Tech firms barred from using public’s data to train AI models, says govt

The Malaysian government has prohibited AI service providers from utilizing data from both the government and citizens to train their artificial intelligence models. Digital Minister Gobind Singh Deo revealed this clause is present in all government AI procurement contracts. Moreover, firms are barred from retaining data from Malaysians after processing it.

The guidelines for AI implementation in the public sector also require all government agencies to minimize, conceal, or anonymize data before using AI systems. Deo was addressing Ahmad Fadhli Shaari, who inquired about the government's efforts to ensure that public data processed by cloud and AI companies remains under Malaysia's jurisdiction.

The government exclusively stores non-sensitive and open data in foreign-based data clouds, while top-secret and confidential information can only be stored in government or personal/hybrid data centers in Malaysia. For personal data managed by the private sector, relocating it to foreign clouds is governed by Section 129 of the Personal Data Protection Act (PDPA), which mandates consent from data subjects and necessitates the receiving jurisdiction to have a PDPA-like law.

The government also enforces data encryption to prevent unauthorized access by foreign service providers, even if requested by other countries' authorities.