Malaysia needs digital innovation to become high-income nation, says PM


KUALA LUMPUR: Malaysia’s aim of becoming a high-income nation will only happen if the country is driven by digital innovation, says Datuk Seri Anwar Ibrahim (pic).

“This is why we are among the few countries in the world to establish a dedicated ministry for digital communications," he said when officiating the National AI Office (NAIO) at the Malaysia International Trade and Exhibition Centre (Mitec) here on Thursday (Dec 12).

Also present were Digital Minister Gobind Singh Deo, Transport Minister Anthony Loke and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Anwar said the shift towards a digital framework reflects a bold vision for the future.

ALSO READ: Economic outlook: Budget 2025 to lay foundation for a digital-driven economy

“This framework, tied to our national policies, is aimed at achieving something extraordinary, something unimaginable or unplanned 20 to 30 years ago.

“Back then, when I led the Finance Ministry, this was merely a beginning, but today it has become an essential pursuit,” he said.

The Prime Minister highlighted the importance of digital literacy, describing it as critical for progress.

“We must start with enhancing digital literacy.

“In the past, literacy was about basic education, but now digital literacy is essential from primary schools to universities, and even among managers.

“This requires us to go beyond bureaucratic constraints,” he said.

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The establishment of NAIO, he added, represents a significant step towards advancing Malaysia’s capabilities in artificial intelligence (AI).

“This initiative will not only drive innovation but also ensure inclusivity and uphold ethical values.

“We have seen participation from major companies, particularly from the United States and Europe, as well as China through Huawei.

“This reflects our position as an independent nation committed to fostering trade relations with all countries,” Anwar said.

Anwar also highlighted the digital economy’s immense potential, saying that Asean is projected to benefit significantly.

ALSO READ: Asean digital economy framework set to be a gamechanger

“According to the McKinsey Global Institute, the global digital economy could reach US$13 trillion by 2030.

“For Malaysia, the digital sector could contribute up to 23% of GDP. With our current momentum, this may increase to 25.5% within a year,” he added.

Reflecting on Malaysia’s economic evolution, Anwar said: “We have transitioned from rubber and tin to palm oil and manufacturing, and now to the digital economy.

“This underscores the importance of the Digital Ministry, led passionately by Gobind Singh Deo and his team.”

He also stressed the need for passion and accountability among leaders to ensure the success of the country's digital agenda.

“Our ministers and leaders must work with a deep understanding of what Malaysia Madani stands for – its emphasis on sustainability, integrity and equitable wealth distribution.

“These principles must bridge the gap between urban and rural populations (to reach into) the deep rural heartland,” he said.

Anwar also linked the digital transformation to Malaysia’s broader Madani vision, stressing that the shift is not solely about material progress.

“This digital paradigm shift is also about embedding values like sustainability and equity, as outlined in the Malaysia Digital Economy Blueprint,” he said, adding that the government was committed to fostering a robust and inclusive digital future.

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