China’s AI+ decade: Malaysia at the crossroads of technology, society and civilisation

WHEN China launched its Internet+ strategy in 2015, few foresaw how deeply it would reshape the global economy—creating a RMB 60 trillion digital value, establishing the world’s largest 5G network, and building industrial internet infrastructure across dozens of sectors . Malaysia, like much of Southeast Asia, largely remained on the periphery. Today, a new, even more decisive wave has arrived—this time powered by artificial intelligence.

AI Brief

China's AI Initiative targets over 90% AI adoption by 2030, reshaping its economy and society.
Global AI competition grows between China and the US, with the UN stepping in to assess risks.
Malaysia is positioned to lead ASEAN's ethical AI development, blending technology with cultural values.

On August 26, 2025, Beijing unveiled its AI+ Initiative, a bold plan to embed AI across six strategic sectors. By 2027, AI adoption must surpass 70%; by 2030, exceed 90%; and by 2035, China aims to complete an “intelligent economy” . This is more than policy—it is a blueprint for reconstructing economic systems and societal order.

But the impact extends beyond Beijing. As the United States leads in advanced AI research and large model innovation, China dominates in massive-scale applications . Their competition spans chips, data centres, capital flows, talent, and governance standards. The United Nations has entered the arena too—establishing an independent panel of 40 global experts to issue annual AI risk assessments . AI now sits firmly at the nexus of technology, geopolitics, and global governance.

A society in transformation

China’s aging population—over 300 million people above 60 by 2030—demands robotics, AI caregivers, and automation. Dangerous tasks and repetitive labour will vanish. Meanwhile, AI’s social role is rising fast: over half of American teens now use AI companion platforms; for some, they offer solace, for others, dependency—echoed in a tragic Californian lawsuit where parents blamed AI for their teenager’s death.

ASEAN’s divergent paths

Indonesia has size yet is hampered by bureaucracy. Vietnam’s factories hum but lack cultural bridge-building. Thailand relies on tourism with underdeveloped digital foundations. Malaysia, with its multilingual workforce, growing digital infrastructure, and central geopolitical position, stands ready to become the region’s AI hub—offering a blend of technology, ethics, and diplomacy.

Governance and civilisational leadership

Global governance is no longer abstract. The UNESCO Recommendation on the Ethics of Artificial Intelligence and the ITU’s AI for Good initiatives demand AI be anchored in human rights, fairness, and transparency.

Malaysia has a unique civilisational role—melding Han Confucian Ren (benevolence) and Islamic Adl (justice)—to champion an AI governance framework that prioritizes dignity, equity, and communal benefit.

Civilisation meets reality

Policy demands form Plato-based ideas, but action requires substance. Malaysia should lead with pragmatic strategies: integrating AI into vocational education, securing investment in digital infrastructure , building AI-enabled healthcare and agriculture , and championing an ethical, inclusive AI model through ASEAN. Malaysia missed much of the Internet+ wave . Now, Europe and the Gulf may align with China or the U.S.; the Western world is wary of authoritarian AI; the Global South wants protection from exploitation. We could stand by—or put forward a southern, pluralistic vision rooted in ethics, sovereignty, and resilience.

Conclusion

In the AI decade, Malaysia must reclaim both the megaphone and the moral high ground. This is our chance—not only to participate—but to lead. The world is watching.

Civilisations are remembered not for their wealth, but for how they governed knowledge and power.

In missing Internet+, Malaysia lost a decade. If we miss AI+, we lose a generation.

CW Sim is Chief Strategic Advisor on Greater China, Strategic Pan Indo-Pacific Asia (SPIPA) ** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.