Harnessing AI for economic growth

MALAYSIA can propel its economic engine and become a leading innovation hub in the region by embracing AI and addressing existing challenges.

Through collaboration between public and private sectors, investing in talent development and prioritising AI implementation, Malaysia can unlock the true potential of this transformative technology and become more competitive.

Malaysia is at the forefront of AI with its policies and various initiatives. Its digital economy is on course to hit its goal of contributing more than 25.5% of the nation’s gross domestic product by 2025.

Unlike in the past, these initiatives will sync with the implementation by GLCs (government-linked companies) and timely actions from the private sector.

The benefits of AI to industries in Malaysia:

Innovation acceleration: AI can analyse vast amounts of data to identify patterns and trends that humans might miss. This fuels innovation by helping companies develop new products, services and business models. Companies that do not leverage AI for innovation risk falling behind in the race to develop the next big thing.

Efficiency edge: AI automates repetitive tasks, analyses data faster, and optimises processes. Companies that integrate AI can significantly increase productivity and reduce costs, thereby raising profits. For example, imagine a manufacturing plant using AI to optimise its processes and using an e-commerce platform to streamline order fulfilment. Those who lag will struggle to compete with the efficiency gains of AI-powered businesses.

Customer experience revolution: AI personalises customer experiences by understanding their needs and preferences. This translates to targeted marketing, custom recommendations and improved customer service. Imagine a travel agency using AI to curate personalised vacation packages or a retailer using AI to recommend products based on a customer’s past purchases. Companies that do not leverage AI to personalise customer experiences risk losing ground to competitors who cater to individual customer needs.

Disruption from AI-first companies: Entirely new businesses built around AI could emerge, disrupting traditional industries. Think of companies like Grab that have revolutionised transportation, food delivery and parcel courier services. Industries that do not adapt to the changing landscape with AI can be blindsided by entirely new competitors.

Grants

Below are some of the grants available for AI implementation and other industry innovations:

Ministry of Science, Technology and Innovation (Mosti):

Mosti plays a central role in promoting AI development in Malaysia. They oversee the National AI Strategy, which includes initiatives that provide indirect support for AI implementation.

Keep an eye on Mosti’s website (www.mosti.gov.my/en/) for updates on funding programmes related to AI.

Malaysian Digital Economy Corporation (Mdec):

Mdec actively supports digital transformation across various industries. While they may not have specific grants solely for AI implementation, they offer programmes that can be relevant depending on your project’s focus.

Explore Mdec’s website (mdec.my/) for funding opportunities under initiatives like the Digital Transformation Grant or the Global Innovation and Tech Alliance.

Other research granting bodies:

Fundamental Research Grant Scheme: Administered by the Higher Education Ministry (mygrants.gov.my), this scheme supports fundamental research across various disciplines, potentially including AI-related projects within universities.

Science Fund: Managed by the Mosti, the Science Fund provides grants for research projects in various scientific fields, potentially aligning with some AI initiatives.

AI is not just a trend, it is a transformative force. While implementing AI comes with challenges, the potential benefits are undeniable.

Companies that embrace AI early stand to gain a significant competitive advantage. The longer an industry waits, the higher the risk of falling behind and potentially becoming obsolete in the face of AI-powered innovation.

The urgency for industries to adopt AI stems from the immense potential it offers to revolutionise efficiency, innovation and customer experience.

The writer is the chief mind unzipper of Mindbloom Consulting.

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