Owning AI services key to nation's growth
KUALA LUMPUR: Malaysia must move beyond merely hosting digital infrastructure to building and operating an artificial intelligence (AI) services industry, said Digital Minister Gobind Singh Deo.
Malaysia must transition from merely hosting digital infrastructure to developing and managing an artificial intelligence (AI) services sector, according to Digital Minister Gobind Singh Deo. While a functional data center may employ a few dozen people, an AI services industry, cloud operation hub, or regional digital headquarters could employ thousands, propelling the entire nation's economy forward.
The future of Malaysia's economy will hinge on whether the nation builds, operates, and owns its digital infrastructure rather than merely hosting it. During the MDX Forum 2026, Deo emphasized that the Digital Ministry's role involves unifying Malaysia's digital and AI transformation efforts into a unified national agenda. MDEC Chairman Ganesh Kumar Bangah stated that Malaysia is entering a new phase of AI adoption, with the focus shifting towards constructing an AI economy capable of generating tangible and enduring value.
The next stage in AI's development will involve systems that can independently act, execute, and coordinate tasks for users without relying on prompts, a concept known as agentic AI. Currently, only one percent of the global population and businesses utilize AI agents, presenting both an opportunity and risk for those who fail to adapt.
AI technologist Jason Sosa emphasized that AI agents require memory and context from prior sessions to function effectively. To thrive, businesses should experiment with AI, allowing them to construct parallel versions of their operations while maintaining their current business model.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
