Malaysia's AI Governance Bill to reportedly focus on ethics, accountability and IP

Malaysia’s upcoming Artificial Intelligence (AI) Governance Bill will focus on ethical use, citizens’ rights, and intellectual property, Prime Minister Anwar Ibrahim said during the Prime Minister’s inquiry session in the House of Representatives on 24 February, according to Bernama.

Responding to a question from Rodziah Ismail (PH-Ampang) on measures addressing copyright and IP issues, Anwar reportedly highlighted that Malaysia’s approach differs from Western frameworks, which often prioritise legal details over moral considerations.

The bill will incorporate the AI Risk and Classification Framework, a risk-based approach to ensure AI deployment aligns with ethical standards. It will also cover incident reporting to monitor and manage AI-related harms systematically.

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Anwar reportedly said the legislation, currently in its early drafting stage at the Digital Ministry, will undergo stakeholder engagement and review by a special parliamentary committee before finalisation. He described the bill as a “comprehensive governance framework” spanning the AI lifecycle, from development and training to implementation, monitoring, and risk management.

Additionally, Anwar reportedly described the bill as a new initiative for Malaysia, outlining accountability and ethical use while involving both developers and deployers of AI systems.

He stressed that existing laws remain applicable and enforceable, with the Intellectual Property Corporation of Malaysia playing a key role in protecting both AI training inputs and outputs.

The bill comes amid growing concerns over AI misuse in the country. Earlier in January, the Malaysian Communications and Multimedia Commission (MCMC) temporarily blocked Grok AI for users in Malaysia following repeated misuse to generate obscene, sexually explicit, and non-consensual manipulated images, including content involving women and minors.

Formal notices had been issued to X Corp and xAI on 3 and 8 January, demanding the implementation of safeguards to prevent AI-generated content that contravenes Malaysian law. MCMC said the companies’ responses, relying on user-initiated reporting, failed to address the inherent risks posed by the AI tool’s design. Access to Grok will remain restricted until effective protections are in place.

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