Malaysia Oversight

Penang positions AI as key driver for economic growth, digital transformation

By MalayMail in August 8, 2025 – Reading time 2 minute
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GEORGE TOWN, Aug 8 — Artificial intelligence (AI) will be a key driver of Penang’s competitiveness and long-term economic sustainability, Chief Minister Chow Kon Yeow said today.

He said that AI plays a crucial role in empowering digital education, enhancing the efficiency of smart public services, and stimulating the growth of digital entrepreneurship, which will foster an inclusive innovation economy.

“As we all know, Penang has long been the centre of the country’s technological development. 

“As a state that focuses on a knowledge-based and innovation-driven economy, we have identified AI as the main driver of competitiveness and long-term sustainability,” Chow said in his speech officiating the AI Horizon 2025 conference at Spice Arena here.

Chow said that the Penang Digital Economy Master Plan (2025-2030) outlines three main development components: business digitalisation, the development of local digital talent, and the strengthening of the start-up and high-tech ecosystem, including the construction of AI hubs and data centres.

He framed the AI Horizon 2025 conference as more than just a technology exhibition, but as a platform to deepen the understanding, application, and innovation of AI at both national and global levels. 

This, he noted, aligns with the federal government’s aspiration under the 13th Malaysia Plan to make Malaysia a regional leader in AI by 2030.

“The state government believes that preparations for the digital future cannot be delayed,” Chow said, adding that technological developments must be introduced as early as primary and secondary school, as well as in Technical and Vocational Education and Training (TVET) programmes and higher education institutions.

He added that the strong participation in the conference, where over 50 local and international technology companies are exhibiting, demonstrates that Malaysians are ready to embrace technological advancement and have the potential to be leaders in the AI era.

AI Horizon 2025, which is expected to attract over 50,000 visitors, will feature a showcase of AI technologies, conferences with 25 renowned speakers from Malaysia, Singapore, and , and national-level AI competitions.



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