Malaysia anticipates becoming an artificial intelligence (AI) nation by 2030 with the digital economy contributing 30 per cent in gross domestic product (GDP) to the country, Malaysia’s Digital Minister Gobind Singh Deo told reporters at an event in Kuala Lumpur yesterday. “When it comes to building an AI nation, we have taken real steps that show that we are committed to building an ecosystem. Today, we already see many industries that are operating using AI solutions. As time goes by, we are going to (develop and adopt) these solutions a lot faster,” he said.
“This year’s target for the digital economy is 25.5 per cent of GDP which is achievable as the country is expecting more investment to come into this sector,” he added.
Earlier in a speech at the Smart City Expo Kuala Lumpur 2025, Gobind emphasised Malaysia’s vision of becoming an AI Nation — positioning AI as a key driver of socio-economic development, governance, and daily life, while ensuring that the benefits of technological progress are shared equitably, inclusively, and sustainably.
“I reaffirmed the [Digital] Ministry’s commitment to supporting city leaders, innovators, and communities as both enabler and partner in Malaysia’s digital journey. I am confident that Malaysia can deliver AI Cities that are not only smart, but that also truly serve the ‘rakyat’ [citizens] — efficient, inclusive, and ready for the future,” he said.
At the event, three Memorandums of Understanding (MoUs) and one Letter of Collaboration were signed as follows:
1) The first MoU between DNB and Ericsson launched the 21st Century Technologies Education Programme, which aims to upskill civil servants in local councils and public agencies with practical knowledge in AI, 5G, and the Internet of Things.
2) The second agreement formalised a Letter of Collaboration between DNB and Amazon Web Services (AWS) to co-develop a national AI Cities platform, integrating cloud infrastructure, machine learning, and advanced data analytics to enable real-time urban operations and predictive decision-making.
3) The third MoU, between DNB, MDEC, and the Malaysian Smart City Alliance Association (MSCA), established joint frameworks and standards for AI Cities in Malaysia, guiding the integration of technology into daily life, enhancing mobility systems, digital citizen services, and sustainable urban solutions.
4) The final MoU, signed between MDEC and Dell Technologies’ AI Innovation Hub, established a testbed for climate AI prediction in Penang’s UNESCO World Heritage Zone. This project aims to protect cultural heritage while enhancing environmental resilience through AI.
DNB (Digital Nasional Berhad) is a government-owned entity in Malaysia managing the country’s 5G network while MDEC (Malaysia Digital Economy Corporation) is a government agency set up to lead Malaysia’s digital economy.