KUALA LUMPUR, 24 October 2025 – Malaysia risks falling short of its artificial intelligence (AI) ambitions unless it accelerates efforts to strengthen human capital and bridge critical skills gaps, according to a new whitepaper released by global technology company Cognizant (NASDAQ: CTSH).
Titled “Unleashing the Power of Malaysia’s Human Capital in the AI Age”, the report draws insights from senior business and policy leaders to outline key priorities for government and corporate decision-makers in positioning Malaysia as a trusted global AI leader.
The whitepaper finds that while Malaysia has laid strong policy and infrastructure foundations for AI development, fragmented adoption and limited workforce readiness remain major barriers to scaling and sustaining competitiveness.
According to the World Economic Forum (2025), 86% of employers expect AI and related technologies to transform their businesses. Yet, Cognizant’s research reveals only 11% of Malaysian C-suite leaders are “very confident” in their workforce’s AI skills, while 66% cite workforce readiness and leadership clarity as the biggest barriers to scaling AI.
“AI should empower people, not replace them,” said Thomas Mathew, Vice President of Cognizant, ASEAN and Greater China. “For Malaysia to truly lead, it must move beyond being an AI user to becoming an AI producer and innovator. By embedding ‘human-in-the-loop’ governance, transparent data frameworks, and strong ethical literacy, Malaysia can set the regional standard where technological advancement and human values thrive side by side.”
Key Recommendations
The report outlines three strategic priorities to help Malaysia close the talent gap and establish itself as a trusted and innovative AI hub:
- Develop Local AI Capabilities and IP: Transition from being an AI user to a producer by developing localized models such as Bahasa Malaysia large language models (LLMs), patenting sector-specific innovations, and nurturing talent through a national AI blueprint, R&D incentives, and immigration reforms.
- Lead ASEAN Collaboration and Standards: As 2025 ASEAN Chair, Malaysia is well-positioned to shape regional AI policy, host training hubs, and expand cross-border partnerships to drive talent development across Southeast Asia.
- Embed Human Values and Trust in AI Adoption: Prioritise ethics, inclusivity, and transparency in all AI initiatives while promoting AI literacy and human-centric development across all levels of society.
“Malaysia stands poised to become ASEAN’s most trusted AI hub – uniquely multilingual, ethical, and innovation-driven,” said Datuk Muhammad Azmi Zulkifli, CEO of InvestKL, who co-hosted a roundtable with Cognizant. “AI represents a bold new frontier, but the next leap depends on people. Malaysia’s true strengths lie in its ability to merge technology with trust and inclusivity.”
As the nation accelerates its digital economy, the report concludes that Malaysia’s success in AI will depend not only on technology but also on cultivating confidence, capability, and collaboration within its workforce.
About the Whitepaper:
Unleashing the Power of Malaysia’s Human Capital in the AI Age integrates insights from Malaysian C-suites, policymakers, and academia, including the National AI Office, Selangor Human Resource Development Centre, PNB, Chubb, DHL Express, AstraZeneca, TalentCorp, Demant, Givaudan, and Edwards Lifesciences. It benchmarks Malaysia’s progress against global AI leaders such as China and Singapore, using data from Cognizant-Oxford Economics and the World Economic Forum (2025).
