Malaysia bans tech firms from using public data to train AI models

Malaysia's government has implemented a sweeping restriction on the use of public data for artificial intelligence training, signalling a strengthened stance on data protection and privacy in the country's digital economy.

The prohibition has been incorporated as a mandatory clause across all government AI procurement contracts, establishing a protective framework for citizen information. The measure reflects growing concerns globally about how private companies leverage publicly available data to train increasingly powerful AI models without explicit consent from individuals whose information is being used.

The digital minister confirmed the policy as part of broader efforts to safeguard Malaysia's data sovereignty while the nation pursues its digital transformation agenda. The restriction applies to technology firms bidding for or contracted to provide AI solutions to government agencies.

The move comes amid intensifying scrutiny worldwide over data privacy practices in AI development, with several countries introducing similar regulations to prevent unauthorized use of citizen information. Malaysia's approach aligns the country with international efforts to establish clearer boundaries between public data access and commercial AI applications.

The government has not yet indicated whether the restriction will be extended to private sector AI development or remain limited to public procurement arrangements.