AI regulation in Malaysia: laws & policy (2026)
AI in Malaysia: proposed.
As of October 2026 Malaysia has no comprehensive AI law in force. Governance rests on voluntary instruments — the MOSTI National Guidelines on AI Governance and Ethics (AIGE, Sep 2024), the National AI Roadmap 2021-2025, sectoral guidance from Bank Negara Malaysia and the Securities Commission, and the Personal Data Protection (Amendment) Act 2024 — while the National AI Office (institutionalised as AI Malaysia Berhad in July 2026) ran a public consultation on a proposed horizontal AI Governance Bill (closed 31 July 2026) that is expected to be tabled by late 2026 or early 2027.
Legal framework
AI Governance Bill (public consultation July 2026) under the National AI Office / AI Malaysia Berhad (Ministry of Digital); currently backed by the voluntary National Guidelines on AI Governance and Ethics (AIGE, 2024) and the National AI Roadmap 2021-2025
Key points: artificial intelligence in Malaysia
Proposed AI Governance Bill
The National AI Office released a Public Consultation Paper on 10 July 2026 for Malaysia's first horizontal AI statute, with written submissions closing on 31 July 2026 and the government targeting enactment by end-2026 / early-2027. The Bill proposes a three-tier risk framework (Unacceptable / High / Low) and a Central AI Authority as institutional anchor.
National Guidelines on AI Governance and Ethics (AIGE)
Published by MOSTI on 20 September 2024, AIGE is a voluntary framework for end-users, policymakers, and developers built around seven principles: fairness; reliability, safety and control; privacy and security; inclusiveness; transparency; accountability; and pursuit of human benefit.
National AI Office / AI Malaysia Berhad
The National AI Office (NAIO) was established in December 2024 under the Ministry of Digital and institutionalised as AI Malaysia Berhad on 28 July 2026 alongside the National AI Action Plan 2026-2030, serving as the coordinating body for AI policy, governance, and the forthcoming Bill.
National AI Roadmap 2021-2025
Adopted by MOSTI on 1 December 2021, the AI-Rmap is a non-binding national strategy with six priorities including AI governance, R&D, digital infrastructure, talent, acculturation and ecosystem; it identifies priority sectors (agriculture, healthcare, smart cities/transport, education, public services).
Sectoral guidance — financial services
Bank Negara Malaysia issued a Discussion Paper on Artificial Intelligence in the Malaysian Financial Sector in August 2025, setting out principles (transparency, accountability, fairness, privacy, robustness) layered on its Technology Risk Management framework; the Securities Commission's revised Guidelines on Technology Risk Management (Aug 2024) impose mandatory TRM/AI standards on capital market entities.
Data protection intersection — PDPA Amendment 2024
The Personal Data Protection (Amendment) Act 2024 (gazetted 17 Oct 2024) introduces mandatory DPO appointment, breach notification, and a data portability right, with maximum penalties of MYR 1 million and 3 years' imprisonment; it anchors obligations around AI uses involving profiling, biometrics and automated decision-making.
Timeline of decisions
- GuidanceDigital Minister Confirms AI Governance Bill to Combat Deepfakes
Minister Gobind Singh Deo publicly confirmed that Malaysia's first dedicated AI Governance Bill, covering deepfakes, copyright, data sovereignty, and risk-based harm classification, was in active drafting under NAIO, with Cabinet submission targeted for June 2026. The announcement marked the formal transition from voluntary guidelines toward binding AI law.
Malay Mail
- GuidanceAI Governance Bill Drafting Nearly Complete, Risk-Based Model Confirmed
The Ministry of Digital announced that Malaysia's first AI Governance Bill was nearly finalised, adopting a risk-based regulatory model with formal harm-assessment tiers, mandatory incident reporting, and sector-wide ethical deployment requirements developed through NAIO.
The Star
- Decision · officialNational AI Office (NAIO) Officially Launched by Prime Minister
PM Anwar Ibrahim officially launched NAIO on 12 December 2024, establishing Malaysia's central AI authority under the Ministry of Digital with a RM 10 million Budget 2025 allocation; NAIO's seven 2025 deliverables include an AI Code of Ethics, a national AI register, and the AI Technology Action Plan 2026-2030.
MyDIGITAL Corporation
- Guidance · officialNational Guidelines on AI Governance and Ethics (AIGE) Published
MOSTI launched AIGE, Malaysia's first national AI ethics framework, built on seven principles, fairness, safety, privacy, inclusiveness, transparency, accountability, and human benefit, structured in separate guidance tracks for developers, regulators, and end-users; the guidelines are voluntary but designate Malaysia among the first ASEAN states with comprehensive AI ethics guidance.
Malaysia Government Portal / MOSTI
- Decision · officialCabinet Approves Establishment of National AI Office (NAIO)
The Malaysian Cabinet formally approved creation of NAIO on 28 August 2024, to be incubated within MyDIGITAL Corporation under the Ministry of Digital, signalling a policy shift from ad hoc AI governance toward a permanent, dedicated institutional authority.
Ministry of Digital Malaysia
- Decision · officialWEF Centre for the Fourth Industrial Revolution Malaysia (C4IR) Launched
The World Economic Forum and the Malaysian Government jointly launched C4IR Malaysia on 15 May 2023, the first WEF C4IR in the Asia-Pacific, to co-design governance frameworks and accelerate applied AI and emerging-technology projects across green transition, digital transformation, and regulatory domains.
World Economic Forum
- Guidance · officialNational AI Roadmap 2021-2025 (AI-RMAP) Adopted
MOSTI formally adopted Malaysia's first dedicated AI strategy on 1 December 2021, spanning six pillars, governance, R&D, digital infrastructure, talent, adoption, and innovation, and setting quantitative targets to grow AI's share of GDP; it became the direct policy basis for the AIGE guidelines and NAIO established in 2024.
MOSTI
- Guidance · officialNational Fourth Industrial Revolution (4IR) Policy Launched
Launched on 1 July 2021, the National 4IR Policy identified AI as one of five core foundational technologies and established the National Digital Economy and 4IR Council as the cross-ministerial governance body, embedding AI investment and oversight into Malaysia's whole-of-government planning architecture.
Economic Planning Unit (EPU) Malaysia
- Guidance · officialMalaysia Digital Economy Blueprint (MyDIGITAL) Launched
Unveiled on 19 February 2021, MyDIGITAL is Malaysia's master roadmap to become a high-income digital nation by 2030 across six strategic thrusts and three phases; it positioned AI as a cross-cutting economic enabler and triggered the cascade of AI-specific policies, 4IR Policy, AI Roadmap, AIGE, NAIO, that followed over the next five years.
Economic Planning Unit (EPU) Malaysia
Sources
- bakermckenzie.com/en/insight/publications/2026/07/malaysia-public-consultation-on-the-a
- rahmatlim.com/perspectives/articles/33264/mykh-national-ai-office-issues-public-con
- malaysia.gov.my/en/my-initiative/perkhidmatan-digital-keseluruhan-kerajaan/tadbir-uru
- ai.gov.my/ethical-guide-ai/
- ai.gov.my/aiactionplan2030/flip-pdf/en.pdf
- oecd.ai/en/dashboards/policy-initiatives/national-artificial-intelligence-roa
- x.com/BNM_official/status/1952941496501444763
- christopherleeong.com/viewpoints/bank-negara-malaysia-issues-discussion-paper-on-artificial
- pwc.com/my/en/publications/2024/pdpa-bills-key-considerations.html
- privacylawhub.com/global-privacy-laws/personal-data-protection-amendment-act-2024-malay
- ai.gov.my/faq/ai-governance-and-ethics/
- digitalpolicyalert.org/event/21359-adopted-mosti-national-artificial-intelligence-roadmap-20
Next for Malaysia: Data & PrivacyComprehensive law
Next topicOrientation, not legal advice: verify against the primary sources linked above. Last verified 22 Oct 2026. Methodology & how to cite · State of Technology Regulation 2026