Accelerating IT Deployment and AI Technology in Malaysia: Some Thoughts

The concept of Industrial Revolution 4.0 (IR 4.0), first introduced by Klaus Schwab in 2015 at the World Economic Forum (WEF), has revolutionised how governments and industries approach technology. At the core of this new wave are AI, big data, and advanced IT systems, driving transformation across sectors. Countries like South Korea, China, and Singapore have taken significant strides in IT deployment, particularly in artificial intelligence (AI) and digital infrastructure, while Malaysia continues to grapple with challenges that hinder rapid advancement.
 
Malaysia’s performance in the World Digital Competitiveness (WDC) ranking declines from 24th position in 2017 to 35th in 2023. A 2022 report from the Malaysian Productivity Corporation (MPC) also highlighted that 80% of Malaysian companies remain at level 1 and 2 of technology adoption. This stands in stark contrast to Singapore’s National AI Strategy (NAIS), South Korea’s Digital New Deal, and China’s smart manufacturing ecosystems, all of which demonstrate how long-term vision and structured execution lead to impactful outcomes.
 
How can Malaysia accelerate its AI and IT progress? By analysing the strategic initiatives of other countries and recalibrating its own approach, Malaysia can better position itself in the global technological arena.
 
Clear Strategic Vision and Leadership
 
One of the critical success factors for South Korea, China, and Singapore is their long-term, clearly defined strategic visions. Singapore’s National AI Strategy (NAIS), launched in 2019, outlines specific AI goals with milestones in key sectors like healthcare, education, and city management. Singapore’s continued refinement of this strategy, as seen in NAIS 2.0 in 2023, emphasises its commitment to fostering a future-ready AI ecosystem.
 
South Korea, with its Digital New Deal initiative launched in 2020, focuses on accelerating the country’s transition to a digital economy through AI, 5G, and cloud technologies. The government has set aside billions in investments to enhance AI capabilities and foster public-private partnerships. Companies like Samsung, Naver, and LG are at the forefront of AI research and smart technology innovations in the country.
 
Similarly, China, with its 2017 New Generation Artificial Intelligence Development Plan (AIDP), has set an ambitious target of becoming the world leader in AI by 2030. The plan emphasises large-scale government investments in AI, 5G, and cloud technologies. Its execution has led to rapid advancements in smart manufacturing and industrial AI adoption, with major companies like Huawei, Tencent, and Baidu leading the way.
 
Malaysia, too, must develop a long-term roadmap with clearly defined goals to guide its technological journey. While policies and guidelines around AI ethics and governance are in place, the lack of a cohesive strategy with measurable milestones impedes progress. Malaysia’s Digital Economy Blueprint and National Artificial Intelligence Roadmap (2021-2025) are positive steps, but much like Singapore’s phased approach, the country must outline specific targets and key sectors to ensure steady progress over time.
 
Investment in Digital Infrastructure
 
South Korea, China, and Singapore have shown the transformative power of strong digital infrastructure. China’s rapid progression in AI and smart industries can be attributed to its robust 5G networks, AI platforms, and extensive IoT systems. The country has built an ecosystem where industries can efficiently leverage data for automated decision-making, predictive analytics, and improved operational efficiency.
 
South Korea has also been investing heavily in its digital infrastructure. With the fastest internet speeds globally, South Korea’s Digital New Deal emphasises AI, data, and smart city technologies. This infrastructure has enabled companies like Hyundai and Samsung to deploy advanced AI systems in both automotive and electronics sectors, contributing to their global competitiveness.
 
Similarly, Singapore’s focus on building future-proof infrastructure ensures it remains a hub for AI innovation. The Singapore Government Technology Agency (GovTech) continuously works on AI-driven initiatives in public services, healthcare, and urban management, powered by a sophisticated digital infrastructure.
 
Malaysia, on the other hand, needs to expedite its efforts in expanding high-speed internet and industrial connectivity, especially in rural regions where businesses struggle to access these essential services. Without foundational digital infrastructure and other tech incentives, SMEs – the backbone of Malaysia’s economy – will be ill-equipped to adopt and compete in the global AI landscape.
 
Public-Private Collaboration and Ecosystem Building
 
One of the strongest lessons Malaysia can learn from Singapore, South Korea, and China is the importance of public-private partnerships in fostering innovation. In China, tech behemoths like Baidu, Alibaba, Huawei, and Tencent have been pivotal in the country’s AI and IT development, collaborating closely with the government to create large-scale AI solutions. These partnerships have driven innovation and supported the commercialisation of research at an unparalleled pace.
 
South Korea has taken a similar approach, with tech giants like Samsung, LG, and Naver collaborating with research institutions and the government to accelerate AI advancements. These companies lead in sectors like consumer electronics, semiconductors, and smart technologies, making South Korea a formidable AI player.
 
Singapore’s AI Singapore initiative is another model worth emulating. Through AI Singapore, the government funds AI projects and facilitates collaboration between research institutions, government agencies, and private companies. This ecosystem nurtures AI-driven solutions to solve pressing challenges in healthcare, finance, and urban management.
 
Malaysia can strengthen its public-private partnership model by encouraging more collaboration between universities, industries, and government agencies. In this context, collaborations between Universiti Malaysia Kelantan’s (UMK) Faculty of Data Science and Computing and Huawei, Microsoft, and Alibaba ensure that its curriculum aligns with industry needs.
 
UMK’s AI and Big Data Centre (AIBIG), a research wing under the Faculty, albeit on a small scale, is an example of how academia can play a critical role in shaping the AI agenda. AIBIG is currently working with several industry players on AI and data analytics projects, bridging the gap between research and industry needs. This model of collaboration should be replicated across other institutions.
 
Talent Development for the Digital Age
 
South Korea and Singapore understand the value of nurturing a future-ready workforce. South Korea has integrated AI into its education system, with initiatives like the AI Education Project aiming to create AI specialists from an early age. This focus on early education is complemented by reskilling programs for the existing workforce, particularly in AI-driven sectors like electronics and automotive manufacturing.
 
Singapore’s National AI Strategy dedicates significant resources to developing digital talent, with programmes aimed at reskilling workers in AI, data science, and other emerging technologies. The goal is to ensure that its workforce remains competitive and adaptive in an evolving digital economy.
 
In China, universities and vocational training programmes are aligned with the country’s tech aspirations, producing graduates who are equipped to lead in AI, robotics, and other high-tech fields. The innovation ecosystem in Guizhou Science City, for example, focuses on nurturing talent and developing technology-based startups.
 
Malaysia needs to invest more heavily in education and talent development to keep pace with global trends. Schools and universities should embed AI and data science in their curricula to produce digitally literate graduates. Moreover, reskilling and upskilling opportunities must be offered to the current workforce to bridge the talent gap and empower industries to embrace advanced technologies.
 
Higher education institutions can play a pivotal role by not only training future AI professionals but also providing hands-on industry experiences through collaborations with key industry players. By aligning education with market needs, Malaysia can ensure a competitive workforce capable of driving AI innovations.
 
The Role of Higher Education Institutions
 
Universities in Singapore and China have been instrumental in driving AI research and innovation. Institutions like the National University of Singapore (NUS) and Nanyang Technological University (NTU) have developed AI research centres and work closely with government agencies and private companies.
 
China has also leveraged its universities to push the boundaries of AI research. For example, Tsinghua University and Peking University are producing cutting-edge research in AI, which feeds directly into the nation’s industries and technological advancement. Both have their own incubators at the famous innovation and entrepreneurship hub at Innoway in Beijing, known as China’s Silicon Valley.
 
In South Korea, universities play a critical role in AI development, particularly through initiatives like KAIST’s AI-focused research and training programs. KAIST (Korea Advanced Institute of Science and Technology) is known for its AI research and has partnerships with global tech companies like Hyundai and Samsung, working on autonomous driving, robotics, and machine learning. Seoul National University also excels in AI, focusing on both theoretical and applied AI, while Yonsei University hosts interdisciplinary research, integrating AI into healthcare and biotechnology solutions. These institutions collaborate with industry, driving innovation across sectors. 
 
In Malaysia, universities must play a similarly proactive role. While some institutions, such as Universiti Teknologi Malaysia (UTM) with its newly launched AI Faculty, are beginning to take up this challenge, more universities need to follow suit. Higher education institutions should not only focus on teaching AI but also on conducting world-class research and developing practical AI applications. 
 
Additionally, Malaysia’s universities should also reconsider their KPIs to prioritise industry-based solutions over academic publications. By fostering research that addresses real-world industry challenges, universities can help Malaysia build a strong foundation for technological growth. They should also offer ongoing training and certification programmes in AI and other emerging technologies to continuously upskill Malaysia’s workforce.
 
The Way Forward
 
Malaysia stands at a pivotal point in its journey toward becoming a digitally advanced nation. By adopting the strategic insights from countries like Singapore, South Korea, and China, Malaysia can overcome its current challenges and accelerate the deployment of AI and digital technologies. A focused approach that includes clear strategic planning, public-private collaborations, investments in digital infrastructure, and a talent-driven ecosystem will lay the foundation for Malaysia’s success in the digital era.
 
UMK’s AIBIG and similar initiatives highlight the potential that universities and research institutions have in shaping the future of AI in Malaysia. By shifting the focus of KPIs from academic publications to industry-driven solutions, universities can fast-track Malaysia’s AI agenda, positioning the country as a leader in innovation.