Malaysia lacks clear plan to capture AI economy, says Shahril

Former Umno information chief Shahril Hamdan has pointed out that Malaysia lacks a clear strategy to fully capitalize on the AI economy. In a recent podcast, Shahril highlighted concerns over the 2027 budget allocation for AI adoption, which included 100,000 free AI subscriptions for young people and RM30 million under an AI empowerment fund.

However, Shahril questioned whether these funds would lead to meaningful change, noting that the RM30 million allocation amounted to approximately RM7,500 per company. He expressed concern that the AI initiative could follow previous patterns, where funding impact on businesses was not clearly demonstrated. Shahril also contrasted Malaysia's approach with Singapore's, citing the presence of AI companies like Anthropic, OpenAI, and ElevenLabs in Singapore as a model for attracting businesses at the forefront of technological change.

He noted that Malaysia has a presence in the AI supply chain through data centers and semiconductor packaging and testing operations, but these activities have yet to generate the same momentum for developing AI applications locally. Shahril emphasized the need for a clear strategy and a government or ministry that understands what it wants to achieve with AI in Malaysia, questioning whether the current leadership has the necessary clarity.