Malaysia Eyes Role as AI Hub
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Loading... - Reika Wada
- 17 Oct 2024
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As Malaysia positions itself to become a key technology hub in Southeast Asia, the government is intensifying its governance on artificial intelligence (AI) and cloud technology. This strategic move comes amid significant investments from major tech companies such as Google, NVIDIA, and Microsoft, which are bolstering Malaysia's reputation as a center for cloud and AI data operations. However, analysts caution that the policies surrounding these technologies must consider their broader impacts on society and the environment.
Prime Minister Anwar Ibrahim has announced plans to establish a national cloud policy and introduce regulations governing the ethical use of AI. The Deputy Minister of Economy, Hanifah Hajar Taib, emphasized that expanding the AI ecosystem is a critical component of the 13th Malaysia Plan (13 MP), which outlines the national development agenda for 2026-2030.
Elina Noor, a senior fellow at the Carnegie Endowment for International Peace, highlighted that a national policy on AI and cloud technology will dictate resource allocation over time to achieve specific goals. However, she raised concerns about whether such policies adequately address the long-term costs associated with technology investments and operations, particularly regarding their effects on people and the environment. Noor criticized the current focus of AI governance discussions in Malaysia, suggesting that they are overly centered on growth and investment, which she views as an outdated approach given the complexities of the geopolitical landscape and climate change.
To ensure that Malaysia has greater agency in shaping its technological future, Noor advocates for a more proactive stance in developing governance frameworks that consider the societal and environmental implications of technology. She pointed out the need to address critical questions about the labor conditions of those who annotate data for AI training, including their compensation and the availability of social safety nets for those exposed to distressing content.
Chin Yew Sin, president of the Malaysia Strategy Research Centre, noted that Malaysia's strategic location, with its extensive network of industrial estates, robust digital infrastructure, and ample resources, positions it well to become a regional hub for cloud and AI centers. He believes that the government's proactive approach in drafting AI policies will attract further investment, with the aim of establishing Malaysia as a global leader in AI technology through strategic investments and collaborations.
Chin also referenced the National Artificial Intelligence Governance and Ethics Guidelines (AIGE), which align with the broader ASEAN initiative to develop AI governance and ethics frameworks. He pointed out that AIGE enhances Malaysia's existing legal structures, such as the Cyber Security Act 2024 and the amended Personal Data Protection Act 2010, which are crucial for fostering a secure and ethical AI environment.
Launched by the Ministry of Science, Technology, and Innovation on September 20, AIGE aims to promote the responsible and ethical use of AI, manage associated risks, and maximize the benefits of AI technologies. The guidelines are voluntary and target end users, policymakers, and stakeholders in the AI sector.
Julia Roknifard, an expert in international relations, emphasized that the establishment of AIGE and the National Artificial Intelligence Roadmap 2021-2025 signal to potential investors that Malaysia is committed to serious and long-term plans for AI development. This commitment is likely to result in favorable policies, including tax incentives and land allocations for facilities, which are essential for attracting investment.
Roknifard concluded that Malaysia's strategic vision and determination to capture the AI industry within the ASEAN region are evident, positioning the country as a competitive player in the rapidly evolving technology landscape. As Malaysia continues to develop its AI capabilities, the focus on ethical governance and sustainable practices will be crucial in ensuring that technological advancements benefit both the economy and society at large.
