early-stage funding ecosystem. 'We still lack a robust pipeline for seed-to-Series A capital, especially for deep tech and AI-driven start-ups.'
On regulation, Fong called for clearer governance frameworks to support innovation responsibly.
'AI ethics, safety and data use policies are still evolving. Clearer rules are essential to enable responsible innovation at scale,' he said, while commending Digital Minister Gobind Singh Deo for laying strong groundwork through the National AI Framework and the establishment of the National AI Office.
Universiti Malaysia Kelantan Institute for Artificial Intelligence and Big Data director Dr Muhammad Akmal Remli echoed the view that 13MP's AI push is a milestone moment, but stressed that implementation will determine success.
'The initiatives outlined in 13MP reflect a comprehensive and holistic approach. It's encouraging to see AI positioned as a top national priority,' he said.
'This clear direction signals strong political will to integrate AI into key sectors and public services.'
Akmal welcomed the plan's focus on strengthening research, development, commercialisation and innovation, saying it could create a foundation for deeper collaboration between academia, government and industry.
'This is crucial to help Malaysia move beyond just AI adoption into actual AI innovation and even exports,' he said.
Both experts agreed that Malaysia's aspiration to lead Asean in AI by 2030 is ambitious but achievable, provided key gaps are addressed.
'The real challenge lies in implementation,' Akmal said. 'It's not just about policy documents but ensuring we have the right people, the right expertise and the right strategies on the ground.'
He emphasised that Malaysia must first strengthen its talent pipeline by producing more skilled AI practitioners and embedding AI literacy into tertiary and vocational education.
Equally important, he said, is boosting funding and incentives for applied AI research to encourage deeper collaboration between industry and academia.
Akmal also highlighted the need for clear, forward-looking policies on data privacy, ethics and cybersecurity to foster public trust and attract investment.
'Without robust data governance, innovation will be limited, and public confidence will suffer,' he noted.
In addition, he pointed out that Malaysia needs stronger cloud and high-performance computing infrastructure, as well as greater access to open datasets, to enable meaningful AI innovation.
Rather than focusing solely on competing head-to-head with regional players, Akmal said, Malaysia should position itself as a competitive AI hub that fosters collaboration and healthy competition within Asean.
Fong said Malaysia's strengths, from cloud infrastructure and 5G rollout to its multilingual workforce, provide a solid platform to build upon.
'With the right focus, especially as Asean Chair 2025, we can position ourselves as a regional AI and digital hub, not by outspending others, but by being the most agile, inclusive and implementation-focused,' he said.
Both agreed that continued investment, regulatory clarity and coordinated execution will be critical for Malaysia to transform AI ambition into sustainable economic growth and regional leadership.