August 1, 2025
PETALING JAYA – Malaysia’s five-year plan to become an artificial intelligence (AI) powerhouse has been hailed as promising, but industry experts say its success will hinge on overcoming key obstacles and ensuring the public is prepared for an AI-driven future.
Khalil Nooh, CEO and co-founder of local language model company Mesolitica and founding member of the Konsortium AI Negara, is confident in the country’s goals, citing strong collaboration between the public and private sectors.
Yet, challenges remain. Access to funding for local innovators is limited, and many AI projects struggle to deliver real commercial impact beyond modest productivity gains.
“For the private sector, especially local AI builders, access to fresh capital is still a key challenge, as commercial success with new AI projects remains elusive,” he said.
Khalil hopes to see more targeted measures to raise awareness and equip the public with the skills to use AI tools, not just in office settings, but also for entrepreneurial ventures and side incomes.
Malaysian Artificial Intelligence Society president Dr Azree Nazri echoed similar sentiments, stressing the importance of “exposure, preparedness, and access” in building a truly inclusive AI ecosystem.
“Inclusivity means ensuring all sectors, urban and rural, industrial and agricultural, have meaningful opportunities in AI,” he said.
Azree believes the country should steer its workforce towards roles that benefit from AI, such as digital services, smart manufacturing, and agri-tech.
He added that focusing on high-potential sectors such as finance, telecommunications, healthcare, and agriculture could also create new job opportunities and enhance Malaysia’s global competitiveness.
“By raising preparedness, Malaysia can ensure AI benefits reach small businesses, rural communities, and marginalised groups, not just tech hubs,” Azree said, adding that access to AI hardware, cloud computing, and data infrastructure must also be expanded.
Both Azree and Khalil welcomed the 13th Malaysia Plan’s goal of nurturing AI and STEM talent from the primary school level, stressing that building AI capability should start early.
For Tan Han Wei, founder of smart farming solutions company Sustainable Hrvest, the 13MP reflects growing recognition of local tech developers as key contributors to national development.
“As a Malaysian tech developer, it means we’re no longer just following global trends, we’re being invited to lead. The emphasis on AI, digital systems, and ‘Made by Malaysia’ innovation gives companies a platform to gain visibility and contribute to the country’s long-term food security and economic resilience,” he said.
Tan, who helps durian farmers adopt tech tools such as crop sensors and is currently developing an AI-based pest detection system, said a persistent challenge is shifting mindsets around local technology.
“Local solutions are sometimes seen as less proven than imported systems, even when they’re better suited to Malaysia’s crops and climate,” he said.
He also highlighted the gap between advanced technology and practical application in the field, noting that farmers need support in interpreting data and adapting to environmental changes.
“To turn ‘Made in Malaysia’ into a real movement, we need more than just R&D funding. We need a full ecosystem,” he said.
“That means enabling the scalability of Malaysian products by helping local companies pilot and scale their solutions through cloud infrastructure support, on-ground validation, and export-readiness programmes.”
He called for targeted policy support, fast-tracked validation through agencies like the Malaysia Digital Economy Corporation or the Agriculture and Food Security Ministry, tax incentives for adopting local systems, and funding for post-deployment training.
“Ultimately, what we need is confidence in local innovation,” he added.