Malaysia Launches Digital 2030 Plan to Become Regional AI and Innovation Hub
Malaysia has launched the Malaysia Digital 2030 (MD2030) action plan for 2026–2030, marking a strategic shift from being a technology consumer to becoming a producer of home-grown digital innovation. Launched by Prime Minister Datuk Seri Anwar Ibrahim, the plan targets increasing the digital economy’s contribution to GDP to 30% by 2030, creating 500,000 high-value digital jobs, generating RM4.5 billion in public sector savings through digitalisation, and delivering 95% of government services fully online. The Digital Ministry has been designated as the lead agency to drive the country’s ‘Towards an AI Nation 2030’ agenda.
MD2030 is built around seven strategic pillars—government, economy, infrastructure, talent, society, trust and security, and innovation—under a whole-of-government approach. The initiative seeks to strengthen digital infrastructure, including data centres, cloud computing and smart cities, promote “Made by Malaysia” digital products, accelerate technology adoption in high-growth sectors, and develop a robust research, development and commercialisation ecosystem. The government said the plan aims to position Malaysia as a regional digital champion and an AI-driven economy where data and intelligent systems become strategic assets supporting inclusive and equitable growth.
Editor’s Note: Malaysia has unveiled the Malaysia Digital 2030 (MD2030) plan to transform from a technology consumer into a producer, aiming to boost the digital economy’s GDP share to 30%, create 500,000 digital jobs, and digitize 95% of government services by 2030. Built on seven strategic pillars, the initiative positions Malaysia as a regional digital champion and AI-driven economy through stronger infrastructure, local innovation, and inclusive growth.
KLIMS 2026 Showcases Malaysia’s Accelerating Shift Towards Electric Mobility
The Kuala Lumpur International Mobility Show (KLIMS) 2026, held from 12 to 21 June at the Malaysia International Trade and Exhibition Centre (MITEC), highlighted Malaysia’s rapid transition towards electric mobility under the theme “Beyond Mobility.” The event featured a range of futuristic and production-ready electric vehicles (EVs), including the XPeng X2 flying car and the newly launched XPeng X9 all-electric luxury MPV. National automakers also showcased their latest EV developments, with Proton unveiling the e.MAS 7 Premium Plus and Perodua presenting modular concepts capable of supporting battery-electric, hybrid and range-extended electric vehicles. Premium EV maker Zeekr officially launched the facelifted Zeekr X in Malaysia and previewed upcoming luxury models, while global manufacturers such as Toyota and Great Wall Motor displayed EV and hybrid technologies tailored for the Malaysian market.
Beyond vehicle launches, KLIMS 2026 also highlighted the growing importance of charging infrastructure and home readiness as EV adoption accelerates. Industry discussions underscored the need for dedicated home charging solutions, particularly for larger battery-equipped vehicles, and pointed to increasing demand for higher-capacity charging systems and certified electrical installations that comply with national safety standards. The exhibition demonstrated that Malaysia’s EV transition is evolving beyond vehicle ownership towards the development of a broader ecosystem encompassing charging infrastructure, smart energy solutions and next-generation mobility technologies.
Editor’s Note: KLIMS 2026, held in Kuala Lumpur under the theme “Beyond Mobility,” showcased Malaysia’s rapid shift to electric mobility with futuristic EVs like the XPeng X2 flying car, Proton’s e.MAS 7, and Perodua’s modular concepts. The exhibition emphasized that EV adoption is expanding beyond vehicles to include charging infrastructure, smart energy solutions, and next-generation mobility technologies.
AT&S Announces Up to €2 Billion Expansion of Malaysia IC Substrate Facility to Meet Surging AI Demand
Austrian IC substrate and printed circuit board (PCB) manufacturer AT&S announced on 15 June 2026 that it will invest between €1.5 billion and €2.0 billion (approximately US$1.74 billion–US$2.32 billion) to expand high-end IC substrate production at its Kulim, Malaysia complex. The expansion is supported by long-term procurement commitments from semiconductor company AMD and at least one other leading technology firm, ensuring demand-backed financing for the project. Following the announcement, AT&S shares surged nearly 30%, and the company raised its FY2026/27 outlook, forecasting revenue growth of 45–55%, higher profitability and increased capital expenditure of €1.0 billion–€1.2 billion.
The investment underscores the growing importance of IC substrates as a critical bottleneck in the AI hardware supply chain, where advanced processors and AI accelerators require sophisticated ABF substrates to support high-performance computing applications. The expansion also reinforces Malaysia’s emergence as a major global hub for semiconductor back-end operations, with Kulim already hosting advanced facilities operated by companies such as Intel, Infineon and ASE. Industry observers noted that the additional capacity is expected to alleviate supply constraints over the longer term, although tight substrate and advanced PCB supply conditions are likely to persist through 2027 as AI-driven demand continues to outpace available manufacturing capacity.
https://www.atlaspcb.com/news/news-ats-malaysia-ai-substrate-2b-expansion-2026
Editor’s Note: AT&S announced a €1.5–2.0 billion expansion of its high-end IC substrate production in Kulim, Malaysia, backed by long-term commitments from AMD and other tech firms, driving a 30% surge in its share price and a stronger FY2026/27 outlook. The move highlights Malaysia’s growing role in semiconductor back-end operations and aims to ease global substrate supply constraints, though tight conditions are expected to persist through 2027 amid surging AI demand.
Malaysia Accelerates Renewable Energy Transition Through Large-Scale Solar and Grid Modernisation Initiatives
Malaysia’s energy transition is gaining momentum in 2026 as renewable energy (RE) becomes increasingly central to the country’s economic competitiveness and sustainability agenda. Under the National Energy Transition Roadmap (NETR), the government is accelerating the deployment of large-scale solar (LSS) projects while maintaining energy security and grid reliability. Tenaga Nasional Berhad (TNB) has emerged as a key enabler of this transition, having built 4.3 gigawatts (GW) of installed renewable energy capacity, accounting for more than one-third of Malaysia’s total RE capacity last year. Recent announcements at the Energy Transition Conference 2026 (ETCon26) included renewable energy supply agreements, battery storage projects and next-generation solar developments, underscoring the shift from policy ambition to project implementation.
The transition is also being supported by investments in grid modernisation, battery energy storage systems (BESS) and customer-focused renewable energy solutions. TNB highlighted projects such as the Hybrid Hydro Floating Solar (HHFS) development at Kenyir, which combines 785MWp of floating solar generation with a 1,190MWh BESS, and a planned 750MWp ground-mounted solar project paired with a 1,000MWh BESS. The utility is also expanding renewable energy access through initiatives including the Green Electricity Tariff (GET), the Corporate Renewable Energy Supply Scheme (CRESS) and accelerated electric vehicle charging infrastructure deployment. Industry observers noted that continued collaboration between government agencies, utilities and businesses, coupled with investments in grid infrastructure and renewable generation, will be essential to building a resilient and commercially viable clean energy ecosystem in Malaysia.
Editor’s Note: Malaysia’s energy transition is accelerating under the National Energy Transition Roadmap (NETR), with Tenaga Nasional Berhad (TNB) driving large-scale solar, battery storage, and renewable energy projects that already account for over one-third of the country’s RE capacity. Initiatives like floating solar-BESS hybrids, corporate renewable supply schemes, and EV charging expansion highlight Malaysia’s shift from policy ambition to building a resilient, commercially viable clean energy ecosystem.
Malaysia’s New EV Policy Set to Accelerate Local Manufacturing and Reshape Market Dynamics
Malaysia’s electric vehicle (EV) market is entering a new phase as revised government policies seek to transform the country from an import-reliant EV market into a regional manufacturing hub. According to Kenanga Research in a note dated 23 June following its visit to the Kuala Lumpur International Mobility Show (KLIMS) 2026, new regulations taking effect on 1 July 2026 will require fully imported EVs to have a minimum cost, insurance and freight (CIF) value of RM200,000 and a minimum motor output of 180kW to qualify for Franchise Approved Permits (APs). The research house said the policy would effectively phase out affordable imported EVs, potentially creating a two-tier market where premium imports dominate the high-end segment while mass-market demand shifts towards locally assembled vehicles.
Kenanga Research noted that the policy is expected to benefit local manufacturers and automakers with assembly plans in Malaysia, including Perodua, Proton and several Chinese EV brands through local production partnerships. The firm also observed a significant increase in EV prominence at KLIMS 2026, with EVs accounting for more than half of showcased vehicles compared with about one-third in 2024, while plug-in hybrid electric vehicles (PHEVs) also gained market share. Despite rising consumer interest, charging infrastructure remains a key challenge, with Malaysia having 5,719 charging points as of December 2025, equivalent to only 57% of its 10,000-charger target. The research house added that substantial growth in EV volumes will be required for Malaysia to achieve the National Energy Transition Roadmap’s target of a 20% EV market share by 2030.
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Editor’s Note: Malaysia’s EV market is shifting towards local manufacturing as new rules from July 2026 restrict affordable imported EVs, favoring premium imports and locally assembled models by Proton, Perodua and Chinese partners. Despite rising consumer interest and EVs making up over half of KLIMS 2026 showcases, charging infrastructure lags with only 5,719 points, posing a challenge to achieving a 20% EV market share by 2030.
Thailand Expands Smart City Network to 37 Certified Cities, Targets 105 by 2027
Thailand’s Ministry of Digital Economy and Society (MDES) has expanded its national smart city programme, with 37 municipalities across 16 provinces now receiving official smart city certification following the recognition of “Phuket Silicon Valley” and the renewal of certifications for 16 existing cities. Acting Minister Prasert Jantararuangtong said certification is awarded only to cities that have achieved more than 50% of their development benchmarks. The certified cities include Phuket Silicon Valley, Khon Kaen, Wangchan Valley in Rayong, Chiang Rai, Nakhon Ratchasima and Bangkok, among others across the country. The government aims to increase the number of certified smart cities to 105 by 2027.
The initiative forms part of Thailand’s broader Thailand 4.0 digital transformation strategy, which leverages technologies such as big data, smart mobility, energy efficiency, public safety systems and digital governance to improve urban living standards. To support long-term implementation, the government has established a dedicated sub-committee to oversee policy development and project planning in line with Thailand’s 20-Year National Strategy. Officials said the programme also complements Thailand’s cloud-first policies, artificial intelligence ecosystem development and partnerships with global technology firms, reinforcing the country’s ambitions to become a regional digital hub and promote sustainable, data-driven and inclusive urban development.
https://thaitimes.com/thailand-accelerates-smart-city-drive-37-certified-target-set-at-105-by-2027
Editor’s Note: Thailand has expanded its smart city programme to 37 municipalities across 16 provinces, including Phuket Silicon Valley and Bangkok, with a target of 105 certified smart cities by 2027. Part of the Thailand 4.0 strategy, the initiative leverages big data, AI, smart mobility and cloud-first policies to drive sustainable, inclusive and digitally powered urban development.
Thailand Unveils ‘Made-in-Thailand’ Chip Vision, Targets ASEAN Semiconductor Leadership
Thai Prime Minister Anutin Charnvirakul has unveiled an ambitious plan to position Thailand as ASEAN’s hub for advanced semiconductor manufacturing and establish a “Made-in-Thailand” chip industry by 2050. As part of the initiative, the government has established the National Semiconductor and Advanced Electronics Policy Committee to formulate strategy, coordinate public and private sector efforts, and accelerate the development of the country’s semiconductor ecosystem. The government aims to attract approximately THB2.5 trillion in investment and develop more than 230,000 highly skilled workers to support the sector’s long-term growth.
The initiative forms part of Thailand’s broader economic transformation strategy, which seeks to strengthen competitiveness by promoting future industries such as semiconductors, artificial intelligence, robotics, clean energy and digital technologies. Officials said the semiconductor push is intended to move Thailand beyond traditional electronics manufacturing and establish higher-value activities across the electronics supply chain. Industry observers noted that the strategy could reinforce Thailand’s position as a regional manufacturing and technology hub while supporting investment attraction, job creation and long-term economic resilience.
https://www.bangkokpost.com/thailand/general/3270710/anutin-unveils-chip-hub-vision#google_vignette
Editor’s Note: Thailand has launched a plan to build a “Made-in-Thailand” semiconductor industry by 2050, aiming to attract THB2.5 trillion in investment and train 230,000 skilled workers under a new National Semiconductor and Advanced Electronics Policy Committee. Part of its broader economic transformation, the initiative seeks to move beyond traditional electronics into higher-value sectors like semiconductors, AI, robotics and clean energy, reinforcing Thailand’s role as a regional technology hub.
Thailand’s Parliament Approves Five International Trade Agreements to Expand Global Market Access
Thailand’s Parliament has approved five major international trade agreements aimed at expanding the country’s market access in Europe and South Asia and strengthening its position in global trade. The agreements include the Thailand–European Free Trade Association (EFTA) Free Trade Agreement and the Thailand–Bhutan Free Trade Agreement, among others, and are expected to create new opportunities for exports, investment and economic cooperation. The government said the deals form part of broader efforts to diversify trade partnerships and enhance Thailand’s competitiveness in international markets.
The newly approved agreements are expected to provide Thai businesses with improved access to overseas markets while supporting foreign investment inflows and deeper economic integration with partner countries. Officials said the trade pacts align with Thailand’s strategy to strengthen economic resilience and position the country as a regional trade and investment hub. Industry observers noted that the agreements could benefit key sectors, including manufacturing, agriculture and services, by reducing trade barriers and facilitating greater cross-border economic activity.
Editor’s Note: Thailand’s Parliament has approved five major trade agreements, including deals with the European Free Trade Association (EFTA) and Bhutan, to expand market access and strengthen global competitiveness. These pacts aim to boost exports, attract investment, and position Thailand as a regional trade hub while benefiting key sectors like manufacturing, agriculture and services.
Thai Industry Group Calls for Comprehensive Strategy to Build Semiconductor Sector
Thailand’s semiconductor ambitions will require far more than investment incentives and capital inflows, according to the Federation of Thai Industries (FTI), which has called for a comprehensive strategy to develop the country’s chip ecosystem. The industry body said Thailand must focus on building a strong foundation that includes skilled talent development, research and development capabilities, supply chain integration and closer collaboration between industry, academia and government to support the sector’s long-term competitiveness.
The FTI noted that semiconductors present a significant opportunity for Thailand to move up the electronics value chain and establish itself as a regional hub for advanced manufacturing. However, industry representatives cautioned that sustained policy support, workforce development and technological capabilities will be essential to attract high-value investments and create a resilient semiconductor ecosystem. The recommendations align with Thailand’s broader efforts to promote future industries and strengthen its position in the global technology and electronics supply chain.
https://www.bangkokpost.com/business/general/3272549/fti-says-chip-sector-needs-more-than-investment
Editor’s Note: The Federation of Thai Industries (FTI) has urged Thailand to go beyond investment incentives by developing skilled talent, R&D capabilities, supply chain integration and stronger industry–academia–government collaboration to build a resilient semiconductor ecosystem. While semiconductors offer Thailand a chance to move up the electronics value chain, sustained policy support and technological development will be critical to attract high-value investments and secure long-term competitiveness.
Experts Highlight AI Infrastructure Boom as New Growth Driver for Thailand and Asia
Financial and investment experts have identified artificial intelligence (AI) infrastructure as one of Asia’s most significant long-term growth opportunities, with Thailand emerging as a potential regional data centre hub. Speaking at the Thailand Investment Forum 2026, industry specialists said the rapid deployment of AI infrastructure, supply chain reshoring and energy security investments are creating a major structural investment cycle across Asia. They noted that global technology companies are increasingly directing capital expenditure towards hardware infrastructure in East and Southeast Asia, while Thailand is benefiting from growing foreign direct investment as capacity constraints emerge in neighbouring markets.
Experts said Thailand’s rise as a data centre destination is expected to stimulate investments across multiple sectors, including industrial estates, specialised construction, power generation and water infrastructure required to support hyperscale facilities. They also highlighted Thailand’s advanced manufacturing capabilities in printed circuit boards (PCBs) and photonics, which supply critical components to the global semiconductor industry. The developments underscore Thailand’s growing importance in the regional AI and digital infrastructure ecosystem and position the country to benefit from increasing demand for advanced technologies and supporting infrastructure.
https://www.nationthailand.com/business/40067990
Editor’s Note: Experts at the Thailand Investment Forum 2026 highlighted AI infrastructure as a major growth driver in Asia, with Thailand emerging as a promising regional data centre hub amid rising foreign investment. This trend is expected to spur development across industrial estates, construction, power and water infrastructure, while leveraging Thailand’s strengths in advanced manufacturing for semiconductors and photonics.
Thailand Revamps Vocational Education to Support EV, AI and Advanced Manufacturing Industries
Thailand is repositioning its vocational education system to become a key talent pipeline for electric vehicles (EVs), artificial intelligence (AI) and advanced manufacturing industries, particularly in the Eastern Economic Corridor (EEC). According to a report published by The Nation on 26 June, technical colleges are redesigning programmes to focus on high-voltage battery systems, EV drivetrain diagnostics, robotics and automated assembly in response to growing investments in data centres, EV supply chains and advanced electronics. The country is also expanding dual-education models that combine classroom learning with hands-on industry experience to produce skilled technicians, factory supervisors and applied engineers.
The report noted that AI is increasingly being integrated into vocational training through courses in applied AI, computer vision and predictive maintenance, enabling graduates to address practical manufacturing challenges such as defect detection, energy optimisation and reducing production downtime. Thailand is also investing in train-the-trainer programmes to equip instructors with modern digital skills and broaden the impact of these initiatives across educational institutions. The efforts align with Thailand’s National AI Strategy and the EEC’s ambitions to develop a digitally capable workforce and strengthen the country’s competitiveness in future industries.
https://www.nationthailand.com/blogs/business/tech/40067905
Editor’s Note: Thailand is revamping its vocational education system to supply talent for EVs, AI and advanced manufacturing, with technical colleges focusing on battery systems, robotics and automated assembly in the Eastern Economic Corridor. Integrated AI courses, dual-education models and train-the-trainer programmes aim to build a digitally skilled workforce aligned with Thailand’s National AI Strategy and future industry ambitions.
Thailand Unveils Net Zero Roadmap with Focus on Renewable Energy, EVs and Energy Market Reforms
Thailand has outlined a new energy transition strategy aimed at achieving net-zero greenhouse gas emissions while strengthening energy security and economic competitiveness. The roadmap includes a revised Power Development Plan (PDP 2026) that targets increasing the share of clean energy to around 60% by 2050 through accelerated deployment of renewable energy sources, including solar, wind and biomass. The government also plans to promote rooftop solar adoption, expand household electricity buy-back schemes and advance energy market liberalisation to encourage private sector participation and investment in clean energy technologies.
The strategy also incorporates a gradual transition towards electric vehicles (EVs) and biofuels to reduce dependence on imported fossil fuels while safeguarding Thailand’s automotive industry and manufacturing competitiveness. Officials said the reforms are designed to create a more resilient and sustainable energy system capable of supporting future industries, including digital infrastructure and data centres. Industry observers noted that the roadmap signals Thailand’s commitment to balancing decarbonisation objectives with energy affordability, investment attraction and long-term economic growth.
https://www.nationthailand.com/business/economy/40067871
Editor’s Note: Thailand has introduced a new energy transition strategy under PDP 2026, aiming for 60% clean energy by 2050 through expanded solar, wind, biomass, rooftop adoption and liberalised energy markets. The roadmap also promotes EVs and biofuels to cut fossil fuel reliance while balancing decarbonisation, affordability, investment attraction and long-term economic growth.