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THURSDAY | MAY 14, 2026

Malaysia must strengthen position as trusted AI hub

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA priorities

LUMPUR:

Malaysia’s

should on strengthening its position as a trusted AI hub in Asean while addressing the key gaps needed to sustain growth in its role as a regional data hub. NTT Data Malaysia managing director Henrick Choo said Malaysia’s role as a regional data hub is increasingly strategic, supported by a stable regulatory environment, strong connectivity, and national initiatives like MyDigital and the National AI Roadmap. He said these position the country as a natural base for Asean expansion and a trusted hub for AI-driven innovation. “To sustain this momentum, three priorities stand out. First, strengthening infrastructure resilience, particularly power capacity and sustainable energy, to support growing data centre demand. “Second, scaling talent development through closer industry–academia collaboration to meet rising needs in AI, data, and cybersecurity. “Third, advancing clear, internationally aligned governance frameworks to build trust in areas like data flows and AI ethics,” he told SunBiz. As Malaysia is seeing strong momentum in data centre investments, Choo addresses factors driving this growth and how NTT Data is positioning itself within this ecosystem. “Malaysia’s data centre growth is driven by accelerating demand for cloud services, AI workloads, and the rapid digitalisation of Southeast Asian economies. “At the same time, the country offers a compelling value proposition focus maintenance, repair and overhaul (MRO) market is on track to achieve RM55 billion in revenue target by the end of 2030 under the Malaysia Aerospace Industry Blueprint (MAIB) 2030, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin. He said the target represents about 25% of the Asia-Pacific MRO market, which is projected to surpass US$60 billion by 2030. “Malaysia, as the third largest MRO player in Asia Pacific, is positioning itself to capture a significant share of this value. “We are shifting our focus toward higher-value MRO segments, such as component and engine maintenance,” he said in his speech at the MRO Southeast Asia 2026 event here yesterday. Sim added that the government is strengthening key enablers of the MRO market, namely infrastructure, talent and technology under MAIB 2030. “We are revitalising Subang Airport through the Regeneration Plan and growing the Selangor Aero Park within KLIA Aeropolis. These hubs provide a scalable environment for MRO operators and Tier-1 suppliers. “At the same time, we are

o Country’s role supported by stable regulatory environment, strong connectivity and national initiatives, says NTT Data official

“Data localisation requirements are increasing, driven by privacy regulations, national security considerations, and economic priorities. “As a result, cross-border data flows are becoming more complex and jurisdiction-dependent, prompting more discussion about sovereign and private clouds and AI. “NTT Data’s global presence and Japanese heritage position it as a trusted, neutral partner across regions,” he said. Choo said supply chain disruptions also remain a key concern, and digital technologies and AI can improve visibility and resilience across supply chains. “For Malaysia, with its strong manufacturing base, this represents a significant opportunity to strengthen competitiveness.

When how businesses are rethinking their digital and technology strategies to manage uncertainty with rising geopolitical tensions globally, Choo said global uncertainty is now a structural factor shaping technology strategy, prompting organisations to rethink how and where digital infrastructure is built and managed. “A key shift that we see is increasing discussion with clients about sovereign (data flows restricted by a country or region) and private (restricted to an organisation) for both AI and cloud. “Malaysia’s neutral positioning and growing digital ecosystem make it an attractive, stable base for regional operations provided it maintains openness and strong global partnerships,” he said. Choo also said that geopolitical fragmentation is affecting cross border data flows and technology partnerships in the near term. “Yes, this shift is already underway. asked about

“They represent approximately 15% of the total sample of 2,567 C-suite and other senior leaders across 34 markets and 15 industries taken during September and October 2025. “These ‘AI leader’ organisations align AI initiatives directly to business outcomes, embed accountability at the leadership level, and establish clear ownership structures across the enterprise. “They also scale more effectively, with 45.3% applying structured change management compared to 37.3% of others. “Organisations that take a structured, end-to-end approach are better positioned to operationalise AI and sustain long-term value,” Choo said. Ultimately, Choo said the most successful organisations will adopt deliberate human–AI collaboration models in which AI drives scale and efficiency, while humans retain ownership of decisions and outcomes.

with competitive costs, supportive government policies, and strong regional connectivity, making it an attractive alternative within Asean. “Growth is expected to remain robust over the coming years, supported by both domestic demand and increasing interest from global hyperscalers. “Johor, in particular, is emerging as a key hub within this ecosystem. NTT Data has made a deliberate commitment to this growth by developing a new data centre campus in Johor. “Announced in December 2024, the facility will span six buildings, with the first expected to be operational by 2027,” Choo said. Notably, NTT Data’s 2026 Global AI Report highlights that organisations with strong AI governance and a clear strategy tend to achieve stronger outcomes. “Our report shows AI leaders are 2.5x more likely to exceed 10% revenue growth and 3.6x more likely to achieve margins above 15%. committed to building a highly skilled workforce, aiming to create more than 30,000 high-skilled jobs by 2030 while accelerating the adoption of advanced solutions, including predictive maintenance and digitalised MRO tools,” he said. Meanwhile, Sim said the impact of the ongoing conflict in West Asia on the aerospace sector is limited, noting that the impact is more likely to be felt in the airline business due to rising jet fuel prices. “The impact (of West Asia conflict) remains limited on the aerospace sector. Aircraft components are still available, and aircraft continue to require regular maintenance as the industry grows. Therefore, it is not viewed as a pressing issue at this point,” he said. Looking ahead, Sim said that the aerospace industry is expected to strengthen in the near term, driven by rising air traffic in Malaysia and across the Asia-Pacific region. Hosted by Malaysia Airports Holdings Bhd in collaboration with the Aviation Week Network, MRO Southeast Asia 2026 brought together more than 350 participants from across the global aviation value chain to discuss the next phase of aerospace growth in the region. – Bernama

“Organisations that have invested in integrated data systems will be best positioned to unlock the full value of AI-driven supply chain resilience,” he said. MRO market on track to achieve RM55 billion revenue target by 2030 KUALA LUMPUR: Malaysia’s

Sim says the government is strengthening key enablers of the MRO market. – BERNAMAPIC