UPDATE — SEPTEMBER 2025:
Since its launch in December 2024, Malaysia’s National Artificial Intelligence Office (NAIO) has expanded its role across government, industry, and the regional AI ecosystem.
Governance and Funding Progress
First, NAIO formally established specialized working groups. These groups include experts from academia, government, industry, and civil society. As a result, collaboration now occurs through structured advisory channels rather than ad hoc consultations.
In 2025, the government allocated RM10 million to NAIO. This funding supports research partnerships and accelerates collaboration with industry. Consequently, the office has moved from strategy design to implementation.
Expanding AI Deployment
AI deployment has also increased across government agencies. For example, Kuala Lumpur expanded smart CCTV systems powered by AI analytics. In addition, the government rolled out Google’s Gemini Suite to 445,000 public officers. This move signals a shift toward AI-assisted public administration.
Regulatory Developments
Meanwhile, Malaysia is preparing updates to its Personal Data Protection Act (PDPA). The proposed amendments introduce clearer rules on profiling, automated decision-making, and accountability. These changes aim to strengthen safeguards as AI adoption grows.
Long-Term Strategy and Regional Role
In August 2025, officials confirmed they are finalizing a 2026–2030 National AI Action Plan. The plan seeks to balance innovation with privacy, security, and human oversight.
Malaysia also launched AI Malaysia (AIM), a national platform connecting businesses, researchers, policymakers, and ASEAN partners. Through AIM, the country aims to deepen ecosystem coordination.
At the regional level, Malaysia hosted ASEAN AI summits and introduced the AI Grand Prix. These initiatives highlight Malaysia’s ambition to lead responsible AI discussions 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.
Seven Key Deliverables
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. Which includes 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.
Conclusion
This surge in digital ventures has been instrumental in driving economic growth and positioning Malaysia as a competitive player.
The National AI Office is expected to serve as a centralized agency to oversee AI-related activities. Which includes everything from research and development to regulatory compliance. Also, by providing a unified approach to AI governance, the office aims to address challenges and capitalize on opportunities.
Need Help?
You might be wondering how Malaysia’s AI strategy, or any other AI strategies and laws worldwide could impact you and your business. Therefore, don’t hesitate to reach out to BABL AI. Their Audit Experts can address your concerns and questions while offering valuable insights.
