> For the complete documentation index, see [llms.txt](https://discover.theiofoundation.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://discover.theiofoundation.org/publications/articles/policy/recommendations-on-artificial-intelligence-for-national-policy-in-malaysia.md). # Recommendations on Artificial Intelligence for National Policy in Malaysia ## Abstract The IO Foundation (TIOF) is an Estonian-registered NGO dedicated to advancing Data-Centric Digital Rights (DCDR) through technical standards and education through the promotion of the DCDR Framework. This brief presents the organization's official position on Artificial Intelligence in support of Malaysia’s national AI strategy. ## Basic considerations TIOF views AI as a powerful tool for national development that must be built on strong technical foundations. Core to our position is the principle that individuals own and control their data which forms the basis of AI systems (DCDR Principle I). Effective AI policy requires rights embedded by design (DCDR Principle III) transparently for the end user and open standards (both national and international) that promote innovation while preventing harms (DCDR Principle II). TIOF has actively promoted these approaches through university programs such as Argos Clubs international engagement in standards development and practical training for technologists. ## Core definitions ### **Artificial Intelligence** {% columns %} {% column width="58.333333333333336%" %} Artificial Intelligence is the capability of machines to perform tasks that typically require human intelligence, such as pattern recognition, decision making, prediction and problem solving. Since humans create all technology, AI systems are ultimately tools designed modeled on aspects of human cognition and built exclusively to serve human purposes and needs. {% endcolumn %} {% column width="41.666666666666664%" %} {% hint style="info" %} Because digital technology is built by humans, it is possible to establish by design what a given technology does or does not do. Sound policy can therefore shape a conducive technology environment that positions Malaysia at the forefront of effective national AI implementation. {% endhint %} {% endcolumn %} {% endcolumns %} ### Data-Centric Digital Rights Data-Centric Digital Rights (DCDR) refer to the embedding of protections for individuals and their data (digital twins) directly into the design and operation of digital systems and technologies, including AI technologies. ### Technical Standards Technical standards are the agreed specifications and protocols that ensure digital systems are interoperable, reliable and secure. In the context of AI, they may define how data is handled models are trained and systems interact, among other aspects. The impact of technical standards in technology is, sadly, inversely proportional to the attention given to them by governments across the globe. ### Digital Infrastructure Digital infrastructure comprises the underlying hardware, software, networks, protocols and technical standards that enable modern technology including AI systems to function at scale.\ It includes data storage and processing systems, communication networks, computing resources and the architectural frameworks that determine how these components interact. {% hint style="success" icon="hexagon" %} National policy shapes digital infrastructure through legislation, regulation, enables public investment and the adoption of technical standards. {% endhint %} ## Policy areas The policy recommendations in this document are presented to build logically on each other, based on the following policy areas: {% columns %} {% column width="66.66666666666666%" %} {% stepper %} {% step %} #### Human Capital and Educational Pipeline Education creates the human foundation. {% endstep %} {% step %} #### Energy and Compute Resources Energy and compute provide the physical base. {% endstep %} {% step %} #### Technical Standards and Supply Chain Security Standards ensure reliability and security. {% endstep %} {% step %} #### Data Sovereignty and Digital Infrastructure Control Sovereignty and control protect national interests. {% endstep %} {% step %} #### Ecosystem enablement A strong local ecosystem supports long-term progress. {% endstep %} {% endstepper %} {% endcolumn %} {% column width="33.33333333333334%" %} {% hint style="info" %} For each policy area discussed in this document, this brief provides both specific recommendations and concrete examples of actions taken by The IO Foundation in support of those objectives. {% endhint %} {% endcolumn %} {% endcolumns %} ### 1. Human Capital and Educational Pipeline A skilled population forms the essential foundation for any national AI strategy. Malaysia’s ability to develop, deploy and govern AI depends on citizens who can read, write and reason clearly as well as on technologists equipped with specialized capabilities. Current efforts in skilling must expand to include focused training for those who will work directly with public data and critical systems. The updating of the pedagogical pipeline must be at the core to any national AI policy strategy. {% columns %} {% column %} **Key Proposals** * Strengthen core competencies in reading, writing and languages across all levels of education. * Integrate AI concepts and responsible technology practices into existing curricula. * Develop professional certification pathways for technologists handling public data and national systems. * Introduce an AI sidekick assistant approach at high education level. * Provide free compute resources for students (and possibly other interested parties) and create fellowships or internships linked to data centers and national computing facilities. {% endcolumn %} {% column %} **TIOF Work** * The IO Foundation has developed a technical community of engineers dedicated to ensure that technology protects the final user by design, called TechUp, including clubs in universities, called Argos Clubs. * The organization develops and delivers open training resources focused on technical standards and responsible technology practices. TIOF is advancing plans for professional certification frameworks aimed at technologists working with public data. {% endcolumn %} {% endcolumns %} ### 2. Energy and Compute Resources Reliable and sufficient energy supply together with access to computing power are non-negotiable requirements for AI development and operation. Without these foundations, even the best policies and talent will not be able to deliver results. While Malaysia already attracts significant data center investment, policy must now ensure these assets serve national priorities rather than only commercial interests. Geographical diversification, beyond Malaysia's borders, should also be in the roadmap. {% columns %} {% column %} **Key Proposals** * Treat energy availability and cost as strategic priorities for AI infrastructure planning. * Review policies that may prevent the development of further energy sources. * Ensure that utilities cost do not skyrocket to maximize buy-in by the rakyat. * Expand access to national computing resources for education, research and small-scale innovation. * Link data center development to clear national benefit criteria, including local skills development and technology transfer. * Promote plans that enable the rakyat to self-host their own personal/family compute and leverage on such distributed capacity for national use (see Tesla car-distributed compute model). {% endcolumn %} {% column %} **TIOF Work** * TIOF promotes self-hosting solutions that allow individuals and families to provide compute for their members, thus reducing external dependencies. * The Argos Clubs run by TIOF provides self-hosted compute under the PromptForge program to encourage engineers to manage their own devices. {% endcolumn %} {% endcolumns %} ### 3. Technical Standards and Supply Chain Security Technical standards determine how technology is built, secured and made interoperable. AI technology has just stated its standardization process at several levels. Influencing technical standards through active participation on standards developing organizations (SDOs) should be a national security priority for Malaysia. Moreover, highly distributed software dependencies have turned software supply chains into a cybersecurity target. Any national AI policy must pay close attention to technologies such as Software Bills of Materials (SBOM) to address software provenance controls. {% columns %} {% column %} **Key Proposals** * Accelerate adoption and localization of relevant international standards for AI systems. * Create a centralized department to coordinate efforts at a national level across different SDOs. * Establish supply chain protections through certified SBOM repositories for AI and software components used in public sector and critical systems. * Establish critical components for AI infrastructure: `Data Use Manifestos + Remote Attestation procedures`. * Build domestic capacity to participate in and influence standards development at international bodies. Leverage existing upskilling programs, such as HRDCorp, to maximize buy-in by companies. {% endcolumn %} {% column %} **TIOF Work** * TIOF actively engages with standard developing organizations and maintains ongoing work on ProtocolWatch and related initiatives to track and explain technical standards. The organization advocates for standards that support transparency, security and rights by design. * TIOF has developed specialized courses that enable companies to map the relevant SDOs for their business model as well as support them in their sustained participation. The courses are conducted by TIOF's Malaysian Training Provider The IO Network MY Sdn. Bhd. {% endcolumn %} {% endcolumns %} ### 4. Data Sovereignty and Digital Infrastructure Control Digital infrastructure and the data it processes represent strategic national assets. This becomes self-evident when understanding that all data is created to conform digital twins from physical entities, most notable Malaysian citizens. The location and control of this data directly affect their security, privacy and long-term autonomy. {% columns %} {% column %} **Key Proposals** * Ensure that digital twins of Malaysian nationals are created, stored and processed primarily within Malaysia. * Develop policy frameworks that classify major data center clusters as strategic national infrastructure. * Promote self-hosting options for citizens and small organizations that can operate on top of national computing resources. * Strengthen requirements for data residency and local operational control in AI systems handling national data. * Consider developing jurisdiction-based areas in data centers modeled upon embassies. {% endcolumn %} {% column %} **TIOF Work** * TIOF’s core advocacy centers on Data-Centric Digital Rights (DCDR) through the implementation of the DCDR Framework. * The organization has consistently promoted architectures that keep control with users and nations rather than external providers. {% endcolumn %} {% endcolumns %} ### 5. Ecosystem Enablement AI development requires continuous input from the local technology community. An effective policy environment must support open dialogue, provide practical resources for practitioners and maintain mechanisms to listen systematically to those building and using the technology. {% columns %} {% column %} **Key Proposals** * Establish a national technology observatory to gather structured input from the local tech community on a regular basis. * Provide physical and virtual spaces, including hubs for remote participation in SDO work, for community activities and training. * Allocate targeted funding to bring international standards experts and trainers for local capacity building. {% endcolumn %} {% column %} **TIOF Work** * TIOF runs tech community-oriented programs through its TechUp initiative and Argos Clubs for which it already delivers content on technical standards, Data-Centric Digital Rights and responsible technology practices to university-level audiences. * The organization has direct experience organizing events, training and remote participation formats that connect local practitioners with global experts. {% endcolumn %} {% endcolumns %} ## Final words Malaysia’s national AI ambitions rest on five interconnected pillars: * [ ] educated and certified human capital, * [ ] reliable energy and compute, * [ ] rigorous technical standards, * [ ] sovereign control over data and infrastructure and * [ ] an active local technology ecosystem. The recommendations in this brief are designed to be actionable, measurable and aligned with existing Malaysian initiatives and The IO Foundation remains available to support NAIO in implementing them them as necessary. {% hint style="info" icon="hexagon-plus" %} The IO Foundation stands ready to contribute its frameworks, training experience and standards work to support Malaysia in building capable, secure and nationally beneficial AI systems. {% endhint %} --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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