Digital Minister says Penang’s readiness for AI growth will attract investors

PENANG, which is known as a leader in the semiconductor sector, should also become a regional hub for next-generation technology, says Digital Minister Gobind Singh Deo.

He said the country needed to consider how it could further develop the ecosystem.

“When we talk about attracting investments to Malaysia, particularly to Penang, many potential investors will evaluate the strength and quality of the existing ecosystem.

“Investors will assess the existing infrastructure and the government’s readiness to support the adoption of new technologies.

“When we talk about developments like AI (artificial intelligence), we need proper mechanisms to ensure that data can be shared effectively, enabling the successful implementation of AI and related fields.

“Therefore, it is crucial for the government to take action in establishing the necessary frameworks,” he told a press conference at the Malaysia Digital Open Day in George Town.

He said the newly enacted Data Sharing Act 2025, which took effect on April 28, facilitated enhanced sharing of data among ministries and their agencies.

This, he said, was one of the key steps towards the vision of making Penang the regional hub for future technology.

Gobind was confident that if the state government could create the ecosystem, more investors would pick Penang as their investment destination.

He pointed out that the ministry opened a Penang branch of Malaysia Digital Economy Corpo­ration (MDEC), so that it could have more discussions with industry stakeholders based in the state.

“Many new technologies will emerge and we must focus on how to prepare Penang to ensure that when these technologies arrive and become available, our ecosystem is ready to support and leverage them.

“This readiness will allow us to strengthen Penang’s position as a leading semiconductor hub and a thriving start-up ecosystem in the region.”

On the enactment of the Data Sharing Act at the state level, Go­bind said Penang was very receptive to the proposal to put into place data-sharing laws aimed at creating a larger ecosystem among federal, state and local agencies.

He had met Penang Chief Minister Chow Kon Yeow who was very supportive of the Federal Government’s efforts.

“We want to digitalise the government administration as fast as possible,” said Gobind.

He hopes that all states will be receptive to the enactment of Data Sharing Act and that the legislation can be implemented by year-end.

On the growing issues of on­­­line scams and digital fraud, Gobind said the authorities such as the Malaysian Communications and Multimedia Commission (MCMC) and police had many initiatives and public awareness campaigns, including dedicated hotlines for public complaints and streamlined processes for enforcement.

He said existing legislation to address digital threats was sufficient and the government was doing all it could to curb crime.

“Government agencies, including MCMC, law enforcement and other regulatory bodies, are equip­­ped to investigate and respond to cyberthreats effectively,” he said.