MY Digital Ministry prepares AI Bill as regulation gathers pace

Malaysia is working on a dedicated artificial intelligence (AI) bill as the government seeks to establish a regulatory framework to address the growing risks associated with the technology, according to a report by The Star.

Communications minister Fahmi Fadzil said the proposed legislation is being drafted by the Digital Ministry in response to AI's rapid development, which has outpaced existing regulations. The move aims to tackle concerns ranging from online scams and harmful content to the misuse of personal data.

While there have not been any reported cases directly linking AI to personal data breaches, Fahmi reportedly said such risks could arise through leaked databases or the unauthorised use of personal information.

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The legislation is expected to take time to develop. In the meantime, regulators such as the Malaysian Communications and Multimedia Commission (MCMC) will continue overseeing developments in the AI space and step in where necessary, particularly in cases involving online safety.

As an example, Fahmi pointed to MCMC's engagement with X after users of its Grok AI chatbot generated inappropriate images. The regulator has since worked with the platform to strengthen safeguards while broader AI regulations are being developed, according to The Star.

The government is also reviewing AI governance models adopted by other countries to identify approaches that would be suitable for Malaysia. Fahmi reportedly said the aim is to encourage innovation and investment while ensuring adequate safeguards are in place to reduce potential harm.

Separately, Fahmi encouraged individuals whose images have been manipulated using AI without their consent to report the content to both the relevant platform and the MCMC, pending the introduction of the new legislation.

On Malaysia's social media age restrictions, Fahmi said platforms are still updating their systems following the implementation of the ban on users under the age of 16 on 1 June. The government has already gazetted the Risk Mitigation Code and Child Protection Code under the Online Safety Act, with platforms requesting additional time to align their systems with the new requirements.

He added that non-compliance with the codes could result in enforcement action, including financial penalties or legal proceedings, although the timeline for full implementation will depend on ongoing discussions between the government and the MCMC.

The proposed legislation builds on Malaysia's broader efforts to establish a comprehensive AI governance framework. Earlier this year, prime minister Anwar Ibrahim said the upcoming AI Governance Bill would cover areas including ethical AI use, citizens' rights and intellectual property, while introducing a risk-based framework for AI deployment and incident reporting.

According to Bernama, the bill is expected to undergo stakeholder consultations and parliamentary review before being finalised, with the government positioning it as a framework that will govern the entire AI lifecycle, from development and deployment to monitoring and risk management. 

Photo courtesy of MCMC, Facebook. 

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