She said AI is no longer simply a technology adopted by enterprises, but is becoming a fundamental capability that will determine how businesses compete, innovate and create value, as companies across ASEAN move beyond experimentation and rethink their operations, workforce models and decision-making.

“Malaysia already has a strong connectivity base, with Internet coverage in populated areas reaching 99.75 per cent as of July 31, 2026 under JENDELA, while the continued 5G rollout and SALAM submarine cable are adding capacity and resilience,” she said.

Teo added that becoming AI-first must also mean becoming ‘people-first’ as AI will reshape jobs, skills and how organisations operate, requiring continuous reskilling and upskilling to prepare Malaysians for an AI-enabled economy.

bootstrap slideshow

“The success of AI should therefore be measured not only by technological sophistication, but by how widely its benefits are shared. SMEs and communities must also be able to participate in the transformation,” she said.

Teo said innovation must advance alongside trust as AI becomes increasingly embedded in business operations and decision-making, making privacy, cybersecurity, transparency and accountability even more important.

“For businesses, responsible AI is more than compliance; trust will increasingly be a competitive advantage. The scale of this challenge reminds us that as technology scales, accountability and safeguards must scale with it,” she said.

On the regional front, Teo said ASEAN's digital economy could reach as much as USD 2 trillion by 2030 with effective implementation of the ASEAN Digital Economy Framework Agreement (DEFA), making it imperative for the region to look beyond national boundaries to capture AI-related opportunities.

She said AI gives Malaysia an opportunity to build on its existing digital base and create the next layer of productivity and growth, noting that the country's information and communications technology (ICT) and e-commerce sector contributed RM451.3 billion, or 23.4 per cent of the economy, in 2024.

“Malaysia's transformation is anchored in its ambition to become an inclusive and sustainable AI Nation by 2030, focusing on strengthening competitiveness, developing ‘Made by Malaysia’ solutions, building digital trust and ensuring AI's benefits are shared across society.

“The ambition is being translated into action through the National AI Action Plan 2026-2030, a five-year roadmap adopting a whole-of-nation approach across government, business and the rakyat, supported by 28 national initiatives covering areas including talent, research, data and compute, and governance,” she said.

At the ASEAN level, Teo said the ASEAN Responsible AI Roadmap 2025-2030 and ASEAN AI Safety Network (ASEAN AI SAFE) would deepen regional cooperation and help member states advance innovation alongside skills, inclusion, governance and risk management.

“Malaysia and ASEAN do not see innovation and responsibility as competing objectives. Trust, safety and interoperability give businesses greater confidence to invest, innovate and scale AI across our region,” she said, adding that ASEAN should not merely be ready for an AI-first future but help shape it.

M360 ASEAN 2026, organised by GSMA Asia Pacific on Sept 9 and 10, brings together ministers, regulators and industry leaders to discuss digital trust, artificial intelligence, resilient infrastructure and regional digital integration.

The event, held for the first time in the ASEAN region and in Malaysia, is endorsed by the Ministry of Communications, with the Malaysian Communications and Multimedia Commission (MCMC) as host partner.

-- BERNAMA