[UPDATED] Govt plans new law to redefine sovereignty in digital age [WATCH]

New Straits Times

28-05-2025

KUALA LUMPUR: The government plans to push for a new legislation aimed at reinterpreting sovereignty in light of the rapid growth of artificial intelligence (AI) and cloud-based technologies.
Prime Minister Datuk Seri Anwar Ibrahim said that following the evolving role of governance in the digital era, the traditional notions of sovereignty, designed for a pre-digital world, must be reconsidered to accommodate new technological realities.
"AI is so penetrative, so compelling that it covers the whole spectrum of governance and daily life that we leaders have no choice but to try to grasp this new technology.
"Governments are there to protect sovereignty, but then the word sovereignty predates new technology.
"It has to be reviewed, repurposed to protect the security of the nation. But at the same time, to allow for this new space to accommodate companies and operations in the cloud, within the sovereign area, but still totally independent of national laws, [sic] accepting for protecting borders and security.
"That is why I believe that we in Malaysia, for example, have accepted this and to introduce new legislation to recognise that sovereignty needs to be redefined, so we can adapt to new technologies and let AI operate more independently, similar to how embassies used to have under the old system," he said during a panel session at the 2025 Fortune Asean-GCC Economic Forum today.
Present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and Home Minister Datuk Seri Saifuddin Nasution Ismail.
Anwar also dismissed criticisms that his views on AI are overly philosophical, saying Malaysia must move decisively.
He, however, said that while AI offers immense potential, its development must not come at the expense of local values and intellectual diversity.
"People criticise me saying that I am too philosophical and giving so much concern on this development, (but there is) no way we can slow down.
"In fact, (for) Malaysia, I want to drive this, get all the legislation in place, get this sovereignty issue resolved and I am determined to push it as hard as possible.
"However, I am also aware that our understanding, values and knowledge cannot be dictated by one particular society or values, but how do we resolve this? It is through education, understanding and critical thinking," he said.
He also said that while there are growing concerns surrounding AI, particularly its ethical implications and the potential erosion of human values, efforts to debunk the concerns, particularly by Western supremacy, must be made.
"I am not suggesting these challenges are insurmountable, but we are dealing with human beings. Their concerns, particularly regarding values and the reconstruction of our understanding of history, must be considered as part of the whole exercise in venturing into new technologies.
"The view that globalisation today is defined and dictated by technology and the supremacy of the West is a thinking that must be debunked, as cosmopolitan centres such as Makkah, Madinah, Oman, and Melaka were globalised hubs long before modern globalisation took root.
"What we need is a sense of identity, dignity and purpose for our societies," he said.