PUTRAJAYA, May 5 — Artificial intelligence (AI) is expected to contribute between RM13 billion and RM20 billion annually to Malaysia’s gross domestic product (GDP) by 2030, said Digital Minister Gobind Singh Deo.
He said AI is already demonstrating tangible economic value in Malaysia, with projections indicating it could add between 0.8 and 1.2 percentage points to Malaysia’s GDP growth each year.
“At the national level, the digital economy, increasingly powered by AI, contributed over 23 per cent to Malaysia’s GDP last year, amounting to more than RM450 billion in economic value.
“These are not projections in isolation. They signal a structural shift where AI is no longer peripheral to the economy, but central to productivity, competitiveness and national growth,” he said in his speech at the 5th International Conference on Youth 2026 (ICYouth) hosted by Universiti Putra Malaysia (UPM) here, today.
His speech text was read by Deputy Digital Minister Datuk Wilson Ugak Kumbong.
In his speech, Gobind also said the ministry will soon launch the Government Innovation Initiative (GII), a platform that opens up real problem statements from the public sector for innovators, researchers and youth to develop solutions using emerging technologies, including AI.
“GII is not just about innovation; it is about guided innovation. It ensures experimentation happens within a framework, where ideas can be tested, refined, and scaled responsibly.
“In this context, institutions like UPM are critical. They provide the technical capability, research environment and talent base that can directly respond to the problem statements surfaced through the GII,” he noted.
Gobind also stressed that the long-term impact of AI depends on how it is developed and used, especially by the younger generation.
“Ultimately, the future of AI will not be determined by technology alone, but by the values we embed within it. The systems designed, the models trained and the data used by today’s youth will influence real decisions and real lives,” he said, adding that platforms like ICYouth are important as they gather researchers, policymakers, industry players and youth to ensure innovation is balanced with responsibility.
The conference, organised by UPM Institute for Social Science Studies (IPSAS), carries the theme “AI and Youth for Societal Impact: Transforming Communities and Advancing Well-being”, focusing on how AI technology can be used in an inclusive and ethical way to improve social well-being.
