AI and IR 4.0 are critical in transforming traditional industries by integrating automation, data analytics, and intelligent systems into business operations. These technologies enable industries to improve production processes, increase efficiency and reduce operational costs, ultimately leading to increased productivity. In Malaysia, the digital economy is projected to contribute 25.5% of the country’s GDP by 2025, up from 23.2% in 2023. This steady growth has been largely driven by the adoption of AI and IR 4.0 technologies in various sectors including manufacturing, finance, etc. and health care.

The integration of AI and IR 4.0 is not only modernizing Malaysian industries but also creating new employment opportunities. In the first half of 2024, 25,498 jobs were created in the digital sector, surpassing the 22,258 jobs created in 2023. By 2025, the digital economy is expected to generate around 500,000 jobs, reflecting the growing demand for a digitally literate workforce. To meet this demand, the Malaysian government has actively invested in upskilling and reskilling programs to ensure that its workforce is equipped with the necessary skills to thrive in the digital age. Kari is doing.

A key component of Malaysia’s digital transformation is the development of its digital infrastructure. The government has invested heavily in expanding internet access and connectivity, particularly in rural and deprived areas. By improving digital infrastructure, Malaysia aims to bridge the digital divide and ensure that all citizens and businesses have access to the opportunities of the digital economy.

In addition to infrastructure, the Malaysian government has introduced various initiatives to attract investment and support the growth of digital businesses. One such initiative is the Digital Investment Office, which was established to facilitate digital investment and ensure that Malaysia remains an attractive destination for tech companies. As a result, the country saw approved digital investment reach RM161.97 billion from 2021 to March 2024, more than double the RM70 billion target set for 2025. .

Malaysia’s digital transformation journey is supported by partnerships with global tech giants such as Huawei, Google, and Amazon Web Services. These companies are instrumental in accelerating the adoption of AI and IR 4.0 technologies in Malaysia, providing the expertise, tools and platforms needed to drive innovation. Through these collaborations, Malaysia is not only enhancing its technological capabilities but positioning itself as a regional leader in digital transformation.

The involvement of these major players also highlights Malaysia’s focus on digital exports and global trade. In the first half of 2024, digital export opportunities were valued at more than RM1.936 billion, involving 228 companies in 11 countries. This demonstrates Malaysia’s potential to become a key player in the global digital economy, exporting not only products and services but also digital solutions and innovations that can be applied across various industries.

As Malaysia continues to embrace digital transformation, it is also adding sustainability to its economic agenda. The government has made it clear that the digital economy must contribute to environmental, social, and governance (ESG) objectives, ensuring that growth is both inclusive and sustainable. Several prominent Malaysian companies, including Maybank, SD Guthrie, and Tenaga Nasional Berhad, are leveraging AI and digital tools to enhance their sustainability efforts. For example, Maybank has committed MYR 80 billion to sustainable finance by 2025, aligning its digital transformation strategy with broader ESG goals.

Malaysia’s Center 4IR ESG Innovation Challenge is another initiative that highlights the country’s commitment to driving sustainable digital transformation. The challenge encourages businesses to develop and implement innovative digital solutions that contribute to ESG objectives, ensuring that the benefits of digital transformation are felt throughout society.

Looking ahead, Malaysia’s digital economy is poised for continued growth, with AI and IR 4.0 serving as the backbone of this transformation. By 2025, the digital economy is expected to contribute 25.5 percent of the country’s GDP, supported by a strong digital infrastructure, digitally skilled workforce, and strategic partnerships with global tech leaders. Furthermore, Malaysia’s commitment to sustainability ensures that its digital transformation journey is not only about economic growth but also towards a more inclusive and environmentally responsible future.

The future of Malaysia’s digital economy is bright, and with the continued integration of AI and IR 4.0 technologies, the country is on track to become a leader in the global digital landscape. As Malaysia continues to attract investment and foster innovation, it is clear that the digital economy will play a central role in shaping the country’s future, driving both economic growth and sustainable development.

Malaysia’s journey towards building a strong digital economy is testament to the country’s vision to become a global leader in digital transformation. Through strategic investments, partnerships with tech giants, and a focus on AI, IR 4.0, and sustainability, Malaysia is well positioned to harness the full potential of the digital economy. As the nation moves forward with its digital transformation agenda, it is poised to achieve significant economic growth while ensuring that this progress is sustainable and inclusive.

YB Gobind Singh Deo, Malaysia’s Digital Minister, emphasized that the government is committed to promoting the digital economy, noting that Malaysia is uniquely positioned as an investment hub in Southeast Asia. . He highlighted the country’s young, tech-savvy workforce and a favorable regulatory environment. Additionally, he mentioned strategic initiatives such as KL20, which aims to make Kuala Lumpur one of the top cities globally for startups, and the importance of innovation and regulatory support to foster growth in the digital economy. Emphasized.

Syed Mohammad Arif, Ivanina Efandi and Mohammad Afiq Abdullah of the Youth Economic Forum Secretariat 2024. The Youth Economic Forum Secretariat is the body responsible for coordinating and facilitating strategic dialogue on Malaysia’s economic path, led by young professionals.