UPDATE — SEPTEMBER 2025: Since its launch in December 2024, Malaysia’s National Artificial Intelligence Office (NAIO) has advanced several major initiatives to centralize AI governance and strengthen the nation’s role as a regional leader:
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Working Groups: Specialized groups of experts from academia, government, industry, and civil society have been formally established to shape AI policy with a focus on ethics and sustainability.
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Budget Allocation: The NAIO received RM10 million in 2025 to accelerate collaboration with research institutions and industry partners.
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Practical Deployments: AI adoption is visible across government, including smart CCTV systems in Kuala Lumpur and the rollout of Google’s Gemini Suite to 445,000 officers.
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Regulatory Advances: Updates to the Personal Data Protection Act (PDPA) are being prepared, introducing new rules on profiling, automated decision-making, and accountability.
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National AI Action Plan: In August 2025, officials confirmed they are finalizing a 2026–2030 National AI Action Plan, balancing innovation with privacy, security, and human oversight.
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AI Malaysia (AIM): A new platform was launched to connect businesses, researchers, policymakers, and ASEAN partners, reinforcing the national AI ecosystem.
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Regional Engagement: Malaysia hosted ASEAN AI Summits and launched the AI Grand Prix to showcase innovation and discuss responsible AI leadership across Southeast Asia.
ORIGINAL NEWS STORY:
Malaysia Establishes National AI Office to Drive Regional Leadership in Artificial Intelligence
Malaysia has launched a National Artificial Intelligence Office as part of its strategy to become a leading regional hub for AI development. The initiative aims to centralize policy-making, regulatory oversight, and strategic planning for AI technologies, marking a major step in the country’s digital transformation journey.
“This is another historical moment in our digital transformation journey,” Prime Minister Anwar Ibrahim told Reuters during the office’s launch.
The new agency will focus on seven key deliverables in its first year, including the creation of a code of ethics for AI, a comprehensive regulatory framework, and a five-year AI technology action plan that extends to 2030. These initiatives aim to bolster Malaysia’s AI capabilities while ensuring ethical and sustainable development.
As part of its AI strategy, Malaysia announced partnerships with six major tech companies, including Amazon, Google, and Microsoft. These companies have collectively committed billions of dollars to data center, cloud, and AI projects in the country over the past year.
These investments highlight Malaysia’s appeal as a destination for global tech firms seeking to build critical infrastructure to meet the rising demand for AI and cloud services across Southeast Asia.
The launch of the National AI Office builds on Malaysia’s strong economic momentum in the digital sector. In 2024, the country approved investments totaling 71.1 billion ringgit ($16.06 billion) in the information and communications sub-sector, according to Malaysia’s investment authority.
This surge in digital ventures has been instrumental in driving economic growth and positioning Malaysia as a competitive player in the regional tech landscape.
The National AI Office is expected to serve as a centralized agency to oversee AI-related activities, from research and development to regulatory compliance. By providing a unified approach to AI governance, the office aims to address challenges and capitalize on opportunities in the rapidly evolving AI landscape.
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