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Generative AI to unlock over US$113bil productive capacity for Malaysia

KUALA LUMPUR: Generative artificial intelligence (AI) is expected to unlock an astounding estimated worth of US$113.4 billion in productive capacity, propelling Malaysia to achieve a high income nation.

This is equivalent to one-quarter of the country's 2022 gross domestic product.

"Productivity growth is a key driver for economic growth for any economy," Deputy Economy Minister Datuk Hanifah Hajar Taib said.

"If we can unlock this untapped potential through the adoption of Generative AI, it brings us closer to achieving our goal to become a high-income nation," Hanifah said at the launch of the first Malaysia centre for fourth industrial revolution report.

In line with the Ekonomi Madani concept of "Raising the Ceiling and Raising the Floor", an all-of-Malaysia approach is crucial to ensuring a sustainable and inclusive economic development when adopting this new technology.

MyDigital Corporation and the Malaysia Centre for Fourth Industrial Revolution today launched its first report called "The economic impact of generative AI: The future of work in Malaysia".

This report focuses on a topic that has long been in discussion everywhere. Some even instigate fear of the technology by proclaiming that it will replace humans in the workplace and therefore workers will be displaced.

According to the report, the sentiment on generative AI technology is optimistic with 75 per cent of the surveyed population believing that such tools help them in formulating ideas for their work.

Close to two-thirds of the Malaysian workforce will potentially use generative AI for up to 20 per cent of their regular work activities.

This represents a paradigm shift that will redefine the focus in jobs rather than replacing jobs entirely.

Hanifah said generative AI has the potential to significantly contribute towards accelerated achievement of the objectives and aspirations of the 12th Malaysia Plan and the New Industrial Master Plan 2023 by driving innovation and economic growth.

In the context of the 12th Malaysia Plan, she said generative AI technologies can be harnessed to optimise resource allocation and infrastructure development.

"AI-driven predictive analytics can help forecast demand for critical services such as healthcare, education, and transportation, enabling the government to allocate resources more efficiently.

"Additionally, Generative AI can facilitate data-driven policymaking, enabling policymakers to assess the impact of various strategies and make informed decisions for sustainable economic development.

"To that end, the Ministry of Economy through the Malaysia Centre4IR will be at the forefront, bringing together global experts to work alongside our public and private sectors to shape an eco-system that will support the accelerated adoptions of new technologies such as generative AI," she added.

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