PETALING JAYA: Malaysia is stepping up efforts to build a robust artificial intelligence (AI) ecosystem, with Budget 2026 set to feature new allocations and initiatives aimed at turning the country into an “AI nation”.
Digital Minister Gobind Singh Deo said the government is focused on creating the right regulatory framework, strengthening GovTech initiatives and expanding public-private partnerships to accelerate AI adoption.
He added that the government's commitment in AI will be further reflected in the upcoming Budget scheduled to be tabled on Oct 10.
"The allocations and initiatives will be focused on turning Malaysia into an AI nation and advancing GovTech initiatives,” he said in his keynote address at the Asean Artificial Intelligence Business Summit 2025 on Friday (Sept 12).
Gobind said Malaysia’s ambitions were reinforced by Southeast Asia’s rapid digital expansion, with the region expected to add over US$1 trillion to its combined GDP by 2030.
The Asean Guide on AI Governance and Ethics, he added, was already providing a common foundation built on fairness, transparency and accountability.
At the same time, he said the country must close the AI divide by investing in digital talent. This includes expanding the AI untuk Rakyat online programme, upskilling professionals across sectors, and preparing the workforce for disruption.
Turning to data centres, he noted that Malaysia’s AI ambitions must be underpinned by sustainable infrastructure, with sufficient energy and water resources to support long-term growth.
“It’s better that we acknowledge now the need to build the ecosystem, take the necessary steps, and ensure that we are ready for the future. Otherwise, we risk being left behind,” he said.
Gobind urged industry players not to “wait and see” but to actively engage with technology, pointing to platforms such as expos where businesses can see first-hand how AI can transform their sectors.
