Malaysia Targets Inclusive Ai Growth By 2030

KUALA LUMPUR, Oct 10 (Bernama) -- Malaysia is intensifying efforts to bridge the artificial intelligence (AI) divide as the technology emerges as a key driver of economic growth and innovation.

According to the Economic Outlook 2026 report released by the Ministry of Finance today, the adoption of AI is expected to enhance competitiveness across socioeconomic activities by enabling businesses to operate more efficiently, creating new job opportunities and improving living standards.

Citing data from the Ministry of Digital, the report noted that AI integration has the potential to contribute up to USD115 billion (RM485 billion) in value added to the national economy.

“Realising this potential requires not only accelerating adoption but also ensuring benefits are shared inclusively to prevent the incidence of an AI divide across society,” the report said.

The ministry said Malaysia has made notable progress in establishing robust policy and institutional foundations recognised by global indices such as the Stanford AI Index and Oxford Government AI Readiness Index.

These efforts are anchored by national strategies and frameworks, including the Malaysia Digital Economy Blueprint 2021-2030, the National Artificial Intelligence Roadmap 2021-2025 (AI-Rmap), as well as the National Guidelines on AI Governance and Ethics (AIGE), and were reinforced further with the establishment of the National AI Office (NAIO).

However, the report cautioned that businesses’ ability and readiness to fully leverage AI remain limited, as reflected in the Cisco AI Readiness Index 2024, which shows modest adoption of AI capabilities across the enterprise level as infrastructure readiness remained a major barrier.

It said key barriers of AI adoption, particularly among small and medium enterprises (SMEs), include limited expertise and knowledge of practical applications, uncertainty in investment returns and lack of customised AI-related financing.

“Reskilling and upskilling programmes also remain fragmented and insufficient to meet growing demand for AI competencies,” it said.

The report also highlighted that digital infrastructure gaps, particularly in remote and rural areas, result in uneven access to reliable high-speed connectivity, further restricting the effective use of cloud-based services and real-time applications.

These challenges, compounded with insufficient AI-ready datasets, hinder the potential benefits of AI, it said.

Looking ahead, the government aims to strengthen the innovation ecosystem, modernise infrastructure, future-proof the workforce, and enhance governance in line with Malaysia’s aspiration to become a regional digital technology hub and promote “Made by Malaysia” products and services.

The ministry said efforts will focus on fostering closer collaboration among researchers, universities and government research institutes while expanding AI-ready datasets and developing national supercomputing facilities to boost local AI capabilities.

It said that the government would also continue to improve the public service delivery system by leveraging AI towards enabling data-driven and more responsive decision-making, with the NAIO steering the national AI agenda to accelerate adoption and ensure inclusive growth.

“This can be achieved through seven deliverables, including the formulation of the National AI Action Plan 2030 to ensure the adoption of AI across all sectors. Additionally, a dedicated AI framework will be introduced to enhance transparency, promote ethical practices and accelerate deployment of Al technology,” it added.

-- BERNAMA