Top Emerging Technology Trends in Malaysia (2025 Edition)

By Nash Nithi

As Malaysia strides boldly into the digital age, the nation is embracing groundbreaking technology trends that promise to reshape industries, lives and our economy. From AI-powered smart cities to green energy breakthroughs, here’s how the future is being realised here and now. 

1. Artificial Intelligence (AI) & Machine Learning (ML) 

AI and ML are becoming ubiquitous across Malaysia, from intelligent diagnostics in healthcare to smart logistics and personalised customer engagement. 

  • Local leap: Malaysia unveiled its first locally-designed edge AI processor, the MARS1000, by SkyeChip, enhancing real-time and efficient AI processing at the edge. 
  • Strategic investment: Microsoft’s US$2.2 billion commitment includes building a national AI Centre and skilling 300,000 Malaysians to nurture AI innovation from within. 

2. 5G (and Glimpse of 6G) Connectivity 

5G is rapidly transforming connectivity across Malaysia, laying the groundwork for next-generation digital services. 

  • Economic potential: A Malaysian expert projects 5G could add up to US$13.2 trillion globally by 2035, with 6G poised to further fuel applications like XR, autonomous systems and advanced automation. 
  • Infrastructure foundation: The ongoing JENDELA programme is boosting mobile coverage and speeds while preparing the nation for 5G and future 6G deployments. 

3. Edge Computing & the Internet of Things (IoT) 

Edge computing paired with IoT is enabling real-time, intelligent data processing closer to source devices, perfect for Malaysia’s SMART ambitions. 

  • Trends: Expect broad adoption of Edge AI, Edge-as-a-Service (EaaS), containerised services and robust security frameworks like federated learning. 
  • Local application: These trends are ideal for smart agriculture in rural Sabah, real-time waste management in KL and industrial IoT across Penang’s manufacturing belt. 

4. Data Centres & Cloud Expansion 

Malaysia is fast becoming Southeast Asia’s digital backbone, with data centres proliferating, especially in Johor. 

  • Foreign investment surge: Major firms like Amazon, Nvidia, Google, Microsoft and ByteDance are investing billions in local data centres. 
  • Sustainable approach: To mitigate environmental impact, the government intends to charge a premium for energy and water usage, incentivising green energy sourcing and efficient resource management. 
  • Infrastructure upgrades: A RM43 billion (~US$10 billion) commit from Tenaga Nasional will bolster the national grid to support AI and data centre demand. 

5. Big Data, Analytics & Quantum Computing 

Malaysia is poised to harness vast data flows, using AI and predictive analytics to unlock business insights and efficiency. 

  • Trend highlights: Expect integrated growth of IoT networks, smart city applications, quantum computing and enhanced NLP tools for interactive user experiences. 

6. Green Tech & Renewable Energy 

Sustainability sits at the heart of Malaysia’s technology push. 

  • Renewable targets: By 2023, renewables made up 22% of the national grid. The Green Technology Master Plan aims for 40% by 2035, with a $70% renewable energy target by 2050. 
  • Cross-border energy trade: Enegem, a platform for green electricity exchanges with Singapore, is driving regional energy collaboration. 
  • Solar expansion: The LSS5 programme will deploy 2,000 MW of solar power, including floating farms and participation from Bumiputera businesses, aiming for innovative solar growth by 2026. 

7. Healthcare Innovation & Telehealth 

Technology is revolutionising Malaysia’s healthcare delivery, especially in underserved areas. 

  • Telehealth acceleration: With 5G and IoT interoperability on the rise, virtual consultations, remote monitoring and mHealth services are becoming mainstream. 
  • Healthcare funding: The 2025 national budget earmarked RM45.3 billion—an 8.7% CAGR forecast for health spending—fueling technology-led improvements across public and private healthcare. 

8. Virtual & Augmented Reality (VR/AR) 

Local angle: Kuala Lumpur’s museums and cultural venues are trialling AR guides and VR exhibitions that transport visitors back in time through immersive storytelling. This trend could also benefit heritage sites like Melaka’s Stadthuys or Penang’s Clan Jetties. 

9. Robotic Process Automation (RPA) 

Government agencies and large corporations in Malaysia are increasingly adopting RPA to automate routine tasks—such as processing HR leave requests, managing nasi lemak supply chains or supporting e-government services—to enhance efficiency and minimise human error. 

10. Blockchain & Decentralised Trust 

Malaysia’s emerging fintech and legal tech scene is exploring blockchain for secure land title registries, halal-certification tracking and supply chain transparency—helping preserve authenticity and consumer confidence. 

11. Quantum Computing 

With Malaysia stepping up smart-city innovations and optimisation in logistics, quantum computing, though still nascent, holds promise for future breakthroughs in cryptography and complex problem-solving. 

12. Datafication & Augmented Analytics 

Malaysia’s public transport systems, like Penang’s LRT or Kuching’s ART, generate vast data. Transforming this raw data into valuable insights through augmented analytics can enhance urban planning, reduce congestion and optimise service delivery. 

13. Machine Learning in the Browser & Headless CMS 

Local e-commerce platforms and government portals are gradually deploying browser-based ML (e.g. instant fraud detection) and headless CMS to streamline content delivery, improving speed and personalisation. 

14. IoT & Edge Computing 

Beyond smart agriculture and city sensors, Malaysia’s industrial zones, such as Kulim Hi-Tech Park, are leveraging edge computing for real-time machine monitoring and automation. 

15. Cybersecurity & Explainable AI (XAI) 

With the surge in digital adoption, Malaysian organisations are boosting cybersecurity budgets and exploring explainable AI to ensure transparency, and to build public trust in AI-powered decisions. 

16. 3D Printing & Human Augmentation 

Medical centres in Kuala Lumpur and universities are piloting 3D printing for prosthetics and custom surgical tools. Meanwhile, research into human augmentation (like voice-controlled exoskeletons) is gathering momentum for eldercare applications. 

17. Low-Code/No-Code Platforms & Open-Source Expansion 

Startups and SMEs are embracing low-code tools (e.g. Microsoft Power Apps) to launch apps swiftly. Simultaneously, open-source technologies like Kubernetes and OpenStack are gaining traction in local tech communities. 

18. Natural Language Processing (NLP) & Chatbots 

Bahasa Malaysia-supporting NLP tools, such as customer-service bots and voice-enabled assistants, are becoming integral in government digital services and the banking sector. 

19. Synthetic Data & Graph Analytics 

Malaysian research institutions are experimenting with synthetic data generation for privacy-safe AI training, while graph analytics is being used to detect fraud patterns in e-payments. 

20. Progressive Web Apps (PWAs) & Voice Search 

E-commerce ventures in Malaysia are building PWAs to offer offline content and push notifications, while voice search interfaces (e.g. for local marketplaces) are becoming more prevalent. 

21. Motion UI & Single-Page Applications (SPAs) 

Local digital agencies favour single-page apps and animated motion UI designs to create sleek, user-focused websites for fashion, tourism and government platforms. 

22. Hybrid Cloud & GPU Evolution 

Malaysian enterprises are adopting hybrid cloud strategies, balancing in-house servers with public cloud—to meet scalability and compliance requirements. Additionally, future-ready GPUs with advanced tensor cores are being considered for edge-AI applications. 

23. Autonomous Vehicles & Intelligent Transportation Systems 

Kuching’s hydrogen-powered ART trials and Penang’s future LRT projects reflect Malaysia’s gradual shift toward autonomous public transport systems, supported by smart infrastructure. 

24. Intelligent Meta-Surfaces for 6G & Next-Gen Connectivity 

Research into intelligent meta-surfaces—used to boost wireless performance—positions Malaysia to benefit from future 6G networks, strengthening coverage and efficiency. 

25. Green Tech: Renewable Innovations & Energy Exchange (Enegem) 

Malaysia is not just expanding solar and carbon capture initiatives but also pioneering cross-border green energy trades. Enegem now enables electricity exchange with Singapore, while innovations like sand-battery tech and marine energy point to future diversification. 

A shining example of Malaysia’s technology-driven future is University Malaysia of Computer Science and Engineering (UNIMY) student Adli Fahmi Bin Md Ghazali’s award-winning project, SchedU, an automated scheduling system designed to streamline and optimise scheduling processes. This innovative solution reflects the country’s broader adoption of AI-driven automation and Robotic Process Automation (RPA) to enhance efficiency across sectors. Projects like SchedU demonstrate how local talent is not only learning about emerging technologies but also applying them to solve real-world challenges, contributing directly to Malaysia’s digital transformation ambitions. 

UNIMY nurtures the next generation of innovators and problem-solvers. They equip students with hands-on experience and cutting-edge knowledge, empowering them to create real-world solutions like the award-winning AI-powered scheduling system, SchedU. By joining UNIMY, you too will become part of a vibrant community driving Malaysia’s digital future - learning, innovating, and leading the way in a rapidly evolving technological landscape.

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