Malaysia must urgently strengthen AI policies and regulatory framework to protect digital security and combat the misuse of AI, including deepfake scams.
JOHOR BAHRU: Malaysia must urgently strengthen its artificial intelligence policies and regulatory framework to protect digital security and combat the misuse of AI, including deepfake scams.
Institute for Data Innovation and Artificial Intelligence chief executive officer Prof Dr Mohd Saberi Mohamad said this is crucial as AI technology becomes increasingly sophisticated. He noted that over 35,000 online fraud cases were reported in 2024, resulting in losses of approximately RM1.58 billion.
The first three months of 2025 saw 12,000 cases amounting to RM573.7 million. “While not all cases involve deepfakes, AI is increasingly being used by fraud syndicates to impersonate voices or identities to mislead victims,” he told Bernama.
Globally, cybersecurity reports indicate that deepfake-based fraud increased more than tenfold between 2022 and 2023. Mohd Saberi noted that existing laws, including the Communications and Multimedia Act 1998, were drafted before the rise of deepfake technology.
“The lack of dedicated AI legislation, difficulties in identifying perpetrators, and cross-border jurisdiction issues pose major enforcement challenges,” he said. He recommended a risk-based regulatory approach for high-risk AI applications in safety and finance.
Meanwhile, the National Artificial Intelligence Office reported last November that it is developing a regulatory framework for AI. The Ministry of Digital is also finalising the AI Governance Bill to tackle AI risks comprehensively.
Dr Nooraziah Ahmad from Universiti Malaysia Kelantan warned that AI-generated content could spark panic and exacerbate social tensions. “If public figures or financial institutions can be impersonated via deepfakes, public trust in national institutions will erode,” she said.
She added that a clear governance framework is needed to give industry regulatory certainty and attract investment. “High-risk AI applications may require licensing, balancing public safety with innovation,” she said.
This risk-based approach aligns with international frameworks like the EU AI Act to control harmful AI use.
