AI push to transform government, unlock growth for Malaysian businesses

KUALA LUMPUR: Malaysian software companies developing and deploying solutions on Amazon Web Services (AWS) recorded average growth of about 30 per cent in cloud and artificial intelligence (AI) workloads between 2024 and 2025, reflecting increasing demand for digital solutions and the expansion of the country’s AI ecosystem.

The growth indicates that local technology firms are handling larger computing workloads as they develop new digital products, enhance existing applications and integrate AI capabilities into solutions for businesses across various industries.

As organisations increasingly adopt cloud-based applications, data analytics and AI-driven services, Malaysian software developers are scaling up their technology capabilities to meet more complex requirements, creating opportunities to develop higher-value products and expand into regional markets.

Recognising the importance of small and medium enterprises (SMEs) in accelerating AI adoption, AWS is stepping up efforts to make the technology more accessible through local distribution channels, industry partnerships and established business networks.

The broader objective is to extend AI adoption beyond large corporations and government agencies, enabling SMEs, startups and local technology developers to benefit from the technology, improve productivity and create new business opportunities.

AWS Malaysia country manager Hussein Mohd Ali said the nationwide Semarak AI Malaysia initiative was designed to accelerate the country’s transition from being primarily a consumer of AI technology to becoming a developer and exporter of AI solutions, talent and intellectual property.

He said the programme would create a multiplier effect by encouraging government agencies, software companies and students to move beyond experimenting with AI towards developing and deploying their own solutions.

“When the public sector leads in building with AI, it becomes the lighthouse for the rest of the country. That’s what Semarak AI Malaysia is designed to do; equip civil servants, software companies, and students with the tools to build their own AI solutions.

“Every ministry, every developer, and every student who builds with AI raises the bar for what’s next,” Hussein said.

As part of the initiative, AWS will make Amazon Quick, its AI assistant for work, available to up to 445,000 government officers through the National Digital Department’s (JDN) AI-as-a-Service (AIaaS) platform.

The tool is expected to help civil servants automate routine administrative tasks and focus on higher-value activities, including analysing procurement data, synthesising policy research and identifying patterns across large datasets.

Wider adoption of AI could also benefit SMEs through improved inventory management, demand forecasting, automated customer service and personalised marketing, helping smaller businesses reduce operating costs, improve efficiency and compete more effectively.

Ultimately, AWS aims to strengthen Malaysia’s digital ecosystem by developing local talent, encouraging homegrown innovation and enabling Malaysian companies to build solutions for both domestic and international markets.