Malaysia Launches National AI Office to Drive Digital Transformation and Economic Growth

Jan 2025

Malaysia has officially launched the National AI Office (NAIO), a pivotal initiative aimed at advancing the country’s digital transformation and positioning it as a leader in artificial intelligence (AI) within the ASEAN region. Prime Minister Datuk Seri Anwar Ibrahim emphasized the importance of digitalization in driving economic growth, projecting that the digital economy could contribute up to 25.5% of Malaysia’s GDP by 2025. The establishment of NAIO is part of Malaysia’s broader strategy to harness AI for enhancing public services, fostering innovation, and addressing local and global challenges.
The NAIO will focus on creating a comprehensive five-year AI strategy, developing ethical guidelines for AI use, and implementing a regulatory framework to facilitate AI adoption across various sectors. This initiative aims to build a robust digital ecosystem that encourages collaboration between public and private sectors while ensuring that local talents are equipped with essential skills for the evolving digital landscape. The Prime Minister called for a paradigm shift in how Malaysia approaches technology, highlighting sustainability and equitable wealth distribution as key values in this transition.
In addition to enhancing Malaysia’s economic competitiveness, the NAIO is expected to attract substantial investments in the digital sector, building on the country’s track record of securing funding from major global players. The initiative aligns with the Malaysia Digital Economy Blueprint, which aims to bridge the digital divide and promote inclusive growth across all segments of society.
As part of its commitment to fostering innovation, NAIO will collaborate with various ministries and stakeholders to ensure that AI technologies are integrated into government operations and societal frameworks. This collaborative approach is essential for creating an inclusive digital economy that benefits all Malaysians while addressing potential job displacement through targeted upskilling initiatives. Overall, the launch of NAIO marks a significant step in Malaysia’s journey towards becoming a high-income nation through digital transformation.
(Source: HRM Asia)

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