KUALA LUMPUR, Jan 29 — The recent emergence of China’s DeepSeek, an open-source artificial intelligence (AI) model, is expected to have significant implications for Malaysia’s technology and construction sectors.
DeepSeek, developed at a fraction of the cost of established AI models like OpenAI’s ChatGPT, has intensified global competition in AI research and development. Its affordability and accessibility are reshaping the AI landscape, prompting concerns about how Malaysia can keep pace with advancements in AI technology.
US Restrictions Pose Challenges
Compounding the challenge, the Biden administration has imposed restrictions on the export of advanced semiconductors and AI-related technology to certain countries, including Malaysia. These measures, which are driven by national security concerns, limit Malaysia’s access to high-end chips and cutting-edge AI developments.
Political analysts suggest that should former President Donald Trump return to office, these restrictions are unlikely to be reversed, leaving Malaysia in a constrained position when it comes to AI adoption and development.
Impact on Malaysia’s Construction Sector
The tightening of export controls has also raised concerns within Malaysia’s construction sector, particularly for companies involved in the development of data centers. Industry analysts note that several construction firms had anticipated substantial work related to data center projects. However, with Malaysia facing limitations in acquiring advanced AI technology, the sector’s growth potential may be stifled.
At least two research firms have downgraded their outlook on Malaysia’s construction industry, citing these challenges as a primary factor. The expected influx of investments in AI-driven infrastructure, including data centers, may slow down due to these constraints.
Navigating the Future: What Malaysia Must Do
The rise of DeepSeek and the geopolitical shifts in AI technology highlight the need for Malaysia to rethink its strategy in both the technology and construction sectors. To mitigate the risks associated with AI export restrictions and global competition, experts suggest the following measures:
• Diversifying AI Partnerships: Malaysia could explore collaborations with countries that have fewer trade restrictions or invest in regional AI alliances.
• Boosting Local AI Development: Greater investment in homegrown AI research and development could reduce dependency on foreign technology.
• Strengthening Data Center Strategies: Construction firms should adapt their business models to account for potential supply chain disruptions and technological limitations.
As the AI landscape evolves rapidly, Malaysia must position itself strategically to remain competitive. By focusing on self-reliance and regional partnerships, the country can mitigate potential setbacks while capitalizing on the growing AI industry.
