Malaysia’s MITI Minister emphasises the pivotal role of AI and cloud technologies in driving economic progress and industrial transformation, highlighting their impact on job creation, efficiency, and innovation across various sectors. The government’s agenda includes initiatives to position Malaysia as a tech hub and leverage Google Cloud solutions for educational advancement and business competitiveness. However, global implications of AI on job markets and income inequality call for strategic investments in digital infrastructure and regulation.
Malaysian Minister Highlights Role of AI and Cloud Technologies in Economic Transformation
KUALA LUMPUR, June 26 – At the Google Cloud Malaysia Day event at Hilton KL Sentral, Malaysia’s Investment, Trade and Industry Ministry (MITI) Minister, Tengku Zafrul Tengku Abdul Aziz, emphasized the significance of digitalisation and artificial intelligence (AI) in shaping a sustainable socio-economic future. Tengku Zafrul underscored cloud technology’s transformative impact on productivity and high-skilled job creation in Malaysia.
Industries utilizing cloud solutions are witnessing increased efficiency and innovation. The manufacturing sector has optimized supply chains and improved production efficiency, while the healthcare industry benefits from enhanced patient care, electronic medical record management, and telemedicine services. This technological advancement creates demand for professionals in data analytics, software development, and cloud architecture.
Tengku Zafrul detailed Malaysia’s industrial transformation agenda, aiming to increase economic complexity and advance technology. The agenda includes projects like fostering global IC design champions in electric vehicles, renewable energy, AI, transforming 3,000 smart factories, and positioning Malaysia as a Generative AI hub. Google Cloud’s technology is deemed crucial for automating, digitalizing, and robotizing business operations.
An example is the Ministry of Education’s DELIMa platform on Google Cloud, which supports digital learning. AI facilitates data-driven decision-making and personalized services, with Google’s cybersecurity ensuring data protection and infrastructure security.
Furthermore, Tengku Zafrul emphasized that cloud and AI empower Malaysian businesses, especially SMEs, to compete globally. Cloud technology enables startups to scale and leverage resources once exclusive to large corporations. He noted Google’s $2 billion data center investment in Malaysia, expected to create high-skilled jobs, accelerate digital transformation, and consolidate Malaysia’s position as a tech hub in Southeast Asia.
AI’s economic implications, however, extend globally. Research highlights AI’s potential to enhance productivity, boost growth, and lift incomes but also points to possible job losses and increased inequality. Advanced economies may see up to 33% of jobs affected, while emerging economies might experience 24%, and low-income countries around 18%. Policymakers are encouraged to invest in digital infrastructure, training, and regulation to manage these transitions and ensure equitable AI benefits.
Programs like the IMF’s AI Preparedness Index Dashboard assess countries’ readiness for AI adoption, aiding policymakers, researchers, and the public in identifying necessary actions to harness AI’s advantages while mitigating risks.
