Latest news with #RM50mil
The Star
2 days ago
- Business
- The Star
Made-in-Malaysia AI vital for growth
Experts: Time to build, own and export our own systems so as not to be left behind PETALING JAYA: Malaysia must urgently develop its sovereign AI systems or risk becoming digitally advanced but economically dependent – and ultimately face long-term economic decline, experts say. They said as Malaysia races ahead with its digital transformation, much of that progress remains powered by imported artificial intelligence tools, thus raising concerns about economic dependency. AI Society president Dr Azree Shahrel Ahmad Nazri said Malaysia must urgently develop and own its AI systems or risk falling further behind economically, despite the country's rapid digital transformation. 'Without local AI ownership, we cannot export, licence or embed these technologies into regional products that generate income or foreign exchange,' he said when contacted. He warned that countries like Malaysia, which rely heavily on foreign-developed AI, face growing risks to GDP growth, productivity and national competitiveness. Citing emerging macroeconomic trends, he explained how AI-driven productivity gains, if limited to non-tradable sectors like education, health or governance, can distort real growth indicators. In Malaysia's case, he said the impact could be severe. Despite being online, automated and connected, he said the country risks building a digital economy that 'exports little, owns less and pays more', driven by rising licensing fees, AI subscriptions and reliance on foreign cloud infrastructure. Azree said such imported productivity could also distort Malaysia's exchange rate, making the ringgit appear stronger than it really is and hurt traditional export sectors. CLICK TO ENLARGE He called for urgent investment in sovereign AI capacity and policy-driven infrastructure. 'We must build, own and eventually export our own AI. Otherwise, we risk being tenants in our own digital economy,' he said. Universiti Malaysia Sarawak senior lecturer Dr Chuah Kee Man said Malaysia's dependence on foreign AI tools may bring short-term efficiency, but it risks long-term loss of control and competitiveness. 'To become an AI exporter, Malaysia must move beyond short-term grants and build a genuine innovation ecosystem,' he said. This includes regulatory sandboxes, stronger intellectual property protection and targeted investment in areas like halal logistics, Islamic finance, smart cities and multilingual natural language processing. Chuah explained that Malaysia's current progress is uneven across sectors. While the country has talent and early-stage initiatives, he said sovereign AI development demands sustained investment in infrastructure, skills and computing power. In terms of cost, he said developing a medium-sized foundational model would require serious commitment. 'If we take current industry standards for medium-sized foundational models, it could be about RM50mil and take about two years to build if there is a consolidated effort on it. 'For a sovereign AI model, it could easily go up to RM500mil. It can take up to five years or longer if the infrastructure is not sufficiently powerful,' he said. Because of the scale involved, Chuah suggested a collaborative approach. 'Heavy investment – that is why a partnership model may be more feasible since we are technically playing catch-up,' he said. Echoing the need for strategic investment, cybersecurity specialist Fong Choong Fook said Malaysia should establish a National AI Sovereignty Fund to finance homegrown AI development. Fong said the sovereignty fund can be backed by capital from public and government-linked companies. 'This fund would directly support the development of models like PutraGPT, prioritising Bahasa Melayu/Nusantara, Islamic jurisprudence and regional languages,' he said. Fong said developing the nation's own AI system would also pave the way for a Malaysian Large Language Model (LLM) consortium, open data-driven AI innovation and export-ready frameworks. 'The LLM could bring together universities, MNCs, GLCs and start-ups to train sovereign models using ethically-sourced local datasets. 'Government agencies should anonymise and release datasets (health, law, commerce) to stimulate trustworthy AI development when adopting open data for AI innovation. 'We can also develop export frameworks and certifications – such as halal certification standards – so that AI models are certifiable for compliance, ethics and privacy, especially to build trust in Islamic and Asean markets,' he added. When developing AI, Fong said the government must consider investing in three strategic pillars: talent, infrastructure and IP ownership. He said Malaysia needs a strong pipeline of AI engineers, data scientists and computational linguists, supported through focused education, public-private partnerships and incentives to retain talent locally. He added that Malaysia must also establish national AI compute infrastructure, including sovereign cloud services, GPUs and secure data centres to support large-scale model training and experimentation. 'IP ownership is essential to shift policies to prioritise ownership of algorithms, datasets and models – especially for sectors like finance, halal trade, cybersecurity and Bahasa Melayu/Nusantara applications where we have domain edge and regional relevance.' 'If we can develop AI that is context-aware for Asean or Islamic financial systems, Malaysia can lead in culturally and linguistically aligned AI exports, rather than competing head-on with Silicon Valley,' he said. With partnerships like MyEG-BeiTou, where Malaysia contributes data and policy access while the core technology remains foreign-owned, Fong said the country must remain cautious when relying on foreign-based AI systems. 'While it may represent short-term digital progress by enabling adoption and government integration, it also sets a precedent: data flows out, while value flows into others. This is digital dependence masked as digital development. 'True progress means co-developing and co-owning the intellectual property. If Malaysians provide the data, the insights and the use case validation, then Malaysians must also hold equity in the resulting tech,' he added.
The Star
3 days ago
- Business
- The Star
AIM announces additional RM50mil allocation to Indian women entrepreneurs
KUALA LUMPUR: Amanah Ikhtiar Malaysia (AIM) has allocated an extra RM50mil to empower Indian women entrepreneurs through the second phase of the Prosperity Empowerment and A New Normal for Indian Women (PENN 2.0) programme. Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R. Ramanan said the additional allocation brings the total fund for the programme to RM100mil. He said PENN 2.0 was developed after the success of phase one of the PENN, which benefitted 6,247 Indian women with a total financing amount of RM42,725,640. "From the 6,247 recipients of this fund, a total of 1,062 were new entrepreneurs. Therefore, the announcement of the additional fund allocation of this RM50mil will give opportunities to more Indian women to involve themselves in business and at the same time improve their standard of living,' he said. Ramanan said this at the launching ceremony of PENN 2.0 Empowering Indian Women Entrepreneurs at the AIM headquarters here Tuesday (June 3). PENN, which was launched on April 14 last year, is a government initiative through AIM as the implementing agency to empower Indian women, especially in the field of entrepreneurship. Ramanan said AIM is targeting that over 10,000 Indian women entrepreneurs in the country would benefit from this additional fund. According to him, the target of this fund is not only for new participants but this effort will also strengthen support for existing participants to expand their small businesses in various sectors including food, tailoring, beauty and community services. "Entrepreneurs who have received PENN financing have generally succeeded in increasing their income by 20 to 30 per cent compared to before," he added. Since its establishment in 1987, AlM has disbursed over RM35.9bil to Malaysians (especially women), in its ongoing efforts to liberate the poor and low-income groups from poverty. - Bernama
The Star
06-05-2025
- Business
- The Star
SMEs still lagging in digitalisation journey, says Gobind
KUALA LUMPUR: Most Malaysian small and medium enterprises (SMEs) are still trailing behind larger enterprises in their digitalisation journey, says Gobind Singh Deo ( pic ). The Digital Minister said that to address the issue, the ministry is working hard through initiatives like the Business Digitalisation Initiative (BDI), recently launched by the Malaysia Digital Economy Corporation, to help SMEs accelerate the adoption of digital technology in their operations. 'The government has also set aside RM50mil for digital matching grants for SMEs and digital grants for vendors. 'Global technology companies based in Malaysia, such as Microsoft and Alibaba Cloud, are working closely with the government to assist SMEs through multiple programmes,' he said in his keynote address at the CTOS SME Biz Day 2025 yesterday. Gobind said the government is also committed to ensuring that SMEs are prioritised in navigating current geopolitical challenges with funds allocated for this purpose, as announced by Prime Minister Datuk Seri Anwar Ibrahim in Parliament on Monday. He said the government's initiatives have always been designed to provide SMEs with the resources, knowledge and support they need to navigate the digital landscape effectively. 'Our vision is to create a digitally empowered Malaysia, where every business, regardless of size, can thrive in our national digital ecosystem. 'We are committed to fostering an environment that supports innovation, digital adoption and, ultimately, building up Malaysia as a strong digital nation,' he said, Bernama reported. On Monday, Anwar announced that the government has agreed to increase government guarantees under the Business Financing Guarantee Scheme by RM1bil to assist SMEs affected by the recent United States' reciprocal tariff announcement in securing loans from commercial banks. Additionally, another RM50mil will be allocated to the Malaysia External Trade Development Corporation to expedite efforts for SMEs to explore new markets through participation in international trade expos and exhibitions, as well as facilitating business matching with foreign buyers.
The Star
06-05-2025
- Business
- The Star
Better support needed amid tariffs
PETALING JAYA: Support measures aimed at helping Malaysian exporters navigate US-imposed tariffs must be designed with clarity, accountability, and measurable outcomes, say economists. While recent government initiatives signal the right intentions, Centre for Market Education CEO Dr Carmelo Ferlito said concerns remain over how effectively the support will be implemented and who will ultimately benefit. 'There's a right spirit in the government's initiatives, but we must ask who benefits and how efficiently the money will be spent,' he said. Ferlito was commenting on Prime Minister Datuk Seri Anwar Ibrahim's announcement yesterday on allocating RM50mil for market exploration and additional financial aid for exporters. Instead of upfront cash or loan guarantees, Ferlito advocated for tax-based incentives tied directly to export performance. 'It may be more effective to reduce taxes on profits derived from sales to alternative markets. 'A tax incentive is ex-post – it's given after results are achieved. Incentives not linked to clear key performance indicators risk mismanagement and inefficiency.' He also questioned the suggestion made in the Dewan Rakyat yesterday to delay fuel subsidy rationalisation, arguing that such structural reforms should not be compromised. 'Are we truly in a state of emergency to justify postponing this? 'It sends the wrong signal on policy commitment,' he said. Emeritus Prof Dr Barjoyai Bardai of Universiti Tun Abdul Razak pointed out that efforts to identify new markets will take time to materialise. 'Finding new buyers isn't immediate. Exporters must ensure credibility and secure demand – and most new markets will be in developing countries with lower purchasing power,' he said. Therefore, in the short term maintaining strong trade flows with the United States and China remain critical, he said. 'If we can retain those markets while exploring new ones, that's already a big achievement.' Prof Barjoyai also highlighted the importance of complementing export strategies with broader economic resilience measures, including food security and reducing reliance on imported essentials. 'We import nearly RM90bil in essential goods annually. 'If we can reduce that, we protect ourselves from currency volatility and global shocks,' he said. He also stressed the need to support micro, small and medium enterprises (MSMEs), which collectively employ more than 65% of Malaysia's workforce. 'Helping MSMEs improves job quality and wages, which stabilises the broader economy,' Prof Barjoyai said. Industry groups echoed similar concerns and recommendations. The Federation of Malaysian Manufacturers (FMM) welcomed the government's immediate actions but called for enhanced export-focused initiatives. FMM president Tan Sri Soh Thian Lai said more than half of its members are already pivoting away from traditional markets like the United States. He said that while the RM50mil allocation to Matrade (the Malaysia External Trade Development Corporation) and the resumption of European Union free trade agreement (FTA) talks are timely, Malaysia needs stronger Market Development Grant (MDG) support to help exporters lead missions into emerging markets. Soh stressed the need for enabling associations like FMM to access funding directly and organise targeted export activities to boost reach and competitiveness. 'These measures are crucial to ensure Malaysian manufacturers remain viable globally despite mounting geopolitical pressures.' Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) voiced concerns about unintended consequences of increased tariffs, including potential abuse of trade routes and increased risk of anti-circumvention actions. Its president, Datuk Ng Yih Pyng, warned of 'renegade products' -- goods rebadged or misclassified to evade tariffs – distorting trade flows and exposing Malaysian firms to legal and reputational risks. 'We must enhance Customs enforcement and strengthen compliance on certificates of origin,' he said. Ng also urged the government to accelerate FTA negotiations and expand MDG support to help SMEs explore new markets. He cautioned that with global tariffs rising, Malaysia may face an influx of dumped foreign products that could undermine local industries, especially MSMEs in sectors like furniture, steel, retail and e-commerce. 'Swift, targeted safeguards and international collaboration are needed to protect our domestic economy.' The Small and Medium Enterprises Association (Samenta) said the United States' reciprocal tariffs on Malaysian goods have exposed the fragility of the country's SME export ecosystem. While welcoming the government's targeted support measures, Samenta said many SME exporters were already operating on razor-thin margins and remain vulnerable to global trade shocks. 'The latest tariff shock is a reminder that Malaysia's economic model must be recalibrated around the needs of SMEs, not just large corporations,' the association said in a statement. Samenta added that broader structural imbalances must be addressed to ensure sustainable support for exporters and to build long-term resilience in Malaysia's trade environment.
The Star
05-05-2025
- Business
- The Star
IPT should focus more on AI and churn out more experts, says PM
SHAH ALAM: Prime Minister Datuk Seri Anwar Ibrahim has called on higher education institutions (IPT) to place greater emphasis on artificial intelligence (AI) in their programmes and to strengthen collaboration across sectors to meet the demands of the future. 'Public and private universities must work together. Research funding will not be limited to public institutions alone. We will support any institution – public or private – that demonstrates strong capabilities,' he said during the Temu Anwar programme with private IPT on Monday (May 5). Anwar stressed that Malaysia must ensure the development and application of AI is anchored in national values, culture and identity, and not be driven solely by technological advancement. 'We've taken steps with our team. I've observed how universities are progressing in AI and machine learning,' he said. 'AI is critical, just like the industrial era, the invention of machines, and later, the computer. This marks another significant leap forward,' he added. The Prime Minister also highlighted the country's urgent need for skilled professionals in the field, noting that Malaysia is currently facing a shortage of at least 10,000 experts in data science and AI-related areas. 'We must be bold in our thinking. This is not just about AI replacing human intelligence. It's about elevating our intellect and rooting it in something that is uniquely ours,' he said. As part of efforts to strengthen the AI ecosystem, Anwar announced during the tabling of Budget 2025, an allocation of RM50mil to expand AI-related education across the country. To date, Universiti Teknologi Malaysia has established the country's first Faculty of Artificial Intelligence, a move Anwar said reflects Malaysia's education sector is heading in the right direction.
