by Tan Aik Keong (AK)
2024 brought several important milestones for Malaysia's AI development, showing both real progress and real challenges in the space. Here are six standout AI stories that capture where the country's AI journey stood by year's end.
1. The National AI Office is established
On 12 December 2024, Malaysia formally established the National AI Office (NAIO), a clear signal of just how seriously government is taking AI development. Prime Minister Anwar Ibrahim said NAIO would sit at the core of the country's AI strategy, responsible for developing and implementing related policy to drive AI innovation and adoption. NAIO is also tasked with building out AI ethics standards and a regulatory framework, to keep technological development aligned with social values — giving Malaysia's digital transformation real institutional backing, and giving businesses and research institutions a clearer sense of direction.
2. The AI Governance and Ethics (AIGE) guidelines launch
On 20 September 2024, Malaysia introduced its National Guidelines on AI Governance and Ethics (AIGE), a significant step in national AI governance. The guidelines are meant to ensure AI is developed and used responsibly, built around principles of fairness, privacy, safety and transparency. AIGE supports the Malaysia National AI Roadmap 2021–2025, and offers industries a voluntary ethical framework to encourage responsible AI practice — a move expected to build public trust in AI while strengthening Malaysia's standing in global AI governance conversations.
3. AI's economic impact
According to recent research, AI is projected to contribute nearly USD 1 trillion to Southeast Asia's GDP by 2030, with Malaysia's share estimated at around USD 115 billion. That potential is pushing businesses to adopt AI faster to stay competitive. Manufacturing, financial services, healthcare and other sectors are all actively exploring AI applications to lift efficiency and cut costs, while government continues pushing policy to encourage AI investment and drive structural economic transformation.
4. Microsoft's AI upskilling pledge
Microsoft announced plans to provide AI skills training to 800,000 Malaysians over the next two years — aimed at lifting workforce quality and ensuring Malaysia has enough talent for AI-related roles. The training spans machine learning, data analysis and natural language processing, delivered through a mix of online courses and in-person workshops. Microsoft is also partnering with local universities on curriculum design, helping students better prepare for future workplace demands — a move that should lift both individual career competitiveness and the country's broader digital-economy development.
5. Public optimism about AI
A recent survey found 75% of Malaysians say they already use AI in daily life, and believe it will have a positive impact on society — whether through smartphone assistants, online shopping recommendations, or social media content generation, AI has woven itself deeply into everyday life. Data privacy and security remain the public's biggest concern, though, with many hoping government will strengthen data-protection legislation to prevent personal information from being misused.
6. UTM launches Malaysia's first AI faculty
On 3 May 2024, Malaysia's first Faculty of Artificial Intelligence formally launched at Universiti Teknologi Malaysia (UTM). The faculty aims to train AI professionals grounded in strong ethical values, and received an initial RM20 million in government funding to support its development. It offers a three-year honours degree programme, and plans to draw in more industry partnerships to drive innovation. As of September 2024, the faculty had welcomed 101 new students — laying the groundwork for future tech development.
Closing
Taken together, Malaysia's efforts across policy-making, education and public engagement in 2024 reflect a genuine push to become a regional AI leader. As the country keeps making progress in AI, it's reasonable to expect Malaysia will hold an increasingly important place on the global tech stage in the years ahead.
Part of the AK AI Corner column. Originally published in Oriental Daily (东方日报) on Jan 4, 2025.