Malaysia is rapidly adopting AI technologies across public and private sectors, but lacks a comprehensive national AI strategy and faces challenges in data protection and public oversight.
While Malaysia does not have a standalone National AI Strategy, the government has incorporated AI initiatives into broader digital and economic plans:
The "Twelfth Malaysia Plan, 2021-2025" aims to develop national strategies on AI and blockchain to guide economic growth. It calls for strengthening data protection guidelines and introducing an ethical framework for technology development and use.
The Malaysian Digital Economy Blueprint (2021-2031) sets out a roadmap to make Malaysia a regional leader in the digital economy.
The National Fourth Industrial Revolution Policy (2021) focuses on the ethical use of 4IR technologies for socio-economic transformation.
In 2021, the Ministry of Science, Technology, and Innovation awarded grants to researchers to formulate a National Artificial Intelligence Roadmap (AI-Rmap) for Malaysia. The AI-Rmap outlines six strategies: establishing AI governance, advancing R&D, developing digital infrastructure, fostering talent, acculturating AI, and creating an innovation ecosystem.
Malaysia's data protection regime stems from the Personal Data Protection Act of 2010. While the country was a regional frontrunner in data protection, experts say laws and regulations need updating to reflect the current digital landscape.
Significant data breaches without adequate penalties, gaps in the PDPA, and concerns about inclusion of vulnerable communities in data-driven initiatives highlight the need for stronger protections.
The PDPA does not apply to federal and state governments, exempts credit reporting agencies, and does not constrain government access to data.
AI Applications and Human Rights Issues
Healthcare: Malaysia has deployed AI-enabled apps for COVID-19 contact tracing and hotspot prediction. However, there has been little communication about human rights, data privacy, and algorithmic transparency in these initiatives.
Facial Recognition: Cities across Malaysia are installing AI-enabled CCTV systems for crime monitoring and traffic surveillance. The government is also planning a Digital Identity initiative using biometric technology. Critics have raised concerns about data security and privacy.
Judicial System: Malaysia began using AI for court sentencing recommendations in 2020. This has faced criticism over transparency, potential bias, and constitutional concerns.
Autonomous Vehicles: The government is promoting AI development for self-driving vehicles, but safety and regulatory frameworks are still in early stages.
Malaysia participated in a 2023 international summit on responsible AI in military applications, endorsing principles for ethical use of military AI.
The country adopted the UNESCO Recommendation on the Ethics of AI in 2021, but has not yet implemented specific measures.Malaysia is not a member of the OECD and has not endorsed the OECD AI Principles.
Freedom House rates Malaysia as "partly free" with concerns about restrictions on free expression and government transparency.
While Malaysia has made strides in digital transformation and AI adoption, the lack of a comprehensive national AI framework and ethical guidelines raises concerns. The shift from developing a national AI strategy to implementing a more concrete AI Roadmap without a clear ethical framework, combined with an outdated data protection regime, is particularly worrying given Malaysia's deployment of AI for surveillance purposes.
This country report is our interpretation and summary of the "CAIDP Artificial Intelligence & Democratic Values Index 2023". The full report can be found here - https://www.caidp.org/reports/aidv-2023/