Malaysia

Penang sets sights on becoming the nation’s AI ‘capital’

The state is currently home to 200 Malaysian digital status firms

Updated 11 months ago · Published on 06 Jun 2025 6:54AM

Penang sets sights on becoming the nation’s AI ‘capital’
Chow said that AI is no longer a luxury but a necessity. - June 5, 2025

by Ian McIntyre

PENANG is looking to become the capital of Artificial Intelligence (AI) in the country with the ambitious plan to upskill 500 AI savvy workers by the end of this year.

Chief Minister Chow Kon Yeow said that as Malaysia targets 25.5% of its gross domestic product to come from digital economy and over 500,000 new jobs by year end, Penang is able to effectively tap into this.

The state is home to 200 Malaysian digital status firms, which form part of the eco - system in the state's thriving electronics and electrical production hub.

Chow said that AI is no longer a luxury but a necessity.

"AI has become a critical enabler for business competitiveness and resilience. Recognising this trend, Penang is not just preparing for this shift but has taken proactive steps in leading this AI revolution."

Hence, the state has today launched the Penang Global Business Solution (GBS) Industry Academy 2.0 with the aim of graduating 500 AI skilled workers by December.

This collaboration involves InvestPenang, Malaysian Digital Economic Corporation (MDEC), Penang Skills Development Corporation (PSDC) and a focus group, which provides valuable feedback on module design and learning content relevance.

Chow expressed confidence that the state is able to leapfrog into the AI world, saying that the state is home to 40 integrated circuit design companies - the highest concentration in the country.

AI is a transformative force, which is reshaping industries, whether in predictive analytics, assisted quality control and customer experience platforms.

Penang must leverage from this to propel the state further up the manufacturing value chain, he said. - June 6, 2025.

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