[This is a sponsored article with MDEC.]
You read the title right.
According to Statista, the market for artificial intelligence (AI) grew beyond US$184 billion in 2024, a considerable jump of nearly US$50 billion compared to 2023.
In 2030, it’s predicted that the market will “race past” US$826 billion.
This all points to there being no better time than now to tap into the market, and the good news?
Malaysia has already set the foundations for local startups to capitalise on this growth. Here are three reasons why this is an opportunity entrepreneurs wouldn’t want to miss.
1. Malaysia is a burgeoning AI hub
This year alone—and in the span of just over a month—Malaysia saw three separate billion-dollar investment plans from global tech giants to set up data centres and drive AI initiatives:
- Microsoft: US$2.2 billion
- Google: US$2 billion
- ByteDance (parent company of TikTok): US$2.1 billion
Shiny investments aside, important work is also being done at the grassroots level.
The recently-held Malaysia Digital (MD) Tech Adoption Summit: Artificial Intelligence (AI), or MDTAS: AI, by Malaysia Digital Economy Corporation (MDEC) is one such example.
Entrepreneurs, startups, industry leaders, policymakers, academics, and other key players in the digital economy came together at this event to foster cross-industry collaboration.
Breakthrough AI innovations were showcased, business connections were fostered, and the message promoting widespread adoption of AI tech across diverse sectors rang loud and clear throughout the summit.
And this is only the beginning.
MDTAS: AI is just the first in a series of high-impact events aimed at accelerating AI adoption across industries.
2. Be the catalyst for other SMEs & MSMEs to adopt AI
Malaysia is already home to innovative companies making remarkable strides in AI, YB Tuan Syed Ibrahim Syed Noh, Chairman of MDEC, shared during his speech at MDTAS: AI.
For example, we have NextMind.AI, a homegrown company whose solution allows users to create a fully functional, multilingual website in under three minutes.
This is done through its Text2Site solution, which, as its name suggests, turns a business concept into a website that’s ready for roll-out in minutes.
Supposedly, this is a process that traditionally takes over 10 working days, so a solution like this can quickly boost businesses’ online presence and global reach.
Then there’s also Peasy AI, which provides tools such as customer segmentation, sales prediction, natural language processing for chatbots, and more, enabling businesses to optimise their operations and cut costs by up to 30%.
In particular, their solution is geared towards making online-to-offline sales lead generation much easier.
The summit was a chance for these startups to showcase how their solutions have real-world applications and how they’ve impacted the way other SMEs and MSMEs do business.
3. Shape the tech in various industries
As AI adoption picks up in the region, there’s a clear advantage for first movers who can quickly offer their AI-powered solutions to SMEs and MSMEs—you could shape the tech in various industries.
We’re talking digital banking, fintech, healthcare, and so much more.
AI adoption in Malaysia is still in a nascent stage, but there’s little doubt that it’s poised to reshape business landscapes, and those who choose a “wait-and-see” approach could miss out on reaping the benefits.
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Minister of Digital, YB Gobind Singh Deo, said at MDTAS: AI, “We envision a country where all layers of society can adopt technology and utilise AI.”
It’s a challenging ambition, but one that the nation isn’t backing down from realising.
Through its AI initiatives, MDEC has already successfully onboarded 140 AI solution providers into the MD AI ecosystem. Additionally, these companies have generated RM1 billion in revenue.
Malaysia’s ASEAN chairmanship is right around the corner, and these moves show that our nation is determined to walk the talk when it comes to bolstering AI growth.
Now, the ball is in the court of our local entrepreneurs and startups to step up and be a part of this transformative journey.
- Stay up to date with future MDEC events here.
Featured Image Credit: MDEC / (left to right) Ts. Datuk Fadzli Abdul Wahit, Head of Transformation, MDEC (Moderator); Dato’ Fahri Aminudi, Resource Director, GDS IDC Services; Tiensoon Law, Deputy CEO, Innov8tif; and Ts. Tan Aik Keong, CEO, Agmo Group
