As artificial intelligence (AI) development races ahead globally in 2025, many countries are shifting focus from regulation to acceleration. In stark contrast to this trend, Malaysia is stepping up to champion responsible AI governance across Southeast Asia. With its upcoming role as Chair of ASEAN, Malaysia is spearheading collaborative efforts to ensure AI safety and inclusion across the region’s 11 diverse member states.
Recent developments in global politics and AI technology have transformed the discourse. U.S. President Donald Trump’s administration has rolled back regulatory mandates, favoring Big Tech and removing AI risk mitigation frameworks introduced under the Biden era. Simultaneously, China’s Deepseek launched its revolutionary R1 AI model, on par with leading U.S. systems but developed at a fraction of the cost and offered free—sparking a “Sputnik moment” in the global AI arms race.
This shift towards AI liberalization was reinforced during the February 2025 AI Action Summit in Paris. Unlike previous forums that stressed caution, the summit underscored sustainability and inclusion, with the European Union scrapping its AI Liability Directive and pledging €200 billion in AI investments.
Amid this international rush for AI supremacy, safety concerns are increasingly sidelined. For Southeast Asia, a region with vast digital inequality and varying degrees of AI readiness, this presents both risks and opportunities.
Regional Challenges and the Need for a Unified ASEAN AI Strategy
Southeast Asia’s digital landscape is far from homogenous. While Singapore ranks high in global AI readiness, countries like Myanmar, Laos, and Cambodia still struggle with foundational digital infrastructure. This discrepancy presents three critical concerns identified by the Khazanah Research Institute (KRI): lagging AI adoption, unchecked AI risks, and the potential for malicious AI use.
The transboundary nature of these risks demands regional cooperation. For instance, AI-enabled scam farms operating from Myanmar and Cambodia caused global financial losses of up to $37 billion in 2023 alone. These operations have also triggered humanitarian crises, with over 200,000 people reportedly trafficked to execute scams under coercive conditions.
Such challenges highlight the importance of regional mechanisms for AI safety—including data-sharing protocols, ethical standards, and capacity-building. A coordinated ASEAN approach would improve compliance, reduce costs for businesses, and elevate public trust in AI technologies.
Malaysia’s Domestic Journey Towards Responsible AI
Malaysia’s robust AI policy landscape positions it as a natural leader for regional efforts. Since the launch of its National AI Roadmap (2021–2025), Malaysia has prioritized the integration of ethical frameworks into AI development. The roadmap’s key strategy—to establish domestic AI governance—has been realized through the country’s first National Guidelines on AI Governance and Ethics. These guidelines promote transparency, fairness, and accountability among developers, users, and regulators.
Malaysia also established the National Artificial Intelligence Office (NAIO), one of the few dedicated AI bodies in ASEAN. The NAIO oversees seven strategic deliverables ranging from AI infrastructure and talent development to industry-specific innovation in sectors like healthcare and agriculture.
NAIO has convened multi-stakeholder working groups focused on AI safety, building technical capacity and aligning private-sector innovation with public policy goals.
ASEAN Chairmanship 2025: Malaysia’s Opportunity to Drive AI Safety Regionally
As ASEAN Chair in 2025, Malaysia is well positioned to lead a collective response to the region’s AI governance challenges. One of its flagship initiatives—the ASEAN AI Safety Network—seeks to centralize regional efforts around AI safety and responsible development. The network will support cross-border research, policy harmonization, and interoperability of standards, thereby enabling member states to jointly participate in global AI dialogues.
The ASEAN AI Safety Network will also serve as a unified platform to challenge the dominance of Global North narratives in AI governance, giving Southeast Asia a stronger voice in shaping future digital norms.
Malaysia’s vision recognizes that true progress lies not only in innovation but also in establishing shared ethical foundations. With a population of over 700 million, ASEAN’s collective influence can be leveraged more effectively through harmonized strategies driven by leaders like Malaysia.
Looking Ahead: Post-Chairmanship Priorities for Malaysia
Malaysia’s regional AI leadership should not end with its ASEAN Chairmanship. Continued engagement through digital sectoral bodies like the ASEAN Working Group on AI Governance will be crucial. Through this channel, Malaysia can help operationalize the ASEAN Guide on AI Governance and Ethics and roll out training programs tailored for emerging technologies like generative AI.
With the groundwork laid by the NAIO, Malaysia has a unique opportunity to become a central hub for AI governance expertise in Southeast Asia. By providing resources, setting standards, and driving public-private partnerships, Malaysia can ensure that responsible AI remains at the heart of the region’s digital transformation.
Conclusion: AI Safety as a Unifying Mission for Southeast Asia
As the global AI landscape becomes increasingly polarized, Malaysia is taking a forward-thinking approach. Rather than chasing acceleration at the cost of caution, the country is charting a middle path—one that values innovation, governance, and human rights equally.
By leveraging its domestic policies, regional leadership, and institutional frameworks, Malaysia is fostering a Southeast Asia that can collectively navigate AI’s opportunities and threats. In doing so, the country is not only securing its place as a digital leader but also setting the standard for responsible AI in a rapidly changing world.
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Inputs by: Bryan Yeoh Quan Jin, Senior Manager, Thought Leadership and Strategic Partnership at MYCentre4IR Jun-E Tan, Senior Research Associate at Khazanah Research Institute
