PETALING JAYA: Artificial intelligence (AI) is set to become the next major driver of Malaysia’s digital economy as the country shifts its focus from building infrastructure to creating higher-value technology ecosystems.
The next phase of growth is expected to depend increasingly on the ability to commercialise AI through local innovation, enterprise adoption and sustainable supporting infrastructure.
According to MBSB Research, the National AI Action Plan 2026-2030 (AI Nation 2030) would provide the crucial link between Malaysia’s ongoing data centre investment boom and the next stage of domestic AI-led value creation.
“We view that the plan is intended to connect Malaysia’s existing strengths in semiconductors, data centres, connectivity, energy infrastructure and public digital platforms with the missing layers of the AI value chain, namely, usable data, affordable computing capacity, skilled talent, local models, sector applications and trusted governance,” it said.
Drawing on Nvidia chief executive Jensen Huang’s concept of a five-layer AI stack, MBSB Research said the policy extends beyond physical infrastructure to strengthen higher-value segments, including computing accessibility, sovereign and localised models, governed datasets and commercially scalable applications.
The brokerage noted that AI Nation 2030 is designed to deepen domestic participation further up the AI value chain by expanding access to computing resources, developing governed national datasets and supporting local AI models and applications.
It said this transition is important as long-term economic value should gradually move away from supplying land, electricity and buildings towards generating recurring income from computing services, cloud offerings, proprietary AI models and enterprise software.
Among the beneficiaries are the utilities, construction and property sectors.
“Utilities represent both the principal enablers and the binding constraints on further expansion,” MBSB Research said.
It identified Tenaga Nasional Bhd
as the primary beneficiary of rising electricity demand, grid upgrades and new data centre connections, while YTL Power International Bhd is seen as offering the closest exposure to the entire AI ecosystem through its expanding Green Data Centre Park, renewable energy assets, sovereign large language model initiatives and partnership with Nvidia.
It also expects growing AI electricity demand to lift renewable energy investments, supporting engineering, procurement, construction and commissioning players such as Pekat Group Bhd and Samaiden Group Bhd, particularly as AI Nation 2030 links data centre incentives with renewable energy adoption and power-efficiency targets.
Within construction, MBSB Research continues to favour Sunway Construction Group Bhd and IJM Corp Bhd as immediate beneficiaries from new data centre contracts.
However, it believes Gamuda Bhd deserves broader recognition as it expands beyond construction through investments in renewable energy, battery energy storage systems, its sovereign Wira large language model and cloud computing services.
For the property and real estate investment trust (REIT) sectors, the brokerage adopts a more selective stance. It expects developers with sizeable industrial landbanks and access to power infrastructure, including IOI Properties Group Bhd, S P Setia Bhd and EcoWorld Development Group Bhd, to benefit from rising industrial land values.
Among REITs, it identifies Axis-REIT as the strongest positioned industrial-focused vehicle, while diversified trusts with industrial assets could also participate as future data centre owners.
For context, the government recently launched AI Nation 2030 alongside the institutionalisation of the National AI Office as AI Malaysia Bhd.
The five-year blueprint aims to integrate AI across the economy and public administration, with targets of placing Malaysia among the world’s top 10 countries in the Global AI Index by 2030, generating an additional 1.2 percentage points of gross domestic product growth from AI and creating 300,000 AI-related jobs.
It marks a shift from the readiness-focused National AI Roadmap 2021-2025 towards execution, commercialisation and the development of globally competitive Malaysian AI products and services.
Meanwhile, one analyst said while AI policy alone does not create economic value, the new framework helps encourage businesses to invest, innovate and scale.
“The real test for Malaysia will be how effectively it translates ambitious national goals into commercial opportunities that strengthen competitiveness, attract higher-quality investments and foster a sustainable digital economy,” the analyst with a local fund management company told StarBiz.
