Malaysia launches all-encompassing AI infrastructure project

The Malaysian government has launched the region’s first all-encompassing AI ecosystem which it says will ensure data is processed locally, safeguarding user privacy and data security.

Ministry of Communications Deputy Minister Teo Nie Ching said the new Strategic Artificial Intelligence Infrastructure marks an important step in the country’s AI development.

She said: “The special thing about this project is that the data will be stored in Malaysia, it will be managed by Malaysians, and it will be used by Malaysians as well, so this is how we can actually safeguard our AI sovereignty.

“Now it’s no longer like the cloud or the data centre is overseas, it’s purely in Malaysia – server also in Malaysia, managed by Malaysia, and the AI agents will also be developed by Malaysians. I think this is how we can localise the AI application in Malaysia,” she said.

Teo said the project was the first of its kind outside China, adding: “We are very proud, meaning that in terms of AI adoption and AI application, Malaysia indeed truly will be the leader in Asean, in terms of AI application and adoption.”

The platform is designed to empower the government, businesses and universities to leverage AI in improving services, boosting productivity and driving innovation. It offers 20% higher performance and 30% energy savings compared to industry peers, and hosts the DeepSeek open-source large language model, making it the first national-scale sovereign LLM deployed in Malaysia.

Early adopters include the Prime Minister’s Office, the Ministry of Communications and Universiti Teknologi Malaysia.

Teo also announced the launch of the Malaysia-China Trusted Data Zone, the first bilateral corridor linking Cyberjaya, Malaysia and the China (Shanghai) Pilot Free Trade Zone Lin-gang Special Area. It is designed to enable seamless cross-border AI development through infrastructure, joint innovation platforms and digital capability integration.

Malaysian online sellers reluctant users of AI

The launch comes as a new survey reveals that only 25% of Malaysian online sellers have integrated AI into their business operations.

Research by e-commerce platform Lazada Malaysia found that while 69% of Malaysians show strong familiarity with AI, at least one in two Malaysian sellers remains sceptical about its usefulness.

The platform’s chief operating officer, Ángel Ramiro, said key barriers to entry include cost concerns, time investment and resistance to change, with nearly 67% of employees preferring familiar manual processes.

“We understand this gap and recognise that our sellers need a strong support system beyond offering powerful tools.

“Our seller learning platform, Lazada University, and the Seller Ambassador Programme, which provides peer-to-peer mentorship, are some ways we support AI adoption.

“We have also launched a playbook to help sellers assess their AI readiness and discover how they can use AI on Lazada to drive business success,“ Ramiro said.

He added that the online e-commerce platform has launched the Online Sellers Artificial Intelligence Readiness Playbook – a strategic guide to help sellers understand where they are on their AI journey and map out clear, actionable steps for adoption at their own pace.

The playbook offers sellers insight into their AI-readiness under three archetypes – AI Agnostics, Aspirants and Adepts – while highlighting operational gaps they can bridge with AI. It also outlines key AI solutions they can leverage, with direct access to resources and tutorials for maximising Lazada’s built-in AI-powered tools and features.

“AI is a key priority for us, and we are focused on closing the adoption gap by upskilling the local seller ecosystem and equipping them with powerful yet easy-to-use tools. Our digital AI solutions are designed to be genuinely inclusive for sellers across Malaysia, operating from Kuala Lumpur or a small town in Pahang.

“With only 15% of Malaysian online sellers classified as ‘AI Adepts’, most micro-entrepreneurs and rural businesses can benefit from our infrastructural and educational support,” Ramiro said.