
By Mr. Fabian Bigar, Secretary General of the Ministry of Digital
In a world increasingly driven by innovation, AI stands at the intersection of possibility and responsibility. It is reshaping industries, redefining efficiencies, and unlocking opportunities once thought unattainable. Yet, as AI integrates into the fabric of businesses, a fundamental truth remains: technology exists to serve humanity, not the other way around.
The recent e-Conomy Southeast Asia (SEA) 2024 Report, developed by Google, Temasek, and Bain, highlights significant milestones and trends in the SEA digital economy, which remains robust despite global challenges.
SEA is emerging as a global hub for AI, attracting over $30 billion in investments in AI infrastructure during the first half of 2024. AI-powered innovations in fraud detection, logistics, and consumer services are driving sector-wide transformation.
In Malaysia, AI-related investments have been particularly significant. The country attracted $15 billion (RM66.64 billion) in 2024 to bolster AI-ready data centers and infrastructure, leading the region in AI investments. This reflects the Government’s strategic emphasis on digital transformation and AI adoption.
Impact on the Modern Workforce
AI-related investments in Malaysia are influencing the modern workforce in several transformative ways.
- Creation of New Job Roles and Industries: With $15 billion in AI infrastructure investments in 2024, Malaysia is fostering new roles in AI development and data. Emerging industries around AI-driven solutions, such as automated logistics, smart manufacturing, and digital financial services, are expanding career opportunities.
- Upskilling and Workforce Transformation: Investments in AI are driving demand for digital skills. Workers across industries are being reskilled in areas such as AI operations, cybersecurity, and data analytics to stay relevant. Government and corporate initiatives, like the National Digital Literacy Program and AI For Rakyat, are launching AI training programs to close the skills gap and equip the workforce with capabilities for high-value jobs.
- Increased Productivity and Efficiencies: AI automates repetitive tasks, allowing workers to focus on complex and creative activities. For example, AI in financial services enhances job performance through more accurate decision-making and fraud detection. This shift reduces manual workload and opens up time for strategic tasks, which can improve job satisfaction and innovation.
- Economic Growth and Job Market Expansion: Malaysia’s AI-focused investments attract foreign and local businesses, creating a ripple effect of job creation in technology, manufacturing, and services. The demand for AI-related roles is expected to grow, creating opportunities for high-paying jobs and reinforcing Malaysia’s position as a regional digital hub.
Challenges of Workforce Adaptation
While AI creates numerous opportunities, it also necessitates significant adjustments, particularly as workers in traditional roles face the risk of displacement. To mitigate these effects, strategic upskilling and forward-thinking policies are essential. This highlights the critical need to humanise AI in business.
AI offers businesses the chance to enhance operations, improve customer experiences, and innovate new models. Humanising AI involves ensuring it is designed, implemented, and nurtured to reflect and respect human values, creativity, and diversity. By embracing this perspective, businesses can foster deeper trust, empathy, and innovation.
The Role of the Ministry of Digital
The Ministry of Digital, which spearheads Malaysia’s digital transformation, plays a pivotal role in developing policies, frameworks, and collaborations to ensure AI is utilised responsibly and effectively. Through these efforts, the Ministry aims to balance the benefits of AI with the need for ethical and inclusive deployment.
1. Ethical Design in the AI Ecosystem
The AI Governance and Ethics (AIGE) framework, spearheaded by the Ministry of Digital alongside MOSTI (Ministry of Science, Technology, and Innovation), aims to ensure the ethical development and application of AI within the country. AIGE promotes responsible AI practices across industries, aligning with ASEAN’s broader efforts to establish regional AI governance standards. Its non-legally binding guidelines focus on three stakeholder groups: users, policymakers, and developers, and emphasise principles like privacy, security, and fairness.
2. Enhanced Collaboration Through AI Adoption
AI is not here to replace human intelligence but to augment it. When AI systems are intuitive and human-centric, they become partners in decision-making, allowing workers to focus on creativity, strategy, and empathy—qualities uniquely human.
AI adoption in business has significantly increased efficiency across various sectors by automating processes, optimising decision-making, and enhancing customer experiences. For example, the Malaysia Digital Economy Corporation (MDEC) has been leveraging AI and digital technologies in agriculture through initiatives like the AgriTech and eLadang Program. This has reduced fertiliser usage by 20%, manpower needs by 25%, and operational costs by 30%, while improving the quality of yields, such as achieving up to 90% Grade A chilies.
Transforming the Modern Workforce
As AI integrates deeper into workplaces, it transforms not only what tasks are performed but also how they are carried out. The modern workforce is characterised by adaptability, continuous learning, and collaboration. AI-driven chatbots and virtual assistants in government agencies now handle citizen queries 24/7, reducing the workload for human staff.
The Ministry of Digital has begun establishing a strong foundation for a future-ready Malaysia. Recognising AI’s potential to transform every facet of our economy, government, and society, the Government of Malaysia has approved the establishment of the National AI Office (NAIO), launching on 12 December 2024. The NAIO is tasked with developing AI policy, fostering AI innovation, and driving research into next-generation AI technologies, including advanced learning algorithms, enhanced language processing, personalised applications, AI-driven cybersecurity capabilities, and privacy-preserving techniques.
Strengthening Policy and Regulation
As the power of AI is harnessed to drive innovation, it must also be used to strengthen security, safeguard privacy, and protect against emerging threats. The Ministry’s efforts are guided by five key pillars: data security, data protection, data storage and management, data innovation, and data governance.
The Personal Data Protection Act (PDPA) and the Cyber Security Act 2024 ensure Malaysia’s digital landscape remains secure, creating an environment where AI can flourish without compromising privacy or security. In the future, the goal is to unify these elements under a new entity—the Digital Trust and Safety Commission—to oversee a secure and trusted data ecosystem that encourages productive data flows.
The Role of Government and Policy
The Ministry of Digital recognises its responsibility in guiding the evolution of AI responsibly. It is committed to developing regulatory frameworks that promote ethical AI adoption while fostering innovation, investing in education systems to prepare citizens for an AI-powered world, and partnering with businesses to ensure AI solutions align with societal goals.
The journey to humanise AI is a shared responsibility. Businesses, policymakers, and technologists must collaborate to ensure AI reflects shared values. The ultimate goal is to embrace AI not as a faceless machine but as a mirror of humanity’s best aspirations. Together, we can transform AI into a force for progress—not just for businesses, but for every individual it touches.
About the Ministry of Digital
The Ministry of Digital, established on December 12, 2023, spearheads Malaysia’s national digital agenda through its Strategic Policy and Management sectors, encompassing seven divisions. It oversees key digital initiatives and operations via two departments—the National Digital Department (JDN) and the Department of Personal Data Protection (JPDP)—as well as five agencies: Malaysia Digital Economy Corporation (MDEC), MyDIGITAL Corporation, CyberSecurity Malaysia (CSM), Digital Nasional Berhad (DNB), and MYNIC Berhad. Together, these entities drive innovation, cybersecurity, and digital economy growth across the nation