The AI dividend: Advancing shared prosperity in Malaysia and China

Artificial intelligence (AI) is no longer a distant concept confined to science fiction or research laboratories. Today, it is actively reshaping the global economy, driving productivity, innovation, and transforming everyday life. As governments and industries increasingly embrace these technological breakthroughs, a central policy challenge emerges: who truly benefits from this revolution? The answer will determine whether the “AI dividend”, the economic and social surplus generated by automated productivity, becomes a driver of shared prosperity or a source of widening inequality. For countries like Malaysia and China, the immediate task is not only to accelerate technological adoption but also to rapidly align AI development with the broader goal of equitable wealth distribution.

AI and the Promise of Inclusive Growth

AI has the potential to drive economic growth by improving efficiency, enabling new industries, and enhancing decision-making across sectors such as healthcare, finance, logistics, and education. However, the benefits of technological transformation are not automatically distributed evenly. Without effective policy interventions, AI could widen income inequality, exacerbate digital divides, and displace workers in routine occupations.

Governments are therefore increasingly integrating AI into national development strategies with an emphasis on inclusive growth, skills development, and digital participation. Malaysia and China provide useful examples of how different economic systems approach this challenge while seeking to ensure that technological progress contributes to overall societal well-being.

Malaysia: Building an Inclusive AI Ecosystem

Malaysia has positioned digital transformation as a key driver of economic development and social inclusion. A core pillar of this framework is the Malaysia Digital Economy Blueprint (MyDigital), which aims to transform the country into a digitally enabled and high-income nation. Through digital infrastructure expansion, innovation incentives, and support for small and medium-sized enterprises (SMEs), the blueprint seeks to broaden participation in the digital economy and boost productivity across industries. These measures are especially vital, as SMEs remain the backbone of Malaysia’s economy, contributing significantly to employment and overall growth.

To build on these economic foundations, the government launched the AI Talent Roadmap 2024–2030, which explicitly addresses the rising demand for AI-related skills. The initiative highlights the importance of reskilling and upskilling programmes to prepare workers for emerging industries shaped by automation and digitalisation.

Moving completely beyond these foundational frameworks, the government introduced the AI Technology Action Plan 2026–2030. This macro strategy prioritises multi-stakeholder collaboration across government, industry, and academia to integrate AI into the country’s national digital transformation agenda while heavily emphasising ethical use, regulatory compliance, and social equity. In many ways, Malaysia recognises that technological advancement alone is insufficient; people must also be equipped with the capabilities to benefit from it.

China: Scaling AI for National Development

China represents one of the most ambitious nationwide experiments in large-scale AI deployment. The country’s New Generation Artificial Intelligence Development Plan positions AI as a core driver of global competitiveness and economic transformation. Over the past few years, China has accelerated investments in smart manufacturing, digital infrastructure, autonomous systems, and AI-powered public services.

AI development has also been integrated into China’s broader industrial and economic strategies. Under the “AI Plus” initiative, traditional industries such as manufacturing, logistics, healthcare, and finance are encouraged to adopt AI technologies to improve efficiency and innovation. This reflects China’s wider push toward industrial upgrading and high-quality economic development.

At the local level, provincial governments are actively fostering AI ecosystems through incentives, infrastructure development, and talent programmes. Cities such as Shanghai, Shenzhen, and Jiangsu have introduced policies to support AI startups, expand computing infrastructure, and promote pilot applications across sectors including logistics, manufacturing, and smart cities. These initiatives illustrate how China is leveraging its large domestic market, extensive data resources, and strong industrial base to accelerate AI adoption.

At the same time, China’s rapid technological expansion has also raised important social questions. Automation and intelligent systems may improve productivity, but they also risk displacing routine jobs, particularly in manufacturing sectors. Recognising this challenge, Chinese policymakers have increasingly emphasised workforce adaptation, vocational education, and digital skills training as essential components of long-term economic resilience.

Shared Prosperity in the Age of AI

Despite their differences in scale and governance models, Malaysia and China share several policy priorities in their pursuit of AI-driven growth. First, both countries recognise the importance of human capital development. AI may create new economic opportunities and industries, but without investments in education and skills development, many workers could struggle to adapt to technological disruption. Therefore, investment in lifelong learning, technical training, and digital literacy is essential to prepare workers for emerging digital industries and to mitigate the risks of technological displacement.

Second, the two governments emphasise the significance of building inclusive digital ecosystems. Access to digital infrastructure, connectivity, and technological opportunities must extend beyond major urban centres to ensure broader social participation. Without inclusive access, digital transformation risks deepening existing socio-economic divides.

Third, there is growing awareness that AI governance must balance innovation with public trust. Questions surrounding data privacy, ethical AI, and algorithmic transparency are becoming increasingly significant as AI systems become more embedded in everyday life.

Looking Ahead

The global race for AI leadership is often framed in terms of technological competition. Yet the more important question may be how societies distribute the benefits of this technological transformation. The true measure of success will not simply be the number of AI startups or patents, but whether AI contributes to higher living standards, more inclusive economic opportunities, and resilient societies.

Malaysia’s focus on inclusive digital development and talent cultivation demonstrates how emerging economies can harness AI while prioritising social participation. China’s large-scale investment and industrial integration highlight the transformative potential of coordinated national strategies. Together, these experiences suggest that the AI dividend can support shared prosperity when technological innovation is accompanied by forward-looking policies, strong institutions, and sustained investment in human capital.

Dr Yong Jing Yi is a Senior Lecturer at Taylor’s University.

The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the Southeast Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT).