Malaysia sets up permanent corporation and safety institute to steer national AI agenda

By Valeryn Liaw

Laying a five-year roadmap at the AI Malaysia launch, Malaysia’s Minister of Digital, YB Gobind Singh Deo, said AI Malaysia will oversee the national artificial intelligence (AI) development and implementation efforts.

YAB Dato’ Seri Anwar Ibrahim, Prime Minister of Malaysia, officiated the Launch of AI Malaysia, alongside the unveiling of the National AI Action Plan 2026–2030. Image: Ministry of Digital, Malaysia

Malaysia has established AI Malaysia Berhad, a permanent corporation under the Ministry of Digital, to steer the country’s artificial intelligence (AI) development agenda.

AI Malaysia builds on the functions previously led by the National AI Office (NAIO) which was established in December 2024.

It will do so by providing an institutional platform to coordinate policy, implementation and collaboration across sectors.

Strengthening governance through Malaysia AI Safety Institute

The launch also introduced the Malaysia AI Safety Institute (MY-AISafe) to strengthen national technical capabilities in assessing and managing AI risks.

The institute would coordinate with government agencies, industry, academia, and research institutions to strengthen the safe use of AI.

MY-AISafe would provide technical expertise, helping regulators and organisations to better evaluate, manage and mitigate potential risks arising from AI adoption.

The government is also drafting an AI governance bill targeted for completion by end 2026, and it was now open for public consultation.

While the proposed legislation provides a broader regulatory foundation, its effectiveness depends on whether the principles can be translated into practical guidance for organisations deploying AI across different sectors.

Building towards AI Nation 2030 through an action plan

During the launch, the government announced the National AI Action Plan 2026–2030 and the establishment of Malaysia AI Safety Institute.

As a five-year roadmap, the National AI Action Plan 2026–2030 would support Malaysia’s AI Nation 2030 ambition, positioning the country not as a mere AI adopter, but as a regional leader shaping how AI was governed and deployed.

National AI Action Plan 2026–2030 is based upon five interlinked pillars:

Strengthening talent development: Expanding AI literacy among citizens while developing specialised talent needed by industries.

Developing policy: Bridging research and industry needs to move AI solutions from development into real-world use.

Enhancing digital and data infrastructure: Providing the infrastructure and computing capacity for government and businesses to develop and deploy AI securely.

Increasing digital trust: Building public and investor confidence by establishing clear safeguards for AI deployment.

Expanding strategic investments: Combining public and private funding to support sustained AI development.

*Malaysia is now adopting a whole-of-nation approach as opposed to a whole-of-government approach, shares Malaysia's Digital Minister YB Gobind Singh Deo. Image: Ministry of Digital, Malaysia*

Instead of siloed efforts by the government, the action plan enables a coordinated approach aligning government, industry, academia, and civil society.

“We are now adopting a whole-of-nation approach as opposed to a whole-of-government approach,” the Digital Minister YB Gobind Singh Deo shared in his opening remarks at the launch event.

“We need a place where all sectors involved can come together and discuss the risks faced by different sectors.”

The shift recognised that there is no one-size-fits-all approach to adopting and regulating AI, and sector-specific approaches are needed for capacity building, data, deployment and risk management.

Enhancing AI readiness through talent development

The Digital Minister highlighted that the government would continue to focus on three core areas: Awareness, Access and Adoption, to translate capability into real impact across the nation.

This calls for a broader effort to build stronger literacy among citizens as AI impacted daily work and lives.

In supporting talent development, Malaysia's Prime Minister, YAB Dato’ Seri Anwar Ibrahim, has announced three months’ free access to premium AI tools for Malaysian youths completing the AI Untuk Rakyat (AI for the People) programme, targeting to benefit 100,000 youths in Malaysia.

Access alone does not guarantee meaningful AI adoption. As citizens rely on AI for day-to-day work, the challenge lies in ensuring they understand not only what tools to use but applying human judgement to evaluate its output.

“We cannot reject AI because of these risks. We must master this knowledge,” shared by the Prime Minister as he emphasised the need to strengthen AI literacy across different education levels.