Navigating the Future of Digital Transformation, AI & Sustainability: Day 1 at AIBP C&E MY

The 47th edition of the ASEAN Innovation Business Platform (AIBP) Conference and Exhibition took place over 2 days in Kuala Lumpur, Malaysia on 4 - 5 September 2024 which was endorsed by the Ministry of Digital, Malaysia and the Ministry of Investment, Trade and Industry (MITI) .

Participants gained insights into the opportunities and challenges of innovation and technology adoption through presentations and panel discussions, focusing on practical solutions and real-world applications to drive efficiency, growth, and innovation in Malaysian enterprises.

Navigating AI Implementation in Malaysia

As artificial intelligence (AI) continues to reshape industries, several persistent misconceptions influence how organisations and individuals perceive and implement this transformative technology. Debunking these myths is crucial to maintaining progress and fostering innovation. Successful AI implementation requires a strong data foundation, which ensures high-quality, unbiased data. Moreover, the integration of diverse AI techniques must be tailored to organisational needs, taking into account the context and domain expertise, to create responsible and impactful AI solutions that go beyond merely focusing on technology.

5 Key Misconceptions:

• Gen AI makes other AI Obsolete
• AI is only about Tech & Automation
• AI will take all our Jobs
• AI is a one-size-fits-all solution
• AI is always objective and Neutral

The experiences shared by leaders from Tenaga Nasional Berhad , KPJ Healthcare Bhd , and AmBank Group offer valuable insights into how organisations are navigating the practical realities of AI deployment while addressing key challenges such as data management, renewable energy, and the future of AI technologies. Below are key examples of how these organisations are tackling these issues while aligning their AI strategies with their business needs and objectives:

• Data Ownership and Management: TNB faced challenges in determining data ownership between finance, IT, and business divisions. TNB adopted a centralized approach with a "surgery lab" for data storage and "data usage" teams for business-side use cases.
• Rethinking the Big Data Paradigm: Datuk Ir. Megat Jalaluddin Megat Hassan , President & Chief Executive Officer, Tenaga Nasional Berhad expressed scepticism about the effectiveness of data lakes and big data concepts. Instead, they advocate for a "small data" approach, focusing on high quality data with powerful algorithms to provide better solutions.
• AI and Future Technologies: Artificial Intelligence was highlighted as a top priority for future development. Hoo Ling Lee , Regional CEO (Central Region), KPJ Healthcare, mentioned interest in connectivity for 5G holo medicine and process automation (RPA) as key areas of focus for the coming year.
• Renewable Energy Challenges: The discussion touched on Malaysia's transition to renewable energy, particularly solar power. Key challenges include intermittency, distributed generation, and limited generation hours, requiring smart grid solutions and digital technologies to manage.
• Agent-based AI: Which involves training multiple AI agents with different roles and abilities to work as a team, in collaboration with partners.

AI considerations in a traditional bank

We're currently applying AI to internal processes rather than customer-facing applications. As a highly regulated bank, we're cautious about implementing AI externally until we're confident in our control measures. This isn't just about following AI governance rules, but about being a responsible bank. We want to ensure AI truly improves processes without causing confusion or potentially damaging our reputation through inaccuracies or hallucinations. Customer onboarding in traditional banks is complex due to regulatory requirements like KYC. While digital banks can onboard customers quickly, traditional banks are highly regulated and prioritise thorough checks to avoid potential fines and reputational damage. The process involves multiple steps and experts, including background checks, ratings reviews, and approvals from various departments. To streamline this lengthy process, technologies like RPA and AI could be very helpful. For example, AI can now extract and categorise information from standardised bank statements, significantly speeding up the onboarding process while maintaining necessary compliance checks.

• Yew Choong Chew, Chief Data Officer, Ambank

Rethinking the Big Data Paradigm

I'm not a great believer in the data lake after a few years of trying to do it, because it actually increased the cost for the organisation just to keep the data in a data lake. So we don't believe in big data, but we rather believe in small data based on our experience. So we focus on small data, and we have to ensure that the algorithm must be very powerful. So the message is that if you can have one data that provides the solution, that is the best. If we can have two data providing the solution that you want, that is second best. So if we have 10 data, it means that the algorithm is actually very weak. So this is the challenge that we have with our technology partners, because we have basically an opposing view from the market.?

• Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President & Chief Executive Officer, Tenaga Nasional Berhad

Building Resilience for the Future Workplace

With the earlier discussion emphasising the impact of AI and digital tools on the workforce, particularly in terms of job displacement and the reshaping of traditional roles, building resilience for the future workplace has become even more critical. To achieve this, organisations must combine strategic foresight, adaptability, and a clear understanding of how technology and culture influence long-term success. In this rapidly evolving environment, it's essential not only to adopt new technologies but also to ensure that the values and frameworks guiding these innovations are aligned with the organisation’s broader mission. Ensuring AI sovereignty is key to maintaining control over ethical considerations, while fostering a startup mentality promotes the agility and innovation needed to navigate change. Additionally, rethinking ROI—focusing on productivity, cost optimisation, and customer experience—can significantly boost both financial performance and workforce engagement?

Key takeaways from the discussion with featuring insights from Malaysian Communications and Multimedia Commission , S P Setia , Johor Corporation and Allianz Partners include:

• Ensuring AI Sovereignty: There is a strong need for AI sovereignty, focusing on the importance of retaining control over the value systems embedded in AI. Without the right skills and frameworks, external forces may impose values that could have unintended consequences, much like the evolution of the internet.
• Adopting a Startup Mentality: The importance of fostering a startup-like culture within teams to promote agility and fast decision-making. While financial considerations are necessary for building business cases, the focus should extend beyond numbers to consider the broader value created for both the business and the community
• Rethinking ROI: ROI can stem from various sources, with finance teams typically focusing on new revenue generation, while digital initiatives focus on cost optimisation. By partnering with finance to monitor operational expenditures (OPEX), they aim to identify areas where technology can replace existing processes, ultimately increasing profit margins through cost reduction.
• Monetising ROI through Productivity:? Improving productivity leads to shorter turnaround times, fewer errors, and enhanced customer experience. For Allianz Partners, this has resulted in a 94% reduction in complaints, a 60% increase in NPS scores, and reduced overtime, which boosts internal satisfaction. These improvements can also be monetised, alongside new revenue streams

Long term wise, there is this big need for AI to have sovereignty. Sovereignty means that, what can all of us do to make sure that AI is in our hands, rather than being imposed onto us. When I say by imposition, it's not the technology part, but it's the value system part. So that's where I see the future, that if we do not possess the right skills of AI sovereignty from a value system perspective. I give you an example: when the internet came, the World Wide Web, we were very happy with the capability. But later in life, we were not happy with what bad things it can do. The value system then starts to permeate from where the creators were making the technology from. So in the world of AI, you will see that the big technology guys own all the technology, but they don't own the entire value system.

• Sam Majid , Chief Technology and Innovation Officer, Malaysian Communications and Multimedia Commission (MCMC)

It all boils down back to what Budi (JCorp) shared, it’s the culture, right? It's actually changed the way of working. So I always encourage my team, and also even my peers. How do we actually think like a startup, work like a startup, because you're talking about agility, right? So how we actually can actually move faster so that we can probably get the closer answer that we want. And for us, our eye is not just financial. Yes, we have to actually do some calculation on that so that we can build a business case when we present to the board, we give them some level assurance that we are not actually starting something that without any calculated risk and rewards. What we want is to help people to look beyond that: what is the actual value that we created for the business and for the communities.

• Alex Chi , Chief Information Digital Officer, SP Setia

ROI can come from many factors. Usually, if you ask the finance folks, they want new revenue generation. But from a digital standpoint, it is more on cost optimisation, and we even partner up with the finance team to monitor the OPEX of our financial statements. Why are we doing this? Because we want to see the expenditure on OPEX or on the operation that has been incurred in the organisation, and we begin to think outside the box that what if these processes or these particular areas can be replaced by technology. The more you optimise the cost, it actually translates into higher revenue by having a bigger profit margin.?

• Budiman Bujang , Head, Digital Strategy & Innovation, Johor Corporation

I think there's many ways to monetise the ROI. Productivity leads to shorter turnaround time, which leads to lesser errors. All these indirectly lead to better customer experience. We have a 94% reduction in complaints, 60% increase in our NPS scores, and more importantly, we cut OT which also brings up our own internal satisfaction scores. So all these can be translated into monetary as well, apart from new revenue streams.

• Winnie Wong , Chief Operating Officer, Allianz Partners Malaysia

Industry4wrd: Strategies for Growth, Innovation and Sustainability in Malaysia

As Malaysia continues its journey towards achieving the goals outlined in the Industry4WRD national policy, the country faces both opportunities and challenges in integrating advanced technologies across its industries. Industry 4.0, which emphasises automation, data exchange, and smart technology adoption, is driving transformation in sectors such as healthcare, finance, and manufacturing. While large corporations have made significant strides, many SMEs, which constitute 70-80% of Malaysian businesses, are still in the early stages of embracing this digital shift. This context framed a dynamic panel discussion that explored various strategies for cost optimisation, talent management, innovation, and sustainability, each reflecting the unique challenges and opportunities faced by Malaysian enterprises.

Here are the key takeaways from the discussion, including insights from KPJ Healthcare Bhd , Pos Malaysia Berhad , SIRIM Berhad and?on digital optimisation, productivity, and sustainability initiatives:

• Industry 4.0 Readiness:? While larger companies are adopting new technologies, many SMEs (comprising 70-80% of businesses) are not yet prepared for this transition
• Growing complexity of managing ESG (Environmental, Social, and Governance) Performance Data: Emerging standards are driving the need for credibility. As organisations face challenges in ensuring data accuracy, digital technologies especially data analytics and IoT will play a key role in enabling real-time interventions to keep sustainability goals on track
• Cost optimisation and revenue strategies: Organisations are adopting diverse approaches to maintain profitability and operational efficiency, by identifying low-hanging fruits and adapting to customer and user preferences
• Engaging Employees and Nurturing Internal Talent: Talent management centred on developing internal capabilities and actively engaging employees, while promoting a culture of innovation is crucial for sustainable growth

We analyse the value chain to identify areas closely tied to business volume. For these sensitive areas, we collaborate with user groups to examine revenue generation and cost incurrence processes. This helps us develop digital optimisation initiatives to reduce costs, increase revenue, or prevent revenue leakages. Once an initiative is launched, we secure user support and monitor its progress.

• Anuar Nabi, SVP Finance, POS Malaysia

We conducted business process reengineering with departments, focusing on combining processes and enhancing productivity and customer service to assess the introduction of technologies. We implemented low-code and no-code platforms to support this effort. One successful use case resulted in a 60% reduction in non-productive work, saving approximately $2 million annually.

• Ts. Nurul Haszeli , General Manager, SIRIM Berhad

Multiple standards are emerging to drive credibility in ESG performance data. We face challenges in ensuring data legitimacy and reducing errors when collecting information from various sources, including electricity and fuel consumption. We're now addressing Scope 1, 2, and 3 emissions. Moving forward, we aim to implement automated systems for ESG data collection and utilise predictive and preventive analytics. This will allow us to intervene immediately if there are deviations from our sustainability goals, with IoT playing a crucial role in this process.

• Saravanan Desigamanie , Group Head, Sustainability, KPJ Healthcare

Stay tuned for more updates from Day 2 of the 47th ASEAN Innovation Business Platform Conference & Exhibition Malaysia

Find out more about our 2024 AIBP Conference and Exhibition in ASEAN:

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