Malaysia is intensifying its efforts to promote the ethical application of AI and cloud computing by implementing new regulations and partnerships.
In an Oct. 1 report from Reuters, Malaysian Prime Minister Anwar Ibrahim announced that the country will establish a national AI office to oversee initiatives related to AI developments within its jurisdiction.
This initiative indicates a broader global trend of governments adopting AI while maintaining responsible regulation.
Malaysian artificial intelligence (AI) and cloud computing regulations
Additionally, the prime minister disclosed plans for a national cloud computing policy to enhance the competitiveness, economic development, digital inclusion, and innovation of public services.
The policy will ensure that all citizens benefit from technological advancements by prioritizing data security and user trust.
The national AI office is responsible for developing a five-year technology “action plan” and a regulatory framework that will facilitate the adoption of ethical and sustainable AI within the following year.
The government has already implemented other laws that impact Big Tech, although this is Malaysia’s initial significant regulatory development regarding AI.
Malaysia proposed licensing requirements for social media and communications providers with more than eight million users on Aug. 1, eliciting industry leaders’ responses.
The anticipated implementation date for the proposed “light-touch” regulation is January 2025. It endeavors to mitigate online damage, including cyberbullying, scams, and gambling, without stifling innovation.
Nevertheless, the Asia Internet Coalition (AIC) lobby group, which comprises major technology companies such as Apple, Meta, Amazon, and X, urged the prime minister to reevaluate the regulation.
Investments in Malaysia by major technology companies
Big Tech companies have actively invested in Malaysia’s tech sector while lobbying against specific regulations.
Google announced a multi-year partnership with a Malaysian technology firm to provide cloud services after the announcement of AI and cloud policies.
This partnership is anticipated to generate 26,500 jobs and contribute more than $3 billion to the local economy by 2030. Additionally, Google is constructing a $2 billion data center to support the region’s cloud infrastructure.
Ibrahim expressed his opinion on the developments:
“We aim to position Malaysia as a hub for generative artificial intelligence and investments from tech partners will be critical in building a robust and secure digital infrastructure.”
Microsoft allocated $2.2 billion in May 2024 to expand in Malaysia, emphasizing cloud computing and AI, before Google’s announcement.
Microsoft has announced that it will work with the government to enhance cybersecurity capabilities and establish a “national AI Center of Excellence.”
Malaysia’s development of more comprehensive regulations that could affect the tech industry has resulted in the increasing involvement of Big Tech.
