KUCHING (Nov 2): Sarawak’s progress in building a digital economy has laid a stronger foundation for businesses to explore artificial intelligence (AI) but infrastructure and policy support alone may not translate into AI readiness at the individual business level.
Exabytes Founder and Chief Executive Officer Chan Kee Siak said the state has made significant progress in such as the Sarawak Digital Economy Blueprint 2030 and programmes to help micro, small and medium enterprises (MSMEs) adopt digital technologies.
He pointed to the rollout of the Malaysia Digital Economy Corporation’s (MDEC) Business Digitalisation Initiative in Sarawak in July 2025, in collaboration with the Sarawak Digital Economy Corporation (SDEC) as an example.
“These developments create a stronger foundation for businesses to explore AI, although digital infrastructure and policy support alone do not necessarily translate into AI readiness at the individual business level.”
“From our observations, there is considerable interest in AI across East Malaysia, with businesses showing curiosity and a willingness to learn more about how the technology can be applied to their operations,” he told The Borneo Post in an exclusive interview.
He said this presents opportunities for greater adoption as businesses become more familiar with the technology and its potential benefits.
However, in other parts of Malaysia, the challenge is moving beyond basic digital adoption towards using technology more strategically to improve productivity and business performance.
He cited a 2026 study by Khazanah Research Institute and MDEC, which found that digital adoption among Malaysia’s micro and small enterprises remains relatively shallow, with gaps in skills, financing and integration across business functions.
“Addressing these challenges will require continued investment in digital capabilities, alongside practical guidance to help SMEs apply AI in ways that are relevant to their business needs,” he said.
On Sarawak’s ambition to become a data centre hub, Chan said local AI and cloud infrastructure can improve access to computing resources, support reliable digital services and potentially reduce the barriers to adopting more advanced technologies.
“As AI becomes more integrated into business operations, having access to scalable infrastructure will be increasingly important for applications that require significant computing power or reliable data processing.”
“However, infrastructure investment must go hand in hand with accessible services, reliable connectivity and the capabilities businesses need to make practical use of these technologies,” he said.
Reaching East Malaysian SMEs
Chan said it is equally important that businesses in Sarawak and Sabah have opportunities to access the resources offered under Budget 2027.
To recap, the budget allocates RM30 million through MDEC to support AI adoption among 4,000 MSMEs and aims to certify 5,000 AI professionals.
“This could include local training and implementation sessions in collaboration with state agencies, chambers of commerce and universities, complemented by remote assistance and follow-up guidance in Bahasa Malaysia.”
“Practical examples should also reflect industries relevant to East Malaysia, including tourism, agriculture, logistics and retail, while taking into account connectivity and access to digital infrastructure”, he said.
For businesses outside Sarawak’s major cities, Chan said realistic AI adoption starts with solutions that address immediate needs without requiring significant upfront investment or specialised technical expertise.
“SMEs do not necessarily need to develop their own AI systems or invest in complex infrastructure.”
“They can begin with accessible, ready-made tools for tasks such as customer enquiries, administrative work, marketing and inventory management, prioritising applications that can operate reliably within their existing connectivity and resources,” he said.
He said this is particularly important as connectivity, technology access and employee skills remain barriers to digitalisation among Malaysian MSMEs.
He said overcoming these constraints will require a combination of appropriate technology, practical training and external support. Businesses can work with technology providers to identify suitable solutions while investing in basic AI literacy for their employees.
Where connectivity is unreliable, he said improving internet access remains essential. Businesses should also consider their connectivity requirements before adopting solutions that depend on continuous access to cloud services.
“Ultimately, AI adoption should progress at a pace that reflects each business’s readiness, allowing SMEs to build confidence and demonstrate value before expanding to more advanced applications,” he said.
Chan said that while Exabytes’ presence in East Malaysia is still developing compared with West Malaysia, the company sees significant opportunities to support businesses in the region with its cloud and AI solutions and expertise.
“Through our existing partnerships and participation in regional AI events, we are building connections with the local business community and raising awareness of the potential of AI.”
“Moving forward, we hope to deepen our engagement in East Malaysia, working more closely with local businesses and partners to help them embrace AI and unlock new opportunities for digital growth,” he said.
Full article by The Borneo Post.
