KUALA LUMPUR – Malaysia is preparing new legislation to regulate artificial intelligence as the government moves to strengthen oversight of rapidly developin...
KUALA LUMPUR – Malaysia is preparing new legislation to regulate artificial intelligence as the government moves to strengthen oversight of rapidly developing AI technologies.
Digital Minister Gobind Singh Deo said the government was taking a proactive approach to regulation instead of waiting for new technologies to emerge before deciding how they should be controlled.
The comments come as Malaysia prepares an Artificial Intelligence Governance Bill, which the government says will form part of a broader framework covering AI standards, regulations and laws.
Gobind said the draft Bill has been completed following workshops and consultations with stakeholders. It is being prepared for submission to the Cabinet, with the government targeting its introduction in Parliament by the first quarter of 2027 at the latest.
The proposed legislation is intended to provide a legal framework for managing AI-related risks while allowing the technology to continue developing.
Malaysia’s approach will not rely solely on legislation. Gobind said some AI-related issues could be addressed through technical standards or regulations, allowing authorities to respond more quickly to new risks without having to wait for new laws.
The government has also established AI Malaysia Berhad, an organisation under the Ministry of Digital tasked with helping coordinate the country’s AI development and governance.
Malaysia announced the establishment of AI Malaysia in July as part of its ambition to become an AI Nation by 2030. The organisation is working on areas including responsible governance, AI safety, standards, talent development and adoption of AI across the economy.
The government has also established the Malaysia AI Safety Institute to strengthen technical capabilities in AI safety. Its work includes safety evaluations, testing, AI red-teaming, risk management and support for governance and compliance.
The push for stronger regulation comes as AI-powered consumer technologies become increasingly common.
Gobind specifically highlighted concerns surrounding AI-enabled smart glasses, including the possibility of people being recorded or having information uploaded without their knowledge or consent.
He said existing laws could already apply to some of these activities. Unauthorised conduct that amounts to a criminal offence can be dealt with under Malaysia’s Penal Code, while issues involving personal data can fall under the Personal Data Protection Act 2010.
Cybersecurity is another area being addressed through existing legislation. Malaysia’s National Cyber Security Agency is responsible for enforcing safety requirements under the Cyber Security Act 2024, according to the Digital Minister.
The proposed AI framework is therefore expected to work alongside existing laws rather than replace all existing technology-related legislation.
AI Malaysia said in September that the AI Governance Bill and the Malaysia AI Safety Institute were among its priorities. The organisation said governance and safety measures should support responsible AI adoption while maintaining confidence among businesses, government agencies and other organisations.
Malaysia’s National AI Action Plan 2026–2030 contains 28 national initiatives aimed at translating the country’s AI ambitions into economic and social benefits. The government wants Malaysia to move beyond being primarily a consumer of AI technology and develop local capabilities and intellectual property.
The proposed legislation comes as governments worldwide are developing different approaches to regulating AI, with issues including privacy, cybersecurity, transparency, accountability and safety becoming increasingly important.
For Malaysia, officials say the regulatory system must also be flexible enough to keep pace with AI because new technologies and potential risks can develop faster than conventional law-making processes.
The draft AI Governance Bill will still need to go through Malaysia’s parliamentary process before it can become law. Until then, standards, existing regulations and current legislation will continue to govern areas of AI-related activity.
