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Malaysia’s Anwar urges ‘extraordinary speed’ in AI adoption to drive digital economy

Prime Minister Anwar Ibrahim has made artificial intelligence a key focus of his administration to support billion-dollar tech investments

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An artificial intelligence robot using machine learning and AI to analyse a person’s health and give advice. Photo: Shutterstock
Malaysia could risk losing out if its adoption of artificial intelligence (AI) were not accelerated, Prime Minister Anwar Ibrahim warned on Thursday, even as the country has been drawing billions of dollars in investments from Silicon Valley and Chinese tech giants to drive its transition into a digital economy.
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Speaking at the launch of the National AI Office (NAIO), Anwar said AI-driven digitalisation was expected to contribute up to 25 per cent of its economy next year only if the government were to boost its collaboration with tech firms and local stakeholders.

“We cannot, for example, seek to make Malaysia a success as a digital nation while being bound by old and outdated mindsets,” Anwar said.

“If we do not make a transition at extraordinary speed, we will lose. Our aspirations will remain aspirations in the virtual world.”

Anwar has made AI a priority for his administration to support US$16.8 billion in investments pledged in recent years by US tech giants Amazon, Microsoft, Google and Nvidia and China’s ByteDance to develop AI technology and data centres.

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But the government faces deep public distrust of AI, with nearly 60 per cent of Malaysians worried that the proliferation of AI-integrated devices could lead to misuse of their personal data, according to a 2024 study by regional telecommunications company Telenor Asia.

Malaysia’s PM Anwar Ibrahim speaking at the groundbreaking of Malaysia’s first Google data centre in Kuala Lumpur in October. Photo: AFP
Malaysia’s PM Anwar Ibrahim speaking at the groundbreaking of Malaysia’s first Google data centre in Kuala Lumpur in October. Photo: AFP
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