KUALA LUMPUR: Malaysia’s rise from 34th to 27th place in the IMD World Digital and AI Ranking 2026 marks an important milestone in the country’s digital and artificial intelligence (AI) transformation.
Digital Minister Gobind Singh Deo said the improvement reflected the collective efforts of the Government, industry, academia and Malaysians in embracing digital technologies and strengthening national capabilities.
“It also demonstrates our nation’s growing readiness to compete in the global digital economy as we pursue our ambition of becoming an inclusive and sustainable AI nation by 2030,” he said.
What is the IMD World Digital and AI Ranking?
For almost a decade, the IMD World Competitiveness Center has measured how economies adopt and explore digital technologies.
In 2026, IMD restructured its assessment around a central question: how ready are countries and companies to use artificial intelligence productively, govern it responsibly and earn the trust of those affected by it?
The 2026 IMD World Digital and AI Ranking assessed 70 economies using 88 criteria – 51 based on hard statistics and 37 derived from the IMD Executive Opinion Survey.
The data are grouped into five factors: Governance, Technology and Infrastructure, Efficiency, Workforce Development and Values.
Why does it matter?
The ranking highlights how countries pursue AI readiness through different strategies, ranging from private capital and light regulation in the United States to state subsidies in China and stringent consumer protection and trust frameworks in Europe.
It also assesses whether technological adoption is supported by ethical safeguards and effective governance, rather than being measured solely by computing power.
The United States topped this year’s ranking as the world’s leading AI-ready economy, followed by Singapore and the Netherlands in second and third place respectively.
What’s next for Malaysia?
As global competition intensifies, Putrajaya’s priority is to ensure that the country’s growing capabilities translate into greater economic opportunities, stronger Malaysian enterprises and tangible benefits for the rakyat.
Gobind said the Government would focus on four key priorities to achieve this.
i. Maximising the economic value of digital and AI infrastructure investments.
Malaysia aims to develop industries, technologies and businesses around these investments, enabling more Malaysian companies, researchers and developers to access AI technologies, accelerate innovation and produce globally competitive Made in Malaysia products and services.
ii. Accelerating meaningful digital and AI adoption across the economy.
The Government will support businesses, particularly micro, small and medium enterprises (MSMEs), in adopting technologies that improve productivity, reduce costs and create new growth opportunities. It will also accelerate digital transformation in the public sector to deliver more efficient, accessible and responsive services.
iii. Strengthening Malaysia’s talent and innovation capabilities.
Malaysia’s improved ranking in workforce development is encouraging, and the Government intends to build on this advantage by developing more AI engineers, researchers, developers and entrepreneurs. At the same time, it will accelerate efforts to upskill and reskill the workforce, equipping Malaysians across industries and businesses of all sizes with the digital and AI capabilities needed to improve productivity, adapt to changing job requirements and seize opportunities in the AI economy.
iv. Strengthening digital trust, governance and regulatory coordination.
A competitive digital and AI economy requires an environment that promotes trust and innovation. The Digital Ministry is advancing the development of an AI Governance Bill to provide greater clarity and accountability in the development and deployment of AI. It is also working towards establishing the Malaysia AI Safety Institute under AI Malaysia to strengthen national capabilities in AI safety evaluation, risk assessment, research and standards development.
“Alongside these initiatives, we will continue strengthening data governance, cybersecurity and regulatory coordination to encourage innovation, sustain investor confidence and protect the interests of Malaysians,” Gobind added.
He said the latest IMD ranking was an important milestone in Malaysia’s digital journey.
“While we celebrate this achievement, we recognise that sustained effort and collaboration will be essential to maintaining our momentum.
“We will now build on these achievements to realise our ambition of becoming an inclusive and sustainable AI nation by 2030 – one that not only adopts technology, but develops the capabilities, innovations and businesses that will shape our future economy,” he added.
