KUALA LUMPUR, Dec 27 — For years, Malaysia talked about reform, economic renewal and digital transformation. 

In 2025, the country finally crossed several historic milestones it had long postponed — marking a year defined not by incremental change but instead, achieved a series of long-awaited firsts that set the nation on a new path.

From long-delayed infrastructure to sweeping policy reforms, here are some of the biggest “Malaysia firsts” of 2025. 

National Artificial Intelligence (AI) framework 

Malaysia launched its first national AI governance framework, setting standards across ethics, data use, safety, model training and public-sector adoption.

• More than 200 government agencies began AI readiness assessments.
• In December, 81 per cent of MSMEs (micro, small and medium enterprises) adopted AI to solve business challenges
• The education sector saw its first formal integration of AI literacy modules across secondary and tertiary institutions.

Large-scale implementation of targeted subsidies 

2025 saw the end of blanket subsidies replaced with a national targeted mechanism.

• Budi Madani RON95 (Budi95) was implemented in stages from September with Malaysians aged 16 and above who have a MyKad and an active driving licence eligible to enjoy the RON95 petrol subsidy at RM1.99 per litre, capped at 300 litres per month. 
• All Malaysians aged 18 and above received one-off RM100 from August 31 to December 2025.

For the first time, Malaysia undertook structural subsidy reform — a shift economists had advocated since the early 2000s.

Malaysia becomes a top data centre hub 

This year marked Malaysia’s recognition as one of Asia Pacific’s fastest-growing data-centre destinations, with Penang and Johor standing out as primary tech hubs. 

• The data centre and cloud vertical contributed RM30.95 billion in total digital investments 
• A total of 143 data centre investment projects have been approved as of June 30
• Microsoft, Google and Amazon Web Services (AWS) announced investments in Malaysia 
• YTL Power International and Nvidia Corp signed an agreement to develop an AI infrastructure in Malaysia, the AI data centre in Johor is now operational 
• Asia Pacific and Japan hyperscale data centre specialist AirTrunk announced plans to develop its second cloud and AI-ready data centre, AirTrunk JHB2, located in Iskandar Puteri, Johor. 

Penang LRT breaks ground for the first time 

After 15 years of debates, delays and political back-and-forth, the Penang LRT finally broke ground in 2025.

• The first construction packages were awarded in July.
• Early works began on the Bayan Lepas–George Town alignment to make way for viaduct construction starting early 2026.
• The alignment will serve industrial, residential, education (Universiti Sains Malaysia), airport and city centre nodes. 

First commercial-scale green hydrogen production in Malaysia 

Malaysia launched a green hydrogen hub in Terengganu in July through a collaboration between Petronas, Tenaga Nasional Berhad (TNB) and Terengganu Inc. 

This initiative forms part of the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR).

• In Sarawak, hydrogen production via electrolysis — producing about 150kg per day at the Darul Hana H2 Plant. 
• This represents one of the first actual volumes of green hydrogen produced and exported from Malaysia (to Singapore)

First electric vehicle assembly plant  

Malaysia reached a milestone with Proton launching its first electric vehicle (EV) assembly plant in Tanjong Malim. 

• Production began in October with e.MAS 7 Proton’s EV and followed by e.MAS 5.  
• The carmaker is also looking at introducing production of the Zeekr EV in this plant.

Malaysia’s own Border Control and Protection Agency 

The country now has a single agency in charge of border control known as the Malaysian Border Control and Protection Agency (AKPS). The agency was established in February to oversee all international borders. 

AKPS at the time managed 22 border checkpoints and will take control 114 entry points by 2026. 

The AKPS unifies border enforcement, makes trade and travel smoother, improve security and enhance service delivery. 

This agency consolidated 20 different agencies or departments that handled border security. 

Consumer Credit Bill 2025 passed in Parliament 

As of August, the Consumer Credit Bill 2025 was passed in Parliament, paving the way for Consumer Credit Act (CCA) to take effect. 

This new law brings Buy Now Pay Later (BNPL) players under formal oversight and aims to protect both consumers and businesses. 

First peace treaty signed in Malaysia 

During his first visit to Malaysia, US President Donald Trump witnessed a ceasefire agreement with his Malaysian, Thai and Cambodian counterparts on the sidelines of the Association of South-east Asian Nations (Asean) summit in Kuala Lumpur. 

Thai Prime Minister Anutin Charnvirakul, Cambodian Prime Minister Hun Manet and Malaysian Prime Minister Datuk Seri Anwar Ibrahim joined Trump for a ceremony to seal the peace treaty, which formalised a ceasefire that halted a deadly border dispute in July.

First National Ageing Blueprint 

Malaysia faces a reality of becoming an aged nation by 2030. Anticipating this, the government rolled out its first comprehensive ageing blueprint.

The National Ageing Blueprint 2025 to 2045 emphasises six key areas — economy, employment, education, social protection, health and long-term care. 

This blueprint also serves as the Public Service Department’s (JPA) guide in efforts to improve service delivery to pensioners nationwide.