Category: government

Malaysia sets 30% contribution from digital economy to its GDP by 2030

Positions itself as AI Nation at inaugural Smart City Expo KL Budget 2026, to strengthen institutions such as GovTech and Data Commission Technology is going to evolve even faster, and it will impact everyone, everywhere, declared Gobind Singh Deo (pic), Malaysias digital minister at the opening of Smart City Expo Kuala Lumpur 2025 (SCEKL25). Speaking without the aid of his notes and going on for much longer than his five minutes allotted time, the minister clearly had a lot to share. Its not a question of choice. It is something we need to do, he stressed. That urgency set the tone for the three day SCEKL25 and a twin event, the Malaysia Digital Xceleration Summit (MDX25), held in Kuala Lumpur. Today marks the conclusion of both events with a full schedule. While SCEKL is an offshoot of the Smart City Expo World Congress that has been held annually since 2011 with the KL event being the first time it has been held in Southeast Asia, MDX is the Malaysian Digital Economy Corporations annual tech conference held since 2023. Together, both events underscore Malaysias ambition not only to embrace the next wave of digital transformation but also to shape how Southeast Asia navigates it. From connectivity to AI ecosystems Reflecting on how quickly Malaysias digital landscape has shifted, Gobind recalled his first stint as minister in 2018. In 2018, the tech conversations were around connectivity, he said, recalling the governments efforts to build affordable, nationwide access for 4G and 5G. We had to make sure there was equality, so that no one was left behind. Fast forward to 2025 and the agenda looks very different. The question is no longer whether Malaysians can get online but how the nation can prepare an entire ecosystem to responsibly harness AI. That means thinking ahead not just about infrastructure, but also ethics, cybersecurity, and data governance. We cannot be in a position where we wait for something to happen, and when it happens, we are not prepared. At that point, the damage may be irreparable, he warned. To illustrate the stakes, Gobind offered a scenario: If a robot was conducting an operation on any one of us, with a doctor operating remotely from Canada, we must make sure the network doesnt collapse midway through. We must make sure the network is secure. Trust, he stressed, will be the foundation of future technologies. He pointed to key legislative, and policy moves already in motion. The Cybersecurity Act tabled in Parliament last year, the strengthening of the Personal Data Protection Act, and the introduction of the AI Nation 2030 roadmap in the 13th Malaysia Plan or RMK13, which identifies sectors such as healthcare, transport, and public services for high-impact adoption. But, he added, Malaysia must go further by anticipating challenges five to ten years ahead and putting structures in place now to govern them. Some level of thinking must go into creating an ecosystem where we know for certain that the robots around us are going to act in our best interest, he said. This extends beyond physical robotics to language models and digital assistants, where the integrity of data becomes critical. If the data going into these models is inaccurate, the consequences could be catastrophic, from flawed medical procedures to poor investment decisions. During the press conference, Gobind fielded questions around the readiness of businesses and government agencies in embracing AI. He highlighted progress already made in data centres, digitisation, and cybersecurity, noting that industries are already using AI solutions, and adoption will accelerate further under the AI Nation 2030 roadmap. Looking ahead to Budget 2026, he stressed the importance of strengthening institutions such as GovTech and the Data Commission, while investing in cybersecurity, personal data protection, and talent development. These measures, he said, are key to achieving our target of a 30% digital GDP contribution by 2030. MDECs task Malaysia Digital Economy Corporation (MDEC) is tasked with turning the governments vision into practice. Anuar Fariz Fadzil, its CEO, described MDX25 as a collaborative stage where Malaysias digital future is built through ideas, partnerships, and opportunities. With Malaysia committing to an ambitious timeline to become an AI nation by 2030, Anuar said, These five areas are real and tangible sectors, he said, pointing to MDECs five focus pillars: next-gen data, trust, computing, talent, and creativity. They translate directly into jobs, opportunities, and growth for the people. He reminded attendees that MDX was not just a local showcase but a global one, with over 5, 000 participants, 40 next-gen exhibitors, and cross-border collaborations. For Malaysias one million SMEs, this visibility matters. Its a chance to gain visibility, connect with investors, and showcase solutions on a global stage, he said. From Malaysia to ASEAN and beyond Situating Malaysias efforts in a regional context, Gobind noted that his ASEAN counterparts are grappling with similar challenges and opportunities. This is a global conversation, he said. If we create ecosystems that strengthen us and our partners in ASEAN and beyond, then together we build resilience for this new world of digital transformation. On the economic front, Gobind reaffirmed the governments target for the digital economy to contribute 25% to Malaysias GDP this year, rising to 30% by 2030. To reach this, he said, Malaysia must ensure both industry and citizens are empowered to adopt digital tools at scale. New technologies inspire us, but we must take responsibility for how they shape our society. We must always remain in a position where we are able to govern what happens. The minister emphasised the importance of not just continued dialogue and collaboration but for frank conversations that do not shy away from uncomfortable truths. The discussion must start now, and it must be frank. We must be able to state our fears, anticipate where technology is moving, and ask ourselves what the government must do to prepare. This is why the Ministry of Digital will continue hosting events like this, to ensure Malaysia stays ahead of the curve.