Malaysia is taking a significant leap in digital transformation with the expansion of its AI-driven public service initiative. The Ministry of Digital, in collaboration with Google Cloud, has launched AI at Work 2.0, an enhanced programme designed to equip public sector workers with cutting-edge generative AI capabilities.

The first phase of the programme, known as AI at Work, was introduced in December 2024 as a pilot alongside the launch of Malaysia’s National AI Office.

Encouraged by the success, the Malaysian government is now scaling up the initiative, making the upgraded suite, Google Workspace with Gemini, accessible to 445,000 public servants across ministries and departments.

“Through AI at Work 2.0 by NAIO and Google Cloud, the government is taking the lead in harnessing generative AI, with the right guardrails in place, to better serve the rakyat under our five-year AI technology action plan. We are swiftly progressing beyond the pilot, which reinforced our belief that AI can uplift workforce productivity and efficiency,” said Minister of Digital Gobind Singh Deo.

One of the standout features of AI at Work 2.0 is its ability to enhance content generation and streamline communication across government agencies. With the integration of Google’s Gemini AI tools, public servants can now draft, summarise, and analyse documents within Gmail, Docs, Sheets, and Slides more efficiently.

Meanwhile, AI-powered meeting management in Google Meet ensures notes are automatically generated, and late joiners can quickly catch up on discussions.

Beyond text-based enhancements, the initiative introduces Google Vids, a generative AI-powered video tool that enables government agencies to create explainer videos and training materials. This addition empowers officers to communicate updates in a more engaging and personalised manner, even without prior experience in video production.

The automation of routine administrative tasks is another key benefit. Through Gemini Advanced, officers can simplify complex workflows such as coding, data extraction, and the analysis of citizen feedback. This automation reduces manual workloads, allowing employees to focus on higher-value strategic initiatives.

AI at Work 2.0 also prioritises data-driven decision-making with the inclusion of NotebookLM Plus, an AI-powered research assistant that synthesises insights from legislative materials and policy documents.

Public sector workers can now interact with multiple sources of trusted information, speeding up decision-making processes and improving policy formulation.

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The state of AI in Malaysia

Malaysia has been steadily advancing its AI capabilities, with both government and private sector initiatives fuelling digital transformation. The country’s National AI Roadmap outlines strategic steps to integrate AI across industries, from health care and finance to education and manufacturing.

AI adoption in Malaysia is further strengthened by collaborations with global tech companies, investments in AI research, and the expansion of digital infrastructure, such as cloud computing and 5G connectivity.

In 2023, Malaysia ranked 44th in the Global AI Index, which places Malaysia ahead of neighbouring countries such as Indonesia (46th) and Vietnam (47th). Meanwhile, Singapore leads ASEAN countries in 3rd place.

Despite the progress, a considerable disparity exists between the demand for AI talent and its availability. A recent study indicates that while 89% of employers in Malaysia prioritise hiring AI-skilled talent, 81% report difficulties in finding qualified candidates.

The shortage is exacerbated by the fact that only 17% of organisations possess extensive AI expertise with dedicated data science teams. This leaves the majority lacking specialised skills.

The rapid adoption of AI technologies is also transforming job requirements. Data reveals that the skills needed for jobs in Southeast Asia have changed by up to 40% since 2016, with projections suggesting a 72% change by 2030. In Malaysia, over 30% of jobs are expected to be impacted by AI in the next decade, particularly in sectors like manufacturing, services, and information technology.

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Comparatively, Malaysia’s AI talent pool remains smaller than that of other emerging and high-income countries, highlighting the need for accelerated upskilling and reskilling initiatives. But Malaysia is bridging this gap by focusing on enhancing AI education, fostering public-private partnerships, and implementing strategic frameworks to cultivate a robust AI talent pipeline.

As Malaysia continues to expand its AI capabilities, the long-term impact on businesses will be profound. AI-driven automation, data analytics, and decision-making will help companies optimize operations, reduce costs, and drive innovation. Businesses that adopt AI early will gain a competitive edge, particularly in industries such as manufacturing, financial services, and e-commerce.

However, for AI to reach its full potential, Malaysia must address its digital skills gap by fostering talent development and ensuring that businesses have access to the necessary AI expertise. Government and private sector collaboration will be crucial in scaling AI adoption and ensuring that SMEs, which make up a significant portion of Malaysia’s economy, can also benefit from AI advancements.

With initiatives like AI at Work 2.0, Malaysia is setting the stage for an AI-powered future, positioning itself as a key player in the Southeast Asian digital economy. The continued investment in AI infrastructure, workforce training, and innovation will pave the way for sustained economic growth and a more competitive business environment in the years ahead.