Malaysia’s Strategic AI Governance Framework

Malaysia’s Strategic and Measured Approach to AI Governance

As artificial intelligence (AI) technologies continue to evolve rapidly, Malaysia is adopting a measured approach to regulation by utilizing the National Guidelines on Artificial Intelligence Governance and Ethics (AIGE) as a reference framework. While there are currently no immediate plans to introduce dedicated legislation to address the misuse of AI, the government is actively engaging with stakeholders, positioning AIGE as a foundational step toward future legal provisions.

Government Position and Future Goals

During a recent address, the Minister of Science, Technology and Innovation clarified the government’s position regarding AI legislation. He stated that while a specific AI law is not currently on the legislative agenda, the ministry’s long-term goal is to eventually codify AIGE into enforceable law. “There is no clear time frame yet for an AI law, but that is our eventual goal… so that this guideline can be enforced as law,” he noted.

Framework for Responsible AI Development

The focus of AI governance in Malaysia is to create a framework that ensures the responsible, transparent, and ethical development and deployment of AI technologies. The aim is to balance innovation with societal impact, addressing critical challenges such as data privacy, bias, accountability, and transparency in AI systems.

Introduced in September 2024, AIGE outlines seven key principles for ethical AI governance, designed to promote the responsible use of AI technologies. These principles cover:

  • Fairness
  • Reliability
  • Privacy
  • Inclusiveness
  • Transparency
  • Accountability
  • Pursuit of Human Benefit

While these guidelines are voluntary, they have been endorsed by key players in Malaysia’s technology sector. The ministry has conducted consultations with industry representatives, and all parties involved have expressed agreement to adhere to the guidelines.

Existing Legal Framework and AI Misuse

In the absence of a dedicated AI law, the government continues to rely on existing legislation, such as the Communications and Multimedia Act and the Penal Code, to address any misuse of AI systems. These laws provide a general legal framework to respond to offenses involving digital technologies and content, although they may not fully address the complexities of emerging AI capabilities.

Addressing Risks and Public Awareness

The urgency for clear governance has intensified as AI becomes increasingly accessible and capable of generating realistic content. Recently, concerns were raised by the National Anti-Financial Crime Centre (NFCC) regarding scammers using AI to deceive the public. The Deputy Director-General of the NFCC warned that cybercriminals are exploiting AI advancements to manipulate media and create convincing fraudulent schemes.

He urged the public to stay informed and vigilant, noting that AI-generated content is being used to impersonate individuals and organizations for financial gain.

AIGE as a Living Document

The ministry acknowledges these risks and views AIGE as a living document that can guide responsible AI deployment while broader legislative instruments are considered. The voluntary nature of AIGE aims to encourage broad-based industry participation and cultivate a culture of ethical AI usage without immediate recourse to rigid regulations.

By establishing common standards, the government hopes to build public trust, prepare the market for future compliance requirements, and ensure that Malaysia’s AI ecosystem develops securely and inclusively.

Monitoring and Future Considerations

In the coming months and years, Malaysia will monitor the effectiveness of AIGE and evaluate the need for more formal legal instruments. The evolving landscape of AI presents both opportunities and challenges, and the government appears committed to finding a balance between innovation and public safety as it navigates this complex terrain. For now, AIGE remains the central reference point in Malaysia’s journey toward comprehensive AI governance.

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