AI Nation: Who Will Build, Who Will Depend and Who Will Lead?
By Maizatul Amira binti Muhamad and Raja Mariam Ruzila binti Raja Ahmad Sufian
Corporate Planning and Strategy, MIMOS Berhad
AI is no longer just a technology race. It is a race for capability, economic strength and national influence.
As countries invest heavily in AI infrastructure, data, talent and research, a new divide is emerging between those that build critical capabilities, those that become dependent on external technologies, and those that turn AI into a source of long-term economic advantage.
This was the focus of the fireside chat “AI Nation: Who Will Build, Who Will Depend and Who Will Lead?”, featuring Paul Scanlan, Chief Strategy Officer of AI5G Australia, and moderated by Ir. Dr. Hazian Mamat of MIMOS during the National Innovation and Commercialisation Expo 2026 (NICE 2026).
The discussion highlighted a key lesson that technology alone does not create national advantage. Capability, focus and execution do.
Build: Infrastructure Is Only the Beginning
The global 5G experience offers an important lesson. Telecommunications operators invested billions in licences, networks and infrastructure, yet when 5G introduced capabilities such as low latency, stronger security and massive connectivity, many struggled to turn these capabilities into solutions for enterprise customers.
Drawing on his experience in the global 5G industry, Paul Scanlan explained that the challenge was not simply the technology. Operators also needed the right talent, workforce, sales capabilities, business models and understanding of customer needs to turn technology into practical solutions.
The same principle applies to AI. Data centres, computing infrastructure and AI models provide the foundation, but an AI nation also needs companies, skilled talent, intellectual property and ecosystems capable of turning these technologies into practical applications.
Building an AI nation therefore means building an ecosystem, not just infrastructure.
Depend: Choose What Matters
No country can build every technology on its own. For a mid-sized economy such as Malaysia, trying to develop everything can spread resources, funding and talent too thinly.
A more practical approach is to identify where domestic capability is strategically important and where international partnerships make more sense. Strategic independence does not mean eliminating all forms of dependency. It means understanding those dependencies and ensuring Malaysia retains sufficient capability, expertise and choice in areas that matter to its national interests.
This requires focus. Strategic investment should be concentrated in areas where Malaysia has strong foundations, clear industry demand and potential to strengthen long-term competitiveness.
From a technology planning perspective, this is where foresight needs to translate into prioritisation, not simply identifying which technologies are emerging, but understanding where they intersect with national needs, industry demand and capabilities Malaysia can realistically build.
Lead: Connect Technology to Industry
Malaysia has a significant advantage through its large manufacturing ecosystem, which is deeply connected to global supply chains. This provides a strong platform for applying AI, IoT, automation and other emerging technologies to real industrial challenges.
The opportunity goes beyond improving efficiency. Technology can also help Malaysian companies respond to changing global requirements in areas such as sustainability, security and increasingly digital supply chains.
For example, evolving environmental requirements in major markets could affect the ability of Malaysian manufacturers to compete globally. Developing technologies that help local companies meet these requirements can strengthen their resilience and position in international markets.
As Paul Scanlan emphasised during the session, national technology priorities need to translate into practical solutions across the supply chain. The strongest AI strategy is one that solves real problems and can be scaled.
For Malaysia, the strategic opportunity may therefore lie not in competing across every layer of AI, but in identifying where emerging technologies can create differentiated value by building on existing industrial capabilities, domain knowledge and market opportunities.
Start with the Customer
One of the clearest messages from the session was simple: Customer.
Technology developers can become focused on what their technology can do, while customers are more interested in what it can do for their business.
Can it reduce costs, improve productivity, reduce risk or open a new market?
Understanding these needs requires researchers, technology companies and industry to work much more closely together.
It also requires people who can bridge the gap between technical expertise and commercial understanding. As Malaysia moves from research and experimentation towards wider AI adoption, the ability to connect technology with real market needs will become increasingly important.
This has an important implication for R&D planning. Rather than developing technology first and asking who might adopt it later, industry needs and intended outcomes should inform technology choices earlier in the R&D journey.
Data Is Also a Question of Sovereignty
AI is closely linked to data. Data governance is often viewed in terms of where data is stored and who can access it, but AI introduces another concern: what happens to valuable information when it is processed by external AI systems?
During the fireside chat, Paul Scanlan highlighted the potential risks of feeding proprietary information into external generative AI systems without appropriate governance. Business knowledge, proprietary information and intellectual property can potentially flow into external AI ecosystems if organisations do not have sufficient controls. This creates a form of dependency that goes beyond traditional questions of infrastructure and technology ownership.
Digital sovereignty therefore requires more than local data storage. It also requires appropriate governance over data flows, intellectual property, access and how information is processed by AI systems. For Malaysia, getting this balance right will be essential to building a trusted, secure and sustainable AI ecosystem.
For Malaysia, getting this balance right will be essential to building a trusted, secure and sustainable AI ecosystem.
From Research to Reality
An AI nation needs more than good research. It needs a strong connection between research, industry and government, where each part of the ecosystem contributes different strengths.
Research institutions bring technical expertise, industry understands market needs, universities develop talent, and government provides policy, funding and national direction. The challenge is to connect these capabilities effectively.
Researchers do not necessarily need to become salespeople, and businesses do not need to become research institutions. Instead, Malaysia needs an ecosystem where different skills work together to move promising technologies towards adoption, scale and wider economic impact.
This is also where the pilot-to-scale challenge becomes important. A technically successful prototype or proof of concept is only one stage of innovation. Industry engagement, deployment requirements and pathways to scale need to be considered earlier if R&D outcomes are to progress towards wider adoption and commercialisation.
As different government and industry projects adopt AI from different providers, fragmentation can become another challenge. Separate systems can create silos, making integration, compatibility and data portability more difficult.
The answer is not necessarily to use one AI system for everything. Projects should instead begin with clear requirements and an overall system architecture, allowing different AI systems and technology providers to address different problems while remaining connected.
An AI ecosystem must be designed to work together from the start.
MIMOS: Building Malaysia’s AI Capability
This is where MIMOS has an important role to play. As Malaysia’s national applied R&D centre, MIMOS contributes to developing technology capabilities, platforms and solutions that support national priorities and industry, with areas of work including semiconductors, advanced electronics, manufacturing technologies, AI and Smart Nation technologies.
MIMOS can contribute to Malaysia’s AI journey by strengthening critical technology capabilities, developing local expertise and connecting research with industry. Its role is not to build every technology independently, but to help Malaysia develop capabilities that are strategically important while remaining connected to the global technology ecosystem.
Through applied R&D, intellectual property, technology platforms, facilities and talent development, MIMOS can help strengthen the foundations needed for Malaysia to develop and adopt advanced technologies. Its AI and emerging-technology facilities support technology development, testing and talent development in areas such as artificial intelligence, IoT and other strategic technologies.
MIMOS also has a long track record in developing local technology and intellectual property, with more than 1,400 patents filed since its establishment. This provides an important foundation for strengthening Malaysia’s domestic technology capabilities.
Reducing Strategic Risk Through Collaboration
MIMOS can also help Malaysia strengthen domestic capabilities in strategically important technology areas while continuing to work with international partners.
The objective is not isolation, but ensuring Malaysia has sufficient local expertise, technology and options in areas where excessive external dependency could create long-term risks.
This places MIMOS in a position to support Malaysia’s technological resilience while fostering collaboration across the national innovation ecosystem.
The longer-term consideration is therefore not only which technologies Malaysia can access, but what capabilities Malaysia builds and retains through those investments and collaborations.
Connecting Research and Industry
Perhaps most importantly, MIMOS can help bridge the gap between research and real-world adoption. Through its R&D capabilities, facilities and partnerships with industry, universities and government, MIMOS can help identify industry challenges, develop relevant technologies and support their transition towards deployment and commercialisation.
This role becomes increasingly important as Malaysia moves from technology adoption towards technology creation. Connecting research capabilities with real industry needs can help ensure that national R&D contributes directly to the development of competitive products, services and solutions.
The Real AI Nation Race
The AI Nation discussion ultimately points to a simple conclusion: Malaysia does not need to build everything. It needs to build what is strategically important, manage what it depends on, and strengthen the ecosystem that allows local capabilities to grow.
MIMOS can be an important part of this ecosystem by connecting national priorities, research, industry, infrastructure, talent and technology partners. Its role can help bridge the gap between what Malaysia can research and what Malaysia can develop, deploy and eventually commercialise.
The next phase of Malaysia’s AI journey should therefore be about more than adopting AI. It is about building the capabilities to develop, deploy, govern and scale AI responsibly.
The countries that lead the AI era will not necessarily be those with the biggest models or the most infrastructure. They will be the ones that can turn technology into capability, competitiveness and lasting national advantage.
That is the real challenge and opportunity of becoming an AI Nation.
Building Malaysia’s AI Capabilities Together
Turning AI technology into practical industry and economic value requires collaboration across the innovation ecosystem.
MIMOS welcomes opportunities to work with industry, government, academia and technology partners to identify strategic and industry challenges, explore relevant technology solutions, and strengthen the pathway from R&D towards deployment, commercialisation and scale.
Organisations exploring how AI and other strategic technologies can address industry challenges, strengthen technology capabilities or create new opportunities are invited to connect with MIMOS to explore potential areas of collaboration.
Connect with MIMOS to explore how we can work together to turn technology opportunities into real-world impact.
Join the conversation. Visit us to learn how MIMOS is helping build Malaysia’s trusted digital future.
