January-February . 2025 | @ green COLUMN 25

Malaysia is positioning itself as a key player in the region ’ s AI development

THE US : LEADING THE CHARGE IN AI SUPREMACY

The United States is aggressively pursuing AI dominance . Project Stargate , a massive private-sector initiative worth US $ 500 billion , aims to solidify America ’ s dominance in AI development and infrastructure .

Announced by President Donald Trump , Stargate is a private-sector-led endeavour led by tech giants like OpenAI CEO Sam Altman , and Oracle Chairman Larry Ellison and backed by SoftBank CEO Masayoshi Son , aims to build powerful data centres in Texas , centralising AI infrastructure and serve as the nerve centre for AI-powered applications like ChatGPT and beyond .

Further reinforcing this push , the CHIPS and Science Act provides substantial funding for semiconductor development - a critical component of AI advancement .

Additionally , the US has strategically imposed export controls to restrict China and other competing nations from accessing advanced AI chips and manufacturing equipment , aiming to curb their progress .

CHINA : A FORMIDABLE CHALLENGER

China is the US ’ s primary rival in the AI arena . Its New Generation Artificial Intelligence Development Plan sets an ambitious goal of achieving global AI leadership by 2030 . Heavily backed by state-controlled enterprises , China is investing extensively in AI research , chip manufacturing , and surveillance technology .

DeepSeek , a Chinese AI lab , showcased its innovation by developing a powerful open-source AI model for under $ 6 million , rivalling systems like GPT-4 and Llama . The DeepSeek-R1 model is trained at a significantly lower cost and requires a tenth of the computing power of comparable AI models such as OpenAI ’ s GPT-4o .

While the model isn ’ t fully open-source due to the unavailability of training data , the release of “ open-weight ” models is a significant step . DeepSeek ’ s AI Assistant , powered by DeepSeek-V3 , has overtaken rival ChatGPT to become the top-rated free application available on Apple ’ s App Store in the United States . Alibaba ’ s Qwen 2.5 AI model , launched recently , has outperformed even DeepSeek V3 in benchmark tests .

INDIA : AN EMERGING AI POWERHOUSE

The back-to-back announcements of advanced AI models from Chinese companies have raised some questions in India , too . What is stopping it from developing its foundational AI model ?

IT Minister Ashwini Vaishnaw partly answered this at a recent Press conference . India ’ s investment in over 18,000 high-end GPUs demonstrates its commitment to building robust computing facilities essential for AI applications , model training , and algorithm development .

Compared to global model computation costs of $ 2.5 to $ 3 per hour , India ’ s AI Model computation will cost less than 100 rupees ($ 1.15 ) per hour after a 40 per cent government subsidy , significantly lowering the entry barrier for AI development .

Additionally , India is hosting DeepSeek on Indian servers after rigorous security protocol checks , allowing developers , coders , and researchers to benefit from its open-source code . The $ 1.25 billion IndiaAI mission will further fuel AI startups and enhance the AI ecosystem .

THE EUROPEAN UNION : CHAMPIONING ETHICAL AI

While the EU may not be at the forefront of raw technological power , it is taking a leading role in ensuring AI aligns with human rights and ethical standards . The Artificial Intelligence Act seeks to regulate AI technologies , prioritising responsible and ethical implementation .

MALAYSIA : THE RISING STAR OF ASEAN

As ASEAN chair in 2025 , Malaysia is positioning itself as a key player in the region ’ s AI development . With a focus on becoming a digital innovation hub , Malaysia has launched the National Artificial Intelligence Office ( NAIO ) to guide its AI strategy .

The NAIO ’ s priorities include developing a code of ethics , a regulatory framework , and a long-term AI action plan . Budget 2025 provides further support through incentives for high-tech companies , R & D , and talent development .

Malaysia ’ s digital economy corporation ( MDEC ) has successfully onboarded 140 AI solution providers , generating RM1 billion in revenue .

AI is projected to contribute significantly to Malaysia ’ s economy , with

Akhil Gupta is the Group CEO of Total IT Global , a conglomerate specialising in IT infrastructure , AI , and talent solutions . With 25 years of experience leading businesses in these sectors , he currently plays an active roåle in industry associations and government-backed initiatives focused on driving digital transformation .

expectations of generating approximately US $ 115 billion in productive capacity by 2030 .

MALAYSIA ’ S AI ASCENT

To compete in the global AI race , Malaysia must prioritise several key areas . 1 . Bolstering AI Research : Malaysia needs a significantly stronger AI research ecosystem . While some initiatives exist , the funding gap compared to leading nations is vast . Top Chinese universities , for example , receive immense research funding , dwarfing that of many countries ’ entire academic communities . Bridging this gap requires a concerted , long-term government-industry-academia partnership focused on increasing funding for fundamental AI research , fostering industry-academia collaboration , and attracting top AI talent . 2 . Closing the Digital Talent Gap : The US , China , and India have a considerable advantage due to their readily available pool of digital talent . Despite efforts by MDEC and TalentCorp , Malaysia faces a talent shortage , especially in data science and AI . This gap is widening . A two-pronged approach is necessary : In the short term , facilitating the import of international experts to address immediate needs . Simultaneously , a long-term strategy is crucial , building a robust talent pipeline through deep industry-academia collaboration and investing in education and training to equip Malaysians with advanced AI expertise . 3 . Democratising Compute Power : Malaysia should establish an affordable common computing facility equipped with substantial GPU capacity to support the development of a secure , indigenous AI model . This shared resource lowers the barrier to entry for students , researchers , and startups . The ultimate goal is to provide cloud-based AI services to a broad range of users , including academia , MSMEs , startups , research institutions , government agencies , and other approved entities , fostering widespread AI adoption . 4 . Leading in AI Safety : As ASEAN chair in 2025 , Malaysia can lead the region in responsible AI development by establishing an ASEAN AI Safety Institute . Operating on a hub-and-spoke model , the institute would collaborate with regional research institutions , academia , and the private sector . This collaborative approach ensures safe and ethical AI development , solidifying Malaysia ’ s vision as a hub for digital innovation and ethical AI in ASEAN .

THE STAKES

The AI race is a battle for influence and power . AI has the potential to reshape economies , military strategies , and even global narratives . Unlike the nuclear arms race , there ’ s no clear end .

The crucial question is not simply who wins but how this competition will shape our future . Will it inspire unprecedented innovation and collaboration , or will it deepen existing divides ? The AI race is happening now , and its outcome will define the 21st century . – @ Digital