This edition of Twimbit AI Radar (APAC) highlights Malaysia’s progress in Artificial Intelligence.

Deployment/Initiative

Developed by Hong Leong Bank, the HALI Chatbot automates HR queries, improving operational efficiency, while the AI Voice Bots handle collections, reducing costs and call backlogs, and expanding to broader customer service functions.

Top Glove utilizes AI-based defect detection technology to improve product quality in its manufacturing process, optimizing production efficiency.

Fly FM, in collaboration with AWS, introduced Malaysia’s first AI-powered radio DJ, offering personalized music recommendations and engaging with listeners through real-time conversations

Custlr introduced the SARA algorithm, an AI-powered fashion technology that provides accurate body profiling for e-commerce, optimizing inventory and reducing return rates

Developed by Maxis with AWS, Mia is a generative AI-powered assistant that enhances B2B customer experience through conversational AI and intelligent workflow automation on the Maxis Business Hub.

Beyond the Buzz: How AI is Redefining Malaysia’s Digital Future

In the heart of Malaysia’s tech scene, an interesting evolution is quietly unfolding. Imagine a bustling local café where a young entrepreneur, busy managing her startup, doesn’t need to lift a finger to optimize her digital marketing campaign. Her AI assistant is already handling that, tailoring ads, analyzing customer behavior, and adjusting strategies—all while she enjoys her morning coffee. This is just a glimpse into the future where AI is seamlessly woven into the fabric of everyday business and life in Malaysia.

It’s not just tech startups embracing this change. Traditional industries are also riding the AI wave. In the manufacturing sector, for example, Malaysian companies are implementing AI-powered automation to improve production processes, reduce waste, and enhance efficiency. One company, Top Glove, has already seen huge reductions in defect rates thanks to AI-driven quality control systems. This kind of innovation is helping Malaysia stay competitive on the global stage, especially as it targets higher-value industries and a digitally adept workforce.

Yet, Malaysia is not just playing catch-up. According to a report by the Malaysian Digital Economy Corporation (MDEC), AI adoption in Malaysia has grown by 18% in recent years, showing the country’s rapid leap toward a digital future. Whether it’s in AI-powered financial services, healthcare, or e-commerce, Malaysia is emerging as a hub for AI innovation in Southeast Asia. The story unfolding in Malaysia is not about catching up, but about leading with homegrown innovation and reimagining business as usual through the lens of AI.

Hong Leong Bank: Optimizing Operations with HALI Chatbot and AI Voice Bots

Hong Leong Bank deployed HALI Chatbot to streamline internal HR operations and AI Voice Bots for enhancing customer-facing collections. These AI solutions improve operational efficiency and reduce costs by automating routine tasks and handling high-volume calls.

HALI Chatbot and Voice Bot : Revolutionizing Internal Operations

• 24/7 Accessibility: Employees access HR-related information via mobile devices.
• Automation of Repetitive Queries: Automates HR queries, saving time and resources.
• Efficiency Improvement: Boosts operational efficiency by 60%.

• High Call Capacity: Handles 16 simultaneous calls, reducing call backlogs.
• Cost Reduction: Cuts collection costs by 86%.

How is it ranked?
⚙️ Operational Transformation ●●●○○

Commentary: Hong Leong Bank exemplifies Level 3: Operational Transformation, enhancing operational workflows and customer-facing services by integrating AI technologies into its internal and external processes.

• Accessibility: HALI allows employees 24/7 access to HR-related information, providing easy access to benefits, payroll, and other essential data, which significantly improves employee engagement and satisfaction.
• Operational Efficiency: HALI automates routine HR queries, which reduces the burden on HR personnel and allows staff to focus on higher-value tasks, thus improving operational efficiency by 60%.
• Cost Reduction: The implementation of AI Voice Bots has reduced collection operation costs by up to 86%, offering a clear return on investment while enhancing the customer service experience.
• Scalability: Initially designed for collections, the AI voice bots are now being trained to handle more complex customer service interactions, showcasing their potential for future growth across other banking services.

While Hong Leong Bank has made significant strides in operational efficiency, the impact is primarily centered on optimizing existing processes rather than disrupting the broader banking sector, keeping the initiative at Level 3: Operational Transformation.

Top Glove: AI-Driven Quality Control in Manufacturing

Top Glove has integrated AI-powered image recognition for defect detection in glove manufacturing. The system automates inspections, ensuring consistent quality control while reducing human error and production delays.

AI for Quality Control: A Game-Changer in Manufacturing

• High Accuracy & Precision: The AI system achieves a less than 2% missed detection rate, with 99.51% mean Average Precision (mAP) using YOLO V5 for defect detection (e.g., tears, contamination).
• Automated Real-Time Inspection: AI replaces manual checks, detecting defects such as scratches and tears instantly, providing immediate feedback for corrective actions.
• Cost Savings & Waste Reduction: Early defect identification reduces waste and production costs, enhancing overall efficiency.
• Continuous Learning & Adaptation: The system improves over time by learning from new defect patterns, optimizing accuracy and performance.
  
  

How is it ranked?
⚙️ Operational Transformation ●●●○○

Commentary: Top Glove represents Level 3: Operational Transformation by utilizing AI-powered image recognition to automate quality control, revolutionizing their manufacturing processes.

• Enhanced Product Quality: The AI system detects defects in real time, ensuring that only high-quality gloves pass through the production line, reducing the chances of human error in inspections.
• Operational Efficiency: Automation speeds up inspections, ensuring a consistent and faster process, leading to improved overall productivity in the factory.
• Cost Savings: By catching defects early, the system minimizes waste and avoids costly product recalls, significantly reducing operational costs.
• Scalability: The system’s adaptability to learn from new defect patterns makes it highly scalable, able to adjust as new challenges arise in manufacturing processes.

Although the AI-driven quality control system has led to significant operational improvements, its influence is largely confined to internal manufacturing processes rather than disrupting the industry at large. Thus, it falls under Level 3: Operational Transformation.

Fly FM: Aina Sabrina – Malaysia’s First AI-Powered Radio DJ

Fly FM introduced Aina Sabrina, Malaysia’s first AI-powered radio DJ, marking a breakthrough in the media and entertainment industry by leveraging Generative AI (GenAI) for content creation and interaction.

Features of Aina Sabrina

• AI-Generated Content: Aina generates human-like conversations and content, showcasing GenAI’s capabilities in the media production sector.
• Interactive Capabilities: Aina engages with listeners, providing personalized music recommendations and fostering listener engagement during her show.
• Music Creation: Capable of creating and mixing music based on listeners’ moods, enhancing the interactivity of the radio show.
• Real-Time Operations: The show is managed by a backend team that operates Aina’s AI in real-time, ensuring smooth live interaction and content delivery.

How is it ranked?

⚙️ Strategic Innovation ●●●●○
Commentary: Fly FM’s introduction of Aina Sabrina marks a significant milestone in the media and entertainment industry by leveraging Generative AI (GenAI) to create engaging, human-like content and interact with listeners in real-time. This innovation represents Level 4: Strategic Innovation on the AI Maturity Framework, as it not only optimizes existing media workflows but also disrupts the traditional broadcasting model.

• Interactive AI: Aina’s ability to engage with listeners during live broadcasts and make personalized music recommendations shows the shift toward AI that enhances customer interaction and provides a more tailored experience. This represents a move beyond simple automation into creating personalized content at scale.
• Content Creation at Scale: The AI’s ability to generate content in real-time, including conversations and music mixes tailored to audience preferences, shows the power of GenAI in media production. By integrating these capabilities into Fly FM’s regular programming, Aina’s show adds a new layer of interactivity and personalization, which would be challenging to achieve through human DJs alone.
• Scalability: The deployment of additional AI personalities like Aiman (AI music producer), Sarah (AI club DJ), and others indicates Fly FM’s commitment to exploring the full potential of AI across various aspects of their broadcasts. This diversification of AI personalities suggests that Fly FM aims to not only revolutionize radio broadcasting but also expand its impact across multiple genres within entertainment and media.

Overall, Aina Sabrina stands as an example of Level 4 innovation, demonstrating AI’s potential not just to optimize existing processes but to create entirely new formats in media and entertainment, paving the way for more AI-integrated content in the future.

Saratix: AI-Optimized Systems for Intelligent Retail Automation

Custlr’s SARA algorithm provides precise body sizing for e-commerce customers, reducing return rates and improving customer satisfaction by ensuring better fit and enhanced product recommendations.

Key Performance Metrics

• Return Rate Reduction: SARA’s precise body measurement technology reduces return rates by up to 30%.
• Improved Conversion Rates: The AI-driven sizing accuracy increases conversion rates by approximately 20%, as customers feel more confident about the fit.
• Inventory Optimization: Businesses using SARA report a 15% reduction in inventory holding costs, as the technology ensures better alignment between stock levels and customer demand.

How is it ranked?
⚙️ Strategic Innovation ●●●●○

Commentary: Custlr exemplifies Level 4: Strategic Innovation by disrupting the fashion e-commerce industry with the SARA algorithm, which provides highly accurate body measurements and optimizes inventory management.

• Enhanced Fit Precision: The use of mobile devices and A4 paper to measure body sizes ensures that customers receive the right fit, significantly reducing return rates and enhancing customer satisfaction.
• Fashion Analytics: The algorithm’s deep learning capabilities offer valuable insights into consumer preferences, helping retailers predict demand and make informed inventory decisions.
• Operational Efficiency: By minimizing sizing mismatches, SARA reduces the operational costs associated with returns and stock management, improving profitability.
• Business Growth: The algorithm not only drives customer satisfaction but also increases conversion rates by addressing sizing concerns, a major barrier in online fashion shopping.

SARA’s ability to provide personalized sizing solutions while optimizing e-commerce operations marks it as a Level 4: Strategic Innovation in fashion retail, offering substantial industry transformation.

Maxis: AI-Powered Concierge Service “Mia”

Maxis, a leading Malaysian telecommunications provider, has introduced Mia (Maxis Intelligent Assistant), a generative AI-powered concierge service developed in collaboration with Amazon Web Services (AWS). Mia aims to enhance the customer experience on Maxis’s Business Hub (MBH) digital self-service portal by integrating conversational AI with intelligent workflow automation. ​

Key Features of Mia:

• 24/7 Instant Roaming Support: Mia provides round-the-clock assistance for roaming services, ensuring business customers have continuous support. ​
• Smart Recommendations and Personalized Suggestions: Leveraging AI, Mia offers tailored recommendations to users, enhancing the overall customer experience. ​
• Conversational Interaction: Built on AWS’s Amazon Bedrock and utilizing a leading large language model, Mia allows users to manage tasks related to their accounts and services through natural, conversational engagement. ​

How is it ranked?
⚙️Strategic Innovation ●●●●○​

Commentary:
Maxis’s Mia (Maxis Intelligent Assistant) reflects Level 4: Strategic Innovation in the AI Maturity Framework. Developed in collaboration with AWS, Mia integrates generative AI with intelligent workflow automation to enhance customer experience for B2B subscribers. Leveraging Amazon Bedrock and AWS’s cloud infrastructure, Mia provides real-time, conversational support 24/7, streamlining tasks such as account management, billing inquiries, and service adjustments.

Mia’s ability to offer personalized recommendations and continuous learning enables it to adapt to customer needs, further improving operational efficiency. By automating routine tasks, Mia reduces dependency on human agents and ensures a tailored experience for each user.

Maxis’s integration of Mia has contributed to a 6.8% growth in business services revenue, highlighting the success of AI in enhancing customer engagement and driving business performance. As one of the first companies to adopt Amazon Bedrock, Maxis continues to lead AI adoption in the Malaysian telecom sector.

Towards a Sustainable and Scalable AI Ecosystem

Malaysia’s AI transformation is not just about technological advancement; it’s about ensuring that AI is sustainable and scalable across sectors. To achieve this, the country must focus on:

• Infrastructure Development: As AI technologies mature, Malaysia must continue to invest in robust digital infrastructure that supports large-scale AI applications. This includes expanding cloud computing, big data analytics, and 5G networks, which are the backbone of any successful AI ecosystem.

• Fostering Public-Private Partnerships: Collaboration between government, businesses, and research institutions is essential for AI to thrive. Public-private partnerships are key to ensuring AI solutions are adapted to local needs and challenges. Malaysia has a strong foundation in this regard, with initiatives like the National AI Strategy, which sets a clear vision for AI adoption and development across industries.
  
  
• AI Talent and Research: Building a knowledge-based economy means investing in talent. The demand for AI experts in Malaysia is growing rapidly, and it is critical to cultivate both technical and entrepreneurial talent. This includes not only technical expertise in AI but also an understanding of its application in business contexts. Universities and corporate players should collaborate to develop research-led innovations and provide world-class training to the workforce.

AI Maturity Framework Introduction

The AI maturity framework used in this report offers a structured approach to evaluating the impact of artificial intelligence across industries in Malaysia. It categorizes the deployment of AI solutions based on their transformative potential, ranging from basic automation to industry-wide disruption.

Level	Description	Impact
Level 1: Basic Automation	Minimal impact; routine automation of repetitive tasks.	Streamlined operations with low disruption.
Level 2: Incremental Improvements	Modest impact with improvements in isolated areas.	Small gains in efficiency and performance.
Level 3: Operational Transformation	Significant improvements in workflows or resource management.	Noticeable impact on daily operations.
Level 4: Strategic Innovation	AI transforms core processes, delivering major efficiency gains.	High-level impact on core business functions.
Level 5: Industry-Wide Disruption	Disruption of industries or creation of new business models.	Major market changes, reshaping entire sectors.

This framework helps understand how AI deployments are evolving, enabling companies to assess their readiness for digital transformation and the scale of change they can expect from AI adoption.