Future of Malaysia’s AI Governance
Future of Malaysia’s AI governance
This white paper from the Institute of Strategic and International Studies (ISIS) Malaysia examines the future of artificial intelligence governance in Malaysia. It analyzes Malaysia's position in the global AI ecosystem, reviews international approaches to AI regulation and ethics, and evaluates the existing local institutional landscape. Finally, it provides recommendations on establishing a dedicated policymaking body, refining legislation, creating a data governance and ethics centre, and setting up an AI safety institute.
Summary and content fields are drawn from the document text and are pending editorial review.
Who issued it
Who it governs
Policymakers, regulators, researchers, and industry leaders seeking guidance on shaping Malaysia's artificial intelligence governance framework.
What the document contains
The white paper addresses Malaysia's readiness and ambitions in the AI value chain, international and domestic governance models, risk management frameworks, data governance, and strategic policy recommendations for institutional setup and legislation.
It does not provide binding statutory regulations, enforceable technical standards, or specific legal definitions enacted through formal legislation.
- Malaysia is currently classified as an AI explorer and aims to transition toward becoming an AI innovator and leader.
- The country should avoid rushing into rigid hard regulations that might stifle innovation and instead strengthen existing laws while developing targeted approaches.
- A centralized policymaking body with a clear mandate is needed to coordinate AI development, oversight, and multi-stakeholder communication across the government.
- Establishing a national AI safety institute can help test emerging technologies, conduct research, and manage a repository of harms.
- A dedicated data governance and ethics centre is recommended to support secure data sharing and innovation while preserving privacy.
· Foreword · Executive summary · Introduction · Malaysia in an AI-enabled world · What is governance for technology such as AI? · Malaysia’s progress in AI governance · Recommendations · Conclusion · Appendix
How it scores
Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.
Fairness
4/5Non-discrimination and equitable treatment
One of the most pressing concerns in this regard is the perpetuation of biases that could lead to discriminatory outcomes, especially against underserved and marginalised communities.
Malaysia in an AI-enabled world
screening score · 2026-10-23
Human Dignity
3/5Respect for the inherent worth of persons
Prioritising human rights at the centre of technology design should be paramount. AI would require certain rights to be functional, such as the right to be forgotten.
Recommendations
screening score · 2026-10-23
Human Oversight
4/5Humans remain in control of consequential decisions
To follow general principles, such as human oversight, non-discrimination and fairness
What is governance for technology such as AI?
screening score · 2026-10-23
Privacy
4/5Protection of personal data and private life
Privacy as an ethical and technical challenge: privacy and data classification will be a challenge, especially if AI could infer personally identifiable information
What is governance for technology such as AI?
screening score · 2026-10-23
Transparency
4/5Openness about how AI systems work and are used
Constructing mechanisms for transparency and explainability could be useful. Concepts such as interpretability and explainability could be vague.
Recommendations
screening score · 2026-10-23
Enforcement
4/5Consequences and compliance mechanisms with real force
Forming or empowering existing sectoral regulators or enforcement bodies could be considered to augment capabilities to regulate activity that is now AI-enabled.
Recommendations
screening score · 2026-10-23
Impact Assessment
4/5Required assessment of an AI system's risks/impacts before or during use
With a definition in place, developers or adopters of such AI may need to assess safety, harms and privacy risks posed by these types of AI systems on virtual and physical realities.
What is governance for technology such as AI?
screening score · 2026-10-23