AI, technology advancing businesses and community in 2023 - MIDA | Malaysian Investment Development Authority
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AI, technology advancing businesses and community in 2023

AI, technology advancing businesses and community in 2023

18 Dec 2023

The next question to ask is how quickly they can deploy it and realise its benefits 


This year has emerged pivotal in the ever-evolving landscape of technology, witnessing groundbreaking developments that reshape the way we live, work and interact. 

From the cutting-edge realms of artificial intelligence (AI) to the possibilities of quantum computing, the technological landscape of 2023 stands as a testament to human ingenuity and the relentless pursuit of excellence. 


Today, Internet access is the backbone behind any technological advancement and transformation. 

While Malaysia is equipped with reliable Internet connectivity, the digital gap especially in the underserved areas is still a challenge as such it needs universal connectivity including using the satellite constellation using a low Earth orbit to deliver broadband Internet. 

In July, Malaysia officially issued a licence to Starlink, the satellite Internet provided by SpaceX, which uses just that to provide Internet services in the country, particularly for schools in rural areas. 

Malaysia is the 60th country with access to Starlink’s high-speed Internet, which also acts as an accelerator for the Malaysia Digital Economy Blueprint and government objectives to achieve 100% Internet access in populated areas. 

A more widespread Internet unlocks more potential for technology breakthroughs in the country, especially the Internet of Things, AI and other emerging technologies. 

In November, REDtone Digi-t Bhd officially became the authorised reseller for Starlink broadband, enabling them to deploy broadband to consumers in remote locations. 

This deployment is also targeted to sectors with increasing reliance on satellite services such as oil and gas, telecommunications, shipping and maritime, and financial services to enable economic growth. 

Tesla and BYD 

The recent years have also witnessed a notable shift and emergence of electric vehicles (EVs) toward becoming more mainstream. 

Attributable to the combination of technological advancements, environmental consciousness, supportive government policies and developing infrastructure, the global EV car makers have expanded their presence into the Malaysia market. 

In July, Tesla Sdn Bhd, the Malaysian arm of Tesla Inc, officially began operations with the launch of Model Y for the local market and will be introducing more models to cater to the varying needs and preferences of Malaysians. 

Tesla is set to establish its head office and service centre in Cyberjaya, which will serve as the central hub for all corporate operations, marketing, training, customer support activities and vehicle services. 

Three other EV brands from China have also launched in Malaysia, namely BYD, Ora and Chery. 

Sime Darby Motors Sdn Bhd is BYD’s exclusive distributor in Malaysia. 

AI 2023 Highlights 

AI refers to machines or computer systems that are designed to perform tasks that typically require human intelligence, ranging from learning human experience, understanding natural language, recognising patterns, solving problems and making decisions. 

These machines not only enabled corporations and humans to perform what was before a daily task autonomously but forced the industry to adapt to its usage to retain information. 

Businesses are leveraging AI chatbots to provide more efficient and responsive customer support, handling routine queries and freeing up human agents for more complex tasks. 

However, chatbots represent only a small portion of the ways that AI technology is being used today. 

From the introduction of the chatbots and cutting-edge technology, another hallmark in the evolution of AI, showcasing remarkable advancements this year includes AI-driven virtual assistants and productivity tools, AI-driven wearable devices for healthcare, AI tools for content creation, cloud computing and automation aspects. 

Cloud Computing and Automation

This year has seen an increasing adoption of cloud computing in the regulated industries, led by the banking and insurance companies in the country. 

These are followed by businesses and organisations of all sizes including the distribution and services industry which consists of retail, wholesale, professional services, personal and consumer services, transportation and media. 

According to data from Malaysian Digital Economy Corp (MDEC), organisations in Malaysia spent US$666.2 million (RM3.11 billion) on public cloud in 2021, a 27.8% year-on-year growth, as businesses from all sectors continue to find valuable use cases of cloud technology. 

In line with this, Malaysia aspires to embrace cloud computing and AI technologies as the government aims to transform Malaysia into a high-income digital nation and a regional leader in the digital economy via MyDigital. 

Cloud adoption has liberated organisations from the constraints of traditional infrastructure, allowing them to scale resources dynamically, reduce costs and foster innovation, from the storage and processing power to applications and analytics over the Internet. 

Hybrid and multi-cloud architectures have gained prominence, allowing organisations to blend private and public cloud services to optimise performance and data governance. 

Meanwhile, in the component of digital information strategies, automation has evolved with organisations across industries leveraging intelligent automation to optimise operations. 

This year, the proliferation of AI-driven automation tools has allowed businesses to achieve unprecedented levels of efficiency and innovation. 

AI in the Financial Industry

AI application has significantly transformed the financial industry, introducing innovative solutions that enhance efficiency, accuracy, and decision-making. 

In the financial industry, AI is used to detect and flag activities such as unusual debit card usage and large account deposits, all of which help the bank’s fraud department. 

From customer services to fraud detection, AI helps automate the process of banking and financial transactions including wealth and risk management, credit scoring, financial security, ensuring compliance and market research. 

As the technology evolves, AI is also utilised in the blockchain and the cryptocurrency space, in which the integrated algorithms execute the trading activity as such it analyses market trends in the volatile cryptocurrency market. 

Financial institutions are investing in AI to gain a competitive edge, improve operational efficiency and provide enhanced services to their customers. 

As AI technologies mature, we can expect even greater integration and innovation in the financial sector. 

Apart from finance and banking, other sectors where AI is making a huge impact are healthcare, autonomous vehicles, education, and art and creativity. 

AI in Content Curation 

AI is also making a revolutionary move in the creative industry by providing the creators and creative teams with innovative tools that let them produce faster, enhancing the content creation process while introducing a new dimension of creativity. 

INMAGINE, the group which primarily uses AI and data analytics to simplify creative processes via its tools for day-to-day operations, such as Pixlr and Designs. ai, said integrating AI in its main operational processes helped boost 30% of group productivity by reducing the time required to deliver high-quality outcomes. 

Group CEO Warren Leow said this empowerment extends across various tasks such as producing content material including design, copywriting, communications and speeding the content creation process. 

Not only that, AI is also being used in IT and development, sales and client prospecting, human resources and legal processes of the company. 

“Client prospecting, customer service and personalised messaging are now done with little to no barriers. 

“Drafting documents, job descriptions, appraisals and ensuring everything is going according to plan has been done with convenience and confidence,” Leow told The Malaysian Reserve (TMR)

In addressing the challenges of AI deployment in the company which initially stemmed from a lack of awareness and education, he said it has been effectively addressed through on-the-job training initiatives and fostering the culture of innovation. 

He expected the future for content production to see a trans-formative landscape, where content production becomes more cost-effective while simultaneously elevating quality standards. 

“AI is creating a big bang moment in terms of business model possibilities. We keep an eye out for any new models, new approaches and new technology as the pace has quickened in the past year with new announcements almost every week,” he added. 

He noted that even though the creative domain is experiencing substantial disruption through advancements like diffusion models and large language models which impacted its designers and freelancers, the group continues to embrace innovation by integrating various AI models into the products. 

Quantum Computing 

As AI continues its relentless pursuit of advancements, quantum computing is another emerging segment catalysing transformative breakthroughs which deal with the phenomena at the subatomic and atomic level. 

Raffles University’s AI and Robotics Faculty Dean Assoc Prof Dr Sasa Arsovski said quantum computing operates on quantum mechanics principles. 

Classical computers process information as binary bits (0 or 1). 

Quantum computers, on the other hand, are based on quantum bits, called qubits, which can represent both states at the same time. 

In comparison between quantum computing and AI, he said the former leverages principles of quantum mechanics to perform computations, while AI uses classical computers and does not rely on quantum principles for computation. 

“It uses qubits, which can exist in multiple states simultaneously, enabling parallel processing and the potential to solve certain problems exponentially faster than classical computers, while AI involves the development of algorithms and systems that can perform tasks that typically require human intelligence,” he told TMR

Quantum computers are still in the early stages of development, which are currently being explored and developed by big tech giants like Google LLC, Inc and Intel Corp for their quantum computing solutions. 

Navigating these infancy stages, researchers and innovators worldwide are actively working to address the challenges related to error correction, scalability, coherence time and cost to realise its full potential.

Apart from accuracy, Arsovski said quantum computing faces two major challenges, namely scaling and efficiency. 

“In addition to qubit instability (or lack thereof ), other qubits can interfere with each other and introduce errors. 

“Having a stable qubit in a superposition state is challenging and may be limited to a few milliseconds or microseconds,” he said. 

Despite that, quantum computing has the potential to revolutionise AI in various industries and has positive implications for businesses, industries and the global economy. 

Arsovski said for now, the immediate benefits of quantum computing can be seen in solving the problem in cryptography, development of new drugs and dealing with climate change. 

“Analysis of huge amounts of data in a very short time will enable the design of more accurate and more powerful neural network models,” he added. 

As it is still new, building and maintaining stable quantum computers that can outperform classical machines requires overcoming obstacles, still a complex and challenging task. 

“Challenges such as error suppression, error correction, error suppression and mitigation come with significant cost for quantum computing and still scaling problems cannot be easily accomplished,” he said. 

AI in the Future and Predictions 

There is much speculation about what the next frontier of AI in the country will be to facilitate various industries, especially in decision-making, market dynamics and fostering sector-specific adaptation and technological synergies. 

Rackspace Technology Asia Pacific and Japan SVP, Global Services and Solutions, Public Cloud Business Unit, Sandeep Bhargava said focusing on cloud computing outlined that the trend next year is for organisations to democratise the use of generative AI and cloud computing to maintain their financial viability. 

Additionally, he said the adoption of natural language models will expedite AI’s reach, transcending from being solely within the domain of technologists to a widespread application to non-technical users. 

Another important trend Sandeep highlighted is the urgency to address sustainability challenges as the extensive adoption of technology has the potential to contribute to carbon emissions mainly from massive use of computing and storage, demanding substantial electricity for operation and cooling. 

On top of that, Arsovski said as AI became increasingly used in workplace monitoring and performance evaluation, ethical considerations became increasingly important. 

“A surge in AI-driven platforms has also contributed to debates about job stability and the need for regulatory frameworks. 

“From an economic perspective, AI is now seen as a growth driver, generating new industries and requiring a fair distribution of its benefits,” he said. 

Arsovski believed that for next year, AI will make an impact on almost every industry including full workflow automation in retail, multimedia content generation and autonomous driving. 

Digitalisation and automation have never been more important to Malaysian businesses and with the current state and accessibility of AI, we will no longer ask if businesses will adopt AI technology, but rather how quickly they can deploy it and realise its benefits. 

Source: The Malaysian Reserve