Malaysia opens public consultation on AI Governance Bill

Malaysia’s National AI Office (NAIO) has opened a public consultation on a proposed AI Governance Bill, seeking feedback from industry, developers, deployers and the public as the government finalises the country’s AI regulatory framework.

The consultation runs from 10 to 31 July 2026 and is at the pre-drafting stage, meaning the Bill’s text has not yet been formally drafted and input gathered now stands to shape its initial framing. The window for public submissions closes in 11 days.

The proposed Bill would introduce central institutional oversight, principle-based national baselines, and a risk-based approach to regulation, with proportionate obligations depending on the level of risk involved. NAIO said the framework aims to clearly define the roles and accountabilities of different AI actors, balancing innovation with public safety and national interests.

Prime Minister Datuk Seri Anwar Ibrahim confirmed on 1 July that the government is finalising the Bill, describing it as complementary to existing legislation including the Cybersecurity Act and data protection laws. Speaking at the launch of Ant International’s Global Development Centre in Kuala Lumpur, Anwar said the government would seek input from technology companies, including Ant International, citing their international regulatory expertise.

Anwar said the Bill forms part of the final phase of the Malaysian Digital Economy Blueprint, and that digital trust was foundational to building a digital nation.

He noted that AI and large language models were reshaping business operations, credit assessment, risk management and cross-border trade, while cautioning against the concentration of power among those who control data platforms and digital infrastructure. He said human judgement must remain central to decision-making as AI systems become more capable.

The Bill was first flagged by Digital Minister Gobind Singh Deo in mid-2025, who indicated at the time that he hoped to table the legislation by the second half of 2026.