Malaysia is preparing to move from broad AI policy discussions to a formal legal framework, with the government confirming that its draft AI Governance Bill is complete and ready for Cabinet consideration.
Digital Minister Gobind Singh Deo said the bill could be tabled either in the current quarter or in Q1 2027. He said the government is also working on the institutional structure needed to enforce the law after approval.
“When we enforce a law, we must ensure there are parties that can make certain the law is complied with,” Gobind said.
The government is identifying the bodies that would monitor compliance, investigate violations and take action under the proposed legislation. Gobind made the comments after launching the Scars of War photography and art exhibition at the Lin Xiang Xiong Art Gallery in George Town.
The proposed bill will form part of a wider AI governance system built around 3 areas: standards, regulations and legislation. Standards are expected to address technical and operational issues for AI developers and users, while regulations would cover areas requiring oversight without necessarily needing a full law.
The layered approach is intended to give Malaysia more flexibility as AI technology and its risks evolve. The framework could address areas including data handling, automated decision-making, model bias and accountability.
Preparatory work is already underway. Gobind said AI Malaysia has been established as part of the groundwork, while a standards centre set up last month has started working with SIRIM and other organisations.
For businesses, the proposed framework could bring stronger compliance requirements covering AI development and deployment. It may also affect procurement, product design, data governance and risk management.
Malaysia’s approach aims to combine legislation with technical standards and administrative controls rather than rely only on a single law. The government is now focused on ensuring that the required institutions, standards and regulations are ready to operate once the bill clears Cabinet and Parliament.
The immediate next step is Cabinet review, followed by the legislative process.
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