Malaysia has made major strides in digital connectivity over the past decade, but its next challenge lies in building trust, safety and responsible governance as AI advances and cyber threats grow more sophisticated, experts say.
That was the central message of the International Regulatory Conference (IRC) 2026, held at the Shangri-La Hotel from 21 to 22 July, where regulators, policymakers and industry leaders explored how Malaysia can remain competitive in the coming digital decade.
Communications minister Fahmi Fadzil opened the conference by stressing the need for regulators to exchange ideas as governments confront rapid technological change and increasingly sophisticated online risks.
Institute of Strategic and International Studies executive chairman Faiz Abdullah warned against overregulation, arguing that markets naturally innovate faster than governments can legislate. At the same time, he acknowledged that regulation becomes necessary where clear harm to society exists, particularly in areas such as online safety, FMT reported.
Pemandu Associates joint managing director Aida Azmi urged policymakers to adopt a more agile approach. “Create policies as if they are a product,” she said, arguing that regulations should evolve continuously through feedback and real-world adoption.
AI also dominated discussions. Fazlan Abdullah of CyberSecurity Malaysia warned that AI has made phishing emails, scams and deepfake videos increasingly convincing. “The bad actors are using AI to attack you. And if you are in the organisation, in government, you must use AI to defend against AI,” he said.
Content Forum Malaysia CEO Mediha Mahmood called for regulators to examine not only harmful content but also the algorithmic systems that continuously push similar material to users. She said features such as autoplay and endless scrolling can trap users in “bubbles” where they are repeatedly exposed to similar viewpoints.
Malaysia’s proposed AI Governance Bill, together with the establishment of the National AI Office and AI Safety Institute, were presented as part of a broader effort to create a risk-based framework that encourages innovation while protecting the public.
From a regional perspective, Asean Secretariat representative Hazremi Hamid said AI cannot be governed effectively by countries acting alone, as data, digital services and online threats are borderless. He said Asean is working towards developing common principles on AI governance, according to The Star.
The conference brought together global regulators, industry leaders, policymakers, academics and students across 10 dialogue sessions.
