There are some highlights of technology news for the past week in Malaysia:
Bank Negara Malaysia is outlining its proposed approach to responsible adoption of AI in the financial sector
Malaysia is advancing rapidly with AI
1. Bank Negara Malaysia Champions Responsible AI in Finance
Bank Negara Malaysia has released a discussion paper presenting its framework for the responsible adoption of artificial intelligence (AI) within the financial sector. Data from its 2024 AI survey shows that 71% of banks and 77% of insurance and takaful operators have integrated at least one AI solution, up from 56% and 58% respectively last year, with over 60% of financial service providers (FSPs) now viewing AI as a strategic priority. The focus remains on enhancing areas like customer analytics, fraud detection, operational efficiency, and cybersecurity, all with AI aiding, not replacing, human oversight. Bank Negara maintains a technology-neutral regulatory stance, emphasizing parity, proportionality, and neutrality. While explorations into generative AI (Gen AI) are underway, concerns over privacy, cybersecurity, explainability, and bias persist. FSPs are taking proactive yet cautious measures, particularly in internal controls, with limited rollout of customer-facing Gen AI applications. Stakeholder feedback on the discussion paper is open until 17 October.
2. UPM Accelerates AI Research with 5G-Enabled Innovation Sandbox
Universiti Putra Malaysia (UPM) has partnered with Digital Nasional Bhd (DNB) to become one of the first Malaysian universities with direct 5G infrastructure for its AI Sandbox. Announced on 4 August, this collaboration supports innovative applications across AI, Internet of Things (IoT), and agriculture, including drone control, facial recognition, smart payments, and rural large language model (LLM) development. UPM has already commercialized 262 intellectual assets, generating RM17.5 million, and nurtured 80 startups. The 5G-powered sandbox is expected to bolster real-time processing, research, and commercialization.
3. microLEAP’s P2P Financing Soars; MyCIF Expands
Peer-to-peer (P2P) platform microLEAP disbursed RM55 million in Q2 2025, a 139% year-on-year increase with 69 of 70 investment notes being Shariah-compliant and a default rate of just 0.4%, well below the 4.18% market average. Meanwhile, the Malaysia Co-Investment Fund (MyCIF) funded 4,464 MSMEs in 2024, up 24%, though its contribution dropped from 13% to 10%; private investors helped fill this gap, delivering 16.8% average annual gross returns. microLEAP aims to expand regionally, diversify its offerings, and enhance investor tools as it opens offices in Kelantan and northern Johor, while planning expansion into Indonesia and the Philippines.
4. Cybersecurity Tools Overload Racing Companies — Kaspersky Study
Kaspersky’s study, Improving Resilience: Cybersecurity Through System Immunity, reveals 72% of organizations still rely on multiple cybersecurity vendors, causing inefficiencies and overcomplexity. Some 43% of security professionals say this complexity impairs threat responses; 42% highlight overlapping tools, 41% cite integration issues, and 39% point to inconsistent threat visibility. While just 28% have unified their toolsets under a single vendor, 86% plan to consolidate within two years. Kaspersky recommends automated solutions like Next XDR Expert to streamline processes.
5. Generation Alpha Leads Digital Finance Uptake
According to Mastercard’s report, 97% of Malaysian children born in 2010 or later already have financial accounts. Approximately half use digital wallets (46%), investment accounts (40%), or debit cards (40%). Parents regard their children as more financially astute than they were at the same age. Digital wallets are mainstream, 62% of parents believe their children may never use cash—but 51% find teaching financial literacy challenging, with 79% seeking tools such as educational content (73%), parental controls (73%), and gamified features (42%). Malaysian consumers show a notably stronger preference (63%) for modern payment methods than counterparts in the US (25%) and Europe (24%).
6. Sunway iLabs & Cradle Launch Deep Tech Ventures Lab
Sunway iLabs and Cradle Fund have introduced the Deep Tech Ventures Lab (DTVL), a six-month co-creation programme designed to scale science-driven startups addressing global challenges in AI, energy transition, food security, and water. Out of 69 applicants, 20 startups were selected to participate in mentorship, investor-readiness, and global market access, concluding with a pre-demo day in September and final showcase later this year, supported by partners including Deep Tech Labs (UK), Investible (Australia/Singapore), CloudMile, MRANTI, and universities.
7. PayNet Enters MIT CSAIL’s FinTechAI@CSAIL
Payments Network Malaysia (PayNet) has joined MIT CSAIL’s FinTechAI@CSAIL initiative as Malaysia’s only founding member. This global consortium of financial bodies and researchers focuses on developing ethical, inclusive, and resilient AI systems for fraud detection, cybersecurity, governance, and customer experience. PayNet is integrating AI into its national payments system, including real-time risk monitoring within its DuitNow framework, alongside research collaborations with Microsoft and Imperial College London.
8. Gen Z “Polyworking” Sparks Cyber Threat Surge
Kaspersky reports that Malaysia’s Gen Z—the generation managing multiple income streams or “polyworking”—has fueled over 6.1 million cyberattacks masquerading as work tools between the second half of 2024 and the first half of 2025. Top targets include Zoom (3.8 million spoofed attacks), Excel, Outlook, and Teams. Recognizing these vulnerabilities, Kaspersky has launched “Case 404,” an interactive game to raise awareness of phishing, fake updates, and password risks.
9. WhatsApp Takes Down Scam Accounts in 1H 2025
In a blog post dated 5 August, WhatsApp disclosed that it disabled more than 6.8 million scam-related accounts in the first half of 2025. These takedowns preempted operations from scam centres leveraging multiple platforms from texts to social media. The company advises users to be wary of upfront payment schemes and pyramid-like tactics. Read the full news here The Edge Malaysia
