ARTIFICIAL intelligence (AI) is reshaping the global economy, and Malaysia is at risk of falling behind.
The success of Chinese AI startup DeepSeek proves that bold investment delivers results, even for emerging players.
The government must take decisive action by designating Kuala Lumpur as the City of Artificial Intelligence.
This is not just an opportunity—it is an urgent necessity. Without a clear AI strategy, Malaysia will be left behind while others take the lead.
AI is already transforming industries, with 40% of jobs expected to be affected by 2035. While some roles will evolve, AI will create new economic opportunities and drive high-value growth.
Malaysia is at a pivotal moment for AI industry growth. As ASEAN Chair and a BRICS applicant, we are under international scrutiny.
This is our moment to prove we are serious about technology and investment. Global AI powerhouses are moving fast.
Shanghai, Singapore, and Dubai have each invested over US$1 billion in AI, securing their foothold in the new economy.
AI is projected to contribute US$15.7 tri to the global economy by 2030, with the Asia-Pacific region expected to gain US$3.7 tri. Malaysia must act now to secure its place in this transformation.
Meanwhile, Microsoft is expanding its data centres in Malaysia, and Zhipu AI is strengthening its local presence.
This indicates that Malaysia’s hardware (data centres) and software (AI enterprises) ecosystem is rapidly maturing, approaching a critical take-off point.
If the government does not act now, we risk being reduced to mere consumers of foreign AI, rather than leaders in its development.
Why Global AI Companies Should Invest in Kuala Lumpur
To position Kuala Lumpur as a global AI hub, we must offer:
1/ Cost Advantage – Lower operational costs than regional competitors like Singapore.
2/ Government Backing – Tax breaks, grants, and fast-track approvals for AI start-ups, research centres, and tech firms.
3/ Skilled Talent Pool – Investment in AI education and training to produce a highly skilled workforce.
4/ World-Class Digital Infrastructure – Nationwide 5G, high-speed internet, and policies designed for AI growth.
5/ Strategic ASEAN Location – Direct access to ASEAN’s 680-mil-strong market, providing a gateway for AI-driven businesses.
By making Kuala Lumpur the City of Artificial Intelligence, we can attract investment, create jobs, and drive long-term economic growth.
This is about economic survival, not convenience. If Malaysia fails to lead, others will. The world is not waiting—we must act now. —Jan 30, 2025
Main image: Reuters
Lim Lip Eng, Kepong MP
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
