SUBANG: Malaysian companies that adopt artificial intelligence (AI) have improved efficiency by up to 80 per cent and reduced operating costs by up to 60 per cent, exceeding global benchmarks, said the Malaysia Productivity Corporation (MPC).
MPC deputy director-general Dr Mazrina Mohamed Ibramsah said the results were achieved through a hands-on approach that focused on practical implementation rather than theoretical training, particularly among small and medium enterprises (SMEs).
She said MPC had implemented 600 AI proof of concept projects under the AI for Productivity programme, covering factory automation, AI-enabled production processes, workforce optimisation and real-time customer analytics.
She said the projects had generated value creation exceeding RM400 million.
"MPC's role is to facilitate. Unlike previous programmes that focused mainly on AI training, where participants are shown various AI tools without clear application, we require companies to first identify their actual problems.
"Companies may face labour shortages, low sales, high costs or challenges in marketing, such as whether to hire agents or develop marketing materials. Many lack sufficient manpower and face high wage costs.
"Once we understand their problems, we introduce the most suitable tools for their needs," she said after the AI for Productivity 2025 programme.
Mazrina said the initiative was designed to ensure AI adoption was inclusive, with strong emphasis on small firms, local vendors and SMEs, allowing them to strengthen their digital capabilities and become more competitive within the industrial value chain.
In 2025 alone, she said, MPC rolled out 200 AI for Productivity knowledge-sharing and mentoring sessions, involving about 3,000 participants from 2,143 companies across 14 sectors.
"Many companies think AI requires heavy capital expenditure. In reality, there are tools in the market that cost less than RM100 a month or are even free, but can significantly improve productivity if used in the right context."
To scale adoption across the economy, MPC asked companies to act as "lighthouses", where selected firms that successfully implemented AI served as benchmarks for others in similar industries.
"With nearly one million SMEs in Malaysia, we cannot reach everyone at once. By developing model companies, we allow others to replicate proven improvements rather than start from scratch."
She said while international organisations such as the World Bank and the Organisation for Economic Co-operation and Development estimated productivity gains of 25 to 35 per cent from digital adoption, MPC's assessments showed efficiency improvements ranging from 35 per cent up to 80 per cent.
"In some cases, efficiency improved by up to 80 per cent, productivity increased by 60 to 80 per cent across companies and projects and cost savings reached 40, 50 or even 60 per cent."
The AI for Productivity 2025 programme, themed "Empower Learning, Drive Lasting Productivity", brings together industry players, technology practitioners and representatives from the manufacturing and services sectors to share best practices and showcase successful digital transformation initiatives.
Source: https://www.nst.com.my/news/nation/2025/12/1338300/mpc-firms-adopt-ai-boost-productivity-80pc-cut-costs-60pct?source=widget