Malaysia is entering a “sweet spot” in the artificial intelligence (AI) revolution as technology becomes more accessible, investor interest strengthens and the government steps up efforts to lift productivity through digital adoption, Deputy Investment, Trade and Industry Minister Liew Chin Tong said.
Speaking at the launch of the AI for Productivity 2025 programme, Liew said AI is now more affordable, easier to deploy and widely available, positioning Malaysia to capitalise on the next phase of industrial transformation.
He noted that Malaysia is emerging as a regional hub for AI investments and data infrastructure, while many economies struggle with job losses from automation.
“Malaysia’s reliance on low-skilled foreign labour creates an opportunity for AI to replace low-value work and generate higher-quality jobs for Malaysians,” he said.
Liew said worker productivity rose 2.4% in 2024 to RM99,265 per worker but remains below regional peers, warning that continued dependence on cheap labour is holding back growth.
To accelerate adoption, the government has rolled out 135 AI proof-of-concept projects through the Malaysia Productivity Corporation, covering factory automation, AI-driven manufacturing, workforce optimisation and customer analytics.
The AI for Productivity 2025 programme aims to upskill workers, help businesses including SMEs to optimise operations through AI, and foster an innovation-led culture, in line with the New Industrial Master Plan 2030.
Liew urged industries to act decisively, calling the current moment a “golden opportunity” to leapfrog into higher-value, innovation-driven growth.
