Secretary General,Ministry of Science, Technology and Innovation (MOSTI)
From Vision to Action: Emerging AI Trends Transforming Public Services
In the Rancangan Malaysia Ke-13 (RMK13), Malaysia is progressing towards becoming an AI-driven nation by focusing on three key areas: increasing the adoption of AI across sectors, strengthening the digital economy to support technology-driven growth, and enhancing the ecosystem for research, development, commercialisation and innovation (R&D&C&I). These efforts aim to position the country at the forefront of technological advancement while fostering inclusive and sustainable economic growth.
Several emerging AI trends are poised to transform Malaysia’s public service landscape. Still, three in particular stand out: generative AI (gen-AI), AIpowered decision support systems and autonomous process automation. Generative AI and Large Language Models (LLMs) / Small Language Models (SLMs) offer vast potential in multilingual service delivery, citizen engagement, policy drafting and knowledge management. Malaysia has embarked on the development of several domain-specific and culturally relevant LLMs as part of its broader AI sovereignty agenda under MOSTI. Anchored in the National AI Roadmap 2021– 2025, this has spurred the development of culturally tailored and domain-specific models.
One of the most prominent efforts is the development of a medical LLM jointly initiated by the Ministry of Health (MOH) and MOSTI. This project focuses on training language models using anonymised clinical data to improve AI-assisted diagnostics and triage tools in public healthcare. Malaysia is making progress in developing LLMs through several initiatives. The Bahasa Melayu-LLM (BM-LLM), led by MIMOS and MRANTI through the high-performance computing (HPC) platform, is fine-tuned on government and public service data for automation and digital assistant applications, supporting the National AI Roadmap 2021–2025 in preserving Malaysia’s linguistic identity. Malaysia’s Islamic Finance LLM, developed by INCEIF and fintech sandbox participants under Bank Negara, supports Shariahcompliant automation and aligns with MDEC’s Islamic Digital Economy (IDE) initiatives. MaLLaM (Mesolitica) and Malaysian Mistral offer high-performance Malay language capabilities, outperforming ChatGPT 3.5 in local benchmarks. Meanwhile, Merdeka LLM by the Agmo Group is fully developed and hosted incountry, reinforcing national AI sovereignty and data ownership. These not only strengthen Malaysia’s digital identity but also support RMK13’s aspiration to produce high-value, homegrown innovations rooted in national values and language.
AI-powered Decision Support Systems (AI-DSS) are especially impactful in areas like public health, climate response, infrastructure planning and disaster management. These systems help civil servants transition from reactive responses to proactive interventions. AI-powered decision support systems in the public sector refer to intelligent platforms that leverage AI to enhance policy formulation, service delivery and operational efficiency. These systemscombine data analytics, machine learning, natural language processing, and predictive modelling to assist civil servants and policymakers make faster, more informed and evidence-based decisions. For example, the AI at Work 2.0 initiative — led by the National AI Office (NAIO) supported by Google — equips the public sector with Google AI solutions such as Notebook LM and Gemini. The implementation of this initiative enables a transition from reactive to proactive governance. As emphasised in RMK13, these AI systems must also extend to areas like flood mitigation, climate-smart agriculture, and price transparency platforms, particularly to address costof-living pressures and environmental sustainability goals.
Autonomous Process Automation (APA) is another transformative field that enables the automation of repetitive government processes across immigration, licensing, enforcement and financial disbursement, reducing human error and administrative delays. APA is an advanced form of automation that uses AI, machine learning (ML) and natural language processing (NLP) to not only execute repetitive tasks but also make context-aware decisions, adapt to new data, and learn from outcomes without constant human intervention.
MOSTI’s motivation to accelerate AI adoption stems from our National AI Roadmap (2021–2025), which identified the public sector as a key area due to its broad impact on citizen well-being and national productivity. We are committed to accelerating the implementation of the Public Service Reform Agenda to enhance the efficiency, transparency and accountability of government operations. This effort is a collaborative one, involving stakeholders and supporting the broader aspiration of establishing a responsive and people-centric administrative system that prioritises the needs and well-being of citizens while fostering trust in public institutions.
However, adoption is not without its challenges. Among the most significant include data interoperability and siloed systems, which hinder effective model training and deployment; a shortage of AI talent and digital competency within the civil service; and public trust and ethical concerns, particularly with opaque decision-making by AI systems. To address these, MOSTI has worked closely with other ministries and agencies, such as the Ministry of Human Resources, MRANTI, MIMOS, Cradle, TalentCorp and Jabatan Digital Negara in providing infrastructure, platform and technical training programs for upskilling and reskilling. The AI Governance and Ethics Guidelines (AIGE), launched by MOSTI in 2024, marks an initial step in the country toward ensuring the safe, ethical and accountable use of AI across government services. Moving forward, APA should be applied in underserved rural areas to support RMK13’s rural-urban rebalancing strategy. By integrating automation and AI agents in remote government services, Malaysia can improve service equity, optimise workforce distribution, and uphold MADANI principles in inclusive governance.
With these strategic efforts, Malaysia is wellpositioned to harness AI’s transformative potential while addressing its inherent challenges — ensuring that innovation benefits all communities, strengthens governance, and propels the nation towards a more inclusive, high-tech future.
Coordinated AI Governance
MOSTI and the Ministry of Digital (MOD) work hand in hand to ensure that Malaysia’s AI development is both technically robust and socioeconomically inclusive. The NAIO, established last year under the Ministry of Digital, functions as the central coordinating office for AI. This agency is supported by other ministries such as MOSTI, the Ministry of Investment, Trade and Industry (MITI), the Ministry of Higher Education (MOHE) and the Ministry of Economy. MOSTI’s role focuses on strengthening the R&D ecosystem — encompassing innovation, talent, infrastructure and platform readiness — while the Ministry of Digital handles downstream digitalisation efforts, infrastructure rollout, and service innovation through initiatives like MyDIGITAL and the Public Sector AI Adoption Framework.
This collaboration reflects RMK13’s emphasis on coordinated governance and structured transformation, ensuring a whole-of-government approach. This synergy is particularly evident in areas such as AI governance and regulatory alignment, where both ministries shape ethical standards and operational policies; national AI infrastructure, including HPC and sovereign AI stack development, where investments and strategic priorities are aligned; and cross-ministry task forces and technical working groups, such as the HPC Digital Asset Council and Malaysia Economic Digital Fourth Industrial Revolution Council, (MED4IR), which involve contributions from MOSTI, the Ministry of Digital, and agencies like Jabatan Digital Negara (JDN) and MIMOS. MOSTI has made significant advancements in AI readiness through the National AI Roadmap 2021– 2025, covering infrastructure, talent development, policy and governance.
Flagship initiatives include the Malaysia AI Sandbox (under MRANTI), a safe testbed for startups, agencies and researchers to pilot AI innovations with regulatory facilitation and expert guidance. Collaborations with MIMOS, Havelsan from Türkiye, and TechInsight Sdn. Bhd. focus on building an advanced sovereign foundational AI ecosystem tailored to Malaysian needs, leveraging local data, secure infrastructure and contextual relevance. The Malaysia AI Consortium (MAIC) connects academia, government and industry to drive applied AI R&D in sectors such as healthcare, education and smart cities. It has been a starting point for transforming Malaysia’s healthcare sector by enabling more efficient management of healthcare systems and service delivery. One key development is the LLM for public health, designed for three user categories: public, patient care, and health system management. Alongside the AI Sandbox, MAIC and health-focused LLMs, both ministries are also working on policy and regulatory harmonisation through the AIGE.
The AIGE is the first national guideline that translates seven responsible AI principles from the National AI Roadmap into practical applications for three categories of users: end-users, policymakers and technology developers. While non-binding and general, it serves as a foundation for sector-specific AIGE guidelines tailored to industries such as finance, communications and e-commerce. This dual-track approach — technical and ethical — is essential to elevating Malaysia’s AI governance credibility while encouraging adoption across various sectors.
MOSTI’s role is central to RMK13’s ‘raising the ceiling’ agenda. The national push toward a value-creation economy is evident in initiatives to localise and export AI-driven innovations, particularly within high-growth, high-value (HGHV) industries such as Electrical and Electronic (E&E), creative content and hydrogen. Furthermore, cross-ministry working groups, such as MED4IR and the Digital Asset Council, ensure alignment between policy, talent development and infrastructure rollout. This institutional synergy positions Malaysia to emerge as a trusted regional hub for AI R&D, particularly in AI-for-Government applications and digital public infrastructure (DPI).
Looking ahead, Malaysia aspires to establish regional AI hubs beyond Klang Valley — in Sabah, Sarawak and Kulim — to advance RMK13’s territorial development goals while creating new economic corridors for AI talent and innovation.
AI as the Catalyst for Malaysia’s Next Decade
The list of emerging technologies that could drive the most significant impact in the next decade is outlined in the 10-10 MySTIE framework. However, in this session, the spotlight is firmly on AI. It will serve as the cornerstone of Malaysia’s transition into a high-tech, high-income nation. Through the lens of RMK13, AI is not merely a productivity tool but a catalyst for strengthening national resilience, transforming public services, and enhancing economic complexity. Whether integrated into autonomous transport, climate forecasting, intelligent manufacturing, or healthcare delivery, AI is set to deeply permeate Malaysia’s institutional and industrial fabric.
We envision AI being integrated into every facet of governance, industry and daily life — from personalised public services and autonomous transport, to intelligent manufacturing and climatesmart agriculture. Its convergence with other emerging technologies will amplify its transformative impact. Notably, quantum computing and neuromorphic AI will unlock breakthroughs in complex modelling and national resilience planning; Brain-Computer Interfaces (BCI) and bio-AI integration will redefine healthcare, accessibility and education; decentralised AI on blockchain will establish new paradigms for trust, security and data sovereignty in digital public infrastructure; and green AI innovations will align with RMK13’s net-zero goal, promoting sustainable, energy-efficient computational practices.
Talent development remains a central pillar of Malaysia’s inclusive AI plan. Targeted initiatives are underway to address the shortage of specialised and senior-level AI professionals. Programmes such as the NVIDIA–YTL partnership, AI Odyssey and training platforms like Rakyat Digital and My-AI Portal have played pivotal roles in building basic AI literacy. To date, over 220,000 educators have acquired AIrelated competencies, while more than 9,000 civil servants have taken part in AI and blockchain training programmes conducted by INTAN in 2024.
Guided by RMK13, MOSTI is intensifying investments in sovereign technologies such as LLMs, AI chips, federated learning platforms, and edge AI — all of which are fundamental to Malaysia’s digital sovereignty goals and innovation exports. These strategic measures include investing in R&D and sovereign infrastructure, expanding talent development pathways through initiatives like the AI for Rakyat programme and certified AI assessor schemes, and implementing the upcoming National AI Talent Roadmap to build a strong pipeline of AI engineers, policy experts and ethics professionals. Cross-sector adoption is also being accelerated through MRANTI’s AI Sandbox, the MAIC, and technology transfer programmes, enabling realworld deployment in sectors such as health, energy, education and public administration.
On the global stage, MOSTI actively engages in international collaborations with countries including China, India and the United Kingdom to promote technology and talent development. Beyond technology, infrastructure and skills, MOSTI is also leading the national steering committee in the development and adoption of Artificial Intelligence International Organisation for Standardisation standards (AI ISO). These standards are closely linked to innovation and, together with the AIGE, represent a soft approach to encouraging responsible AI adoption — complementing regulatory measures and potential AI legislation.
Ultimately, Malaysia’s goal is not just to adopt AI, but to develop, regulate, and export AI solutions grounded in national values, while promoting innovation that is inclusive, ethical, and sustainable — for the benefit of the country and beyond.
