Malaysia who aspires to become an inclusive and sustainable artificial intelligence (AI) nation by 2030, will continue to strengthen the domestic innovation ecosystem, expand data and digital infrastructure, enhance education and training systems, advance AI-ready civil service and GovTech platforms, tap the National AI Office (NAIO) to steer the national AI agenda.
The country’s government said in its economic outlook report last Friday that despite the Government’s efforts, companies’ ability and readiness to fully leverage AI is still limited as reflected in the Cisco AI Readiness Index 2024 report.
“This underscores the modest adoption of AI capabilities across the enterprise level as infrastructure readiness remains a major barrier,
“In addition, talent development, data management and governance need to be further emphasized to accelerate Malaysia’s AI adoption,” it said.
The government noted that Malaysia’s current state of AI readiness reveals notable progress, while simultaneously highlighting the need for greater maturity and broader impact.
Evaluations from leading global indices in 2024 provide a balanced perspective on the nation’s standing, it added.
It is noted that the Stanford University recognized the government’s effort in charting the AI development in Malaysia as reflected in the Stanford AI Index1 2024.
Similarly, the Oxford Government AI Readiness Index highlights strong foundations in vision, governance, ethics and digital capacity.
“Both indices highlighted that Malaysia performed relatively well in building solid policy and institutional foundations, with initiatives reinforced by the establishment of the NAIO,” said the government.
Although Malaysia’s progress highlights institutional readiness and demonstrates strong policy and governance foundations, the government opined that there are needs to strengthen ecosystem maturity through greater research, innovation and industry adoption.
“A moderate achievement in infrastructure is due to persistent gaps in internet connectivity such as limited rural network access and integrated data systems lag,
“In addition, low AI adoption and limited talent development remain as challenges for Malaysia,” it said.
According to the report, efforts to bridge the AI divide are imperative in building a comprehensive ecosystem as Malaysia reaches the final year of the AI-Roadmap.
Despite strong policy direction, it noted AI adoption particularly among SMEs remains uneven especially in the absence of SME-friendly AI platforms.
Key barriers of AI adoption include limited expertise and knowledge of practical applications, uncertainty in investment returns and lack of customized AI-related financing.
Reskilling and upskilling programs also remain fragmented and insufficient to meet growing demand for AI competencies.
In addition, digital infrastructure gaps, particularly in remote and rural areas, results in uneven access to reliable high-speed connectivity, further restricting the effective use of cloud-based services and real-time applications.
“These gaps, coupled with insufficient AI-ready datasets, hinders the potential benefits of AI,” the government highlighted.
Aligned with the policy to become a regional digital technology hub, the government sees the need to strengthen innovation ecosystems, modernize infrastructure, future-proof the workforce and enhance governance.
According to the report, the domestic innovation ecosystem will be strengthened by providing facilities and targeted assistance to foster closer collaboration among researchers, universities and government research institutes.
Emphasis will also be given to support the protection of intellectual property and drive homegrown innovations. Furthermore, a more prominent role by the private sector in providing incubation hubs and sandboxes is critical in bringing AI solutions to market.
The government is also expanding AI-ready datasets and developing national supercomputer facilities will accelerate AI capabilities.
Moreover, nationwide rollout of 5G will ensure improved connectivity as well as expanding rural broadband and community access points.
These efforts will enable industry-specific applications while safeguarding national digital sovereignty.
The government is also embedding AI literacy across the education system is needed in preparing students for real-world applications.
Meanwhile, the government has introduced upskilling and reskilling programs, particularly in AI-related field to further equip workers with AI knowledge and technical expertise.
The government will continue to improve the public service delivery system by leveraging AI towards enabling data-driven and more responsive decision-making.
In this regard, the government will expand the adoption of GovTech through a whole-of-government approach to transform the public sector, while streamlining operations and enhancing data sharing across ministries and agencies.
The report also highlighted that NAIO is mandated to accelerate adoption, foster innovation and ensure faster development of AI towards enhancing Malaysia competitiveness and sustainable growth.
This can be achieved through seven deliverables4, including formulation of the National AI Action Plan 2030 to ensure the adoption of AI across all sectors.
Additionally, a dedicated AI framework will be introduced to enhance transparency, promote ethical practices and accelerate deployment of AI technology.
For the government, AI is expected to rapidly reshape technological and innovation landscapes, while emerging as a critical enabler of progress and inclusive growth.
The adoption of AI is anticipated to enhance competitiveness across socioeconomic activities by enabling businesses to operate more efficiently, creating new opportunities for employment and contributing to higher living standards.
It also noted the integration of AI has the potential to contribute approximately $115 billion in value added to the national economy.
Thus, realizing this potential requires not only accelerating adoption but also ensuring benefits are shared inclusively to prevent the incidence of an AI divide across society.
According to the report, the government has indeed set a clear aspiration to become an inclusive and sustainable AI nation by 2030, as outlined in the Thirteenth Malaysia Plan, 2026 – 2030 (Thirteenth Plan).
This is underpinned by national strategies and frameworks, including the Malaysia Digital Economy Blueprint, 2021 – 2030; the National Artificial Intelligence Roadmap, 2021 – 2025 (AI-Rmap); the National Guidelines on AI Governance & Ethics (AIGE) and the Public Sector Artificial Intelligence (AI) Adaptation Guidelines.
“Advances in AI are rapidly transforming the dynamic of economies worldwide. Capitalizing on advanced digital technologies, Malaysia seeks to harness economic opportunities that strengthen national resilience and promote inclusive growth,
“This reflects the aspiration to become an AI nation by 2030 through building a digitally empowered, future-ready economy that benefits all Malaysians,” it concluded.