AS Malaysia aims to become a high-income digital nation by 2030, artificial intelligence (AI) is set to play a crucial role in this transformation.
The nation's growing digital economy, coupled with the establishment of a National AI Office, underscores its commitment to leveraging AI for economic advancement.
This commitment is set to take on greater significance as Malaysia assumes the Asean Chairmanship in 2025.
In this role, the country is expected to drive Asean's collective growth vision and strengthen its position as a regional technology hub.
The government has already taken steps in this direction, including its recent proposal to establish an Asean AI Safety Network to enhance digital security across the region.
ADVANCING AI IN KEY SECTORS
AI is increasingly delivering tangible outcomes in Malaysia's industries including sectors such as manufacturing and agriculture.
As a key contributor to the national economy, manufacturing stands to benefit from AI-driven solutions that optimise production and enhance efficiency.
AI applications in agriculture, such as precision farming, can support efforts to improve yields while reducing costs and environmental impact.
While major corporations have embraced AI, small and medium enterprises (SMEs), which constitute nearly 97 per cent of Malaysian businesses, face challenges in adoption due to financial constraints and a shortage of skilled talent.
Generic AI solutions while seemingly easier to purchase and implement, may not adequately address the distinct needs of different industries, necessitating tailored approaches.
Enterprise-grade platforms, such as SAP Business AI, are addressing this gap by offering industry-specific insights that facilitate more effective AI integration. These solutions leverage industry expertise to ensure that AI contributes meaningfully to Malaysia's digital economy.
BRIDGING THE AI SKILLS GAP
A key challenge in AI adoption is workforce readiness. Studies indicate that a significant portion of the Malaysian workforce has limited experience with AI tools.
Bridging this gap requires coordinated efforts from the government, industry, and academia to provide upskilling and reskilling opportunities.
In a recent op-ed, SAP CEO Christian Klein highlighted the critical role of higher education and AI in preparing societies for success in the innovation age.
Klein's call for a reimagined higher education system, one that equips students with AI literacy and fosters a culture of lifelong learning, aligns closely with Malaysia's aspirations.
Collaboration between businesses and educational institutions is essential to closing the skills gap.
SAP's University Alliance programme is among initiatives that seek to bridge academia and industry, equipping students with practical AI knowledge.
Additionally, the Asean Data Science Explorers (ADSE) programme, supported by SAP and the Asean Foundation, is providing digital skills training to over 4,000 youths, contributing to a more inclusive and skilled workforce.
AI AND SUSTAINABLE DEVELOPMENT
Malaysia's digital transformation is closely aligned with its sustainability agenda.
The nation has committed to achieving net-zero carbon emissions by 2050, and digital tools are playing a role in this transition.
AI is being leveraged in industries such as manufacturing to enhance resource efficiency and reduce waste.
Digital solutions like SAP's Green Ledger for Carbon Accounting can also enable businesses to track and manage their carbon footprints with greater precision, supporting sustainability objectives while maintaining competitiveness.
POSITIONING MALAYSIA AS A REGIONAL DIGITAL LEADER
Malaysia's Asean chairmanship in 2025 comes at a pivotal moment for the region's digital economy.
As Asean nations accelerate their digital transformation efforts, Malaysia has an opportunity to lead discussions on cross-border digital standards, regulations and sustainability initiatives.
One potential milestone is the completion of the Asean Digital Economy Framework Agreement, which would set a new benchmark for digital trade and cooperation in the region. Malaysia's leadership in fostering collaboration between governments, industry stakeholders and educational institutions will be instrumental in shaping Asean's AI and digital future.
By prioritising AI-driven innovation, inclusivity and sustainability, Malaysia can establish itself as a trusted digital leader within Asean.
Its leadership in these areas may serve as a blueprint for other emerging economies seeking to harness AI for long-term growth.
Source: https://www.nst.com.my/business/2025/02/1174342/malaysias-role-shaping-aseans-ai-future