MALAYSIA'S rise from the 34th to 27th spot in the IMD World Digital and AI Ranking 2026 marks a significant achievement and an encouraging recognition of our nation's progress in digital and artificial intelligence (AI) transformation.
This achievement reflects the collective efforts of the Government, industries, academia and Malaysians in embracing digital technologies and strengthening our national capabilities.
It also demonstrates our nation's growing readiness to compete in the global digital and AI economy as we pursue our ambition of becoming an inclusive and sustainable AI nation by 2030.
The new ranking also reinforces our confidence in the strategic direction established under the Malaysia Digital Action Plan 2030 and the National AI Action Plan 2026–2030.
Malaysia has attracted significant investments in data centres and AI compute infrastructure, expanded digital and AI adoption programmes, and established AI Malaysia as a dedicated national institution to drive and coordinate the country's AI transformation.
These developments provide a strong foundation for the next phase of our transformation.
As global competition intensifies, our priority is to ensure that Malaysia's growing capabilities translate into greater economic opportunities, stronger Malaysian enterprises and tangible benefits for the rakyat.
To achieve this, we will focus on four key priorities:
Maximising the economic value of our digital and AI infrastructure investments
We want to develop the industries, technologies and businesses around and on top of these investments, enabling more Malaysian companies, researchers and developers to access AI technologies, accelerate innovation and develop globally competitive Made by Malaysia products and services.
Accelerating meaningful digital and AI adoption across the economy
We will support businesses, particularly micro-, small- and medium-enterprises (MSMEs), in adopting technologies that improve productivity, reduce costs and create new opportunities for growth.
We will also advance digital government transformation to deliver more efficient, accessible and responsive public services.
Strengthening Malaysia's talent and innovation capabilities
Our improved ranking in workforce development is encouraging, and we intend to build on this advantage by developing more AI engineers, researchers, developers and entrepreneurs.
At the same time, we will accelerate efforts to upskill and reskill our workforce, equipping Malaysians across industries and businesses of all sizes with the digital and AI capabilities needed to improve productivity, adapt to changing job requirements and seize new opportunities in the AI economy.
Strengthening digital trust, governance and regulatory coordination
A competitive digital and AI economy requires a trusted and innovation-friendly environment.
The Digital Ministry is advancing the development of an AI Governance Bill to provide greater clarity and accountability in the development and deployment of AI.
We are also working towards establishing the Malaysia AI Safety Institute under AI Malaysia to strengthen national capabilities in AI safety evaluation, risk assessment, research and standards development.
Alongside these initiatives, we will continue strengthening data governance, cybersecurity and regulatory coordination to encourage innovation, sustain investor confidence and protect the interests of Malaysians.
The latest IMD ranking is an important milestone in our digital journey. While we celebrate this achievement, we recognise that sustained effort and collaboration will be essential to maintaining our momentum.
We will now build on these achievements to realise our ambition of becoming an inclusive and sustainable AI Nation by 2030 – one that not only adopts technology, but develops the capabilities, innovations and businesses that will shape our future economy.
Gobind Singh Deo
Digital Minister
