Establishing a National AI Centre: Malaysia’s Path to Effective AI Governance

By The Malketeer

Call  For Centralising AI Oversight for National Alignment

The Khazanah Research Institute (KRI) has proposed a bold recommendation for the Malaysian government – the establishment of a central national agency dedicated to artificial intelligence (AI).

This agency would serve as a focal point, coordinating and implementing the country’s AI strategies across various sectors.

According to KRI, such a centralised body would facilitate crucial connections between AI experts from diverse fields, while also acting as a hub for gathering and disseminating crucial information on the implications of AI to the public.

This recommendation is part of a broader effort to strengthen Malaysia’s role in regional and global AI governance, particularly considering the country’s upcoming chairmanship of ASEAN in 2025.

Setting Clear National Objectives for AI Regulation

KRI’s proposal also highlights the need for Malaysia to establish clear national objectives for its AI regulatory framework.

This would ensure consistency in policy implementation, both across and within sectors.

The institute suggests that Malaysia should learn from other nations that have successfully developed AI guidelines and regulations through international collaboration and participation in global standard-setting processes.

However, KRI cautions against the direct application of global regulations, emphasising the importance of tailoring the approach to the Malaysian context.

Addressing Risks and Enhancing Preparedness

The KRI’s recommendations emerged from a roundtable discussion on the “Implications and Governance of Artificial Intelligence (AI),” which brought together over 20 key stakeholders, including policymakers, public officials, private sector representatives, academics, civil society organisations, and independent experts.

This diverse group provided valuable insights into the future of AI governance in Malaysia.

KRI has identified three major risks associated with AI:

• Potential for falling behind due to inadequate AI adoption,
• Dangers of unsafe AI causing unintended consequences, and
• Risk of AI being weaponised or misused.

The institute warns that insufficient preparedness in governance structures and expertise could exacerbate these risks.

Investing in AI Capabilities for the Digital Economy

KRI has recommended enhancing the skills of policymakers and public officials in the use and administration of AI.

The Malaysian government’s efforts to become a regional AI hub include the launch of the National Artificial Intelligence Framework 2021-2025 and the upcoming release of AI Guidelines and Ethics by the end of the year.

These initiatives are designed to boost national productivity and reinforce Malaysia’s position in the global digital economy.