Almost 70% of Malaysia’s approved investments, totaling RM225 billion, are focused on the digital economy, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. In an interview with CNN, Zafrul highlighted Malaysia’s potential to drive artificial intelligence (AI) and attract the AI ecosystem. He mentioned that the country has AI factories and welcomed Nvidia Corporation’s interest in establishing a presence in Malaysia to advance AI technology. Zafrul emphasized the positive impact of AI on productivity and the need for reskilling and upskilling to prepare for future job requirements.
Nvidia, a US-based multinational technology company, expressed its support for Malaysia’s goal of becoming one of the top 20 countries in AI technology. The company has committed to assisting in the development of Malaysia’s AI ecosystem, including establishing a center of excellence and contributing to AI learning, research, and cloud computing systems.
When asked about the proposal for a minimum wage increase across ASEAN nations, Zafrul stressed the importance of linking wage growth to productivity. He highlighted Malaysia’s manageable inflation rate and low unemployment, stating that wage increases should be tied to economic complexity, particularly in the green and digital economy sectors. Malaysia has recently increased its minimum wage and is exploring the concept of progressive wages, which would be contingent on productivity improvements.
The investment minister’s remarks underline Malaysia’s commitment to leveraging the digital economy and AI to enhance productivity and create new opportunities. By attracting investments in these sectors and promoting upskilling, the country aims to position itself as a significant player in AI technology and ensure a better quality of life for its citizens.
Overall, Malaysia’s focus on the digital economy and AI reflects its proactive approach to navigate the changing technological landscape and tap into emerging opportunities for economic growth and development.
