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Malaysia’s Vision: Leading ASEAN into a Digital Future with AI

October 02,2024

By:Alita Sharon

Prime Minister Datuk Seri Anwar Ibrahim has announced Malaysia’s commitment to building partnerships with industry leaders and enhancing collaboration among stakeholders to position the country as a leading AI-driven nation in ASEAN. The announcement comes as Malaysia gears up to take on the ASEAN chairmanship next year, with digitalisation set as a key priority for the region.

Speaking at the groundbreaking ceremony for a tech giant’s US$ 2 billion data centre and cloud region in Malaysia, Prime MinisterAnwar emphasised the importance of digitalisation across ASEAN. The issue of digitalisation and networks is not only for Malaysia but for the entire region, he said. Prime Minister Anwar added that Malaysia would work closely with global tech companies to explore how the digitalisation process can be accelerated.

As Malaysia prepares to lead ASEAN, Anwar highlighted that the country will champion forward-looking and transformative digital policies. This initiative aims to create a regulatory environment that promotes technological progress and fosters cross-border collaboration.

Prime Minister Anwar expressed his optimism about the tech giant’s investment in Malaysia, noting the company’s alignment with the nation’s values of sustainable growth, “I cannot overstress this: we are not just looking to attract any data centre investment; we want partners who share our values towards a sustainable future.”

Malaysia’s focus on digitalisation and sustainable growth is expected to play a pivotal role in its leadership of ASEAN, as it seeks to drive technological innovation and collaboration across the region.

Malaysia is on the brink of a digital revolution, with AI and automation poised to reshape vital sectors such as finance, healthcare, and governance, thereby enhancing its global competitiveness. At a recent OpenGov event, senior executives underscored the nation’s strategy for integrating these technologies, emphasising the importance of public-private partnerships and workforce training to effectively tackle concerns around comprehensive AI deployment.

“A multifaceted approach is crucial to overcoming challenges and positioning Malaysia as a leader in AI,” Mohit Sagar, CEO and Editor-in-Chief of OpenGov Asia asserts. “It’s essential to establish a clear national vision for AI that integrates with broader economic and social development goals.”

The Malaysian government has demonstrated robust support through initiatives like the National AI Framework, which seeks to promote collaboration and sustainable development. To fully leverage the potential of AI and automation, Malaysian organisations must concentrate on optimising processes, improving decision-making, and offering personalised customer experiences.

Upskilling the workforce and addressing ethical considerations are essential for ensuring the responsible and inclusive deployment of AI technologies. Despite facing challenges like a shortage of skilled workers and the slow adoption of AI, Malaysia’s strategic focus on research investment and digital infrastructure aims to establish the country as a regional leader in AI-driven innovation by 2025.

As Malaysia prepares to chair ASEAN in 2025, the nation is eager to promote collaboration with global partners and advance the Digital Economy Framework Agreement (DEFA) to strengthen regional digital economies.

The Ministry of Trade, Investment, and Industry (MITI) aims to position Malaysia as a leading hub for manufacturing and services through digitalisation. Its New Industrial Masterplan 2030 (NIMP 2030) targets the establishment of 3,000 smart factories by 2030.

In the first half of 2024, approved investments in Malaysia reached RM160 billion (approximately US$34 billion), with technology and digital services contributing RM97.2 billion (approximately US$21 billion).

By prioritising digital transformation and cutting-edge technologies, including AI, Malaysia aims to achieve its national and regional ambitions while fostering a sustainable and inclusive economic environment.

To maintain its competitive edge in Southeast Asia, Malaysia must accelerate AI adoption, enhance digital infrastructure, and invest in AI research. This strategy will enable the country to thrive in the evolving global landscape and contribute significantly to ASEAN’s shared prosperity.