KUALA LUMPUR: A regulatory Bill to govern artificial intelligence (AI) is being drafted by the Digital Ministry as the government moves to address emerging risks posed by the fast-evolving technology, says Datuk Seri Fahmi Fadzil.
The Communications Minister said AI was advancing faster than existing laws, creating challenges such as scams, online harm and the potential misuse of personal data.
"Regarding the spread of personal data, I have not yet received any reports directly related to AI, but it could involve data leaks or the misuse of databases," he told reporters during a press conference at the International Regulatory Conference (IRC) 2026 on Tuesday (July 21).
Fahmi said the proposed legislation would take time to finalise, but regulators, including the Malaysian Communications and Multimedia Commission (MCMC), would continue monitoring developments and intervene when necessary, especially when safety issues arise.
He cited the case involving Grok AI, where users generated inappropriate images, prompting the MCMC to engage with X to introduce additional safeguards.
"Although we do not yet have a specific AI law, the regulatory process is ongoing.
“We are also studying approaches adopted by other countries and adapting strategies that are suitable for Malaysia.
"Not every approach has proven successful, and we also do not want to send the message that Malaysia is against technology or investment. Instead, we want technology and investments that bring benefits while minimising harm," he said.
Fahmi advised anyone whose face or image had been manipulated using AI without their consent to report the matter to the relevant platform as well as the MCMC.
"This is the available avenue while the Digital Ministry is working on the proposed legislation," he added.
When reporters asked about the updates on the social media ban for users under 16, following its implementation on June 1, Fahmi said social media platforms are currently adjusting their systems to comply with the new requirements and had requested time to ensure the codes were properly interpreted.
He explained that the government has already gazetted the Risk Mitigation Code (RMC) and Child Protection Code (CPC) under the Online Safety Act to enforce the social media age restriction.
“However, platforms have asked for some time to ensure the codes are correctly interpreted and cooperation so far has been positive.
“Failure to comply with the codes that have been published and gazetted carries several actions that can be taken, including court action or financial penalties that can be imposed with quite a large amount,” he added.
Asked when the measures would be fully implemented, Fahmi said the timeline would depend on ongoing discussions with the MCMC.
