Malaysia emerges as regional leader in AI & cybersecurity

Malaysia is positioning itself as a regional hub for high technology, leveraging artificial intelligence (AI) and cybersecurity as central pillars for its economic development and global investment attraction.

The Malaysia Digital Economy Corporation (MDEC) projects that the digital economy will contribute 25.5% to Malaysia's GDP by 2025, up from 22.6% in 2022. Strategic investments by both government and private sectors in AI, cybersecurity, and digital infrastructure underpin this growth.

Georg Chmiel, Executive Chairman of Chmiel Global Advisory, highlighted Malaysia's leadership in AI, stating, "Malaysia is at the forefront of adopting artificial intelligence in Southeast Asia. Artificial intelligence transforms industries from healthcare to finance to manufacturing and creates new possibilities." The government has earmarked MYR 20 million in its 2024 budget towards a national AI framework, expected to generate over 500,000 high-value digital jobs by 2030.

Chmiel noted that companies such as BrioHR and Juwai IQI are exemplary in utilising AI to innovate within their sectors. "Prime examples of companies that are very well-positioned to leverage this technology include BrioHR, which leverages artificial intelligence to automate HR practices, and Juwai IQI, which applies artificial intelligence analytics to real estate," he said.

Malaysia is also prioritising cybersecurity to address the growing risks associated with digital reliance. "With great digital growth comes great responsibility—and Malaysia is taking proactive measures to address this," Chmiel explained. The country is paying particular attention to emerging threats, including quantum-related risks, through initiatives like the RM50 million allocation for AI and cybersecurity research in Budget 2025.

Chmiel emphasised the importance of trust in the digital economy, remarking, "You can't have a thriving digital economy without trust. Malaysia's focus on cybersecurity isn't just about protecting businesses and consumers—it's about building confidence in the digital space." Establishing the Malaysian Cryptology Technology and Management Centre in collaboration with Universiti Putra Malaysia and the National Cyber Security Agency is a part of these efforts.

Major global companies like Oracle actively invest in Malaysia, signaling confidence in the nation's high-tech potential. "Malaysia has everything going for it—great infrastructure, good talent pool, and business-friendly policies," said Chmiel. "It's no wonder Malaysia's tech sector is expected to grow by 8-10% annually by 2025, driven by investments in AI, cybersecurity, and digital infrastructure."

His Majesty Sultan Ibrahim, King of Malaysia, has endorsed government efforts to bolster foreign investment in the technology sectors, highlighting its role in creating quality jobs and building the economy.

Budget 2025 reaffirms Malaysia's commitment to digital transformation, allocating MYR 1.5 billion for digital infrastructure improvements, including 5G expansion and broadband upgrades, and MYR 200 million for upskilling initiatives focusing on digital literacy and AI expertise. Tax incentives are also offered to companies investing in AI, cybersecurity, and green technology sectors.

Chmiel expressed his optimism for the future: "Malaysia's journey toward digital transformation is truly inspiring. By embracing AI and cybersecurity, the nation is enhancing its economic competitiveness and quality of life." He underscored Chmiel Global Advisory's support for Malaysia's digital ambitions through their portfolio of local companies leading in digital innovation.