Malaysia is preparing to introduce its first dedicated AI Governance Bill by early 2027. Digital Minister Gobind Singh Deo announced the finalization of the draft on September 10, 2026, with plans to present it to Parliament by the end of the first quarter of 2027.
The proposed legislation introduces a three-tier risk framework. Tier 1 prohibits AI systems intended to cause harm, while Tier 2 mandates assessments, documentation, and human oversight for high-risk systems. The bill also establishes a Central AI Authority to manage safety, enforcement, and industry enablement.
The draft was developed following a public consultation held from July 10 to July 31, 2026. This new law is designed to complement existing regulations, such as the Personal Data Protection Act of 2010, rather than replace them.
The initiative builds upon previous efforts, including the 2024 National Guidelines on AI Governance and Ethics, the March 2026 launch of the MY-AI Standards platform, and the National AI Action Plan 2026-2030. The government aims to improve industry accountability and transparency through this framework.
