Is Malaysia ready for the next digital decade?

 As AI reshapes industries and cyber threats become more sophisticated, regulators and industry leaders say Malaysia must balance innovation with trust, safety and good governance.

The International Regulatory Conference 2026 was held at the Shangri-La Hotel from July 21 to 22.

PETALING JAYA:

Malaysia has made major strides in digital connectivity and technology adoption over the past decade.

But as artificial intelligence (AI) advances, cyber threats grow more sophisticated and online harms become increasingly complex, experts say the country’s next challenge lies in building trust, safety and responsible governance.

That was the central message of the International Regulatory Conference 2026, where regulators, policymakers and industry leaders explored how Malaysia can remain competitive in the coming digital decade.

Organised by the Malaysian Communications and Multimedia Commission (MCMC), the conference brought together regulators, policymakers and industry leaders to examine how Malaysia can remain competitive, innovative and resilient in the coming digital decade.

Communications minister Fahmi Fadzil opened the conference by stressing the need for regulators to exchange ideas as governments confront rapid technological change and increasingly sophisticated online risks.

Balancing innovation and regulation

As Malaysia accelerates into its digital decade, speakers agreed that regulation must keep pace with innovation without becoming an obstacle to it.

Institute of Strategic and International Studies executive chairman Faiz Abdullah warned against overregulation, arguing that markets naturally innovate faster than governments can legislate.

At the same time, he acknowledged that regulation becomes necessary where clear harm to society exists, particularly in areas such as online safety.

Rather than framing the debate as regulation versus innovation, other panellists argued that governments must rethink how policies are developed.

Pemandu Associates joint managing director Aida Azmi said governments and businesses often work on different timelines. While companies are rewarded for bringing products to market quickly, regulators are expected to get policies right before implementation.

Rather than treating regulation as static documents that take years to revise, she urged policymakers to adopt a more agile approach.

“Create policies as if they are a product,” she said, arguing that regulations should evolve continuously through feedback and real-world implementation.

Trust as the cornerstone

Whether conversations focused on AI, personal data or social media, speakers repeatedly emphasised that public confidence will ultimately determine whether digital technologies succeed.

Content Forum Malaysia CEO Mediha Mahmood said concerns over algorithm-driven platforms have prompted regulators worldwide to examine not only harmful content but also the systems that continuously push similar material to users.

“It’s not just the content per se that’s being offered, but how the content is being offered and how repetitiously the content is being offered,” she said.

She said features such as autoplay, endless scrolling and personalised recommendations are designed to maximise engagement, but can also trap users in “bubbles” where they are repeatedly exposed to similar viewpoints.

She said while platforms must design safer digital environments, users also have a responsibility to be mindful of how they engage with digital platforms.

Governing the AI boom

AI also dominated discussions, not for its potential but for how it should be governed, with concerns ranging from cybersecurity to regulation. Fazlan Abdullah of CyberSecurity Malaysia warned that AI has made phishing emails, scams and deepfake videos increasingly convincing.

“The bad actors are using AI to attack you. And if you are in the organisation, in government, you must use AI to defend against AI,” he said, urging organisations to adopt proactive cybersecurity measures instead of treating security as an afterthought.

Malaysia’s proposed AI Governance Bill, together with the establishment of the National AI Office and AI Safety Institute, were presented as part of a broader effort to create a risk-based framework that encourages innovation while protecting the public.

Experts stressed that frameworks must remain adaptable as technology continues to evolve.

Looking beyond Malaysia, Hazremi Hamid of the Asean Secretariat said AI cannot be governed effectively by countries acting alone, as data, digital services and online threats are borderless.

He said Asean is working towards developing common principles on AI governance, data management and information sharing, while recognising that member states remain at different stages of digital development.

Preparing for the digital future

Throughout the 10 dialogue sessions, discussions repeatedly returned to the importance of preparing people for the digital future.

They said the country’s competitiveness will depend on whether citizens understand not only how to use emerging technologies, but also how to navigate them responsibly.

While much of the conference focused on algorithms, regulation and AI, its strongest message may have been the simplest: technology should continue to serve people, not the other way around. - FMT