Deputy Minister Sim Tze Tzin urges government to prioritise local AI companies for projects, fostering domestic expertise and future global competitiveness.
KUALA LUMPUR: Local companies with competitive expertise in artificial intelligence should be given priority to carry out AI projects, Deputy Minister of Investment, Trade and Industry Sim Tze Tzin said today.
He argued that this approach would allow local firms to learn, develop and enhance their capabilities. This development could then open the potential to market those products or services internationally in the future.
“Local, federal and state governments must prioritise local companies,” Sim said during a Dewan Rakyat session. “We need to adopt a localisation approach and give them opportunities.”
He emphasised that Malaysia has engineers and AI startups with the necessary expertise. Prioritising them could one day produce outstanding global AI companies.
Sim was responding to a question about building an innovative society rather than just a technology consumer base. He later addressed efforts to develop a smart industrial ecosystem in border areas.
The deputy minister stated that AI spans all sectors and offers opportunities across all industries and regions. He warned that lacking AI capability would cause the nation to fall behind.
“Every industry, every sector, every application must be AI‑embedded before we can solve problems more effectively,” he said.
He specifically urged the Perlis state government and the Home Ministry to use AI to improve operational efficiency at the borders. The government’s broader ambition is for Malaysia to emerge as a regional AI leader.
This goal is backed by a RM5.9 billion allocation across ministries in Budget 2026. The funding aims to strengthen the AI value chain from research to commercialisation.
The national aspiration is to become an AI nation by 2030. Recent investment trends show promising momentum towards this goal.
From the second half of 2024 through 2025, Malaysia attracted about RM3.6 billion in AI‑related technology investments. These funds supported development initiatives and over 60 local startups.
