Artificial Intelligence law at Malaysia

Malaysia is actively developing a legal and regulatory framework to govern Artificial Intelligence (AI), focusing on ethical guidelines, data protection, and strategic planning.

🇲🇾 National AI Strategy and Ethical Guidelines

In 2021, Malaysia launched the National Artificial Intelligence (AI) Roadmap 2021–2025, outlining a strategic plan to position the country as a leader in AI by 2030. Accompanying this roadmap, the National Guidelines on AI Governance and Ethics (AIGE) were introduced in 2024. These guidelines, developed by the Ministry of Science, Technology and Innovation (MOSTI), provide a voluntary framework for AI developers, users, and policymakers, emphasizing seven key principles:(Securiti, The Star)

Fairness: Ensuring AI systems are free from bias and discrimination.(Securiti)

Reliability, Safety, and Control: Guaranteeing AI systems perform as intended and are secure.

Privacy and Security: Protecting personal data and ensuring user privacy.

Inclusiveness: Promoting equal access to AI advancements.(Rahmat Lim)

Transparency: Making AI operations and decision-making processes understandable.

Accountability: Holding developers and deployers responsible for AI outcomes.(Securiti)

Pursuit of Human Benefit and Happiness: Aligning AI technologies with human-centric values.

While these guidelines are not legally binding, they serve as a foundational framework to ensure AI technologies are developed and deployed responsibly .(Securiti)

🏛️ Regulatory Developments

In December 2024, Malaysia established a National Artificial Intelligence Office (NAIO) under MOSTI. The NAIO is tasked with coordinating AI initiatives, developing a five-year AI technology action plan, and formulating a regulatory framework to promote ethical AI use. This move aims to centralize AI efforts and provide strategic planning, fostering research and development, and ensuring regulatory oversight .(OpenGovAsia, Reuters, Reuters)

Science, Technology, and Innovation Minister Chang Lih Kang has indicated that while there are currently no plans to draft specific laws addressing AI misuse, the AIGE will be utilized as a reference to regulate its use. Existing laws such as the Communications and Multimedia Act and the Penal Code remain applicable in addressing AI-related issues .(Malay Mail)

🔐 Data Protection and Privacy

The Personal Data Protection Act 2010 (PDPA) governs the processing of personal data in commercial transactions. While the PDPA does not explicitly address AI, it remains relevant as AI systems often involve the collection and processing of personal data. Entities utilizing AI must comply with the PDPA's principles, including obtaining consent, ensuring data security, and providing individuals with rights to access and correct their personal data .(Lexology, AmCham)

🔮 Future Outlook

Malaysia is committed to developing a comprehensive legal framework for AI that balances innovation with ethical considerations. The establishment of the NAIO and the introduction of the AIGE are steps toward creating a robust regulatory environment. While a specific AI law is not yet in place, the government's proactive approach signals a commitment to ensuring that AI technologies are developed and deployed in a manner that aligns with national interests and values.(Lexology)

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