AI Malaysia Seeks to Empower Private Sector with Homegrown Solutions and Regional Collaboration

AI Malaysia: Building a Collaborative Network to Guide AI Development in the Private Sector

Many businesses treat artificial intelligence (AI) like conventional computing—buying ready-made solutions from tech giants such as OpenAI, Microsoft, or Google and plugging them in. This approach, however, misses key distinctions and often leads to costly mistakes.

Goh Peng Ooi, president of AI Malaysia (AIM) and founder of fintech company Silverlake Axis, warns that AI is not just another IT tool or application. Instead, it’s an entire system that companies can develop themselves, with different development methods and strategic considerations.

Understanding AI Beyond Plug-and-Play

Treating AI like email or cloud storage leads to wasted resources. Goh compares this to smartphones: the underlying technology is complex and expensive, making it unfeasible for local companies to build from scratch. Instead, they sell devices from established brands. Similarly, platforms like ChatGPT and Gemini represent these global tech giants in AI.

However, Goh stresses that unlike smartphones, local companies can adopt AI affordably without relying solely on these big brands. He highlights two main AI development approaches:

• Backpropagation: The AI model reviews mistakes and adjusts itself accordingly. ChatGPT uses this method but requires massive capital investments and hands control of data to large corporations like Microsoft and Google.
• Reinforcement Learning: The AI agent learns from its environment through rewards and penalties. This method, used by China’s Deepseek, is less expensive and offers Malaysia the opportunity to develop homegrown AI solutions and retain control over its data.

Choosing reinforcement learning can help companies avoid over-reliance on foreign tech giants and maintain data sovereignty, preventing external control of Malaysian data.

Connecting the Private Sector With AI Stakeholders

AIM was launched on May 30 as a platform backed by the Asean Business Advisory Council (Asean-BAC) to foster AI adoption in Malaysia's private sector. It fills a critical gap: while the National AI Office (NAIO) focuses on policy and infrastructure, there was no dedicated private sector body to facilitate collaboration and funding.

Tan Sri Nazir Razak, chairman of Asean-BAC Malaysia, emphasizes that the private sector is the true engine for AI innovation and implementation. AIM aims to:

• Facilitate connections between companies and AI solution providers.
• Guide companies to appropriate funding sources for AI projects.
• Organize free events and talks to raise AI awareness.
• Offer different membership tiers tailored to sectors such as agriculture and healthcare.

Early members include major names like CIMB Bank, AirAsia, Gentari, and Carsome. AIM currently has 15 members representing each Malaysian state, with systems like membership fees and organizational structure still under development.

Setting an Example for Regional Collaboration

AIM is a key initiative under Malaysia’s Asean chairmanship. Its broader goal is to lay the groundwork for an Asean-wide AI network that connects private-sector AI associations across member states to share knowledge and resources.

This regional collaboration is modeled after the Asean Common Carbon Framework, where Malaysia helped establish a carbon market association working with counterparts in Indonesia, Thailand, and Singapore. AIM aims for a similar model with AI.

The Asean AI Network will operate as a loose coalition rather than a centralized body, respecting the diverse cultures and policies of member states. It will serve as a platform for more developed countries to support those still building their AI capabilities without imposing mandates.

Why This Matters for IT and Development Professionals

For professionals working in IT and development, AIM offers a unique resource to:

• Access tailored AI collaboration opportunities.
• Understand different AI development methods and their implications on cost and data control.
• Engage with a growing network of AI solution providers and funding bodies.
• Contribute to Malaysia’s and Southeast Asia’s AI maturity and readiness.

Those interested in expanding their AI skills and knowledge can explore relevant training and courses at Complete AI Training.

Malaysia’s approach, driven by AIM, highlights the importance of strategic AI adoption that balances innovation, cost, and data sovereignty. This approach can serve as a practical example for companies and professionals aiming to integrate AI effectively within their operations.