AGP Executive Report

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.

Budget 2027: Malaysia plans a sovereign AI cloud, 100,000 more free AI subscriptions, an AI scam-checking app, 4G for Orang Asli villages and a new subsea cable. A proposed e-commerce law would also regulate foreign platforms. Cybersecurity: Ledger is investigating reported crypto losses linked to Malaysian reseller CryptoBilis. It has paused sales and urged recent buyers not to set up affected devices, or to move funds to a fresh wallet; reported losses of more than US$86 million remain unconfirmed. AI Infrastructure: SoftBank, Grab and PETROS are exploring AI infrastructure in Sarawak, while Bitdeer plans a 67MW data-centre campus in Malaysia. Semiconductors: Budget measures include a RM100 million fund for semiconductor and advanced manufacturing firms in Penang, alongside support for the Northern Region’s tech and talent ambitions. Haze: With 38 of Malaysia’s 68 air-quality stations recording unhealthy readings, manufacturers are calling for ASEAN to turn its haze-free commitments into measurable action.

Budget 2027: Malaysia plans a sovereign AI cloud and 100,000 more free AI subscriptions, while directing support to semiconductor firms and other high-value industries. Cybersecurity: The National Scam Response Centre will develop an AI app to check suspicious phone numbers, bank accounts and links before transactions. AI Infrastructure: SoftBank, Grab and PETROS are exploring an AI infrastructure platform in Sarawak, while Bitdeer plans a 67MW AI data-centre campus in Malaysia. Green Technology: A Malaysia-Japan symposium on Nov 4 will showcase research in green biotechnology, nanomaterials and lightweight engineering. Research and Industry: IChemE Malaysia Awards winners include a non-destructive AI system for grading oil-palm ripeness and solar-to-hydrogen technology.

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.