Back in 2018, Microsoft commissioned the International Data Corporation to assess the take up of artificial intelligence (AI) in the Asia Pacific region.\u00a0 The survey found that Indonesian businesses had the highest adoption rate in South East Asia at the time, at 24.6 percent, outstripping Thailand and Singapore, and a long way ahead of Malaysia at 8.1 percent.<\/p>\n\n\n\n
THE AI-ROADMAP<\/strong><\/p>\n\n\n\n Dial forward to 2021: Malaysia unveiled a five-year roadmap (known as \u201cAI-RMAP 2021-2025\u201d) for the transformation of its economy through the adoption of AI, and the fostering of an AI innovation ecosystem.\u00a0 In the words of then Minister of Science, Technology and Innovation, it was \u201ca game-changer in Malaysia\u2019s quest to leapfrog and become a high-tech nation by 2030\u201d.\u00a0 Using data from McKinsey, AI-RMAP proposed that AI had the potential to add a further 1.2% \u201cat the very least\u201d on top of the nation\u2019s baseline annual GDP growth of 4.4%.\u00a0 In other words, the government\u2019s target for 30% output increase by 2030 (a stated aim of the National Industrial Revolution 4.0 policy) could be achieved from AI-related gains alone, all other things being equal.<\/p>\n\n\n\n HAS IT BEEN SUCCESSFUL SO FAR?<\/strong><\/p>\n\n\n\n Oxford Insights\u2019 2022 Government AI Readiness report suggests that the Malaysia government\u2019s bullish commitment is paying off, with Malaysia now ranked 29 globally for \u201cAI readiness\u201d, second only to Singapore in South East Asia (ranked global number two), and ahead of Thailand (31) and Indonesia (43), though it does comment that \u201cJakarta as an example of a city in the region that could soon become competitive with Singapore in its AI readiness\u201d.\u00a0 <\/p>\n\n\n\n The report scores Malaysia particularly highly with regard to one of three important pillars: \u201cgovernment\u201d (i.e. a government\u2019s commitment to, and regulation of, AI).\u00a0 Scoring 77.70 in this regard, Malaysia stands only percentage point behind the Netherlands and China, both of which are ranked much higher overall because of strengths in other areas \u2013 technology, or data and infrastructure.\u00a0 In other words, Malaysia\u2019s AI policy and strategy are a real strength.<\/p>\n\n\n\n In 2021, Carsome, an innovative used-car trading platform, became Malaysia\u2019s first technology \u201cunicorn\u201d as it passed the $1bn valuation mark; HSBC and KPMG have together publicly identified ten others that could soon follow suit - Boost Holdings, Exabytes, Jirnexu, Presto Mall, Mindvalley, Neurogine, Eatcosys, Says, Lapasar and PolicyStreet.\u00a0 Malaysia has a great supply of technically-skilled workers, and with the government\u2019s active nurturing of an ecosystem that encourages AI innovation and investment, it seems probable that the number of powerful, innovative, Malaysian tech companies will continue to grow.<\/p>\n\n\n\n INDUSTRIAL IMPLICATIONS<\/strong><\/p>\n\n\n\n Widespread, rapid adoption of AI means far more than having new apps for consumers to use, or novelties such as Aina, \u201cMalaysia\u2019s first AI-powered DJ\u201d (unveiled by Fly FM radio station in June this year).\u00a0 Nor does it just change the business landscape through the advent of new companies that create and manage those apps.\u00a0 It means that service sectors, supply chains and manufacturing technologies are changing more rapidly too, and adopting AI.\u00a0 <\/p>\n\n\n\n This September, MyDigital Corporation and the Malaysia Centre for Fourth Industrial Revolution released \"The economic impact of generative AI: The future of work in Malaysia\"; in it they claim that AI has the potential to unlock over $113 billion productive capacity for Malaysia.\u00a0 The report also shows a significant proportion of businesses and workers, across a wide range of sectors, who are actively embracing generative AI, and are feeling positive about doing so \u2013 focussing more on its potential, and less on any perceived threat to their jobs.\u00a0 <\/p>\n\n\n\n That\u2019s a huge turnaround in the five years since 2018, and one that Malaysia can be proud of.<\/p>\n\n\n\n