Kuala lumpur:<Text>

Manufacturers across ASEAN, including Malaysia, could unlock up to US$1.2 trillion (US$1=RM3.95) in artificial intelligence (AI)-driven gross output value growth by 2030, according to global management consultancy firm Kearney. Its Asia-Pacific region chair, Shigeru Sekinada, stated that Malaysian manufacturers must leverage their competitive strengths and place AI at the core of their growth strategies to seize this opportunity.

According to BERNAMA News Agency, Sekinada emphasized the importance of using AI for upstream product design optimization and making fact-based value chain decisions. By embedding AI from the beginning, manufacturers can increase margins and build operational resilience, driving transformative changes across the manufacturing ecosystem. AI also offers opportunities for novel use cases that can expand Malaysia's service and digital economies, such as AI-enabled customer service platforms like chatbots to enhance operations in the ba nking and e-commerce sectors.

Sekinada pointed out that advanced models can streamline large data analysis to optimize operations and draw key insights, which are particularly useful for sectors handling large amounts of sensitive data, such as financial services and logistics. These capabilities underpin crucial digital economy enablers like ride-hailing, e-commerce, and logistics.

Sekinada noted that scaling AI adoption in Malaysia presents significant opportunities and challenges. An evolving data governance and infrastructure requires deliberate efforts for Malaysia to establish necessary governance structures. While Malaysia is developing a robust AI data governance structure, further strengthening and refinement are essential in a rapidly evolving global environment. Balancing infrastructure investments to support both near-term business priorities and longer-term data requirements is crucial.

Sekinada also stressed the importance of aligning AI regu lations with existing regulations, impacting hosting and cross-border data transfer for personal data. He suggested that the government should ensure AI tools and platforms are adapted for the local market, enabling communication across Malaysia's diverse local languages.

Testbeds and infrastructure upgrades are crucial for Malaysia's AI expansion. Sekinada highlighted that every stakeholder, from the government to business users and investors, has a role in unlocking the benefits of AI. Testbeds are effective in addressing AI implications, fostering innovation, and facilitating adoption. He urged the government to collaborate with regulators, users, and solution providers to ensure testbeds can pilot business-driven use cases effectively.

Sekinada recommended prioritizing data infrastructure upgrades around high-impact use cases that deliver measurable outcomes and near-term value, such as predictive maintenance and customer analytics. For investors, untapped value remains across use cases and sectors, and broadening investment areas is key to harnessing this potential.

A future-ready AI infrastructure starts with developing a robust AI talent pipeline. Businesses should continuously reskill and upskill employees with the tools, knowledge, and skills needed in an AI-driven era. Public-private partnerships are crucial for integrating resources and expertise and fostering knowledge sharing. However, Sekinada emphasized the importance of incorporating long-term changes in the education system, adopting an industry-focused curriculum to equip students with the right knowledge and skills aligned with industry needs. The goal is to cultivate talent who can leverage technical skills in AI to address real-world business problems and drive measurable outcomes.