Kuala lumpur: The federal and state governments, industry players, and local authorities are being urged to consider awarding more artificial intelligence (AI) technology contracts to local companies, particularly small and medium enterprises (SMEs), to accelerate the implementation and adaptation of AI technology in the economy. Deputy Investment, Trade, and Industry Minister Sim Tze Tzin emphasized the need for improved AI acceptance among industry players despite the existing government allocations, infrastructure, and incentives.

According to BERNAMA News Agency, Sim noted that several industry players have not yet fully utilized the available facilities designed to boost technological capabilities and enhance productivity. He highlighted Malaysia's active efforts to strengthen its regional and global position as a competitive and inclusive digital investment hub by implementing both existing and new strategies.

Sim stated, "The government has provided infrastructure and assistance in terms of grants and incentives. Now, the industry, including SMEs, needs to embrace these efforts to ensure that AI transformation can be realized by industries, factories, and SMEs." He made these remarks during a question-and-answer session at the Dewan Rakyat, responding to a query from Tan Kok Wai (PH-Cheras) regarding Malaysia's standing in the AI ecosystem and strategies to attract high-value AI investments that involve technology creation, expertise transfer, and highly skilled jobs for locals.

Sim warned that Malaysia risks losing investment, competitiveness, and job opportunities if a comprehensive AI transformation is not implemented. "Hence, the government has taken a responsible, inclusive, and forward-looking approach by ensuring that AI transformation empowers SMEs and increases national productivity," he added.