24 @ DIGITAL
@ green | January-February . 2025
Judicious for Malaysia
Emergence of new AI technology provides opportunities for neutral data centre hub
THE emergence of new AI technology , such as Deep- Seek , is a game-changer for Malaysia ’ s economy , reducing its dependence on a single product .
Minister of Investment , Trade and Industry ( MITI ) Tengku Zafrul Abdul Aziz said the emergence of this diverse AI technology also allowed Malaysia to become a neutral data centre . This facility provides services to AI companies from the West and East , such as China , without being affiliated with any specific country or region .
“ Although this more efficient AI reduces the need for large
|
data centres , the lower cost of AI is expected to increase the widespread use of AI technology and will drive more demand for data centre services ,” he said .
He said this in response to an additional question from Datuk Seri Dr Wee Jeck Seng ( BN-Tanjung Piai ) regarding the impact of the rise of new AI technology on data centre investors , especially from China .
According to Tengku Zafrul , increasing the efficiency of AI does not reduce the demand for data centres . On the contrary , it may increase the use of AI , which in turn stimulates data centre
|
|
|
investment .
“ The semiconductor supply chain will be diversified if we look at the locations of Johor , for example , Penang and Kedah . These strategic locations for AI infrastructure and data centres will not be affected ,” he said .
Therefore , he said , the next step for Malaysia was to ensure the competitiveness of data centres in the country by introducing more competitive green investment incentives , which could include tax breaks for companies that invest in energy-efficient technologies or subsidies for those that adopt renewable energy sources .
|
Tengku Zafrul
“ We want to encourage the AI and digital workforce further and increase Malaysia ’ s competitiveness as an AI processing centre by attracting more investment from AI companies , not only from the West but also from other countries .
“ And we also need to ensure diplomatic relations with the United States ( US ) and China continue to be maintained in an effort to ensure Malaysia ’ s position as a neutral technology investment hub ,” he said . – @ Digital
|
From page 22
Another major step forward was the Digital Identification in ASEAN – Baseline Study , which explores the adoption of secure and inclusive digital identification systems . This initiative is expected to play a crucial role in facilitating e-government services and improving digital transactions .
DIGITAL COOPERATION
ASEAN reaffirmed its commitment to strengthening digital cooperation with international partners to accelerate technological advancements and enhance regional cybersecurity .
Several agreements were endorsed with China , Japan , the Republic of Korea , the United States , India , the European Union , and Russia , focusing on advancing digital infrastructure , cybersecurity collaboration , and AI governance .
The ASEAN-China partnership was reinforced with the adoption of a joint statement on building a sustainable and inclusive digital ecosystem , promoting technological innovation and cybersecurity cooperation .
Similarly , the ASEAN-Japan Digital Work Plan 2025 aims to drive AI development , expand digital infrastructure , and enhance cybersecurity , leveraging Japan ’ s technological expertise .
Meanwhile , the ASEAN-United States Agreement on AI focuses on ensuring the development of safe and trustworthy AI technologies , emphasising ethical frameworks
Gobind meets Thai PM Paetongtarn Shinawatra .
to mitigate risks associated with AI misuse .
The ASEAN-India Digital Partnership was introduced to strengthen collaboration in cybersecurity , financial technology ( fintech ), and digital public infrastructure . India ’ s advancements in digital payment systems and cybersecurity frameworks are expected to support ASEAN ’ s digital transformation efforts and enhance financial inclusivity . The partnership will facilitate knowledge exchange and joint initiatives , fostering a robust digital ecosystem in the region .
In addition , the ASEAN-Russia Digital Work Plan outlines cooperation in broadband infrastructure , e-government services , and emerging digital technologies , underscoring Russia ’ s commitment to fostering digital partnerships with ASEAN .
This will facilitate the exchange of best practices and technological expertise , contributing to the region ’ s digital advancement and enhancing its global competitiveness .
ASEAN also introduced the European Union-backed ASEAN Digital Index ( ADIX ), a data-driven initiative modelled after the EU ’ s Digital Economy and Society Index ( DESI ). This project will provide valuable insights to shape future digital policies , helping ASEAN track its progress and ensure longterm digital growth .
The ADIX will serve as a benchmark for ASEAN ’ s digital development , providing a comprehensive overview of the region ’ s digital readiness and identifying areas for improvement .
These global collaborations highlight ASEAN ’ s commitment to establishing a secure , innovative , and inclusive digital future . By working closely with international stakeholders , ASEAN continues to position itself as a leader in digital transformation , cybersecurity , and technological advancement .
Gobind added that the meeting underscored the importance of stronger collaboration in preventing online scams and fraud and enhanced connectivity .
“ The three key takeaways were accelerating regional economic growth ( especially through DEFA ), building a safe digital environment and enhancing regional connectivity ,” added Gobind .
A DIGITAL FUTURE
The 5th ADGMIN concluded with a strong commitment to accelerating ASEAN ’ s digital transformation while ensuring security , inclusivity , and innovation . Ministers emphasised the importance of strengthening partnerships , enhancing digital infrastructure , and fostering AI governance to create a future-ready digital economy .
As ASEAN prepares for the Final Review of the ASEAN Digital Masterplan 2025 , the discussions and agreements from this meeting will serve as a foundation for shaping the next phase of regional digital development . The 6th ADGMIN will take place in Vietnam in 2026 , continuing ASEAN ’ s journey toward a stronger , more connected digital future . – @ Digital