M’sia in good position to adopt AI

 

Zetrix co-founder Datuk Fadzli Shah Anuar

PETALING JAYA: With its own recent ambitious foray into the world of artificial intelligence (AI) and blockchain, Zetrix AI Bhd believes Malaysia is well-positioned to adopt and adapt to the fast-moving world of AI technology, and potentially reap economic benefits from the evolution.

Datuk Fadzli Shah Anuar, co-founder of Zetrix, the group's layer-1 blockchain platform, believes the country’s way forward lies not directly from its influx of its data centre (DC) pipeline, but more in how it enables its current workforce to improve productivity as the adoption of AI and high-level technology becomes more prevalent.

The issue is all the more relevant, given Malaysia’s seemingly continuous grapple with the issue of stagnating wages and increasingly higher cost of living.

In an exclusive interview, Fadzli acknowledged that while the government’s sanctioning of the DC influx represents its willingness to get on the tech bandwagon, the presence of DCs themselves will not translate into significant employment opportunities, especially given its highly skilled barrier of entry.

“In fact, while the adoption of AI and blockchain as a whole will mean jobs will be created, we see tasks will also be taken by non-humans, particularly a large portion of repetitive tasks that need to be done reliably and transparently,” he said.

Fadzli further explained why the group has forged several government-backed partnerships with Chinese entities, primarily focusing on AI innovation, blockchain interoperability, cross-border trade facilitation, digital identity and data trading.

With China being a significant economic and trade partner for Malaysia, he reiterated that Zetrix AI’s belief that much of China’s industrial and end-user behaviour will translate to some form of variant in this country, remarking: “Malaysia will follow similar growth and adoption cycles.”

 

Citing the recent trend of one-person companies or OPCs in China, with a single entrepreneur utilising multiple AI agents in delivering a service, Fadzli expects more tech-savvy youths adopting this business model.

He observed this as a form of job creation, commenting that Malaysia is well positioned to embrace this approach.

“This example will show that the current workforce can use AI and technology to become even more effective within its current roles, and perhaps we will see a tectonic shift of job roles.

“Businesses will move dynamically, a simple but huge departure from how things were previously, and we see Malaysia adopting such technology addictively,” he noted.

Nevertheless, Fadzli recognised the trust challenges that come with widespread AI and tech adoption, especially in maintaining service dependency and data privacy trust.

He believes there are three facets to building digital trust, namely, the reliability of the service rendered, data protection and the assurance that there will be no leakage of information, and the certainty that the parties dealing with each other know exactly who they are transacting with.

“We see that with the use of AI agents, not only can everything be done very accurately but also securely, because it will all be based on data packets. So for that, we believe that over the long term (AI), the agent-to-agent economy will be a commonplace occurrence,” said Fadzli.

As to how reality plays out this adoption, he is betting that it will change the way the public consume everyday services, from booking a car, ordering products online to even eCommerce, with AI agents securely matching orders to personal profiles.

Furthermore, he feels as applications become simpler for higher utilisation among the public, due to faster iteration cycles, there also needs to be user acceptance and awareness, and the necessity to marry digital identities (such as Malaysia’s MyDigital ID) with ever-growing technologies to ensure better data privacy and prevent scams.

With China and Asean being economies with somewhat different profiles, Fadzli conceded that there is no straightforward answer to this question.

He emphasised that China, due to the sheer size of its population and economy, can set standards, but it does not represent cluster economies which are interdependent as a trading bloc such as Asean.

“In our view, Asean is opportunistically a good showcase of how independent countries can work together and we are in a position to adopt certain standards that could be carried through an entire bloc, which can then be mirrored by the Gulf Cooperation Council or South American nations,” he explained.

On the differences between China and Asean notwithstanding, Fadzli believes that certain major economies (such as China or the United States) will lead in certain standards and cluster nation groups will then adopt these standards.

He says Asean state leaderships believe in digitalisation as a serious economic lever, as there is concerted effort to take this conversation seriously.

“Governance, however, is not keeping pace with the adoption or the onboarding of technology.

“What we can do to add value to what China is doing, using QR codes as an example, is to enable cross-border transactions and tech adoption more efficiently. Can governance keep up with such innovation?”

In addition, Fadzli said a more widespread usage of stablecoins such as the JMYR, a Malaysian ringgit-pegged stablecoin, would mean trades can be analysed with data more efficiently, while financing and remittances can be made instant.

JMYR is a fully backed, 1:1 digital token representing the Malaysian ringgit, designed for fast, programmable payments, settlements, remittances, and on/off-ramp functionality on Zetrix’s blockchain.

“It is essential to construct a stablecoin infrastructure, as this can create a transparent yet secure, efficient and competitive marketplace,” said Fadzli.

By KEITH HIEW

Penang primed to prosper

 State leads the way in man­u­fac­tur­ing, ser­vices sec­tors

The state is strategically positioned to capitalise on long-term growth drivers such as artificial intelligence, advanced manufacturing and global supply-chain diversification.

PETALING JAYA: Penang has continued punching above its weight economically, contributing 7.6% of Malaysia’s gross domestic product (GDP) in 2024.

Anchored by its manufacturing (46.1%) and services sectors (48.1%), its growth has outpaced Malaysia over the long-term and continues to remain resilient.

As Malaysia’s premier semiconductor and electrical and electronics (E&E) hub, the state is strategically positioned to capitalise on long-term growth drivers such as artificial intelligence (AI), advanced manufacturing and global supply-chain diversification.

In 2024, Penang’s E&E segment contributed RM41.7bil to the state’s GDP.

RHB Banking Group recently hosted the Penang Economic Forum 2026 which brought together various stakeholders from across the board.

During the forum, multiple panel sessions were held which discussed topics surrounding Penang’s transition towards a higher-value economy, small and medium enterprise (SME) competitiveness, sustainable growth and funding accessibility.

“Panellists emphasised the need to move beyond the traditional low-cost manufacturing model towards higher value activities centred on 4T’s – talent, technology, things (product and services), and trademarks,” RHB Research said.

It added that supply chain diversification and geopolitical tensions have created opportunities for a technology transfer, collaboration and business relocation.

Another key topic discussed was how the state can unlock growth capital beyond just bank financing.

“Alternative funding channels such as venture capital, private equity and capital markets can support businesses at different cycles, so efforts to strengthen the funding ecosystem is important,” it noted.

As for SMEs and micro, small and medium enterprises (MSMEs), the panellists acknowledged that they remained a vital pillar of the economy, and have accounted for 96.1% of total business establishments while contributing RM652.4bil to the country’s GDP in 2024.

“Supported by more than 350 multinationals and over 6,500 manufacturing-related SMEs, Penang has developed one of Malaysia’s deepest industrial ecosystems, fostering technology transfers, capability upgrading, and innovation.

“Moving forward, SMEs are expected to play an increasingly important role in supporting higher value-added and innovation-driven industries.”

It’s worth noting that Penang ranks among the top four states in Malaysia for MSME employment, supporting approximately 469,900 jobs.

RHB Research said the state also generated RM91.5bil in MSME gross output, accounting for 7.2% of the country’s total MSME output.

The state has also continued to attract foreign direct investment despite global uncertainties – approved foreign direct investment (FDI) hit RM15.2bil in the first nine months of 2025, driven primarily by the the E&E, machinery and equipment and chemicals sectors.

“The United States remained the largest source of FDI, followed by China and the Cayman Islands.

“Subsequently, increasing investments in transport equipment and fabricated metal products are reflecting the broadening depth of the state’s manufacturing ecosystem,” RHB Research said.

Penang is also one of the main logistics hubs in the country, anchored by the Penang International Airport (PIA) and North Butterworth Container Terminal.

The state has continued to see an increase in tourists, supported by its diversity in offerings.

RHB Research said passenger traffic at PIA went up 10.5% in the first half of 2025 while cruise arrivals at Swettenham Pier grew 39.7% in 2024, reflecting improving travel demand and connectivity.

“Supported by Visit Malaysia 2026 initiatives, expanding international flight networks and the Malaysia-China mutual visa-free regime, Penang is well positioned to benefit from higher visitor arrivals and tourism spending, reinforcing the sector’s contribution to the state’s services economy,” the research house said.

Meanwhile, the Penang Economic Forum 2026 also highlighted how businesses need to be adaptive and resilient so that productivity and cash flows can be managed.

RHB Banking Group laid out potential key beneficiaries, among them included Pentamaster Corp Bhd, Cnergenz Bhd, Inari Amertron Bhd and QES Group Bhd.

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AI chatbots are not doctors

 PETALING JAYA: More Malaysians are turning to artificial intelligence (AI) chatbots for health information, from checking symptoms and understanding medical reports to learning about medications and traditional ­remedies.

While healthcare professionals welcome the technology as a useful educational tool, they caution that information should not be mistaken for a diagnosis.

Doctors, pharmacists and traditional Chinese medicine (TCM) practitioners say patients are increasingly arriving with information obtained from AI chatbots, prompting concerns that some may delay seeking treatment, self-medicate or misinterpret symptoms without professional guidance.

Malaysian Medical Association president Datuk Dr Thirunavukarasu Rajoo said it has become increasingly common for patients to consult AI chatbots or search online before seeing a doctor. 

“This is not necessarily a bad thing. Patients today are more informed and more engaged in their healthcare.

“The concern is often not that AI gives a completely wrong answer. The concern is that patients may delay seeking medical attention because the advice appears reassuring,” he said in an interview yesterday.

ALSO READ: Chatbots show clear limitations during user scenario

“For some conditions, that may not matter. For others, such as dengue, stroke, heart attack or cancer, that delay can be significant. When it comes to healthcare, timing matters.”

He noted that AI can only work with the information provided by users and lacks the ability to conduct physical examinations or investigations.

“Medicine is more than information. It is examination, investigation, judgment and responsibility. AI can be a useful source of information, but it should not replace a medical consultation. It can point patients in the right direction, but it cannot confirm a diagnosis,” he said.

'CLICK TO ENLARGE'

Universiti Malaya epidemiology and public health expert Prof Dr Sanjay Rampal said AI has made health information more accessible, but users should be mindful that general-purpose models may also provide inaccurate information.

“The models’ reasoning is based on information available on the Internet. As we know, the Internet contains both good and bad ­information.

“As the models become more intelligent, AI literacy is going to be just as important as health literacy,” he said.

Malaysian Community Pharmacy Guild honorary ­secretary Rachel Gan said pharmacists are increasingly seeing customers consult AI before seeking professional advice.

“Sometimes they show us the AI responses and ask us to verify the information or explain why the chatbot suggested something different,” she said.

Gan said AI could be useful for general health information, but consumers may become unnecessarily anxious if they misinterpret the information provided.

Malaysian Pharmacists Society president Amrahi Buang said pharmacists are particularly concerned when consumers use AI-generated information to make decisions about medicines without professional advice.

He warned that over-the-­counter medicines, supplements and herbal products may ­temporarily relieve symptoms while masking more serious underlying conditions.

“Some symptoms that appear harmless can be signs of more serious diseases that require medical attention,” he said.

Federation of Chinese Physicians and Acupuncturists Associations Malaysia president Prof Dr Ng Po Kok said TCM practitioners are seeing more patients consult AI before seeking advice on herbs and traditional remedies.

“Some enter medical terms from their lab reports and ask AI to explain them before bringing the information to us,” he said.

However, he stressed that AI could not replace professional assessment.

“Two patients may have similar symptoms but require different treatment approaches. This is something AI may not always be able to determine accurately,” he said, adding that AI cannot replace a consultation, physical examination and follow-up.

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When landlords are held accountable

To rent or not to rent?: A ‘To Let’ sign displayed at a house in SS15 Subang Jaya.

PETALING JAYA: A landlord’s rented property could unknowingly become a base for vice and crime, but legal experts say there are ways for homeowners to escape liability.

Former federal Criminal Investigation Department (CID) assistant director Datuk S. Shanmugamoorthy said owners can only be held liable if authorities can prove they knew about the illegal activities and failed to act.

“If police want to act against the homeowner, there must be evidence that the owner was either directly involved, or was fully aware of the activities and failed to take necessary action to stop or report it,” he said.

Shanmugamoorthy, who is also a lawyer, said proving this could be a challenge for investigators.

“It is not easy to take action against homeowners or to prove they were aware. But there are areas that can be probed. This could include CCTV footage showing the owner visiting the premises, financial trails linking illegal proceeds to the owner’s bank accounts or witness accounts from neighbours,” he said.

He said complicating matters further is the growing trend of sub-letting.

Shanmugamoorthy pointed out that in many cases, the main tenant may not be involved in any wrongdoing but sublets the property to others who carry out illegal activities

“This creates multiple layers of tenancy, which makes it even harder to establish who knew what,” he said.

National House Rental Association (NHRA) president Prakash P. Kalivanan said most landlords rent out their properties in good faith.

“They should not be unfairly penalised for illegal acts of their tenants that were not in their knowledge,” he said.

However, Prakash said landlords should exercise reasonable responsibility and diligence when renting out their properties.

He stressed that having a documented tenancy agreement is one of the most important safeguards and failing to do so could expose owners to greater risk.

“This is why having a tenancy agreement stamped by the Inland Revenue Department is important for homeowners to safeguard themselves. Terms and conditions in the agreement that prohibit illegal activities will show that tenants have been clearly reminded and are bound by them,” he said.

Among the illegal activities the NHRA is aware of are cases involving illegal cryptocurrency mining, prostitution, loansharking activities, storing stolen goods and harbouring illegal immigrants.

To protect themselves, Prakash urged landlords to take precautionary steps including conducting background checks on tenants, carrying out periodic inspections and maintaining proper documentation such as identification records and payment history.

“If homeowners become aware of suspicious or illegal activities, they should immediately report the matter to the authorities,” he said.

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Japan at a crossroads; inside unit 731

Des­pite Tokyo’s hard­line stand on its his­tory in the region, there is still time to invest in a more fruit­ful shared future through greater accom­mod­a­tion.

Unpopular move? Protesters hold placards and lights during a rally against Takaichi’s administration for its military expansion policies in front of the parliament building in Tokyo last month. — Reuters 

 

LAST Octo­ber Sanae Takai­chi became Japan’s first female leader of both the Lib­eral Demo­cratic Party (LDP) and the gov­ern­ment.

The “lib­eral” in the LDP actu­ally means con­ser­vat­ive. Takai­chi her­self belongs to the hard­line rightwing Nip­pon Kaigi fac­tion of the party.

Soon enough, she would come to brush against China. Respond­ing to a ques­tion, she said Japan would take mil­it­ary action if China moved on Taiwan and affected Japan’s interests.

That soured China-japan rela­tions, trig­ger­ing bit­ter WWII memor­ies of a rightwing mil­it­ar­ist Japan invad­ing, occupy­ing and com­mit­ting war crimes in China. Those wounds have yet to heal.

Mod­el­ling her­self after Bri­tain’s brazen first female Prime Min­is­ter Mar­garet Thatcher, Takai­chi was unapo­lo­getic. She fur­ther prod­ded Beijing by seek­ing to revise Japan’s post­war Con­sti­tu­tion to favour mil­it­ar­ism, and work­ing with the US and its allies to con­tain China.

Other coun­tries began to regard Takai­chi’s Japan as poten­tially revi­sion­ist, bent on white­wash­ing its his­tory of war atro­cit­ies and may even repeat them. So is Japan get­ting ready to remil­it­ar­ise?

At issue is Art­icle 9 of the Con­sti­tu­tion on Japan’s mil­it­ary forces, offi­cially the Self-defence Forces (SDF) after Japan’s sur­render in 1945. Takai­chi wants to remove the SDF’S con­sti­tu­tional con­straints to enable an assert­ive mil­it­ary pos­ture abroad.

That is chal­len­ging because it requires two-thirds major­it­ies in both the Lower and Upper Houses of the Diet. While the LDP lacks sup­port from the lat­ter, it is work­ing to boost mil­it­ary power, capa­city and reach in other ways.

For the first time since 1945, Japan par­ti­cip­ated prom­in­ently in this year’s Us-led Balikatan mil­it­ary exer­cises with live-fire drills in the South China Sea. Japan will also be export­ing lethal weapons, man­u­fac­tur­ing to scale and expand­ing mil­it­ary links abroad.

Must this mean Japan is return­ing to its mil­it­ar­ist past of a cen­tury ago? Much depends on the pre­vail­ing regional real­it­ies.

The US is encour­aging other coun­tries to play a big­ger regional defence role. This is as true for Asia as it is for Europe, and applies for both Repub­lican and Demo­cratic admin­is­tra­tions.

A 2012 Us-japan treaty would halve the 19,000 Mar­ines in Okinawa by return­ing them to Guam, Hawaii and the US main­land. Deploy­ments to the Phil­ip­pines tend to be more lim­ited and ad hoc.

In post-wwii East Asia, US mil­it­ary hege­mony is seen to keep the peace by remov­ing the need for Japan’s mil­it­ary build-up. The same applies with Ger­many in Europe.

However, US bipar­tisan policy is retrench­ing long-term regional mil­it­ary post­ings. Mil­it­ary forces will still be deployed for lim­ited mis­sions, such as in Iran or Venezuela, but major post­ings in far-flung regions are another mat­ter.

Regard­less of who is head­ing Japan’s gov­ern­ment, Tokyo will want to look more to itself for its defence role and com­mit­ments.

Unlike Ger­many, Japan is not seen by other coun­tries to have fully atoned for its imper­ial wars and the dev­ast­a­tion they unleashed. An unre­pent­ant rightwing leader now lead­ing an appar­ent mil­it­ary revival only exacer­bates Japan’s trust defi­cits.

Non­ethe­less, mod­ern East Asia’s real­it­ies would inhibit if not pro­hibit any ultra-nation­al­ist Japan­ese leader from return­ing to the coun­try’s imper­i­al­ist past.

Such an out­come will not be accept­able to West­ern powers because Japan­ese nation­al­ism is anti-west­ern. A rampant nation­al­ist Japan will ali­en­ate all other sig­ni­fic­ant powers in a more developed Asia and a more mul­ti­polar world.

Eco­nom­ic­ally, Japan’s best days are over so it has insuf­fi­cient resources to chal­lenge the sov­er­eignty of other global stake­hold­ers includ­ing Asia’s middle powers. Its eco­nomy has slipped below Ger­many’s and India’s to fifth place, and con­tin­ues slid­ing.

Socially and insti­tu­tion­ally, Japan­ese hawks may be in a minor­ity even in Japan. Groups and indi­vidu­als stage protests against per­ceived drifts towards mil­it­ar­ism, in a coun­try where dis­sent­ing voices mat­ter.

Even within the LDP and other main­stream insti­tu­tions, evid­ence of an exclus­ive, mono­lithic bloc favour­ing mil­it­ar­ism is sparse. The gen­eral pub­lic still tends to be averse to rad­ical con­sti­tu­tional changes.

Former Prime Min­is­ter Yukio Hat­oy­ama cri­ti­cised Takai­chi’s petty pop­u­lism, stress­ing that Taiwan’s status is China’s internal affair. Former Deputy Prime Min­is­ter Yohei Kono inves­ted a life­time in build­ing bridges with China.

Another former Prime Min­is­ter, Yasuo Fukuda, accepts rein­ter­pret­a­tion of Art­icle 9 without des­cend­ing into pop­u­list mil­it­ar­ism. In 2017, then Prime Min­is­ter Shinzo Abe declared that Japan was ready to cooper­ate with China in the Belt and Road Ini­ti­at­ive, des­pite Abe being another mem­ber of the LDP’S Nip­pon Kaigi fac­tion.

Pro­fessor Mike Moch­izuki says the way for Japan to work with a way­ward Trump-led US is not to ali­en­ate China, but instead to improve rela­tions with Beijing and deepen Tokyo’s stake in the region. Takai­chi also hap­pens to be reach­ing out to Asean coun­tries like Malay­sia in busi­ness deals, and this should be encour­aged.

Kono passed away last Monday, while fine-tun­ing new plans for cooper­at­ing with China. Whether Takai­chi’s real­ism will even­tu­ally out­live her pop­u­lism remains to be seen.

Bunn Nagara is dir­ector and senior fel­low of the Renais­sance Stra­tegic Research Insti­tute, and hon­or­ary fel­low at the Perak Academy. The views expressed here are solely the writer’s own.

By BUNN NAGARA

Bunn Nagara is dir­ector and senior fel­low of the Renais­sance Stra­tegic Research Insti­tute, and hon­or­ary fel­low at the Perak Academy. The views expressed here are solely the writer’s own.

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