KUALA LUMPUR: Malaysia aims to generate between 0.8 and 1.2 per cent of its gross domestic product (GDP) from artificial intelligence (AI) by 2030, while creating up to 300,000 new jobs.

National AI Office director of AI policy Mohamed Nor Reza Mohamed Ali said the National AI Action Plan 2026-2030 seeks to strengthen the country’s AI capabilities, accelerate adoption across industries and develop homegrown AI solutions.

The plan aims to position Malaysia not just as a user of AI technology, but also as a producer of locally developed solutions.

He said Malaysia must move beyond being an AI consumer towards developing technologies and services that can compete in international markets.

Speaking at the Malaysia Retail Chain Association (MRCA) Retail Tech Summit 2026, Reza said retailers have an important role in the country’s AI transformation, given their contribution to the economy and entrepreneurial activity.

He said AI can help businesses boost productivity, make better decisions and improve customer service, with natural-language tools making the technology easier to use without specialised programming skills.

Under the national action plan, AI initiatives will span various sectors.

This includes healthcare, smart cities, public services, higher education and agri-food, alongside industry-led efforts in oil and gas, energy, telecommunications and finance.

Reza said these efforts would be supported by talent development, research and innovation, stronger digital infrastructure and measures to build public trust in AI.

He highlighted the need to expand Malaysia’s pool of AI-skilled workers through upskilling and education partnerships, while strengthening research capabilities to develop homegrown technologies that can be commercialised internationally.

Access to reliable data and sufficient computing capacity would also be crucial to supporting AI development and adoption.

Malaysia is working to strengthen its AI governance framework through guidelines and policy development.

This is alongside plans to establish a Malaysia AI Safety Institute to provide technical advice and support the assessment of AI systems.

“Coming out of AI industry innovation, businesses must understand how to embrace this technology, unlock new opportunities and remain competitive in increasing the digital economy.

“Artificial intelligence has the potential to transform business operations, enhance decision making, improve customer experience and open new possibilities for growth.

“It is therefore important for retailers to understand not only the technology itself, but also how to apply it effectively to achieve meaningful business outcomes,” said Reza.