PRIME MINISTER Datuk Seri Anwar Ibrahim asserted, "If you want to accept AI, then you cannot be thinking of sovereignty in the old school form."
Speaking at the panel session at the ASEAN-GCC Economic Forum 2025, titled “The Intelligent Grid: Building Bridges Through Sovereign AI Collaboration,” organised by Fortune today, he highlighted that while national laws protect a country's sovereignty, new legislation is necessary to transform emerging technologies.
Anwar also observed that despite some ASEAN and Gulf Cooperation Council (GCC) countries having only recently commenced substantive engagement with Malaysia, a robust foundation of mutual understanding on crucial issues already exists.
"These include governance, international relations, and the adoption of new technologies such as digital transformation and alternative energy," he remarked.
He added, "When you have leaders having that sort of mindset, promoting new technological advancement and change, it could not have happened if we do not have this basic trust with one another."
He said such trust has been instrumental in fostering broader cooperation, with ASEAN and GCC participation, and in persuading China to align on certain positions.
The Prime Minister reiterated that these fundamentals are supported by ASEAN's status as one of the world's most peaceful regions and its position as the fastest-growing economy, while GCC countries continue to achieve remarkable progress in renewable energy, digital transformation, and AI adoption.
"There is no point in having all this facade in hosting big international conferences if we cannot persuade the team to come up with very substantive agreement," Anwar stated.
"So let me express my personal satisfaction with the outcome of this cooperation, and to underscore that success depends on collaboration between government, industry, and the business community."
Nevertheless, the Prime Minister cautioned that amidst shifting global dynamics, legitimate concerns regarding human values, faith, personality, historical understanding, and national identity cannot be lightly dismissed.
He contended that the current global political order suffers from a “deficit in values” and urged prudence against blindly adopting new technologies without an ethical foundation. "We can't avoid AI, but we must ensure it does not strip us of human dignity and justice," he added.
Anwar also underscored the importance of education and critical thinking as keys to empowering diverse perspectives.
Reflecting on the Industrial Revolution, he warned against repeating historical errors that led to the dehumanisation of individuals, stating, "We must support technological and AI innovation while remaining vigilant about the fundamental flaws that it could potentially amplify."
Concluding on a sombre note, Anwar cited the humanitarian crisis in Gaza as a stark reminder that technological advancement has failed to uphold human dignity, posing the question, "With all this new technology and AI, we are still failing to answer the basic question: What does it mean to be human?"
Separately, during his opening remarks at the Microsoft AI Tour 2025 CEO Executive Connection in MITEC Kuala Lumpur today, Investment Trade and Industry Minister (MITI) Tengku Zafrul Tengku Abdul Aziz, expressed that the launch of the Malaysia West Cloud Region is "not just a technological achievement" but also "a catalyst for partnership, innovation, and shared regional progress in the digital era."
The Minister emphasised that the focus extends beyond infrastructure, aiming to "empower Malaysian businesses, transforming public service, and unlocking opportunities for every Malaysian, and every ASEAN citizen, to benefit from the digital economy."
The Malaysia West Cloud Region, anchored by three high-availability zones in Cyberjaya and MRANTI Technology Park, offers "world-class security, ultra-low latency, and robust compliance," positioning Malaysia as "a preferred hub for digital business in Southeast Asia."
Tengku Zafrul also underscored Malaysia’s commitment to sustainability, noting the introduction of "comprehensive guidelines for the sustainable development of data centres—focusing on reducing energy consumption, managing carbon and water use, and setting high benchmarks for operators." These efforts are central to achieving net-zero emissions by 2050.
The partnership with Microsoft, he added, is driven by a shared focus on inclusivity and talent, with initiatives such as the National AI Innovation Hub and “AI for Malaysia’s Future” aiming to "empower 800,000 Malaysians with digital and AI skills." These programmes are designed to "uplift the micro, small, and medium enterprises (MSMEs) that represent 97% of Malaysia’s business landscape."
The Minister cited significant progress in digital investment, with Malaysia approving "a record RM133.3 billion in new digital investments" in 2024, bringing the total approved from 2021 to 2024 to "RM278 billion across 23 major projects," creating "nearly 88,000 new jobs."
He acknowledged Microsoft's "pivotal" commitment, including Project Big Blue in Johor, Project Baby Blue in Cyberjaya, the USD1 billion Bersama Malaysia Initiative, and the recent USD2.2 billion GoSEA announcement, all representing "investments in Malaysia’s future, our people, and our status as a regional AI and digital hub."
Tengku Zafrul detailed Malaysia's digital investment pipeline of "RM59.1 billion, with a projected IT load of more than 300 MW" as of April 2025. He also noted the government's Digital Ecosystem Acceleration (DESAC) incentive to attract high-quality, sustainable digital infrastructure, with new data centres required to meet "strict standards, including Power Usage Effectiveness (PUE), Carbon Usage Effectiveness (CUE), and Water Usage Effectiveness (WUE)."
He highlighted Malaysia’s vibrant AI ecosystem with "over 140 local AI solution providers in the Malaysia Digital framework," and efforts in talent development, including the AI Talent Roadmap 2024–2033 and the launch of Malaysia’s first AI faculty at Universiti Teknologi Malaysia.
As ASEAN stands as the world’s fifth-largest economy, with a GDP exceeding USD3.8 trillion, Malaysia's digital economy is projected to contribute "25.5% of GDP this year." The Minister outlined Malaysia’s role as ASEAN Chair in 2025, championing the theme:
“Advancing for a Resilient, Inclusive, and Sustainable ASEAN,” and driving landmark initiatives such as the AEC Strategic Plan 2026–2030, ASEAN Community Vision 2045, the Digital Economy Framework Agreement (DEFA), the Bandar Seri Begawan Roadmap (BSBR), and the ASEAN Industrial Project Based Initiative (AIPBI).
Tengku Zafrul reiterated that "resilience is about more than economic data," encompassing "shared values and leadership." He stated that in the face of global trade tensions, "ASEAN has chosen engagement and multilateralism over retaliation."
Emphasising sustainability, he noted that the Malaysia West Cloud Region "supports both our ESG ambitions and ASEAN’s energy transition." Malaysia's Corporate Renewable Energy Supply Scheme (CRESS) allows major consumers, including data centres, to directly source renewable energy, supporting the target for "70% renewable energy in Malaysia’s generation mix by 2050."
The Minister concluded with a clear invitation to partners and stakeholders to "integrate more Malaysian SMEs into supply chains," "co-develop digital content and platforms," "invest in talent and innovation ecosystems," and "collaborate on responsible, secure AI, with digital trust and public good at the heart of all progress."
He affirmed that with the right policy, infrastructure, and leadership, "Malaysia and ASEAN are ready not just to participate in the next wave of digital and AI innovation, but to lead it," adding, "Malaysia stands ready to lead, to partner, and to deliver." - May 28, 2025
