Kuala lumpur: Artificial intelligence (AI) has become a bright spot for Malaysia, attracting USDollar759 million in funding, supporting more than 60 local AI start-up companies from the second half of 2024 (2H 2024) to the first half of 2025, according to the 10th edition e-Conomy SEA Report 2025 by Google, Temasek and Bain and Company.

According to BERNAMA News Agency, Google Malaysia and Singapore managing director Ben King stated that Malaysia’s AI investment is the second highest in Southeast Asia, trailing only Singapore, which has attracted USDollar1.3 billion in funding and hosts over 495 AI start-ups. King highlighted Malaysia’s strong infrastructure investment and thriving AI start-up ecosystem as key factors in attracting substantial funding.

King further noted that Malaysia is at the forefront of Southeast Asia’s AI infrastructure investments, with a 350 percent projected increase in additional capacity. The shift of capital flows from Singapore to Malaysia, due to capacity constraints in the former, is seen as a positive development for Malaysia’s digital economy.

The Malaysian government’s pro-technology and pro-innovation policies have positioned the country well, King said. Google has committed to significant investments in Malaysia, aiming to fuel the next phase of AI-ready cloud services.

Addressing concerns about job displacement due to AI, King emphasized the importance of upskilling and equipping people with the right tools. He noted that Google is dedicated to training 5.5 million individuals in AI-specific skills across Southeast Asia, aiming to prepare the workforce for future opportunities.

Bain and Company Kuala Lumpur partner Amanda Chin supported King’s views, stressing that jobs in the creative sector, which require human elements and original thoughts, remain important in the AI era. Chin emphasized the need to focus on both current workforce training and equipping future generations with the necessary skills to thrive in this technologically advanced landscape.