KUALA LUMPUR – The government has set its sights on positioning Malaysia as the premier hub for artificial intelligence (AI) technology infrastructure in the region.
Economy Minister Rafizi Ramli (Pandan-PH) said this ambitious goal will be achieved through the implementation of the Kuala Lumpur 20 (KL20) action plan, slated for launch in February 2024.
He revealed that the comprehensive strategy and enhancements for the AI ecosystem are encapsulated in the KL20 blueprint. The primary objective of this blueprint is to expedite the growth of the world’s most robust digital economy ecosystem.
In response to a supplementary question by Datuk Seri Saifuddin Abdullah (Indera Mahkota-PN), Rafizi emphasised the need to adapt to the ever-evolving digital landscape, which constantly shifts in accordance with current trends, often referred to as the “flavour of the month”.
He noted that KL20 will depart from the previous approach, which was sector-specific, in response to the rapidly changing digital industry.
Furthermore, KL20 will outline the government’s policy decisions aimed at facilitating access to the digital economy, including AI, for international talents.
“Our focus is to make Malaysia a regional AI hub as well as an ecosystem for start-up companies that want to be involved in the technology.
“This will be announced through KL20 at a later time,” he said in response to a supplementary question posed by Howard Lee Chuan How (Ipoh Timur-PH) in the Dewan Rakyat today.
Rafizi said that the government’s focus is on companies at the seed level. The more companies at the seed level, the more likely they are to succeed in going up to series A, series B, and series C until they are listed.
It is common for a company to begin at a seed level before moving up to series A, B, and C funding rounds.
“Due to that, we have changed our approach. Rather than focusing on reaching four or five unicorns (a private start-up company with a value of over US$1 billion), it is better for us to provide help to more companies and open the ecosystem to as many as there are.
“Only 1% of companies that have passed the start-up level are successful, while the other 99% end up bankrupt. – November 6, 2023