If industrialisation once powered Malaysia’s economic take-off, then Artificial Intelligence (AI) and automation are the new engines that will drive our nation into the next era of growth. From the factories of Penang in the 1980s to the digital corridors of Cyberjaya today, our nation has always risen to meet each revolution with the ingenuity of the rakyat and the strength of its public-private partnerships.
The numbers speak for themselves. One of Malaysia’s key targets is to increase the digital economy’s contribution to GDP to 25.5% by year-end, a significant leap from 16% in 2010. And we are well on our way towards reshaping industries, creating new opportunities and raising national competitiveness.
Today, technology is no longer just about efficiency or being lean. Its true role serves to power businesses by driving optimisation, unlocking new revenue streams, scaling operations and capturing greater market share. The future belongs to those who embrace AI boldly, embedding it across entire organisations to drive meaningful impact.
A new IBM CEO study shows that business leaders expect the growth rate of AI investments to more than double over the next two years, with most actively adopting AI agents and preparing to scale them.
By 2027, 85% of surveyed CEOs expect their investments in scaled AI efficiency and cost savings to have returned a positive return-of-investment (ROI), while 77% expect to see a positive return from their investments in scaled AI growth and expansion.
AI is everywhere, but results are not. What matters now is turning experimentation into enterprise-wide value that drives efficiency, growth and trust.
Many business leaders are overwhelmed by hype and unsure how to move forward, struggling to translate AI pilots into enterprise-wide value.
IBM is uniquely positioned to cut through the AI noise with a clear, strategic point of view.
At IBM, we create and apply breakthrough technologies to solve current business challenges and develop new growth pathways. And like so many technologies that have come before it, AI is no longer a feature; it’s a foundation.
Now, with the Ministry of Digital at the helm, Malaysia is laying the groundwork to ensure that AI is not only embraced, but fully harnessed to uplift businesses, public services and communities alike.
Just as early industrial policy brought government direction together with private innovation, our AI future depends on a thriving public-private partnership model.
Meanwhile, the National AI Office is already coordinating national research and helping Malaysian start-ups build homegrown language models and AI stacks. Together, these bodies ensure that our digital infrastructure is not only modern and secure, but ready to support the transformative power of AI.
To make a real difference, digital transformation must reach beyond boardrooms and research labs into everyday life. Take the case of KPJ Healthcare, one of Malaysia’s largest private hospital group, which would soon be rolling out an AI-powered patient-service chatbot built with IBM Malaysia on the watsonx.ai platform.
When live across 30 specialist hospitals, the assistant answers routine enquiries, books appointments and matches patients with the right specialists round the clock, relieving frontline staff and giving the public faster access to care. The project shows how Malaysian institutions are already putting enterprise-grade AI to work to solve everyday challenges.
AI is often described as a double-edged sword. While it can automate tasks and optimise systems at unprecedented scale, the true differentiator between humans and machines lies in our creativity, empathy and moral judgment. These human qualities must guide how we build, implement and use AI in Malaysia.
Initiatives like IBM’s SkillsBuild programme are equipping – and empowering – the workforce with practical knowledge in AI, cloud computing and cybersecurity.
Importantly, no one must be left behind. Community engagement efforts are underway to reach underserved groups in rural and semi-urban areas. Because an AI-powered future means little if it is not inclusive — and the digital divide must not become a new form of inequality.
At IBM, we believe that public-private partnerships, cross-sector collaboration and digital talent development are crucial for making Malaysia a leader in AI innovation.
The time to act is now! Together, we can turn ambition into reality and reach AI excellence on a large scale. Malaysia Madani Rakyat Disantuni. Selamat Hari Merdeka 2025!
Note: This commentary was contributed by Dickson Woo, IBM Malaysia Country General Manager and Technology Leader.
Source: IBM Malaysia
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