14/07/2026

BIZ & FINANCE TUESDAY | JULY 14, 2026

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M’sian banks adopting AI but caution abounds

Liew calls for one-stop centre to boost semiconductor, deep-tech financing KUALA LUMPUR: Deputy Finance Minister Liew Chin Tong has proposed that Malaysia establish a one-stop centre for semiconductor and deep tech financing, offering integrated financing solutions in the heart of Malaysia’s technology cluster. He said this will turn the technology cluster into Malaysia’s true Silicon Valley, by design bridging the gap between deep tech and capital. “Our ambition is for Penang and its neighbouring Kulim to take their place alongside Silicon Valley, Taiwan’s Hsinchu, and the Netherlands’ Brainport Eindhoven as a premier global tech cluster,” he said. Liew said the one-stop centre could support themes, and not only single names, inviting investors to back a well-governed national story, resting on trust in Malaysia’s rules, which is how confidence is patiently built. “Therefore, I would like to invite industry and capital market players and regulators to share your thoughts on this,” he said in his opening address at The Edge-HSBC E&E Symposium 2026: The Value Chain Shift, here yesterday. Liew also called on the capital market to view Malaysia as a technology nation rather than just a trading nation and look at the country’s tech stocks more seriously. “Therefore, a warm invitation to the venture and private capital community to come upstream and onwards with us, into design and intellectual property, where the greatest value is created. “To our market institutions, help (us) deepen liquidity, extend ratings coverage, and fuel the growth of this (semiconductor) sector,”he added. According to Liew, electrical and electronics (E&E) products account for 40% of Malaysia’s national exports, the largest of any category. – Bernama Planters conference to focus on three key thematic areas only our national priorities. They also reflect our confidence in the future of this industry,” Noraini said. The conference will be structured around three key thematic areas. The first is operational excellence and management, which will focus on optimising plantation operations through best practices, data-driven decision making, risk management, and compliance to enhance efficiency and sustainability. Second, it will touch on mechanisation, automation and digitalisation/talent, leader ship and workforce of the future, highlighting technological innovations such as automation and digital tools to increase productivity, as well as developing leadership and attracting talent to support industry readiness. Third, the regenerative agriculture and sustainability topic aims to promote environ mentally friendly practices, such as soil health, biodiversity, and water management, to ensure ecological preservation and sustainable resource use. Over 1,000 delegates from various sectors and diverse expertise will engage in enriching discussions on driving excellence through innovations in mechanisation, automation and digitalisation. Additionally, immersive site visits on the third day will showcase industry advancements at prominent locations including Carey Island (SD Guthrie), the Advanced Agriculture Research Centre in Damansara, and Minsawi Industries in Kuala Kangsar, featuring innovations such as artificial intelligence powered smart palm oil mills and eco-friendly plantation techniques. From page 13

PETALING JAYA: Malaysia’s banking and development finance sector is rapidly adopting artificial intelligence (AI), but many institutions remain cautious about using AI for high-impact business decisions, according to a study launched yesterday by the Asian Institute of Chartered Bankers (AICB), Ecosystm and the AICB Chief Risk Officers’ Forum. The “AICB-Ecosystm AI in Practice: How Malaysia’s Banks and DFIs are Adopting and Governing AI” Report found that while AI is increasingly being deployed in areas such as Know Your Customer onboarding, fraud detection, anti-money laundering and counter financing of terrorism and employee productivity, only 25% of respondents trust AI-generated outputs enough to act on them in key business decisions. Launched on the sidelines of AICB’s 4th Malaysian Banking Conference and 2nd Bank Audit Conference, the study draws on responses from 87 senior leaders across Malaysian commercial banks, digital banks, Islamic banks and development financial institutions, supported by insights from executive roundtables and interviews. AICB chief executive Edward Ling said: “Malaysia’s banks and DFIs are no longer asking whether AI has a role in financial services. The question now is whether institutions have the judgement, ethics, governance and professional capability to use AI responsibly in decisions that affect customers, risk and institutional per formance.” According to the study, 44% of Malaysian banks and DFIs are in the developing stage of AI readiness, having moved beyond experimentation but still facing fragmented capabilities across data, skills and operating models. Only 15% have reached an established level of readiness, while just 2% are categorised as advanced, where AI is fully integrated into decision-making and contributes directly to competitive differentiation. The study also found out where organisations are struggling more to establish o Only 25% of respondents trust artificial intelligence generated outputs enough to act on them in key business decisions, AICB Ecosystm study finds

From left, ABM chairman and Maybank Group president and CEO Datuk Khairussaleh Ramli, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour, Finance Minister II Datuk Seri Amir Hamzah Azizan, AICB chairman Tan Sri Azman Hashim and Ling.

not reside solely within the model. They emerge across the entire ecosystem, from data quality and human usage patterns to the decisions informed by AI and how these factors evolve over time.” Industry insights Ecosystm vice-president Sash Mukherjee said: “As AI expands into higher-risk use cases, financial institutions want greater clarity on model risk management, explainability, third-party AI, and data governance. But regulation alone will not keep pace with the technology. Ongoing collaboration between industry and regulators will be equally critical to ensure governance frameworks evolve alongside AI innovation.” AICB said the findings provide an important benchmark for the financial sector as institutions move from AI pilots to responsible, enterprise-wide implementation while underscoring the Institute’s mandate and commitment to building industry capacity for the future of banking. The study was jointly undertaken by AICB, AICB’s chief risk officers’ forum and Ecosystm.

AI readiness. Only 26% of institutions have a defined strategy linking AI to business goals, while 44% are already developing custom AI solutions, increasing the risk of fragmented initiatives that are difficult to scale or replicate. Meanwhile, 79% report shortages in specialised AI technical skills, while only 20% actively promote AI-driven decision-making across the workforce, highlighting organisation-wide AI capability gaps. AI governance remains another major constraint. Around 53% of organisations still rely on fragmented or ad hoc governance rather than consistent, risk-based frameworks to determine the appropriate controls, approvals, and oversight for different AI use cases. Only 33% have established structured AI governance and model risk management, while just 27% apply formal AI risk tiering to tailor oversight according to the level of risk. AICB chief risk officers forum chairman and RHB Malaysia chief risk officer Dr Chong Han Hwee said: “AI introduces a new dimension of complexity because its risks do

Petronas LNG signs new supply deal with Shizuoka Gas PETALING JAYA: Petronas LNG Ltd (PLL), a subsidiary of Petroliam Nasional Bhd (Petronas) has signed a new liquefied natural gas (LNG) sale and purchase agreement with Shizuoka Gas Co Ltd, reinforcing a partnership spanning three decades and reaffirming their shared commitment to strengthening long term energy security. seek greater resilience and energy security in a dynamic global energy landscape. The agreement was signed in Kuala Lumpur by Petronas executive vice-president and CEO of gas and maritime business Datuk Adif Zulkifl and Shizuoka Gas representative director and president Yoshitake Matsumoto. remains committed to delivering reliable and flexible LNG solutions through their global portfolio, supporting long-term energy security while advancing a pragmatic and responsible energy transition.

Building on the trust established over the past 30 years, Shizuoka Gas and Petronas aim to strengthen the partnership beyond the traditional relationship between LNG seller and buyer by exploring collaboration opportunities for decarbonisation along the LNG value chain. Petronas, as one of the world’s leading LNG suppliers, continues to leverage its integrated and diversified global LNG portfolio to provide reliable energy solutions to customers worldwide, supporting energy security while facilitating a responsible energy transition.

Adif said, “This agreement marks more than a commercial milestone, it reflects 30 years of mutual trust, shared growth and a partnership that has continued to evolve alongside the changing energy landscape. We value the strong relationship we have built with Shizuoka Gas and look forward to deepening our collaboration in the years ahead. He added that as their customers’ needs become increasingly dynamic, Petronas

PLL will supply about 840,000 tonnes of LNG for seven years, commencing in 2032. Leveraging on Petronas’ diversified global LNG portfolio, the agreement provides greater supply flexibility and reliability to support Shizuoka Gas’ evolving energy requirements amid changing market dynamics. The arrangement reflects the growing demand for flexible LNG supply solutions as customers