AGP Executive Report

Growth & Chips: Malaysia’s economy grew 5.3% year-on-year in Q3, with manufacturing up 7.5% and data-centre projects supporting construction. The AI infrastructure boom is also lifting demand for Malaysian semiconductors. Smart Ports: Penang Port has launched the country’s first private 5G network on dedicated spectrum, supporting secure, low-latency operations and future automation. Robotics & Mobility: Selangor signed four pilot partnerships covering robots, autonomous vehicles and industrial automation, with local talent training. UMPSA also joined Move Robotic and PIX Moving to develop and trial RoboBus technology. Homegrown Semiconductors: Malaysia unveiled six locally designed chips worth RM300 million as it seeks to move beyond assembly into chip design. Undersea Cables: A new analysis says Malaysia’s telegraph-era law may not adequately protect submarine cables, which carry almost all of the country’s international data.

Smart Ports: Penang Port has become Malaysia’s first port to deploy a private 5G network on dedicated spectrum, covering two terminals and keeping its network core and operational data on-site. The low-latency system is intended to support automation and connected port operations. Homegrown Chips: Malaysia unveiled six locally designed chips for AI, automotive, satellite and drone uses, with estimated annual sales potential of RM300 million — part of a push to move beyond assembly into chip design. Robotics and Mobility: Selangor signed four pilot-project collaborations covering humanoid and service robots, autonomous vehicles and industrial automation, while UMPSA, Move Robotic and PIX Moving will develop self-driving mobility suited to Malaysian roads. Semiconductor Skills: Malaysia and Uzbekistan signed agreements to train semiconductor specialists and link universities with industry. Selangor also aims to bring six semiconductor firms to IPO by 2030.

Medical Technology: UKM’s HCTM has performed Malaysia’s first leadless pacemaker implant using access through the neck, offering an option for patients unsuitable for the conventional route. Semiconductors: Malaysia has unveiled RM300 million worth of homegrown chips as it shifts towards chip design; strong AI-chip demand also helped lift Q3 economic growth to 5.3%. Skills and Industry: Budget 2027 sets aside RM8 billion for TVET, including aviation and automotive training, while Malaysia plans to bring China’s Luban Workshop skills programme to local instructors. Digital Infrastructure: CelcomDigi secured additional 900MHz and 2600MHz spectrum to expand network capacity and coverage. AI and Data Centres: MIMOS is expanding digital-trust and AI-security work under the sovereign AI agenda, as the government tightens data-centre conditions and weighs pressure on electricity and water resources.

AI Infrastructure: SANGRIX says 16 NVIDIA Blackwell B300 servers, containing 128 GPUs, are due in Malaysia the week of Nov. 3. Testing and commissioning will follow delivery. Skills and Industry: Budget 2027’s RM8 billion TVET allocation is aimed at building skills for aviation, automotive and emerging technology jobs. Malaysia-China training partnerships include 2,500 placements for 2026, with plans to expand instruction in AI, robotics, automation and semiconductors. Business Digitalisation: PIKOM says free AI subscriptions and MDEC support for 4,000 MSMEs need to be paired with practical training and guidance to deliver productivity gains. Medical Technology: UKM’s HCTM has successfully implanted leadless pacemakers through a neck vein, offering an alternative for patients unsuitable for the conventional route. Digital Creative Industries: Malaysia’s new roadmap targets RM9 billion in revenue, RM6 billion in exports and 10,000 high-value jobs by 2030, while urging local firms to build and commercialise their own intellectual property.

Data-Centre Power: Malaysia plans to make data-centre investors pay for transmission upgrades needed to serve their facilities, aiming to shield other electricity users from the costs. Mobile Networks: CelcomDigi has secured additional 900MHz and 2600MHz spectrum to expand capacity and coverage. AI and Digital Economy: ICT and e-commerce contributed RM476.8 billion to Malaysia’s GDP in 2025, as local firms push to build AI tools for public services; one procurement pilot cut call-centre workload by up to 18%. Digital Trade: Retailers back the proposed E-Commerce Bill, calling for clearer platform responsibilities, stronger seller checks and better consumer protection. Technology Partnerships: Malaysia welcomed China’s proposals for technology and knowledge transfer, including cooperation on the East Coast Rail Link and electric vehicles. A US nuclear cooperation agreement could also open access to expertise and training for local talent.

Digital Economy: Malaysia’s ICT industry and e-commerce generated RM476.8 billion, or 23.5% of GDP, in 2025, growing 5.6%. ICT product exports rose 14.8% to RM513.6 billion. Data-Centre Infrastructure: With more than 1,000MW of capacity operating and another 1,500MW under construction, the government says data-centre investors must fund transmission upgrades and pay for their allocated power capacity, protecting other users from added costs. AI in Government: Malaysian e-procurement provider Commerce Dot Com says a conversational AI pilot cut call-centre workload by 15% to 18%, and shared its experience with regional public-sector counterparts. Research to Market: Universiti Malaysia Kelantan’s BioKenaf products have generated more than RM50 million in sales and created over 50 jobs, showing how university research can support local industry.

Sovereign AI: Malaysia is developing a government AI cloud to keep classified information protected from foreign laws, with the Communications Ministry and MCMC overseeing the initiative. Data Centre Expansion: The government has approved 27 projects worth RM225.97 billion, expected to create 4,053 jobs; Malaysians are projected to fill nearly 89% of the high-skilled roles, while a new programme aims to train local data-centre staff. AI Skills: UPSI and HONOR will establish an AI lab for hands-on student learning and research tied to industry needs. Scam Response: Bank Negara says the National Fraud Portal has cut fund-tracing time by 75%, helping banks coordinate faster action; about 95% of Malaysia’s reported scam cases involve victims authorising payments themselves. Online Safety: Google is rolling out machine-learning age estimates in Malaysia to apply extra protections to users it believes are under 18, adding a new approach alongside the country’s age-verification rules.

Digital Policing: Malaysia is considering China-style high-definition CCTV and facial recognition in crime hotspots and tourist areas, Deputy Prime Minister Ahmad Zahid said after talks in Beijing. Semiconductors: Budget 2027 earmarks RM1.2 billion from Khazanah and KWAP to help local chipmakers move into higher-value work such as IC design, alongside a RM100 million fund for early-stage semiconductor and advanced-manufacturing firms. Startups & Talent: Malaysia has attracted 78,138 skilled foreign tech workers and more than RM51 billion in startup investment, according to the Science Ministry. The KL20 initiative targets RM700 million in venture capital and up to 3,500 additional active startups by 2030. Scam Prevention: Bank Negara says the National Fraud Portal has cut fund-tracing time by 75%; about 95% of Malaysia’s fraud and scam cases involve victims being manipulated into approving payments.

AI and R&D: MIMOS says Budget 2027’s RM6 billion for research and commercialisation should help turn local innovation into market-ready technology. The budget also includes RM1.2 billion in investment for semiconductor firms and RM30 million to help 4,000 small businesses adopt AI. MIMOS is developing deepfake detection, trusted digital identity and AI cybersecurity tools under Malaysia’s sovereign AI agenda. Data-centre expansion: DayOne has secured US$3.7 billion to expand in Malaysia, as the government reviews data centres’ water and power needs. The rapid buildout is also raising questions about whether the jobs created will match the scale of investment. Semiconductor strategy: Malaysia’s chip exports to the US remain exempt from tariffs, while the government aims to reduce reliance on the sector and broaden growth—balancing support for a key industry with plans to diversify.

Technology Investment: MOSTI will use its RM1.29 billion 2027 allocation to boost semiconductors, AI, startups and research commercialisation. Broader plans include RM6 billion for R&D and RM1.2 billion from Khazanah and KWAP to help local chipmakers move into higher-value work. Malaysia says semiconductor exports remain exempt from US tariffs for now, while talks continue on excess-capacity concerns. Data-Centre Guardrails: Johor will vet proposals and says it will accept only Tier 3 and 4 facilities that prioritise water efficiency and green technology. Workforce Readiness: More than 74,000 people have joined government upskilling programmes, with training in AI, automation, IoT, EVs and drones. Digital Mobility: AI is planned for Malaysia’s multi-lane free-flow toll system, while next week’s Transport Expo Asia will focus on autonomous mobility, transport digitalisation and decarbonisation.

AI Infrastructure: Bitdeer AI has signed an eight-year deal for a 60MW data-centre facility in Cyberjaya, bringing its planned capacity in Malaysia, Norway and the US to about 333.5MW. In Perak, AlphaESS and DB Energy are exploring battery storage for an AI data-centre power system. Semiconductors: Malaysia and Jordan are pursuing cooperation in semiconductors and technical training, while IJM secured a RM1.23 billion contract to build facilities for chipmaker AT&S in Kedah. TTM Technologies also plans to expand capacity at its Penang plant. Digital Security: Ledger confirmed an unauthorised hardware implant in crypto wallets sold through Southeast Asian reseller CryptoBilis, with reported losses reaching as high as US$93 million. Emerging Technology: MITI says Sabah could host low-altitude economy trials, including drone deliveries of medicines and medical samples, but no site has been selected. Tech Supply Chain: Global smartphone shipments plunged 20% in the third quarter as memory shortages and higher component costs—driven in part by AI infrastructure demand—squeezed manufacturers.

Semiconductor Push: Malaysia and Jordan are exploring cooperation in semiconductors and advanced technical education, including training more engineers. Separately, IJM won a RM1.23 billion contract to build a production facility for AT&S in Kulim, while TTM Technologies plans to invest US$400 million across sites including Penang to expand capacity for AI infrastructure. AI Skills: Sea and OpenAI will hold a Kuala Lumpur hackathon in December, bringing local developers, students and startups together to build practical AI tools. Research to Market: Universiti Teknologi Malaysia has commercialised Fragrad, a perfume developed from agarwood research, demonstrating how university work can create new products. Industrial Resilience: The government says it will diversify Malaysia’s growth beyond semiconductors while moving the sector into higher-value activities such as chip design and advanced packaging.

Digital Access: Budget 2027 plans 4G coverage for all Orang Asli villages and a MADANI subsea cable, while MCMC has added about 1,010 Wi-Fi access points at Universiti Malaysia Sabah. Cybersecurity: Ledger confirmed an unauthorised hardware implant in at least one wallet sold through Malaysian reseller CryptoBilis; reports put losses at up to US$93 million, highlighting supply-chain risks for crypto users. AI Infrastructure: Bitdeer is expanding its Cyberjaya data-centre capacity, while SoftBank, Grab and PETROS are exploring AI infrastructure in Sarawak. Semiconductors: Penang’s 2,300-acre Silicon Island is being developed to support the chip industry. Research and Skills: Malaysian leaders are urging the country to build quantum-technology capability and strengthen the talent pipeline for high-value industries.

Campus Connectivity: MCMC has added about 1,010 Wi-Fi access points at Universiti Malaysia Sabah, with a second phase of the JENDELA network plan expected to improve rural 4G coverage. Budget 2027: The government plans a sovereign AI cloud, 100,000 more free AI subscriptions for young people and an AI app to detect scams, alongside expanded connectivity for Orang Asli villages and a MADANI subsea cable. Chipmaking: Penang’s 2,300-acre Silicon Island is planned as a new base for the semiconductor industry, with ambitions to move Malaysia beyond chip assembly and testing. Technology Partnerships: Deputy Prime Minister Ahmad Zahid’s China visit, starting Oct 12, will include talks on AI, the digital economy, telecommunications, investment and skills training.

Quantum Capability: Science Minister Chang Lih Kang says Malaysia must invest now in quantum talent, research and infrastructure to prepare for future uses in computing, sensing and communications. Rural Connectivity: JENDELA 2 will target 2,000 locations in Sabah and Sarawak’s interior, using different technologies to extend internet access to remote communities. AI and Skills: Budget 2027 plans a sovereign AI cloud, 100,000 more free AI subscriptions and an AI scam-detection app, alongside RM8 billion for technical and vocational training. Accessible Science: FRIM and IIUM have produced a tactile and Braille book introducing visually impaired readers to seeds from seven endangered Malaysian forest tree species. EV Growth: Malaysia registered 6,029 electric vehicles in September, 8.12% of new vehicle registrations and a 70.7% rise year-on-year.

Quantum Readiness: Malaysia should start building quantum-technology expertise now, Science, Technology and Innovation Minister Chang Lih Kang says, investing in talent, research and infrastructure before the field matures. Budget 2027: The government plans a sovereign AI cloud, 100,000 more free AI subscriptions and an AI scam-detection app, while RM8 billion for TVET is intended to help prepare workers for sectors including semiconductors and AI. Rural Connectivity: JENDELA Phase Two will bring internet access to 3,000 underserved locations, including 2,000 in Sabah and Sarawak’s interiors, using solutions tailored to local conditions. AI Infrastructure: Bitdeer is planning a 67MW AI data-centre campus in Malaysia as data-centre growth is expected to lift Peninsular Malaysia’s power use by 4.9% in 2027, sharpening the need to balance computing expansion with energy supply.