As we approach our nation’s 67th Merdeka Day, it is a fitting moment to reflect on Malaysia's remarkable journey towards progress and unity.
Malaysia's story is about resilience, innovation, and a steadfast commitment to building a brighter future for the rakyat. In recent years, the digital economy has become a cornerstone of Malaysia's development, driving economic growth, enhancing public services, and ushering in a new era of entrepreneurship and technological advancement.
At IBM, the digital economy is more than just a sector and represents the lifeblood of modern Malaysia.
As the country moves towards achieving its vision of becoming a high-income nation, the role of digital technologies, particularly artificial intelligence (AI) and the broader digital economy, cannot be overstated. The government’s projection that the digital economy will contribute 25.5% to our GDP by 2025 is a testament to its growing significance.
Generative AI (GenAI), in particular is poised to be a key driver of national economic development, enabling enhanced productivity, innovation, and competitiveness across sectors. This is reflected in an IBM CEO study which has revealed that 75% of CEOs surveyed globally including Malaysia believe the organisation with the most advanced generative AI will have a competitive advantage.
By automating processes, optimizing resources, and providing data-driven insights, AI can accelerate growth, create new industries, and improve the quality of public services. As nations integrate AI into their economic strategies, they unlock opportunities for job creation, higher efficiency, and sustainable development, ultimately leading to a more prosperous and inclusive economy.
In the banking sector, GenAI refers to the use of advanced AI to automate tasks, enhance customer service, detect fraud, provide personalized financial advice, and improve overall efficiency and security.
GenAI helps customers enhance their decision-making about financial matters. They are more likely to stay with banks that use cutting-edge AI technology to help them better manage their money – making digital banking mainstream.
Another IBM study revealed that 66% of banking and financial markets CEOs surveyed said that the potential productivity gains from AI and automation are so great that they must accept the risks to stay competitive.
Banks that effectively leverage AI will be better positioned to enhance customer experiences, improve operational efficiency, and drive innovation in the financial industry.
The manufacturing sector, meanwhile, is witnessing increased productivity and efficiency through AI-driven automation and predictive maintenance, ensuring minimal downtime and optimised operations.
As Malaysia prepares to chair ASEAN in 2025, it stands at the forefront of an exciting opportunity to lead the region in scaling AI. By accelerating digital transformation, prioritising data as a strategic asset and promoting ethical AI governance, Malaysia stands to pave the way for a future where technology serves as a force for good across Southeast Asia. AI’s ability to analyse vast amounts of data and generate actionable insights is particularly valuable in addressing regional challenges, from economic development to environmental sustainability.
However, the promise of a digital Malaysia can only be realised if we continue to invest in our most valuable resource — our rakyat. IBM has always believed in the power of education and skills development.
We are committed to reskilling and upskilling local talents in critical technology areas such as artificial intelligence, cloud, enterprise computing, and cybersecurity. Through initiatives like IBM SkillsBuild and IBMZXplore, we continuously forge and nurture strategic collaborations with educational institutions and non-profit organizations to advance the talent upskilling agenda for Malaysia.
Our collaborations with prominent institutions such as Politeknik Balik Pulau (PBU), Universiti Teknologi MARA (UiTM), Universiti Malaya (UM), and SOLS Foundation have allowed us to support learners from all levels — K-12, tertiary, and adult learners — with industry-leading learning materials and digital credentials.
By empowering and equipping our workforce with the skills and expertise needed to thrive in the digital age, we are empowering individuals for jobs of the future and a more competitive Malaysia.
The positive impact of AI on the country is already evident in various sectors, but the potential is far greater. As we celebrate this Merdeka Day, let us remember that our strength lies in our unity and our shared commitment to progress.
The digital economy, powered by AI, offers us a pathway to a brighter future, one where innovation, inclusivity, and sustainability go hand in hand. IBM will continue to support our nation in this journey, ensuring that as Malaysia rises in the digital era, no one is left behind.
Malaysia Madani: Jiwa Merdeka, and long may it guide us towards an even brighter future for our beloved nation.
This article is provided by Dickson Woo, IBM Malaysia Managing Director and Technology Leader.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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