Malaysia’s innovation and ICT landscape is undergoing impressive transformation, driven by the Government’s relentless focus on emerging technologies like AI, blockchain, and data analytics. Through initiatives like the National AI Roadmap and National Policy on Science, Technology, and Innovation, the Malaysian Government is enabling sectors like healthcare, agriculture, and public services to innovate and modernise.  

Ahead of the Future of Singapore Government conference this month, we spoke with Airull Azizi, Principal Assistant Secretary of Strategic Technology and Applications at Malaysia’s Ministry of Science, Technology, and Innovation (MOSTI).

MOSTI focuses on leveraging emerging technologies to enhance public services and foster innovation across sectors such as healthcare, smart cities, and agriculture. Azizi shared his insights on Malaysia’s transformation progress, the challenges of scaling new technologies, and the importance of collaboration to build a sustainable, tech-driven future.

FST Media: What are some of the most significant changes you’ve observed in the Malaysian Government’s ICT landscape, especially in relation to the Ministry of Science, Technology, and Innovation? 

Azizi: The Ministry of Science, Technology and Innovation (MOSTI) has been pivotal in driving technological advancement, innovation, and digital transformation across Malaysia.

Some of the biggest changes I’ve seen so far within the government are:  

1. National Policy on Science, Technology, and Innovation (DSTIN) 2021-2030: MOSTI developed the National Policy on Science, Technology, and Innovation (DSTIN) 2021-2030, which aims to position Malaysia as a high-tech nation by 2030. The policy emphasises the importance of digital transformation, research and development, and innovation in various sectors, including healthcare, agriculture, and the environment.

   This reflects a shift in the Government’s approach to integrating technology as a driving force in socio-economic development. 

2. Covid-19 Pandemic Response and Digital Solutions: MOSTI was instrumental in developing digital solutions to combat the Covid-19 pandemic. The ministry supported the development of MySejahtera, Malaysia’s Covid-19 contact tracing and vaccination management system, which became central to the Government’s public health response. The use of AI, data analytics, and digital platforms to manage the pandemic showcased the potential of technology to improve governance and crisis management in Malaysia. 
   

3. A National AI Roadmap: MOSTI’s involvement in launching the National AI Roadmap is a major change for the Government’s ICT landscape. The roadmap outlines strategies for AI adoption across multiple sectors including five national focus areas: agriculture and forestry, education, public sector, smart cities and transportation, and medical and healthcare.

   The roadmap will also facilitate the creation of regulatory frameworks and ethical guidelines for AI use in Malaysia, which is critical for maintaining transparency and accountability.  

4. Research, Development, Commercialisation, and Innovation (R&D&C&I) Initiatives: MOSTI’s focus on Research, Development, Commercialisation, and Innovation (R&D&C&I) has brought about significant changes in how the government approaches technological advancements. Various programs and funds have been introduced to support innovation, startups, and commercialisation efforts, including partnerships with private companies and research institutions. For example, MOSTI, through its agency MRANTI, established an AI Sandbox, accelerating development, testing, and deployment of AI solutions in Malaysia. 

5. AI Ethics and Governance: MOSTI’s focus on AI ethics and governance, particularly with the upcoming National AI Governance and Ethics guidelines, marks a significant change in how emerging technologies are regulated in Malaysia. These guidelines will shape the responsible and ethical use of AI within government agencies and the broader public sector, ensuring that innovation aligns with societal values. 

FST Media: What are some innovations or projects that you are particularly proud of? 

Azizi: I joined the Ministry of Science, Technology and Innovation back in 2020 and was involved in various projects and innovations. Among the projects I’m particularly proud of include our arose during the Covid-19 pandemic, including our Vaccine Management System (VMS) and contact tracing apps. I’m also proud of our AI Governance and Ethics frameworks. 

The Vaccine Management System (VMS) is a vaccine traceability program that leverages blockchain technology. This system was developed during the Covid-19 pandemic to cater for the requirements of the Covid-19 Immunisation Task Force (CITF). There was an urgent requirement from the Ministry of Health for a system that is robust and transparent to support the national vaccination program. So, we came out with the VMS that is supported by blockchain.  

It provides real-time vaccine traceability – from the moment it arrives in the country till the individual receives their jab. It also provides instantaneous results to the MOH when handling the vaccine’s adverse effects. 

Our contact tracing app detects close contact modules among individuals to curb the spread of the Covid-19 virus. It consists of two modules: the checkout module and close contact using Bluetooth technology. This app is used widely by our health authorities in identifying close contact with Covid-19 patients and forecasting the virus’s spread in the community.  

As well, our AI Governance and Ethics (AIGE) provide a set of national guidelines for institutionalising responsible AI in the country. It is an umbrella guideline and is used as a reference document for quadruple helix players in developing specific AI guidelines to suit specific industries and sectoral needs. 

FST: Governments face numerous challenges when delivering innovative and transformative programs. What would you consider the most difficult hurdles to overcome? 

Azizi: The Malaysian government faces several challenges in delivering innovative and transformative programs, especially in a rapidly changing technological landscape.  

Among the most difficult hurdles to overcome include: 

1. A shortage of skilled professionals in key areas like AI, cybersecurity, data analytics, and other emerging technologies poses a major challenge.  Malaysia faces a talent gap in both the public and private sectors, which affects the implementation of transformative projects. This results in the government’s ability to execute and manage cutting-edge technological initiatives being limited by the availability of qualified talent, which can slow the pace of innovation and reduce the effectiveness of such programs.

2. Resistance to change within government institutions, coupled with entrenched bureaucratic processes, can hinder the implementation of innovative programs. Different ministries and agencies often work in silos, leading to inefficiencies and duplication of efforts. Cross-agency collaboration is critical for successful innovation, but the rigid structure of government operations can make it difficult to foster the necessary partnerships and data-sharing initiatives.

3. The rapid pace of technological advancements often outstrips the development of regulatory frameworks. Ensuring that policies keep up with emerging technologies like AI, blockchain, and IoT while safeguarding public interest is a complex task. Regulatory uncertainty can delay the adoption of new technologies and hinder the government’s ability to deploy innovative solutions. Balancing innovation with privacy, security, and ethical concerns is a constant challenge.

4. The issue of funding and budget constraints. Implementing innovative and transformative programs requires substantial financial investment. However, budget constraints, especially in the wake of economic challenges like the COVID-19 pandemic, can limit the government’s ability to fund large-scale technological initiatives. Limited financial resources can slow down the development and scaling of digital infrastructure, R&D initiatives, and innovation programs, particularly in sectors that require long-term investment. 
   

FST: It was recently announced that MOSTI will develop a Malaysian Innovation Index. How will this shape how Malaysia innovates going forward? 

Azizi: It’s important to understand why MOSTI developed the Malaysia Innovation Index (MII) in the first place. Unlike Singapore, in Malaysia, we have two-level administrations: the federal government and then the state government. The federal government will come out with the policies, but the implementation will be done at the ground level by the state government. At the same time, the state governments also have the prerogative to develop and implement their share of ideas. 

So, when we delved back into the past 10 years, we discovered our innovation ecosystem has been developing at a very slow pace and, to a certain extent, at different levels in all 13 states in Malaysia. We found that if we continued with the current way of doing things, we would eventually widen the innovation gap between the states. 

When we consulted with our partners at UNESCO, they suggested that we should have an innovation ecosystem profile for each of the states in Malaysia. With these innovation ecosystem profiles, we will be able to identify several things: 

1. Baseline data points at the ground level that we can use to develop our upcoming 13th Malaysia Plan; 
2. Understand local dynamics; reflecting the unique socio-economic, cultural and policy environments of each country/ region in Malaysia; 
3. Strengths and weaknesses of each state, which will help in designing the economic growth policies for the states; and 
4. And, we’ll be able to devise better strategies to create an environment which fosters innovation. 

With all these in place, MOSTI will strive to collaborate with every state according to their needs to strengthen their respective innovation ecosystem by formulating appropriate policies, and funding for research, development and innovation. We will also leverage the technology’s roadmap developed by MOSTI to help state governments strengthen their innovation ecosystem. 

Our endgame for MII is to help strengthen the innovation ecosystem at the state level (on the ground), and this will directly translate to enhancing Malaysia’s competitiveness on the global stage. 

FST: We’re excited to have you presenting at our upcoming Future of Singapore Government event this month. What do you hope to share with and learn from your peers? 

Azizi: AI is really on my radar right now. I hope to share Malaysia’s progress, challenges and vision in AI. From my peers, I hope to learn more about AI governance and regulatory approaches, AI-driven government transformation, public-private partnerships in AI development, and sustainable and ethical AI.  

Airull Azizi Awang Lah will share his insights on progressing digital government initiatives, including overcoming workforce inhibitors, sustaining strategic momentum from the top, and adapting to digital disruption.