'Malaysian companies proactively embrace AI'

SHAH ALAM - The Malaysian Employers Federation (MEF) believes that a significant portion of companies in Malaysia are proactively adopting artificial intelligence (AI) technology for the future.

MEF President Datuk Syed Hussain Syed Husman cited the Cisco AI Readiness Index survey conducted in November last year, revealed that 46 per cent of Malaysian organisations are prepared to adopt AI technology in line with the Fourth Industrial Revolution (IR 4.0).

The study indicated that 13 per cent of these entities are fully ready, with an additional 33 per cent classified as partially ready.

Syed Hussain elaborated, stressing the undeniable importance of IR 4.0 technology.

He noted that the country's micro, small, and medium enterprises (MSMEs) are actively embracing applications that facilitate business recovery post the Covid-19 pandemic.

"It is imperative for businesses to adapt, ensuring their sustained productivity in the future.

"The transition of companies, especially MSMEs, to IR 4.0 is essential to ensure that local businesses can remain competitive with the support of a highly skilled and innovative workforce.

"The Covid-19 pandemic has accelerated the sudden use of IR 4.0 technology in business operations and supply chains in Malaysia and around the world.

"This has made the business community more aware and ready to switch to using such technology," he told Sinar when contacted.

Syed Hussain added that, following Singapore, Malaysia leads in IR 4.0 adoption among businesses, including MSMEs, in Asean.

He highlighted that since 2021, the government has introduced numerous tax incentives to encourage businesses, especially MSMEs, to incorporate AI into their operations and business processes.