Salutations

1. En Mohamad Haris Kader Sultan Chief Executive, Northern Corridor Implementation Authority (NCIA)

2. Mr. Selva Nagappan Managing Director, Knowledge Group of Companies

3. Ir. Dr. Karl Ng Vice President, Digital Health & Digital Cities

MDEC Esteemed guests,

Members of the media,

Ladies and gentlemen.

Good morning, Salam Perpaduan, and Salam Malaysia MADANI.

1. Thank you very much for inviting me to this 8th instalment of the Next Big Tech Asia conference. I am honoured to be here among the over 200 participants and 40 speakers from various industries and expertise.

2. We are in the midst of a technological revolution. Therefore, it is important for us to embrace the transformation that will reshape our country’s economy, communities and our lives. The Malaysian Government is cognisant of the growing interest and commitment towards understanding and leveraging Artificial Intelligence (AI) and Big Data for our future growth and progress.

3. Our digital economy contributed 23% to the nation’s GDP in 2022. Judging by the influx of investments in recent times, I am confident it will surpass the projected target of 25.5%, by the end of 2025. This has motivated us to continue our efforts to attract more major players, while nurturing homegrown companies through various initiatives at the Federal and state levels, and by the respective agencies. This is in line with our ‘Whole of Government’ and ‘Whole of Nation’ approach.

4. Such initiatives will lead to the creation of an environment that will encourage inflow of investments. According to Prime Minister Dato’ Seri Anwar Ibrahim, Malaysia has approved digital investments totalling RM185.3 billion from 2021 to June 2024. The Prime Minister, who chaired the Fourth National Council for Digital Economy and Industrial Revolution (MED4IR) last week, said the 3 bulk of the investments came from tech giants such as Nvidia Corp and Amazon Web Services.

5. The widespread usage of technology is helping to strengthen the nation’s digital economy. The potential of emerging technologies, such as the Metaverse, is enormous and will further boost the world’s digital economy. Reports by Meta and Deloitte indicate that the Metaverse could contribute approximately USD 3.01 trillion to global GDP in 2031. The impact of Metaverse in the Asia Pacific region could be between USD 800 billion and USD 1.4 trillion per year by 2035. In a PricewaterhouseCoopers (PwC) Metaverse Survey in 2023, 82% of executives said they expect Metaverse plans to be part of their business activities within three years.

6. According to the World Economic Forum, quantum science and technology is another emerging technology that attracts USD 40 billion globally in research and innovation funding from the public sector.

Ladies and gentlemen,

7. Technology enhances productivity, which leads to cost-saving measures and increase in profitability. That results in the massive economic impact thanks to the innovative utilisation of technology across all sectors – from healthcare to entertainment.

8. Data is the foundation of all technologies including Blockchain, Web3, Quantum Computing, Internet of Things, Biotechnology, and Generative AI. High data quality, for example, ensures more accurate AI outputs. Thus, it is important to have robust data governance and management practices.

9. As digital transformation accelerates, concerns about data privacy and security will naturally increase. On that note, this Government has taken several steps to create a safe and resilient ecosystem. We will do what is necessary to ensure that your data is protected at all times.

10. Data protection is primarily governed by the Personal Data Protection Act (2010). In July 2024, seven amendments to the Act were successfully passed in Parliament including provisions such as the mandatory appointment of a Data Protection Officer by data controllers and processors; mandatory data breach notification by data controllers to the PDP Commissioner; and increased penalties for breach of PDPA principles.

11. Due to increasing cyber attacks which have the potential to compromise data, the new Cyber Security Act, meanwhile, came into force on August 26, 2024. Under this Act, entities classified as National Critical Information Infrastructure (NCII) are subject to stringent risk assessment and audit regulations. This is another pivotal step taken by the Government to strengthen our cyber resilience.

12. In addition to that, a Data-Sharing Bill will be tabled in the next Parliament session to regulate the exchange and use of data, while also ensuring data privacy, between government agencies.

13. In addition to the existing laws, the National Guidelines of AI Governance and Ethics (AIGE) was launched last week. It is aimed to establish a safe, responsible and ethical technology ecosystem, by setting the parameters for AI users, providers and policymakers. The AIGE will complement the National AI Office (NAIO) which begins operations soon.

Ladies and gentlemen,

14. Malaysia is eager to embrace emerging technologies while creating cyber resilience. In doing so, the Ministry of Digital is assisting companies that use Next Generation Technology through specialised support structures. MDEC, an agency under the Ministry of Digital, provides access to mentorships and training to companies so that they can gain the necessary guidance, skills and knowledge to use such technology.

15. With the advent of these new technologies, the global marketplace has become more accessible, especially for Small and Medium Enterprises (SMEs). This is important as SMEs are the backbone of our economy. We are aware that SMES face various challenges in their digital journeys and the Ministry of Digital is always ready to assist by working closely with the business community to address the issues.

16. The Ministry of Digital, through MDEC, has taken significant steps to promote AI adoption among SMEs. MDEC, had this month, called for new applications for three grants: Digital Content Grant (DCG), Malaysia Digital Catalyst Grant (MDCG), and Malaysia Digital Export Grant (MDXG).

17. The MDCG, for example, offers up to RM1 million or 50% of project costs to drive innovation in Malaysia's digital sector, with AI being one key target area. Focused on fostering scalable, high-impact solutions, the grant supports projects within the Malaysia Digital (MD) Promoted Sectors for up to one year. MDCG has been awarded to 59 companies since 2021, leading to various innovative solutions that boosted productivity.

18. MDEC is also offering the complimentary SME Data-Driven Playbook to help businesses build resilience with data and foster a data-driven culture. It also has a Data, Analytics and Artificial Intelligence (DAAI) Readiness Assessment which helps SMEs to understand their organisation’s data, analytics and AI readiness levels.

Ladies and gentlemen,

19. As we embark on our respective technological journeys, let us not forget that the true power of technology lies in its ability to connect, inspire, and transform. The digital sphere, after all, is borderless.

20. We must connect with neighbouring countries and further explore Southeast Asia’s huge market. This region has over 70 million micro-, small-, and medium enterprises (MSMEs), and recorded a total GDP of USD 3.6 trillion in 2022. Additionally, ASEAN’s Digital Economy Framework Agreement (DEFA) is forecasted to unlock up to USD 2 trillion in value for the ASEAN digital economy by 2030.

21. With Malaysia assuming the ASEAN Chair next year, we look forward to working together closely with other member states, to boost our digital capabilities and regional resilience – in order to enhance efficiency, drive economic growth, and improve the quality of life of our citizens.

22. I am also confident that Malaysia has all the right ingredients to lead as the digital hub of Southeast Asia. Together, we can build a Malaysia that is not only technologically advanced but also inclusive, sustainable, and resilient.

23. I would like to congratulate the organiser, Knowledge Group of Companies, for having organised the Next Big Tech Asia conferences since 2017. It is indeed an important platform and critical space for learning, networking, and driving technological advancements.

Thank you. -END-