HUMANITY’S greatest inventions have always transformed how we live and work.
The wheel, for instance, revolutionised transport by enabling us to carry heavier loads farther with less effort, fueling trade and economic growth worldwide.
Today, artificial intelligence (AI) is emerging as the next pivotal breakthrough, reshaping daily life, global commerce and industries—opening the door to a new wave of innovation.
According to the World Trade Organization (WTO), AI is a general-purpose technology, like electricity or the Internet, with the potential to transform economies.
It is already reshaping the production, exchange and consumption of goods and services. The WTO’s World Trade Report 2025, released earlier this month, highlights AI’s potential to lower trade costs and expand global markets, especially for small and medium-sized enterprises (SMEs).
“AI tools are already enhancing trade efficiency by improving visibility within supply chains, automating customs clearance, reducing language barriers, strengthening market intelligence, improving contract enforcement and helping firms, including micro, small and medium-sized enterprises (MSMEs), to navigate complex regulations,” the report notes.
Based on a global survey conducted with the International Chamber of Commerce (ICC), nearly 90% of firms using AI report tangible trade benefits, with 56% saying it has improved their ability to manage trade risks.
Looking ahead, WTO simulations suggest AI could increase global trade by 34% to 37% by 2040, depending on adoption and regulations, alongside gains in global GDP.
Malaysia steps up for all
As countries race to harness AI, Malaysia aims to lead the region. Prime Minister Datuk Seri Anwar Ibrahim recently launched the AI National Framework, built on five pillars to ensure AI benefits all, from urban to rural communities:
- Forward-looking policies
- A digitally fluent and agile workforce
- Secure and reliable digital infrastructure
- Advancement of digital trust
- Strategic investments through public–private partnerships and global collaboration.
Calling it “more than a roadmap, a movement,” Anwar emphasised that AI must empower people, not leave them behind. Under the 13th Malaysia Plan, Malaysia commits to using AI for sustainable, inclusive growth.
With Asean’s 700 million people and a fast-growing digital economy, the region has a unique opportunity to shape AI’s technological and ethical future.
Anwar urged bold, collaborative action, highlighting AI’s potential to bridge divides,
support small businesses, and improve access to healthcare, education and justice.
Malaysia aims not just to “catch up” with global AI leaders but to lead in ways reflecting Asean’s values of equity, inclusivity and justice.
Already, Malaysia has made “bold and confident” moves, establishing a dedicated Digital Ministry and the National AI Office (NAIO) to advance AI for all.
Building on this, Digital Minister Gobind Singh Deo confirmed the National AI Roadmap 2026–2030 is nearly ready for launch in 2025. The roadmap will focus on AI education, governance and key sectors like health, transport and education—coordinated across ministries.
Gobind also announced plans for an AI Technology Action Plan featuring ethical guidelines, cross-sector collaboration, and preparation for responsible, widespread AI adoption.
Delivering strategic efforts and innovations
Alongside national efforts, the Science, Technology and Innovation Ministry (MOSTI) drives Malaysia’s AI goals by promoting adoption through research, innovation, and skill development.
Its secretary-general Datuk Seri Hasnol Zam Zam Ahmad says: “Malaysia recognises that AI is a powerful enabler of growth but must be deployed responsibly. Our AI Governance and Ethics (AIGE) guideline promotes clear ethical principles to safeguard individual rights, especially around personal data, and address societal impacts.
“Since its launch, MOSTI has actively engaged stakeholders through workshops, dialogues and industry collaborations. The positive response shows businesses value these guardrails, which balance innovation with regulatory needs.”
To put these principles into practice, Malaysian Research Accelerator for Technology and Innovation’s (MRANTI) AI Sandbox provides innovators a safe space to test solutions against ethical and governance standards, ensuring responsible AI is embedded in the technology and not just policy.
MOSTI also drives AI adoption with these initiatives:
- National AI Roadmap (2021–2025): outlining strategies to integrate AI in priority sectors
- Targeted research and development funding under the Malaysia Grand Challenge, supporting AI projects linked to the MySTIE framework
- AI Sandbox Environments: real-world testing with fewer regulatory hurdles in healthcare, education, agriculture and smart cities
- Cross-ministerial collaboration: embedding AI in government services, policies and analytics
- Capacity Building: upskilling programmes for public servants and industry professionals.
Since launching the National Technology and Innovation Sandbox (NTIS), MRANTI has supported over 200 innovators with funding, facilities and regulatory guidance.
At MRANTI Park, startups test AI-driven traffic optimisation on a 12-km autonomous vehicle test route, while agri-tech companies trial drones for precision farming, proving impact without taking big deployment risks.
MRANTI also connects these sandboxes with scaling programmes like the Global Accelerator Programme (GAP) and VentureX, helping AI
innovations reach the market quickly—especially important for MSMEs, which make up 97% of Malaysia’s businesses.
Meanwhile, MIMOS leads AI adoption in government and industry with projects like:
- AI-based machine vision for quality control (Mi-VisionAOI)
- AI video analytics for environmental monitoring (Mi-AIEIO)
- AI-driven automation for sustainable palm oil plantations (AIPOPA)
- Generative AI to improve industrial datasets (Mi-IndusData+)
- Affordable AI model fine-tuning for SMEs and agencies (Mi-AAIIMS)
Collectively, these initiatives build a secure, scalable foundation for Malaysia’s AI-powered digital economy, one that values ethics and real-world benefits.
Clearing the air
Despite all this progress, public trust and understanding of AI still need work. People often worry about job losses or misunderstand AI as something automatic and independent.
As Hasnol points out, “AI systems are built, trained, and managed by people. They rely on curated data, clear objectives, and continuous human oversight. This is why we advocate for a “human-in-the-loop” approach, where “human judgement remains central.”
Another common myth is that AI fits all industries equally. “In fact, effective AI must be tailored to specific industries and aligned with national priorities. MOSTI supports fit-for-purpose solutions that address real-world challenges in Malaysia.”
Bias and trustworthiness also come up a lot. But with proper safeguards, these risks can be managed.
“Our AIGE Guideline and sandbox testing frameworks help ensure fairness and transparency. For example, ESG-focused pilots allow regulators and users to see exactly how decisions are made,” Hasnol explains.
Some think AI is only for big companies or rich countries. But MOSTI’s sandboxes and support programmes give startups and SMEs—even those in rural areas—access to testing, funding and guidance.
AI must be inclusive and accessible.The idea that AI replaces human creativity? Not true.
“While machines can analyse data at scale, only people can set objectives, interpret results and make ethical decisions.
“Creativity, judgement and cultural context still matter and always will.”
Environmental concerns are valid, but AI can actually reduce carbon footprints. “In our NTIS pilots, for example, AI-driven route optimisation has lowered fuel use, while smart drones have cut fertiliser use by up to 30%.”
Hasnol says: “AI is here to empower people, not replace them. The future belongs to those who know how to work effectively with AI.”
Humans with AI will outperform those without it because AI, on its own, cannot function without human input.
“We also acknowledge the strategic risks of over-relying on foreign-developed AI. Without local development, we face vulnerabilities in data sovereignty and national security.
“That’s why we are investing in building trusted, homegrown AI ecosystems aligned with Malaysian values and interests,” Hasnol notes.
He stresses that AI adoption needs more than just technology.
“Governance, ethics and transparency are critical. We are committed to ensuring that AI systems in Malaysia are explainable, culturally aligned, and deployed responsibly—so public trust can grow alongside innovation.”
Powering real-world
ESG gains
Hasnol shares that sectors where efficiency improvements directly reduce costs and emissions are leading the way in adopting AI.
These include manufacturing, logistics, agriculture and infrastructure, where ESG benefits are both measurable and tied closely to business competitiveness.
According to MOSTI’s data, in manufacturing, predictive maintenance powered by AI has cut downtime by up to 20%. This has helped reduce energy consumption and material waste in local pilot factories.
In logistics, trials under the National Technology and Innovation Sandbox (NTIS) have shown that AI-driven route optimisation can significantly reduce fuel use, directly lowering emissions and operating costs.
Agriculture is also seeing rapid transformation. Through MRANTI’s drone sandbox, AI-powered precision farming has helped farmers reduce water and fertiliser use by 20% to 30%, while increasing crop yields.
“These improvements have been especially beneficial for small-scale farmers looking to balance productivity with sustainability,” Hasnol point out.
At MRANTI Park, the Intelligent Operations Centre (IOC) is using IoT and AI to monitor energy use, mobility and environmental data across its facilities.
Early trials have revealed potential energy savings of 5% to 8%, simply by optimising building operations.
Similarly, its autonomous vehicle test route has been used to model how AI traffic optimisation could reduce emissions at scale in urban settings.
One of the standout pilots by MIMOS Bhd is the Mi-ACE Smart Chiller System. This AI-enabled system uses real-time temperature and humidity data to predict building heat loads and fine-tune chiller operations accordingly.
It resulted in 10% to 20% energy savings and a substantial cut in carbon emissions.
“These pilots prove that AI is not just a future-facing promise, but it is already delivering quantifiable ESG results on the ground, helping Malaysian businesses cut costs while accelerating their sustainability goals,” Hasnol concludes.
