Showing posts with label Malaysia. Show all posts

Monday, March 24, 2025

Malaysia to byte crime with AI

PETALING JAYA: Malaysia is among nations aiming to use artificial intelligence (AI) in investigating commercial crimes.

However, the Artificial Intelligence Society Malaysia has urged the police force to first guarantee that the men in blue receive thorough training.

Its president Dr Azree Shahrel Ahmad Nazri said police officers need to understand how AI tools function, interpret AI-generated insights correctly and ensure their investigations maintain human oversight.

“AI is only as effective as the people using it.

'Use AI to counter AI': Experts call for upgraded tech, system to counter AI-powered cybercrimes amid deepfake scandal

Beware of AI-driven crimes

DIGITAL WAVE of deception

Scam rampant, become a ‘scamdemic', with victims being forced to commit online crimes also believed to have set up scam centres in Malaysia

Chinese people are the happiest in the world, Ipsos survey shows

International observers give thumbs-up to China's AI innovation at China Development Forum

Riding on the global fanfare over Chinese tech start-up DeepSeek, artificial intelligence (AI) has unsurprisingly become a buzzword at the China Development Forum (CDF) held in Beijing on Sunday and Monday, with international observers and multinationals speaking highly of China's AI contribution to the global economy while expressing full confidence ...

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Monday, March 17, 2025

Concerned by increasing corruption

Press Release: Corruption Perceptions Index 2024

Corruption Perceptions Index 2024

THE Association of Administrative and Diplomatic Officers Alumni is very disappointed with Malaysia’s ranking in the 2024 Corruption Perceptions Index. Our score is 50 over 100, the same as last year, and only marginally above the global average score of 43 over 100. Of the 180 countries involved in the survey, we are ranked 57, the same as last year.

This is not surprising given the seemingly increasing incidence of corruption among public servants. Hardly a day goes by without reports on corruption appearing in newspapers, confirming the perception some have that corruption is systemic in Malaysia.

In January, The Star reported that “Corrupt enforcement officers have been raking in close to RM200,000 each month from vape smugglers at the KL International Airport Free Commercial Zone (“Big money for dirty Customs men”, Jan 24; online at bit.ly/star_badvape). It is disappointing that while the government is trying to balance its budget and reduce its public debt, which currently stands at over RM1.5 trillion, we have such large leakages in revenue collection. And this is just one case of many.

Government programmes to inculcate good values in the public service over the last few decades seem not to have had the desired results.

While enforcement by the Malaysian Anti-corruption Commission needs to be enhanced, efforts by all ministries and agencies to stop corrupt practices have to be stepped up without any compromise. In fact, incidents of corruption and the quantum involved seem to have been increasing geometrically.

The association feels that the government must adopt a no-nonsense approach to corruption in the public sector. The fear factor is not there to prevent officers and staff from being involved in corruption. Research suggests that enforcement will be more successful if the penalty is heavy and the probability of being caught is high – and this includes the successful prosecution of such cases.

While some have suggested structural reforms, the association would like to suggest that we go back to basics and focus on programmes and policies that are already in place to combat corruption. What seems to be lacking is proper implementation. These include:

> Annual asset declaration: Officers and staff, especially those in services prone to corruption, must make their annual declaration, and their senior officers must go through these declarations to check for veracity and accuracy.

The Bureau of Asset Inspection in the Public Sector in Thailand and the Central Bureau of Investigation in India are entrusted with this responsibility. Use of artificial intelligence and big data analysis will be helpful in this.

> Ensure integrity: Heads of enforcement departments and supervisors at different levels must ensure integrity among officers in the workplace.

One cannot help but wonder how some officers and staff can work with syndicates under the very eyes of their supervisors and senior officers. Either seniors close one eye to the goings-on in the office or they are part of the game themselves. They must be held responsible and accountable and be made to face the music.

Supervising officers must be up and about and moving to see what is going on around them. They must also pay attention to news coming through the grapevine and undertake follow-up actions.

> Act against those who

corrupt, offer bribes: Action must be taken against those doing the corrupting too.

We support the action taken in the case of the Customs Department where, apart from the collection of the unpaid taxes, the warehouses of the importer were raided for further checks. It must be done to ensure that every cent of the unpaid taxes is collected, apart from imposing other legal penalties associated with the giving of bribes.

> Stronger action: More drastic actions should be taken against officers and staff involved in corruption.

While we support the programme to transfer officers at regular intervals, action must also be taken against those suspected of being involved in corruption before they are transferred out. Demotion and no possibility of promotion for a very long time must be imposed.

The penalties imposed on those convicted must be revised upward. Additional penalties, such as the confiscation of all assets of those convicted of corruption, as well as the assets of their relatives if they were obtained through corruption, would surely discourage corruption.

The action taken against corruption must create fear and shame among officers and staff involved in corruption. The fact that some charged with corruption have been able to get off scot-free, for whatever reasons, has not helped in creating the fear and shame factors.

-TAN SRI ABDUL HALIM ALI President Association of Administrative and Diplomatic Officers Alumni (Persatuan Alumni Pegawai Tadbir dan Diplomatik) Read the full letter at Thestar.com.my. 17 Mar 2025

The Dismal Reality of Malaysian Political Corruption

[1] Yet again we are seeing another former prime minister under investigation for corruption. That makes three former prime ministers either in jail, under investigation or charged with corruption; surely another world record. Add to that one deputy prime minister, at least two former chief ministers and several cabinet ministers who at one time or another were investigated or charged and you get a picture of just how rotten the whole system really is.

[2] But we’ve seen a similar show-and-tell performance by the MACC before; it usually ends in an anticlimax. All the jewellery and gold watches that were seized from Najib and Rosmah with so much fanfare a few years ago, for example, were eventually returned to them. So this latest show may not mean much in the end.

[3] Indeed, when it involves senior politicians or well-connected individuals, the show is always quite dramatic at the beginning but it invariably ends with a whimper (Mahathir’s sons), a DNAA (Zahid Hamidi, Riza Aziz and many more) or is allowed to die for want of further action (Sabah scandal, LCS). The current MACC chief must surely have the best record in the world for opening investigations into high-level corruption but thus far he has had zero success in obtaining actual convictions. But the politicians are apparently very happy with his performance as his contract has been extended.

[4] The only time when a corrupt senior politician actually went to jail was of course during the brief period after the 2018 elections when political elites were temporarily in disarray and made the fatal mistake of appointing an outsider (Tommy Thomas) as AG. It was a once-in-a-century convergence of the planets, an aberration. It won’t happen again. Now it back to business as usual.

[5] The other thing to note is that all that loot from the Ismail Sabri investigation – RM170 million in cash, RM7 million in gold bars and an assortment of jewellery – was reportedly siphoned off from just from one single government program. Imagine, then, how much is being looted from the hundreds of other government programs. It is estimated that between 30-40% of the more than RM150 billion that the government spends on procuring goods, works and services is siphoned off each year.

[6] And it goes on and on, year after year. Corrupt politicians and their cronies are the hardest working people in Malaysia – they never sleep, never tire of inventing ways to siphon off public funds and never lack programs to pillage.

[7] The present administration is proving to be a huge disappointment when it comes to fighting corruption. The Madani anti-corruption agenda is just an elaborate PR exercise, fakery on a grand scale. Their SOP is DNAA, NFA or pardons for friends and allies; MACC for everyone else. Nothing quite brings home the absolute absurdity of the government’s position than the sight of the prime minister vociferously railing against corruption while standing beside his deputy who, if not for the DNAA he was generously given, might well be in in prison right now for corruption.

[8] Recently, a RM16.6 billion MINDEF helicopter deal was given to a friend of the prime minister. They say it’s a good deal (and maybe it is) but the lack of transparency, the apparent conflict of interest and the fact that all 28 helicopters could have been purchased outright for about a third of the price (according to some reports) is reminiscent of the scandalous way UMNO did defence procurement. And this from a prime minister who insist he wants to change the system.

[9] Despite all the big talk, there’s really zero interest in fighting corruption where it matters most – among senior politicians. It’s not hard to eradicate corruption; the problem is that there’s simply no political will to do so. If people are making tons of money why would they want to change anything?

[10] We have to face the ugly truth: corruption is too deeply woven into the fabric of Malaysian politics to be rooted out. The entire machinery of government is thoroughly corrupt and beyond cleansing. There are very few good men left. Syndicates, cartels and corrupt politicians have a finger in everything from rice distribution to foreign workers. Anyone who dares to expose corruption – like that whistleblower in Sabah or that intrepid reporter from Malaysiakini – will quickly find themselves harassed, investigated and even charged. There’s no hope left; the war on corruption is over and we have lost!

by Dennis Ignatius in corruption, Malaysia, Politics| 18 March 2025]

Thursday, February 20, 2025

Malaysians against the disrespectful behavior of Akmal Saleh and a Memorandum for National Harmony

“Self-proclaimed Malay, Muslim champion Akmal Saleh is ...

Please support the memorandum against disrespectful ...

Malaysians against the disrespectful behavior of Akmal ...

ACADEMICIAN and political commentator Prof Tajuddin Mohd Rasdi is seen to be spearheading a campaign to clamp down the rightist influence of UMNO Youth chief Datuk Dr Muhamad Akmal Saleh.
This follows the issuance of a six-sided joint statement entitled “Malaysians Against the Disrespectful Behaviour of Akmal Saleh and a Memorandum for National Harmony” led by him.“Self-proclaimed Malay, Muslim champion Akmal Saleh is ...

“Self-proclaimed Malay, Muslim champion Akmal Saleh is ...

*As a *As a patriotic Malaysians & for Nation building, calling all rakyat to viral this declaration message! Help do our little bit for our beloved Malaysia* 🙇‍♂️

*Malaysians against the disrespectful behavior of Akmal Saleh and a Memorandum for National Harmony*

*Joint Statement*

1.Prof Dr. Mohd Tajuddin Mohd Rasdi

2.Mohamed Tawfik Tun Dr. Ismail

3.Mohamed bin Halim

4.Choy Meng Hooi

5.Poh Teik Heng

6.Dr Mohd. Razif b Mohd. Ali

We have seen just barely two months have passed of the new year 2025 that Malaysia is slipping further and further into disharmony. After almost 70 years of Merdeka we may have failed to honor the founding fathers of this country the likes of Tun Dato’ Sir Onn Jaafar, Tunku Abdul Rahman, Tun V.T. Sambanthan and Tun Sir Tan Cheng Lock. The recent JAKIM furore over needless guidelines for Muslims visiting and interacting with non-Muslims marks a social fissure that may cause a total collapse of nation building by dividing communities in our country forever.

In the light of these serious social and religious crisis, one person stands out as the epitome and example of nation disharmony; the politician from UMNO Akmal Saleh. As a people’s representative in Melaka, a State with a long history of integration and racial harmony, as an Exco of the state and as head of the UMNO Youth, Akmal has sown discord after discord in his relentless attacks on non-Malay personalities on issues of race and religion, in spite of swearing an oath to uphold the Constitution. We Malaysians respect Akmal Saleh for being a self proclaimed ‘champion’ of the Malays and of the Muslims but we totally disagree with his socially and spiritually destructive methods and statements. He had taunted a veteran Chinese politician as Nyonya Tua. He had called on Malays to boycott a Chinese businessman ‘sampai bankrap’. He had called a Chinese Minister of the Unity Government as ‘stupid’. He had recently called out a young Chinese MP to ‘better die’. His manner of speaking can easily be interpreted as menacing, threatening and certainly insulting.

He should follow the example of Melaka statesmen like the late Tun Abdul Ghafar.

If we have a young politician leaders like this who influences many online members of his same race as well as members of his own political party and other Malay based political parties, how are we going to rebuild this nation through the idea of ‘kesopanan dan kesusilaan’? The core foundational values of social, political and religious harmony are respect and according dignity to all faiths, race and cultures. Inherent in the concept of respect and dignity are speaking and debating with decorum, knowledge and courtesy.

We Malaysians ask that Akmal Salleh apologises to all Malaysians unreservedly for his past and present behavior and a promise of upholding the Rukunegara. We Malaysians, in turn, promises to forgive and begin our relationship with him in a clean slate.

We also ask UMNO to ensure that it advises and reprimand all of its members that act like Akmal Saleh in the future, and remind them of the Rukun Negara and the Federal Constitution and the laws enacted after the May 13 tragedy to ensure harmony and peace, formulated by an Umno-led admimistration.

Finally, we Malaysians would like to think and hope that Akmal Saleh can be a good and responsible leader to educate our future generation about the importance and sanctity of social and religious harmony. We Malaysians would also like to think that UMNO can be trusted with a new mandate of governance by abiding to the core values of respecting all faiths and race. We Malaysians will not tolerate and will campaign against any and all parties that would destroy the delicate and sacred harmony between our communities. The task of rebuilding this nation through respect and harmony lies not with any government ministry but unto each and every responsible citizens of Malaysia.

*Signatories*

1.Prof Dr. Mohd Tajuddin Mohd Rasdi

2.Mohamed Tawfik Tun Dr. Ismail

3.Mohamed bin Halim

4.Choy Meng Hooi

5.Poh Teik Heng

6.Dr Mohd. Razif b Mohd. Ali.

Malaysians & for Nation building, calling all rakyat to viral this declaration message! Help do our little bit for our beloved Malaysia* 🙇‍♂️

*Malaysians against the disrespectful behavior of Akmal Saleh and a Memorandum for National Harmony*

*Joint Statement*

1.Prof Dr. Mohd Tajuddin Mohd Rasdi

2.Mohamed Tawfik Tun Dr. Ismail

3.Mohamed bin Halim

4.Choy Meng Hooi

5.Poh Teik Heng

6.Dr Mohd. Razif b Mohd. Ali

He should follow the example of Melaka statesmen like the late Tun Abdul Ghafar.

*Signatories*

1.Prof Dr. Mohd Tajuddin Mohd Rasdi

2.Mohamed Tawfik Tun Dr. Ismail

3.Mohamed bin Halim

4.Choy Meng Hooi

5.Poh Teik Heng

6.Dr Mohd. Razif b Mohd. Ali.

Thursday, January 30, 2025

DeepSeek's AI should be a 'wakeup call' to US industry, it unveils hidden US market risk, top free downloads, effect on M’sia

Trump: China's low-cost AI should challenge American firms

MIAMI, Jan 27 (Reuters) - U.S. President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence.

"The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win," Trump said in Florida.

Investors sold technology stocks across the globe on Monday over concerns the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of the current U.S.-based AI leaders.

U.S. President Donald Trump attends a House Republican members conference meeting in Miami

"I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset," Trump said.

"I view that as a positive because you'll be doing that too, so you won't be spending as much, and you'll get the same result, hopefully," he said.

Trump said Chinese leaders had told him the United States had the most brilliant scientists in the world, and he indicated that if Chinese industry could come up with cheaper AI technology, U.S. companies would follow.

"We always have the ideas. We're always first. So I would say that's a positive that could be very much a positive development. So instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution," Trump said. -Reuters

DeepSeek unveils hidden US market risk

Clearly, it’s hard to know where the DeepSeek panic will lead. — Bloomberg

THE S&P 500 Index plummeted as much as 2.3% on Monday over DeepSeek, a Chinese artificial intelligence (AI) startup that developed a model competitive with the US’s very best – and, supposedly, on the cheap.

Venture capitalist Marc Andreessen called it a “Sputnik moment,” a reference to the Russian satellite that set off the 1957-1960s Space Race.

Chip companies plummeted and so did many of the communications giants developing AI tools of their own.

But the ostensible pandemonium in the world’s biggest stock market was not as widespread as you might imagine, and it seemed to abate as the trading day wore on.

With DeepSeek hype still largely indistinguishable from reality, the main lasting lesson may be that diversification still matters.

Consider the following factoids about Monday, the worst intraday selloff of 2025:

> At the time of writing, 328 stocks on the S&P 500 were up.

> The median stock was up 0.7% and the average was down just 0.2%.

> Among sectors, healthcare, consumer staples, real estate and financials were all positive on the day.

> Information technology (IT) accounted for 95% of the index move.

> Nvidia Corp, which is behind cutting edge AI chips that are also eye-poppingly expensive, accounted for about two thirds of the decline on its own.

In other words, investors would have been in a privileged position on Monday morning if they had simply rebalanced their equity investments this year into equal-weight portfolios of large-cap stocks, instead of leaning into the increasingly AI-concentrated market-capitalisation- weighted S&P 500 Index or Nasdaq 100.

I’ll admit it: betting against the cap-weighted index has been a losing proposition for the past decade and a half, but concentration risk has become a more acute problem for investors in the past two years.

S&P 500 Index investors’ exposure to IT and communication services companies is at its highest since the dot-com bubble.

Overweight tech

Tech and communications services add up to 41% of the S&P 500. And just seven companies account for about a third of the entire index by weighting.

Nvidia alone had a greater weighting than five of the 11 sectors represented in the index.

That concentration is a big reason why a Goldman Sachs Group Inc report in October suggested that the S&P 500 would deliver an annualised total return of just 3% over the next decade (or only about 1% per year if you adjust for inflation).

“Our historical analyses show that it is extremely difficult for any firm to maintain high levels of sales growth and profit margins over sustained periods of time,” Goldman wrote at the time.

It’s always technically possible that today’s index giants continue to outperform, but history is working against us.

Similarly, the research suggests that market concentration is associated with greater volatility going forward.

If the market truly underwhelms over the next decade, it may well be in the form of a crash followed by a long, gruelling recovery – rather than 10 years of nearly flat real returns.

Fortunately, elementary mitigation strategies are easy to implement, and you don’t even need options (in fact, tail hedges are very inefficient in slow-moving bear markets like the dot-com bust).

The Goldman report suggested that the equal-weighted version of the S&P 500 could outperform the S&P 500 by 200-800 basis points in the decade.

Additionally, the juicy income benefits of bond ownership may give new life to 60/40-type mixed asset class portfolios.

And investors may finally take the opportunity to add some exposure to unloved international stocks, as well as small- and mid-capitalisation US stocks that can still benefit from a strong macroeconomic backdrop.

Clearly, it’s hard to know where the DeepSeek panic will lead.

Companies representing about 38% of the S&P 500 by weighting are expected to report earnings this week, and those announcements should provide some insight into how US executives are processing the developments and help us sort hype from reality.

Even in a scenario in which the narrative proves well-founded, it’s entirely possible that a cheaper path ahead for AI turns into a net positive for many publicly traded US companies, including companies developing AI-related software, and end users.

But first, Monday’s market action may shake index tracking investors out of their complacency.

For all the strengths of the US economy and stock market, the index’s composition is tilted strongly in favour of the spectacular AI story and the premise that we’ve correctly identified the market winners.

Odds are that we have the narrative at least a little bit wrong, and investors should expect to pay for their lack of true diversification with ongoing volatility and perhaps even subpar total returns. — Bloomberg

- by Jonathan Levin, a columnist focused on US markets and economics. The views expressed here are the writer’s own.

Chinese AI app DeepSeek tops Apple App Store’s free downloads in China and US, outpacing ChatGPT

deepseek

Chinese artificial intelligence (AI) app DeepSeek topped the Apple App Store's free downloads in both China and the US on Monday, outpacing ChatGPT in free downloads in the US.

Following the momentum, DeepSeek-related stocks rallied strong on Monday's opening with multiple stocks opening more than 10 percent higher.

Chinese AI startup DeepSeek in January released the latest open-source model DeepSeek-R1, which has achieved an important technological breakthrough - using pure deep learning methods to allow AI to spontaneously emerge with reasoning capabilities, the Xinhua News Agency reported.

In tasks such as mathematics, coding and natural language reasoning, the performance of this model is comparable to the leading models from heavyweights like OpenAI, according to DeepSeek.

The app soon sparked global attention, which has Silicon Valley marveling at how its programmers nearly matched American rivals despite using relevantly less-powerful chips, according to a report from the Wall Street Journal (WSJ) on Sunday.

For instance, "Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen," said Marc Andreessen, the Silicon Valley venture capitalist who has been advising President Trump, in an X post on Friday.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek. "It's very cool," said Woodside, pointing to DeepSeek's open-source models in which the software code behind the AI model is made available free, per the WSJ report.

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DeepSeek and its effect on M’sia

Analysts are largely of the view that US president Donald Trump is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

PETALING JAYA: The domestic technology sector could be in for more uncertainties as Chinese startup DeepSeek launches a free, open-source artificial intelligence (AI) model that experts say rivals OpenAI’s ChatGPT.

This comes amid heightened tensions in the AI trade, which saw a sell-off in the technology sector earlier this month after the Biden administration announced new restrictions on the export of advanced semiconductors and AI technology, citing national security concerns.

Under the new rules, Malaysia was placed in a category allowed to procure only a fixed and limited amount of such advanced technology, potentially constraining the development of its AI capabilities.

Subsequently, the local construction sector was downgraded by at least two research houses, on the basis that many of these contractors had factored in work related to the construction of data centres in Malaysia.

Analysts are largely of the view that US president Donald Trump, who aims to establish the United States as the global leader in AI, is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

However, Tradeview Capital Sdn Bhd portfolio manager Ng Tzyy Loon said DeepSeek’s AI chatbot may throw the effectiveness of the proposed AI export control order into question.

“The US’s strategy to limit the development of AI in other countries by controlling their access to top-tier computing power and technology may not achieve its intended goals, as proven by the creation of DeepSeek,” he told StarBiz.

Last December, DeepSeek launched its DeepSeek-V3 model, which was reportedly developed at a much lower cost of US$5.6mil. In contrast, the training of OpenAI’s ChatGPT-4 model had reportedly required an investment of around US$100mil.

On Jan 20, the startup released another AI model, the DeepSeek-R1, which is said to rival OpenAI’s o1 (designed to complement ChatGPT) reasoning capabilities, sparking concerns over US tech dominance and prompting a reevaluation of technology companies’ lofty valuations.

The Bursa Technology Index has slipped by 0.88% since Monday. Yesterday, local technology or data centre-related stocks like YTL Power International Bhd , Inari Amertron Bhd , Nationgate Holdings Bhd and PIE Industrial Bhd fell by as much as 3%, 2%, 5% and 2%, respectively.

Major Wall Street indexes also tanked as the market digested the release of DeepSeek-R1.

The S&P 500 tumbled 1.5% while the tech-heavy Nasdaq composite sank 3.1%.

The blue-chip Dow Jones Industrial Average, which is less dependent on tech stocks, gained more than 0.6% with investors flocking to more defensive sectors.

Major tech counters like Nvidia Corp and ASML Holding NV slid as much as 17% and 6%, respectively.

Ng noted one notable aspect of DeepSeek’s AI models is their use of Nvidia’s H800 chips for training, which are not top-of-the-line chips like Nvidia’s H-100 of which the Biden administration’s latest export controls had planned to target.

“This shows that restricting access to top-tier chips may not prevent advancements in AI development, as companies can innovate around these limitations,” he said.

While this may be the case, it is important to note that the H-800 chip itself has been included in the US export restriction list since 2023.

Tradeview’s Ng also pointed out the cost and complexity of monitoring and tracking AI chip usage make enforcement highly challenging for the United States.

“While the US government can track where the AI chips are distributed, enforcing such restrictions is challenging, given the number of countries, such as Singapore, that are eager to advance their AI capabilities.

“Countries may also find ways to smuggle in AI chips like what China does, making it difficult to monitor effectively,” he said.

Ng is of the view that Trump may employ a more pragmatic approach in going about Biden’s proposed AI export control order.

“I think he may repeal the order or at the very least, adjust the rules to make the restrictions less stringent,” he said.

In a report yesterday, Kenanga Research said all eyes are now on Big Tech’s response to the AI capital expenditure ahead, with concerns surrounding the risks of a smaller addressable market for high-end chips.

“On the heels of big spending announcements of a whopping US$500bil under the joint-venture entity Stargate, the pledge to spend multiple billions by Big Tech will likely come under more scrutiny, as we expect them to carefully evaluate strategies given this AI development.

“Demand for state-of-the-art chips will still be intact in our view for firms that are pushing the envelope in developing frontier large language models, or put simply, the most advanced and cutting-edge models to understand and generate text,” the research house said.

As for the data centre play in Malaysia, Ng said it remains intact in the near term looking at the committed data centres here. However, there may be delays or uncertainties around new data centre projects.

“This is because the graphics processing unit (GPUs) already committed are well below the levels planned by major players like Nvidia and Amazon globally.

“For now, the impact should be manageable in the near to medium term, but beyond three years, further expansion could become challenging if the restrictive AI executive order really comes through,” he said.

BMI telecoms and technology industry analyst Niccolo Lombatti said it is important to note that not all Malaysian data centres rely on US-supplied chips.

“The decision of what chips to use is largely a function of its intended use case and therefore its design.

“On the one hand, some Malaysian data centres can utilise a lower number of US-supplied GPUs or chip alternatives from non-US vendors because they are looking to address demand from non-AI related use cases, or less intensive AI use cases, thus insulating them from the AI executive order’s effects,” he explained.

Nonetheless, Lombatti said the main risks arise for data centres targeting high-density AI applications, particularly those in Johor aiming to attract Singapore-based customers seeking rack densities up to or even in excess of 120 kilowatt

“Therefore, Malaysian data centres designed around high-density racks using the latest US-manufactured GPUs face greater risks over the next few years. Owners may need to slow development or scale back to lower-density designs, leading to significant capital expenditure inefficiencies,” he said.

Ng remained optimistic the country will be able to continue to attract data centre investments, underpinned by Malaysia’s cost competitiveness in terms of land, labour and electricity.

“Additionally, Malaysia’s proximity to Singapore is a key factor. The geographical location is crucial for data transfer and connectivity, and many global players already have data centres in Singapore,” he said.

On this note, Kenanga Research said contractors are more insulated in the AI race to roll out data centres given the emergence of DeepSeek could accentuate Malaysia’s position in being able to provide the brick and mortar for the data centre competitively.

As for YTL Power, the research outfit said the negatives are priced in with data centres fully discounted in its share price. At this juncture, firm takers for YTL Power’s AI data centre GPU as a service may still be needed to re-rate the stock.

YTL Power International Bhd, Inari Amertron, Nationgate Holdings and PIE Industrial closed at RM3.11, RM2.52, RM1.79 and RM4.57, respectively, yesterday.

By ELIM POON

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