Minister of Digital Gobind Singh Deo said the improved ranking reflects collective efforts by the Government, industry, academia and the public to strengthen Malaysia’s digital capabilities and readiness to compete in the global AI economy.
The progress also reinforces the Government’s ambition to establish Malaysia as an inclusive and sustainable AI Nation by 2030, guided by the Malaysia Digital Action Plan 2030 and the National AI Action Plan 2026–2030.
Malaysia’s growing digital ecosystem has been supported by significant investments in data centres and AI computing infrastructure, expanded digital adoption programmes and the establishment of AI Malaysia as a dedicated national institution to coordinate the country’s AI development.
However, Gobind said the next priority is to translate these investments into tangible economic benefits, including stronger local businesses, greater innovation and new opportunities for Malaysians.
The Ministry of Digital has identified four key priorities to sustain the country’s momentum.
Turning AI infrastructure investments into economic opportunities
The Government aims to maximise the economic value of investments in data centres and AI computing infrastructure by developing local industries, technologies and businesses around these facilities.
The focus includes improving access to AI technologies for Malaysian companies, researchers and developers, while encouraging the development of globally competitive Made by Malaysia products and services.
Driving AI adoption among businesses and government
Malaysia will accelerate digital and AI adoption across the economy, with particular attention to micro, small and medium enterprises (MSMEs).
Businesses will be supported in adopting technologies that can improve productivity, reduce operating costs and unlock new growth opportunities.
Digital government transformation will also be accelerated to improve the efficiency, accessibility and responsiveness of public services.
Building Malaysia’s AI talent pipeline
The Government will strengthen the country’s talent and innovation capabilities by developing more AI engineers, researchers, developers and entrepreneurs.
Efforts will also focus on upskilling and reskilling the existing workforce to help Malaysians adapt to changing job requirements and take advantage of emerging opportunities in the AI economy.
Strengthening AI governance and safety
On the regulatory front, the Ministry of Digital is advancing the development of an AI Governance Bill to establish greater clarity and accountability in AI development and deployment.
It is also working towards establishing the Malaysia AI Safety Institute under AI Malaysia. The proposed institute will strengthen national capabilities in AI safety evaluation, risk assessment, research and standards development.
Further efforts will focus on data governance, cybersecurity and regulatory coordination to support innovation while maintaining investor confidence and protecting Malaysians.
Gobind described the latest IMD ranking as an important milestone but stressed that sustained collaboration and continued investment would be necessary to maintain the country’s progress.
He said Malaysia’s ambition goes beyond adopting emerging technologies, with the longer-term goal of developing the capabilities, innovations and homegrown businesses needed to shape the country’s future economy.
The Government is targeting 2030 to realise its vision of an inclusive and sustainable AI Nation.
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