KUALA LUMPUR (Feb 6): The rise of different types of artificial intelligence (AI) technologies such as DeepSeek can reduce Malaysia's reliance on a single product, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the emergence of diverse AI technologies also enables Malaysia to become a neutral centre for AI companies from the West, as well as those from the East, such as China.

"Although this more efficient [type of] AI technology reduces the need for large data centres, its lower cost is expected to drive more widespread use, driving demand for data centre services," he said.

Zafrul was responding to Datuk Seri Wee Jeck Seng’s (Barisan Nasional-Tanjung Piai) question on the impact of the rise of new AI technologies from China on data centre investors in Johor.

Zafrul said increasing AI efficiency does not reduce demand for data centres. Instead, they may increase AI use, stimulating investment concerning data.

"The semiconductor supply chain will be diversified. If we look at Johor, Penang and Kedah, these strategic locations for AI infrastructure and data centres will not be affected," he said.

Hence, he said the next step is to ensure that Malaysia’s data centres have the cutting edge by introducing more enticing green investment incentives.

"We want to further encourage the AI ​​and digital workforce, and raise Malaysia's competitiveness as an AI processing centre by attracting more investment from AI companies, not only from the West, but also from other countries.

"We also need to maintain diplomatic relations with the US and China to ensure our position as a neutral technology investment hub," he said.

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