Malaysia has ingredients to be ASEAN AI powerhouse, says IBM’s Dickson Woo

“Globally, there may be speculation about an AI bubble, but in Malaysia, the fundamentals are still strong,” says Dickson Woo, Country General Manager and Technology Leader for IBM Malaysia.

While Malaysia may not be fastest country in the region to deploy AI use cases, the amount of opportunities and support organizations in the country receive in their AI journey continues to grow. In 2025 alone, initiatives by the Malaysian government has seen more organizations in Malaysia prioritize their AI development, with any expecting to see more use cases deployed in 2026.

As a leading tech vendor and supporter of these initiatives, IBM continues to play a role in ensuring organizations have access to the best AI infrastructure available to them in their AI journey.

Speaking to CRN Asia, Dickson Woo, Country General Manager and Technology Leader for IBM Malaysia shares what customers and partners can expected from the vendor in 2026.

What can customers and partners expect from IBM in 2026?

In 2026, customers and partners can expect technology trends to move decisively from experimentation to real business impact.

AI will become more agentic and embedded into core workflows, shifting from productivity support to decision-making and execution, while governance, security, and trust become non-negotiable.

Data platforms will evolve to support real-time intelligence, hybrid cloud and sovereign AI will gain importance as organizations prioritize resilience and regulatory control, and automation will focus less on cost-cutting and more on augmenting human capability.

Sovereign AI will be key in 2026. Ensuring compliance would be vital for growth, as well as an opportunity to ensure your data architecture is secure.

Overall, the true winners will be those who transform technology into tangible outcomes, using innovation not as a result, but as a catalyst for real impact.

What are the biggest opportunities IBM is seeing in Malaysia in 2026?

Malaysia is entering 2026 with all the ingredients to become an AI powerhouse in ASEAN.

With clear government commitment to digital transformation, investment in sovereign AI and cloud infrastructure, and strong incentives for AI adoption, the environment is primed for rapid innovation.

Public–private partnerships are creating momentum across sectors from manufacturing and telco to healthcare and government services, opening opportunities to scale trusted, locally relevant AI solutions.

The biggest opportunities lie in building domain-specific AI for priority industries are expanding responsible-AI frameworks and accelerating national talent development through industry-led training.

As Malaysia strengthens its digital infrastructure and governance, companies that collaborate closely with government agencies, universities, and industry leaders will help shape a vibrant ecosystem that positions Malaysia as a true regional hub for AI innovation.

What will be the biggest hurdle to technology in 2026 in Malaysia?

The 2025 IBM CEO Study reveals that the top technology hurdle in 2026 is the talent and skills gap, the single most critical barrier to scaling AI and advanced tech. Closing this gap will unlock every other opportunity.

The second challenge is uneven digital infrastructure, followed by the limited budget of modernizing legacy systems, which slows broader adoption. Regulatory clarity and public trust remain essential, and finally, organizations must overcome cultural resistance and build stronger digital confidence.

Yet each hurdle is also an opportunity - to train a future-ready workforce, expand national infrastructure, streamline governance, and foster a culture that embraces innovation. With bold action and strong public–private collaboration, Malaysia can turn these challenges into catalysts and accelerate its path toward becoming an ASEAN AI powerhouse.

And lastly, there have been concerns that the AI bubble will burst next year. What are your thoughts on that from a Malaysian market perspective?

Globally, there may be speculation about an AI bubble, but in Malaysia, the fundamentals are still strong. Demand from government, enterprises, and critical sectors continues to grow, especially with the push toward digital sovereignty and sovereign cloud and AI. The real opportunity for Malaysia is in building practical, high-value solutions and local talent, not chasing hype. So even if global valuations are correct, the underlying need for AI here remains solid. Malaysia is building, not bursting.