AGP Executive Report

AI Infrastructure: Bitdeer AI has signed a 10-year agreement for a 67MW data-centre campus in Malaysia, its third local hub after Cyberjaya and Johor. Delivery is targeted to start in early 2027, with full capacity expected by Q2. SoftBank and Grab are also planning AI infrastructure in Sarawak with a local energy partner. Digital Skills: The Ministry of Digital is offering 100,000 Malaysians three months of free Coursera access to more than 16,000 courses, including AI and data science. Nearly 13,000 learners had enrolled in the first three weeks. Semiconductors: Penang’s planned 2,300-acre Silicon Island aims to ease land shortages and support Malaysia’s move into advanced chip packaging, with projections of RM75 billion in investment and 220,000 jobs. Cybersecurity: Kuala Lumpur’s CyberDSA 2026 drew its strongest turnout yet, focusing on securing AI systems, protecting data and building digital trust.

Digital Skills: Malaysia is offering 100,000 three-month Coursera licences, with courses in AI, data science and technology available through Rakyat Digital. AI in Education: Awantec won a regional award for its AI literacy programme across 20 public universities, giving students and educators access to AI tools and training. Tech Workforce: A 5G, AI and cloud training programme aims to place all 50 participants in jobs within four weeks; last year’s cohort achieved full placement. Space Safety: Malaysia is updating disaster procedures for falling satellite or rocket debris, after simulation exercises and ahead of a full-scale drill planned for early 2027. Advanced Manufacturing: A Japanese-Malaysian joint venture has begun work on a RM70 million precious-metal refinery in Penang, expected to start operations in 2029. Cybersecurity: Tabung Haji suspended services after detecting suspicious cyber activity and is working with national cybersecurity agencies to assess the incident.

Industrial Technology: Air Products will design and operate Malaysia’s first LNG-based air separation unit at the Pengerang terminal in Johor. The plant is expected to produce more than 600 tonnes of oxygen, nitrogen and argon a day from early 2027. Cybersecurity: A Kuala Lumpur workshop brought more than 40 finance professionals together to assess when banks should prepare for quantum-resistant encryption. Online Safety: MCMC and e-commerce platforms are coordinating stronger seller checks and technology-based monitoring for dangerous or illegal product listings. Circular Economy: Malaysia and Japan renewed technical cooperation to support the country’s 53% recycling target by 2035. SME Finance: A RM1 million MyIPO fund will help at least 50 SMEs and start-ups cover the cost of valuing intellectual property for financing. Homegrown Chips: Sarawak has unveiled its first locally designed gallium nitride power semiconductor chip, a step towards building local capabilities in advanced electronics.

Healthcare AI: BioNexus plans to build Malaysian healthcare applications under an exclusive licence for CogniAI, initially targeting a public-sector digitisation programme covering 150 hospitals and more than 2,000 clinics. The deal is still pending completion. Data Centre Power: Malaysia’s electricity demand growth has reached about 10%, up from the 1.5%–2% regulators once planned for. The Energy Commission warns that short data-centre commitments could leave long-lived grid investments difficult to recover. Solar Build-out: Northern Solar won a RM34 million contract to develop a 9.5-megawatt solar plant, scheduled to start operating by May 2027. Online Safety: MCMC met e-commerce platforms and government agencies to strengthen seller verification and use technology to detect illegal or dangerous listings. AI Adoption: Ericsson research projects daily multimodal AI use in Malaysia will reach 43% by 2030, above its 30% global forecast.

Workforce & Skills: Malaysia launched a 5- to 10-year Future Skills Framework for the communications and multimedia sector, aiming to align industry needs with education and job pathways as AI and digitalisation reshape roles. Semiconductors & Talent: MITI said 21,391 people have been trained for the semiconductor sector as of June 2026, supporting the goal of 60,000 highly skilled workers by 2030 under the National Semiconductor Strategy. AI & STEM Mindset: Malaysia’s science minister urged young Malaysians not to avoid STEM over fears AI will replace jobs, pointing to enrolment concerns in Additional Mathematics and key science subjects. Digital Infrastructure: U Mobile hit 90% populated-area 5G coverage nine months ahead of schedule, highlighting progress under Malaysia’s Dual 5G Network Model. Cross-border Engineering: RTS Link between Johor Bahru and Singapore faces tough operational demands despite only two stations, with a key focus on safe braking and signalling on a steep viaduct gradient plus wet-weather testing. Food & Agriculture Tech: AcroSeeker uses AI to help farmers diagnose crop problems from smartphone photos and recommend pesticide actions to reduce misdiagnosis and chemical overuse. Energy Transition: Malaysia and France are expected to sign an energy-transition MoU soon to boost green technology cooperation. MedTech Investment: Penang approved RM2.3bil in MedTech investments (2021–Q1 2026), creating nearly 4,500 jobs and reinforcing its higher-value manufacturing push.

Energy Transition: Malaysia is set to sign an MoU with France to accelerate energy transition and renewable energy cooperation, with both sides expected to share green technology and investment opportunities. AI & Financial Crime: Malaysia’s banking and compliance leaders are urging AI to support human judgment in fraud, KYC, AML and CFT, warning that trust and AI skills gaps remain major hurdles. Telecom Rollout: U Mobile says it reached 90% coverage of populated areas (CoPA) nine months early, citing the Dual 5G Network Model as a driver for competition and innovation. STEM Pipeline: MOSTI says young Malaysians should not fear AI job loss and should stay in STEM, as enrolment trends still lag the country’s 60:40 science-to-arts goal. Tech Sovereignty: MOSTI flags nine national technology drivers, naming AI-powered systems, sensors/semiconductors, cybersecurity, big data analytics and 5G/6G as top priorities for building local capability by 2030. MedTech Momentum (Penang): Penang reports RM2.3b in approved MedTech investments (2021–Q1 2026), 40 projects and nearly 4,500 jobs, with exports and higher-value manufacturing driving growth. Data Centres & Power (Regional): Sri Lanka is seeking AI data centre investment while raising its 2027 peak demand forecast by 315MW, underscoring how power planning is becoming central to digital expansion. Cold-chain Automation: JLG Capital and Kasumigaseki Capital Malaysia sign an MoU to explore automated cold-storage and cold-chain infrastructure in Malaysia.

AI Governance & Procurement: Aventra Group says it has secured ISO/IEC 42001 for its Artificial Intelligence Management Systems, aiming to cut enterprise vendor review friction by unifying AI governance with ISO 27001 and SOC 2. Regional Tech Reset: DealStreetAsia’s summit in Singapore highlights a shift in Southeast Asia from “unicorn” hype to more durable, operations-first tech businesses. Drug Enforcement: INTERPOL’s Operation Lionfish-Mayag IV reports 650 tonnes seized across synthetic drugs and precursors, with ketamine overtaking methamphetamine by volume for the first time in the synthetic-drugs focus. STI for Schools: MOSTI will bring 300 scientists to 300 schools under STI 100³ Year 2026 to boost STEM interest and link students to real-world applications. Budget 2027 AI Push: Alumni PTD urges Budget 2027 to accelerate AI and digitalisation in public services, while positioning Malaysia’s ageing population as an economic asset. Environment Tech Budget Requests: NRES proposes drone cloud seeding and rare-earth mapping for Budget 2027 to tackle haze and climate impacts. Cybercrime Warning: Group-IB flags “Milk Dragon” phishing scams using fake social-media discounts (including brands like LEGO and Calvin Klein) to steal payment details and one-time passwords. Malaysia–Indonesia Connectivity: Malaysia Airlines, BCA and Novus sign an MoU to integrate travel, payments, loyalty and digital capabilities for the Malaysia–Indonesia corridor. Maritime Tech & Policy: WISTA 2026 in Kuala Lumpur (28–30 Oct) will spotlight sustainability, technology and inclusive leadership for Asia’s shipping and trade community.

AI & Public Sector Modernisation: Malaysia’s Budget 2027 talk is getting louder on AI and digital delivery, with calls to fund end-to-end digitalisation across ministries and use AI in licensing, enforcement and service delivery, while also treating the ageing population as an economic asset. STEM Pipeline: MOSTI’s STI 100³ Year 2026 programme will place 300 scientists in 300 schools nationwide to boost STEM interest through hands-on activities and real-world applications. Climate Tech for Haze: The NRES Ministry is pushing Budget 2027 “wish list” items including drone-operated cloud seeding to reduce reliance on costly military assets, plus mapping rare earth deposits. AI Skills for SMEs: A proposed universal AI training and incentive scheme targets uniform upskilling across professions, with special focus on MSMEs that make up most businesses and jobs. Marine Conservation Tech & Rules: AGC is reviewing new regulations for a 1,700 sq km dugong sanctuary in Mersing waters, including speed limits to cut deaths from boat strikes. Electric Maritime Transport: Yinson GreenTech plans Malaysia’s first commercial fully electric passenger ferry service in Langkawi, with charging infrastructure support from Tenaga Nasional. Transport Tech & Compliance: JPJ’s suspension of MyEG and Zetrix AI services takes effect, with Transport Minister demanding immediate settlement of RM314m in arrears. Energy Efficiency Innovation: AES is commercialising a water-spray cooling device for AC outdoor units, claiming major power savings and lower fire risk. Economy Outlook: AMRO raised Malaysia’s 2026 growth forecast to 5.1% on AI-related exports and investment, while keeping inflation near 2%.

AI Workforce Push: Malaysia is rolling out “I’m AI Ready” to get five million Malaysians AI-competent by 2030, using verified assessments, scholarships and business participation to close a reported 500,000+ AI-skilled worker gap. Quantum Education Drive: Deputy PM Ahmad Zahid urged UiTM to set up a quantum technology department next year, with RM500,000 support, aiming to build local quantum expertise within a decade. Semiconductor Incentives: The Malaysia Semiconductor Industry Association wants Budget 2027 to raise automation capital allowance to RM100m and offer 200% R&D tax deductions to spur reinvestment, higher-value work and industry-university collaboration. Campus Growth: UTM enrolled 4,506 new undergrads for 2026/2027, including the first intake for a Faculty of Artificial Intelligence, plus new data engineering and analytics programmes. Research Talent Pipeline: A policy think tank says Budget 2027 should encourage graduates into research-specific roles and expand postgraduate pathways to meet the goal of 200 RSET researchers per 10,000 workers. Public Sector Tech & Safety: JPJ denied a viral claim that Rohingya refugees can apply for driving licences, warning misinformation is driving anti-migrant sentiment. Maritime Engineering: Malaysia’s MMEA Multi-Purpose Mission Ship 1 construction is ahead of schedule, targeting a return voyage home in late January.

AI Workforce Push: Peoplelogy targets 5 million Malaysians to declare AI readiness by 2030 via verified assessments and “AI Mastery Scholarships,” aiming to close a 500,000+ AI-skilled worker gap. Quantum Education Boost: Deputy PM Ahmad Zahid urges UiTM to set up a Quantum Department next year, with RM500,000 support, to build local quantum expertise. Semiconductor Tax Incentives: MSIA asks Budget 2027 to raise Automation Capital Allowance to RM100m and introduce 200% R&D tax deductions to spur reinvestment and higher-value chip work. SST Reform Watch: EY Malaysia says a refined SST system that reduces tax cascading and improves exemption access could make the tax environment more neutral, but needs clear guidance and transition time. University Tech Pipeline: UTM enrolls 4,506 new undergrads for 2026/27, including its first AI faculty intake, while UniSIRAJ highlights full accreditation coverage across 31 programmes. Regional Tech & Connectivity Notes: Asia-Pacific regulators move toward harmonised 6GHz reviews for Wi‑Fi 7, while Microsoft updates Windows 11 on-device safety and age checks in Thailand.

AI & Youth Skills Push: PM Anwar Ibrahim urged Malaysian youth to master AI and quantum computing, warning the country could “fall behind” if it doesn’t lead the digital shift—while promising a special youth allocation in Budget 2027. STI Outreach: MOSTI used the F1 Bahrain GP at Sepang to run a Mini Carnival with 20+ hands-on STEM activities, aiming to make science feel “within reach.” Higher-Ed Connectivity: The IPTA Wi‑Fi project is 76% complete, with 408 of 538 sites installed under the RM634.1m USP-funded rollout. Halal Tech Cooperation: UniMAP wants deeper Vietnam ties in halal technology, standards and certification, with HALCERT positioned as a bridge. Trade & Manufacturing: Malaysia’s export growth is increasingly manufacturing-led, with E&E still the main driver and gains tied to semiconductor-linked markets. Cyber/AI Crime Watch: US DOJ alleges a $300m Nvidia GPU/server smuggling scheme routed via Malaysia and Singapore before reaching China. Maritime Tech & Capacity: Malaysia’s Maritime Agency launched MPMS 1 for surveillance, SAR and disaster response, boosting coast guard operational resilience. Sustainable Cooling: Malaysia reaffirmed Kigali and Montreal commitments, pushing energy-efficient cooling and cutting high-warming refrigerants.

Youth & AI Skills Push: PM Anwar Ibrahim urged Malaysian youth to master AI and quantum computing, warning that without it “AI will master us,” while stressing ethics and values as Budget 2027 may include a special youth allocation. Budget 2027 Tech Outcomes: Epicor says the budget should measure technology investments by productivity, quality and supply-chain resilience, not just adoption—especially for SMEs. Digital Access for Higher Ed: Malaysia’s IPTA Wi‑Fi project hit 76% completion (408 of 538 sites) under the RM634.1m USP fund. TVET Funding Hope: Penang’s PERDA wants Budget 2027 to keep TVET funding steady to expand PERDA‑TECH intakes and new programmes. STEM Outreach via F1: MOSTI ran a “science of acceleration” mini carnival at the National Planetarium tied to the Sepang F1 weekend. WhatsApp Enforcement Fix: MCMC said Meta restored Malaysian WhatsApp accounts after a technical error wrongly flagged legitimate activity. Export Controls Case: US DOJ arrested California tech owner Greg Lui over an alleged US$300m Nvidia server smuggling scheme routed via Malaysia and Singapore. Maritime Security: Malaysia launched MPMS 1 for MMEA in Türkiye, targeting completion and a Malaysia voyage by end‑January. Climate Cooling Shift: Malaysia reaffirmed Montreal/Kigali commitments, pushing sustainable, energy‑efficient cooling and cutting high‑warming refrigerants.

Digital Talent & Education: CelcomDigi launched the next phase of CD:NXT with Campus@CelcomDigi, plus Young Talent and Certifications programmes to strengthen university-industry links and prepare Malaysians for the digital economy. University Research & Rankings: Universiti Teknologi PETRONAS (UTP) held its position as Malaysia’s top private university, ranking 242nd globally in THE World University Rankings 2027, with industry links scoring highest. Maritime Security: Malaysia Maritime Enforcement Agency’s MPMS 1 is progressing ahead of schedule, with a voyage home expected in late January 2027 after its launch in Istanbul. 5G Funding: Digital Nasional Berhad (DNB) secured RM5.2bil in syndicated Islamic term financing to fund the next phase of 5G growth under Malaysia’s dual-5G framework. Healthcare Tech: Cellmax Healthcare launched two locally developed wound management products after eight years of R&D and clinical trials with Kuala Lumpur Hospital. Cross-border Tech Crime: US authorities arrested Greg Lui, accused of routing over US$300m in export-controlled Nvidia GPU servers to China via Malaysia and Singapore using false paperwork. Public Services Tech: JPJ suspended MyEG as a collection agent effective 5 Oct 2026, though existing KPP01 test bookings remain valid. Environment & Air Quality: Indonesia’s fires continue to worsen haze affecting Malaysia and Singapore, with Kuala Lumpur among the most polluted cities.

AI Skills & Industry Links: CelcomDigi launched the next phase of CD:NXT, adding Campus@CelcomDigi plus Young Talent and Certifications programmes to give students hands-on industry work and mentorship ahead of the digital economy. University Research & Rankings: UTP stayed in the world’s Top 250 in THE 2027, citing stronger industry scoring and a push to turn research into practical solutions. School Digital Push: Penang Free School’s 210th anniversary is tied to a Digital Transformation Fund for STEM, AI, robotics, coding and upgraded smartboards. Digital Services Disruption: JPJ will suspend MyEG and Zetrix AI as collection agents from 5 Oct, while existing KPP01 bookings remain valid. Open-Source Banking Tech: Red Hat named Hong Leong Bank an APAC Innovation Awards winner for moving a key app from monolithic to containerized systems using OpenShift. AI Hardware Smuggling Probe: US authorities arrested Greg Lui over alleged US$300m export-controlled GPU server smuggling to China via Malaysia/Singapore. ASEAN Governance Focus: ICDM’s study warns boards that “recognition is not readiness” for fast-changing tech and geopolitical risks. Agri-Tech for Food Security: A WEF report urges Malaysia to scale AI, robotics, biotech and digital public infrastructure beyond pilots to strengthen food security. Trade & Investment Signals: AMCHAM says many US manufacturers are shifting sourcing from China to Malaysia as tariffs bite. Infrastructure & Water: PETRA proposes upgrading the Batu flood retention pond into a dual-purpose site supplying up to 10 million litres/day while preserving flood control.

AI & Trade: A China-ASEAN Expo case study shows AI helping livestream sellers localise pitches and boost sales, turning hosts into “market-savvy” presenters. US Export Controls: US DOJ charged California tech CEO Greg Lui over an alleged $300M scheme to smuggle export-controlled AI GPU servers to China via Malaysia and Singapore. Malaysia-Singapore Competition: MyCC and Singapore’s CCS signed an MoU to cooperate on enforcement, information sharing and capacity building for cross-border and digital market competition. Healthcare Tech & Policy: Malaysia’s National Lung Health Initiative expands from lung cancer into a unified lung-health framework, using AI-assisted screening and follow-up support. Budget 2027 Focus: PM Anwar says university students and higher education institutions are among Budget 2027 priorities, alongside technology and AI. Semiconductor/AI Infrastructure: Reports highlight the growing power and water strain from AI data centres, while Malaysia’s digital library push adds AI, cloud and immersive tools. Rare Earths: Lynas’ $968M Meteoric deal spotlights Brazil as the next rare-earths hotspot. Education & Capacity: UM plans student hostels for 40,000+ students, and Katara launched an international academy with Malaysia-linked curriculum partners.

Aviation & Engineering: Malaysia Aviation Group (MAG) signed an agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), an A320-family MRO provider in Kuala Lumpur, aiming to expand its third-party maintenance revenue; completion targeted for 2027 pending approvals. Digital Infrastructure: SpaceX donated 50 Starlink kits to Malaysia for disaster preparedness, with PM Anwar also highlighting Starlink’s role in improving rural connectivity under Jendela and Cyberjaya PoP operations. Higher Education & AI Skills: Universiti Malaya will launch a Student Residential Hostel Project for 40,000+ students in phases, while UM also rolled out ILMUcode, an AI-based coding platform; UniSZA climbed to the THE World University Rankings 2027 top 1,000 (10th among public universities). Competition Policy: MyCC and Singapore’s CCS signed an MoU to boost cross-border enforcement and knowledge sharing as digital markets reshape trade. Mobility Payments: Touch ‘n Go marked 30 years of RFID tolling and announced more Enhanced RFID lanes to support faster flow toward multi-lane fast flow. Cybersecurity: Kaspersky warned F1 fans in Malaysia about scam merchandise stores ahead of Sepang’s return. Energy Transition: Tenaga Nasional’s webinar focused on hybrid hydro floating solar and extending hydro asset life.