KUALA LUMPUR: The government has been called to position local companies as the main drivers in enhancing artificial intelligence (AI)-based solutions through Budget 2025, said Malaysia Internet of Things (IoT) Association deputy president, Datuk P. Sri Ganes.
He emphasised that Malaysia must act swiftly to remain relevant in a global economy increasingly driven by AI and smart technologies.
Investment in AI should focus on innovative solutions capable of tackling future challenges.
“Malaysia cannot simply focus on large figures in the budget. What matters more is how that funding is spent and the impact it creates. Investment used solely for overhead costs will not significantly contribute to the country’s AI development,” he said in a statement to Bernama.
Sri Ganes added that Malaysia should not try to reinvent the wheel when it comes to AI success, as seen in developed countries, but rather should focus on strategic collaborations with tech giants like Google, Microsoft and NVIDIA Corporation.
However, he emphasised that Malaysia’s true strength lies in synergy with local companies that possess a deep understanding of local issues and access to relevant data.
“Local companies are more aware of the problems and challenges faced by the community and industries here. Through this collaboration, the AI solutions developed will not only be more practical but also have a greater economic impact on the country,” he explained.
Sri Ganes also pointed out that strengthening the local AI ecosystem will attract more foreign investment, positioning Malaysia as a competitive regional AI hub.
“Just look at Singapore, which has allocated over US$500 million (RM2.1 billion) through the AI Singapore initiative, and India, which trains over 10,000 AI graduates annually through collaborations between the government and the private sector. Malaysia cannot afford to lag behind,” he added.
He hopes that Budget 2025 will place serious emphasis on talent development in the AI field to ensure Malaysia is not left behind in this global wave of innovation.
“Investment in talent and technology is key to the nation’s future. We need to be bold in taking proactive steps and harnessing all available potential, rather than simply going with the flow,” he said.
Prime Minister Datuk Seri Anwar Ibrahim is scheduled to table Budget 2025, themed “ Ekonomi MADANI, Negara Makmur, Rakyat Sejahtera” on Oct 18.
