He said the government’s efforts to make Malaysia a data centre and regional AI leader through the establishment of the National AI Office is the right step, but developing local capacity and talent is crucial for creating impactful AI solutions.

“The reality is, Malaysia is still stuck as a user of AI technology without enough focus on the development of leading talent. We cannot remain in this position for a long period of time because it will cause the country to risk falling out of AI competition at the global level,” he said in a statement today.

According to Sri Ganes, to compete with major powers like the United States and China, Malaysia needs to invest heavily in cultivating sustainable AI talent to meet both current and future demands.

“The development of local talent capable of producing innovative solutions in AI needs to be a priority. Among the critical sectors requiring AI solutions include the environment, healthcare and industrial automation,” he said.

AI technology holds significant potential to enhance the country’s economy, with projections indicating it could contribute up to RM625 billion to the gross domestic product (GDP) by 2030, impacting various economic sectors.

“Globally, investment in AI is also expected to jump from US$207.9 billion (RM902 billion) this year to US$1.8 trillion (RM7.81 trillion) by 2030,” he said.

Digital minister Gobind Singh Deo recently announced that the government has approved the establishment of a National Artificial Intelligence (AI) Office under MyDigital Corporation, and that it was expected to be operational this November.

The office is expected to play an important role in driving the local and regional AI ecosystem.

Gobind said with the establishment of the office, Malaysia will not only be able to attract more investment in the AI sector but also strengthen its position as an AI hub in Southeast Asia.