by Tan Aik Keong (AK)
The Malaysia AI Report 2025, published by the Konsortium AI Negara (KAIN) team, is the first comprehensive review of its kind — marking an important step for Malaysia's AI development. The report doesn't just cover the past year's technical progress; it sketches out a roadmap for Malaysia to become an AI powerhouse over the next few years.
From AI consumer to AI creator
2025 was a turning point for Malaysia's AI ecosystem. By pulling together large language models (LLMs), AI infrastructure, robotics, talent development and policy direction, the report gives a clear picture of Malaysia's progress and challenges in AI.
First, the report points to the rise of local LLMs as one of the standout developments of the year. As the technology matured, local businesses and research institutions increasingly invested in building their own LLMs, moving past dependence on external technology and laying the groundwork for localised AI solutions. The report specifically highlights four local LLMs — ILMU, MALAM, Merdeka LLM and NUR AI — as marking significant progress in natural language processing for Malaysia. By pulling together data and expert views from across the ecosystem, KAIN gives government and industry a clear map of where things stand.
Malaysia's AI infrastructure has also kept maturing, particularly around data centres and cloud computing. As cloud adoption spreads, more local businesses are turning to AI to lift productivity and efficiency, and Malaysia is actively building AI infrastructure suited to local data storage and compute needs.
AI education: bridging talent and technology
Beyond the technical progress, AI education takes up a significant part of the report. It notes that Malaysia strengthened AI education and training across secondary schools, universities and the workplace over the past year, feeding fresh talent into the AI industry ahead. From foundational AI education at the school level to a growing number of AI-focused university programmes, students are getting access to opportunities that keep pace globally. Malaysia has also stepped up investment in lifelong learning, particularly continuing education in digital skills and AI. Through this society-wide push on education, Malaysia is opening up real room for the next generation of AI professionals.
Policy support: a national push
The report also emphasises just how much policy is driving AI development forward. The Malaysian government has used a series of policy support measures and funding commitments to accelerate AI adoption — for example, the AI cloud infrastructure and AI-specific grants mentioned in Budget 2026 both signal continued national-level investment in AI over the coming years. The report also looks at Malaysia's presence at the Southeast Asia AI Summit, reflecting the country's growing leadership position in AI regionally.
Toward 2030: the vision of an AI powerhouse
2025 wasn't just a starting line for Malaysia's AI development — it was an important step toward 2030. As policy, technology, education and infrastructure keep advancing together, Malaysia is well placed to shift from AI consumer to AI creator over the next few years. The report concludes that Malaysia's role in the global AI supply chain will keep growing in importance, and that its voice — particularly on localised technology development, AI innovation and solutions — won't be one the world can ignore.
Malaysia's rise in AI won't come from government and industry alone — it needs coordinated development across talent, technology and policy, society-wide. The KAIN Malaysia AI Report 2025 is a marker of that process, offering a clear roadmap for Malaysia's AI future and a useful reference point for the global AI industry too.
As Malaysia's National AI Strategy 2030 continues to roll out, this report offers valuable insight for industry professionals, policymakers, educators and investors alike.
In short: 2025 was an important launch year for Malaysia's AI sector. The KAIN Malaysia AI Report 2025 lays out a full picture of how Malaysia is building its AI ecosystem, and how policy, innovation and education reform can carry the country toward becoming a genuine global AI creator. Malaysia is heading toward a new high point in the global AI industry — and the road ahead looks promising.
Free report download: konsortiumainegara.org/kain-malaysia-ai-report-2025-building-malaysias-ai-future
Part of the AK AI Corner column. Originally published in Oriental Daily (东方日报) on Jan 3, 2026.