Malaysia's AI boom could add RM20 billion to GDP by 2030

Artificial intelligence is set to play a major role in Malaysia’s economic future. By 2030, AI could add between RM13 billion and RM20 billion to the country’s GDP each year. The technology is already making an impact, with the digital economy contributing over 23 per cent to GDP in 2022 alone.

The upcoming 5th International Conference on Youth 2026 (ICYouth) will highlight how AI can be used ethically to boost social wellbeing. Meanwhile, new government initiatives aim to harness AI for public sector challenges. Malaysia’s digital economy, driven in part by AI, made up more than a fifth of GDP in 2022. Experts now predict that AI could increase annual GDP growth by 0.8 to 1.2 percentage points in the coming years. If these projections hold, the economic boost could reach up to RM20 billion yearly by 2030.

The long-term effects of AI will depend on how it is developed and applied, particularly by younger generations. The values built into AI systems, the way they are designed, and the data they use will shape their impact. These themes will take centre stage at the ICYouth 2026 conference, which focuses on inclusive and ethical AI use for social good.

To further support AI innovation, the government is preparing to launch the Government Innovation Initiative (GII). This platform will invite innovators to tackle real public sector problems using emerging technologies, including AI. By opening up challenges to external developers, GII aims to create practical solutions that benefit society. AI’s role in Malaysia’s economy is expanding rapidly, with significant growth expected by the end of the decade. The technology’s influence will extend beyond finances, affecting social wellbeing and public services. How AI is adopted and governed—especially by the next generation—will determine its lasting effects on the country.