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Malaysia aims for AI-driven boost of about $5B by 2030

Malaysia aims for AI-driven boost of about $5B by 2030
Credit(s): Canva

Malaysia's Ministry of Digital projects that the artificial intelligence sector could contribute an additional 0.8-1.2 percent to the country's gross domestic product by 2030, equivalent to RM13-20 billion (approximately USD 3.2-4.9 billion) annually, while generating 300,000 to 500,000 high-skilled jobs.

According to the Digital Ministry, AI is expected to generate approximately USD 115 billion (RM530 billion) in productive capacity for Malaysia by 2030, demonstrating AI's potential across key sectors including manufacturing, healthcare, finance, agriculture, education, and public services.

Under Budget 2026, the government allocated RM1.36 billion to the Ministry of Digital to implement strategic initiatives, including RM53 million for the Malaysia Digital Accelerator Grant to promote adoption of emerging technologies such as blockchain, AI, and quantum computing, and RM18.1 million to strengthen the National Artificial Intelligence Office.

Malaysia attracted approximately RM115 billion in data centre investments between 2021 and 2023, with the sector expected to create approximately 30,900 jobs by 2030 in line with rising regional demand for digital services.

However, Malaysia faces a significant AI talent shortage, with the World Bank estimating the country has only 3,000 AI professionals while demand is expected to reach 30,000 by 2030, prompting initiatives like Microsoft's AI for Malaysia's Future program which aims to train 800,000 Malaysians by 2025.

Tags: ai

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