KUALA LUMPUR: The government is introducing a new model that requires ministries to publicly identify their challenges and invite industry players to propose solutions, moving away from Malaysia’s traditional one-problem-one-contractor system.
Spearheaded by Malaysia Digital Economy Corporation (MDEC), the Government Innovation Initiative will allow ministries and agencies to publish their problem statements openly, enabling the private sector to submit data- and technology-driven proposals in response.
“We want to move to a system where ministries put up their problem statements, and the industry tells us what solutions are possible. Ultimately, the best suggestion wins,“ Digital Minister Gobind Singh Deo told reporters at the Pikom Leadership Summit 2025 (Pikom Lead 2025) today.
Gobind said such a move would help Malaysia obtain more comprehensive, higher-quality solutions using the same budget traditionally used to solve just one issue.
“In the past, when a problem arose, a contractor would simply be appointed to resolve it. Previously, we spent money to fix one issue at a time. Still, today, with innovation, data and new technology, the same resources can be used to tackle many more challenges.”
Gobind said his ministry is preparing the innovation framework for submission to the prime minister and the cabinet, with phased implementation expected.
“It is still under discussion, and I am preparing the framework to submit to the prime minister and the cabinet. We are working on it now, and I believe we will start seeing progress within the first six months of next year. It will roll out in phases, but by the middle of next year, the framework should be ready,“ he said.
Furthermore, the government is establishing a data commission within the next 24 months to oversee data standards, security layers and long-term usability, following the enforcement of the Data Sharing Act on April 28 this year.
“Although 4G coverage has reached 97% and 5G is nearing 84%, the country remains underprepared in critical areas such as data, computing power, and digital governance.
“Much of the government’s data from the past 60 years is still in analogue form, and there is no policy requiring ministries to audit and digitise their records. Without reliable data and sufficient computing capacity, discussions about AI are ineffective because we cannot put those ideas into practice,” Gobind said.
Pikom Lead is the annual flagship leadership summit organised by Pikom, the National Tech Association of Malaysia. This year’s edition gathered more than 400 C-level leaders, policymakers, innovators and international delegates from China, Mongolia and across Southeast Asia.
Carrying the theme Spark Strategy Scale, Pikom Lead explored how intelligent technologies, artificial intelligence (AI), cross-border market access and talent transformation are shaping a resilient, globally competitive digital economy for Malaysia.
A major highlight of the summit was the announcement of five strategic collaborations, underscoring Pikom’s expanding role as a regional connector and national industry catalyst.
The first collaboration will see the Global Computing Consortium establish its Malaysian hub within Pikom, positioning the country as an active node in the global computing ecosystem and advancing cross-border cooperation in AI, advanced computing, and digital infrastructure.
The second partnership, between Pikom and the China Silk Road Group, aims to deepen Malaysia-China digital cooperation by accelerating joint initiatives in AI innovation, cybersecurity, data centres and digital trade, further strengthening Malaysia’s role as a digital gateway between China and Asean.
The third collaboration involves Pikom Academy and TM Digital Innovation, which will jointly develop a Talent Intelligence Platform to help companies anticipate future skill needs, support digital upskilling and build a resilient, data-driven talent pipeline.
The fourth partnership is between Pikom Academy and TalentCorp to promote the LiKES internship initiative. TalentCorp also announced a RM1 million allocation for Pikom member companies under the LiKES Matching Grant to support SMEs and start-ups in providing high-quality paid internships.
The fifth collaboration links the Pikom CIO Chapter with the Mongolia CIO Club to enhance cross-border CIO cooperation, strengthening professional exchange, leadership development, and CIO-to-CIO networking between both countries.
Pikom chairman Adjunct Professor of Practice Alex Liew highlighted the importance of these partnerships in charting Malaysia’s digital future.
“These collaborations represent our commitment to move from ambition to activation. Pikom is building bridges that connect Malaysia to global opportunities, strengthen our talent ecosystem, and accelerate industry-wide digital transformation,“ he said.
