By Norsyafawati Ab Wahab
KUALA LUMPUR, March 16 (Bernama) – Government support is vital in speeding up the adoption of artificial intelligence (AI) and the Internet of Things (IoT), said IoT industry expert Dr Mazlan Abbas.
The co-founder and chief executive officer of Favoriot Sdn Bhd said this is particularly crucial in developing countries like Malaysia where infrastructure, funding, and technical expertise continue to pose significant challenges.
Mazlan emphasised that government intervention through tax incentives, subsidies and regulatory frameworks would enable businesses to invest in these technologies and drive long-term digital transformation.
"Providing financial assistance to businesses developing AI and IoT solutions will spur local innovation and reduce reliance on imported technologies," he told Bernama.
Mazlan said Malaysia has made notable progress with its National Artificial Intelligence Roadmap, which outlines key strategies for expanding AI capabilities across various industries.
However, he noted that while policies and frameworks are in place, real-world adoption remains a challenge.
Mazlan said that local startups play a pivotal role in accelerating AI and IoT implementation, particularly in addressing community-specific challenges and driving economic growth.
Unlike larger corporations, he said startups are more agile, innovative, and able to respond quickly to local needs.
"Startups develop tailored technology solutions, such as AI for crop monitoring or IoT for flood alerts, filling the gaps left by larger corporations that tend to focus on broader markets," Mazlan said.
However, he pointed out that despite their potential, startups face significant hurdles including limited funding, regulatory complexities and a lack of collaboration opportunities.
Mazlan stressed the need for stronger financial support, simplified regulations and greater integration between startups and established corporations to ensure sustained growth.
"Governments can play a key role by providing grants, loans, or dedicated startup funds to help founders turn ideas into viable products and solutions," he said.
Mazlan also highlighted the importance of establishing regulatory sandboxes, which provide a controlled environment for companies to test AI and IoT technologies before large-scale deployment.
Citing the National Technology and Innovation Sandbox (NTIS) as an example, he said the facility enables researchers and startups to test their products, services, business models and delivery mechanisms in a real-world setting.
Such initiatives, he added, not only foster innovation but also ensure compliance with industry standards.
Beyond financial and regulatory support, he underscored the importance of talent development in AI and IoT, calling for greater investment in education and skills training.
Mazlan said universities and vocational training institutions should focus on equipping students with expertise in AI, IoT, and data analytics to meet the industry's evolving demands.
"Public-private partnerships can also play a significant role in bridging the skills gap, with established corporations working alongside startups to develop AI-driven solutions for critical sectors such as agriculture, healthcare, and urban mobility," he said.
Favoriot, a Malaysian startup providing an IoT platform for various projects, has been leading digital transformation by offering IoT solutions for smart cities, healthcare, and industrial applications.
The company has also forged key partnerships, including collaborating with cybersecurity firm Kaspersky, to enhance IoT security and data protection.
-- BERNAMA
