KUALA LUMPUR (April 11): Malaysians must take a more active role in the country’s digital transformation to ensure that growth is both inclusive and sustainable, as policymakers warn that the government alone cannot drive the shift.

National effort is critical for Malaysia to achieve its long-term ambition of becoming a regional digital economy leader, according to Deputy Minister of Economy Datuk Indera Mohd Shahar Abdullah. 

“If you let the government do it alone, we cannot really achieve what we want to have in the future,” he said at the Malaysian Universities Economic Conference (MUEC) 2026, which drew more than 260 students from 10 universities at Bangunan Sultan Abdul Samad on Saturday.

His views come at a time where Malaysia’s digital economy has expanded rapidly in recent years, contributing over 23% of gross domestic product, up from 19.1% in 2019, supported by strong investment inflows, including in data centres and digital services.

However, Mohd Shahar cautioned that headline growth figures alone does not show the existing deeper structural inequalities in the country. 

“The real question is how we shape this shift, and whether its benefits will truly reach every Malaysian,” he said. 

While digitalisation is seen as a key pathway for Malaysia to transition into a high-income country, he warned that it could also widen socio-economic disparities if left unchecked, particularly in access to infrastructure, digital skills and economic opportunities.

States such as Kelantan and parts of East Malaysia continue to lag behind more developed urban centres like Selangor and Kuala Lumpur in terms of connectivity and digital readiness, he noted.

The challenge of inclusivity is further compounded by uneven adoption of emerging technologies such as the use of artificial intelligence (AI) among Malaysian firms, which can be broadly viewed as a catalyst to boost productivity.  

Economist Professor Dr Yeah Kim Leng said only a small proportion of companies have implemented structured AI strategies, with many still at an exploratory stage or where adoption is left to individual employees rather than embedding it at the organisational level.

“One of the frequently cited reasons is lack of knowledge and awareness. Secondly, firms are not able to find the right people to provide those services,” he said.

This lag, he said, could affect Malaysia’s competitiveness as regional peers have already accelerate their digital transformation efforts and integrate AI into productivity and value-chain upgrades.

While concerns over whether AI will displace human jobs are being largely debated, speakers at the MUEC emphasised that the technology should instead be seen as an enabler, provided that the workforce adapts accordingly.

Yayasan Peneraju chief executive officer Ibrahim Sani urged students to focus on practical skills, build portfolios and develop real-world experience beyond academic qualifications.

“AI is not here to replace you. It is here to differentiate you. The winners in this era are those who learn it faster than others,” he said. AI should be seen as a complementary tool rather than a substitute for human capability, he added. 

Critical thinking, creativity and contextual understanding will therefore remain key differentiators with those of the automated economy. 

The MUEC is an annual student-led academic conference that brings together participants from public and private universities to discuss pressing economic issues and policy challenges.

Now in its 10th year, the conference serves as a platform to bridge perspectives between policymakers and industry players with this year's theme as “The Great Shift: A New Playbook for a Digitalised World”.