- Smart city initiatives in KL, Pg, JB, Putrajaya enhance mobility, safety, citizen engagement
- Partnerships, talent, governance & ecosystem building drive Malaysia’s AI city transformation
In Shenzhen, one of China’s most digitally advanced cities, technology now ensures public order in ways that once required an army of municipal workers.
“I was privileged to visit a command center in China recently,” said Ahmad Zaki Zahid, chief operating officer of Digital Nasional Berhad (DNB). “Cameras are everywhere, and the algorithms detect if rubbish is left uncollected. Automatically, a ticket is sent to the city council to clear it. And there’s no human intervention.”
The same precision extends to food safety. “In China now, every restaurant kitchen is required to have a camera. If a rat is detected, and they usually come out at night, the system immediately sends an alert, and that restaurant must be closed,” he added.
It was a striking illustration of how AI and data, when woven into the fabric of urban management, can make cities more efficient, responsive, and livable. This vision was at the heart of a recent fireside chat with Malaysian city leaders on 28 Aug in Kuala Lumpur, organized by the Malaysia Digital Economy Corporation (MDEC) in collaboration with DNB, ahead of the Smart City Expo Kuala Lumpur 2025 (SCEKL25) on Sept 17-19.
Themed “From Data to Decisions: How Malaysian Cities Are Turning AI into Everyday Impact,” the session explored how AI is moving beyond pilot projects to deliver tangible benefits across Malaysia’s urban landscape.
Joining Ahmad Zaki were Anuar Fariz Fadzil, CEO of MDEC; Mohd Musabri Shaharom, director of IT & Communication at Putrajaya Corp; Muhamad Azwal Ab Aziz, director of Information Management at Kuala Lumpur City Hall (DBKL); Dr. Choo Kok Wah, assistant director of Urban Transport and Commander at Johor Bahru City Council; and Mohd Bashir Sulaiman, Director of Development Planning at Penang City Council.
Defining smart cities
The conversation began with a clarity of vision. “Technology is not the end goal,” stressed Anuar. “It’s about how data is used to improve daily lives, enhance competitiveness, and integrate AI into our urban services, business ecosystems, and governance in ways that are ethical and make lives better. For Malaysia, it’s about how we can position ourselves within Asean and globally as a regional leader by becoming an AI nation.”
For city officials, the concept of an “AI city” extends beyond technology hype. Musabri described it as “a smart city that integrates AI technologies across the nervous system,” helping optimize city operations, enhance public services, and enable predictive decision-making.
Bashir steered the conversation to ground level impact. “When we move into digital, even at the pasar malam (night markets), more than half of the stalls now accept e-wallet payments. So, the next question is: does AI help businesses sell more? How does AI create opportunities for local entrepreneurs? Will it support our aging society and make our cities more child-friendly?”
Building the foundations
While the promise of AI is immense, Anuar emphasised that successful smart city development rests on strong foundations. He outlined four critical enablers that MDEC considers essential.
Partnerships come first. “The regulatory and business environment must enable innovation,” Anuar stressed. “At MDEC, we are working closely with cities like Putrajaya on projects ranging from natural disaster preparedness to urban services. Every city has a different structure, so evolving together through collaboration is key.”
Talent is the second pillar. Advanced technologies are only as effective as the people using them. “We may have technology, but without the talent to use it and interpret AI’s insights, it will be very difficult,” he explained. “It’s about learning how to grant AI enough autonomy without losing our sense of humanness.”
Governance is equally important. Anuar underscored the need for ethics and trust to guide smart city development. “We need to believe that technology is helping us increase productivity and quality of life, and not to replace humans,” he said.
Finally, ecosystem building drives resilience and adaptability. “The pace of change is fast. Learning cycles now occur every two to three months. We need partners, governance, and collaboration to keep up.”
Practical use cases and future developments
From vision, the conversation moved to practice, highlighting how Malaysian cities are embedding AI into daily operations.
Putrajaya has laid a strong foundation for AI-driven city management, anchored on robust digital infrastructure. “We have quality 5G, Long Range (LoRa) networks, and our own PutraNet connecting 20 precincts,” said Musabri. “5G powers real-time applications like smart traffic lights and emergency response, while LoRa networks support wide-area, low-power sensors for flood, waste, and air quality monitoring. PutraNet, our fiber-based network, links precincts and agencies to enable data sharing.”
To turn connectivity into actionable insight, the city established the Putrajaya Urban Observatory, integrating millions of data points from traffic, security, and environmental systems for predictive analysis. The results are already visible. “AI-powered traffic lights have eased congestion at major junctions, while smart CCTV has helped reduce crime, with over 80% of residents reporting feeling safer. The most important part is to listen to your people and tackle pain points with technology,” Musabri added.
Up north, Penang is piloting its PEARL App, a super app designed to consolidate essential city services. From urban planning updates and traffic alerts to EV charging locations and public restroom listings, the app aims to put the city in the palm of residents’ hands.
“In Penang, you can find everything on the PEARL App, from the best nasi kandar in town to the nearest hospital. It’ll even guide you to the closest restroom, though maybe in the future we’ll add cleanliness ratings too,” quipped Bashir.
“We want AI to simplify daily life, from disaster alerts and public safety to traffic and urban planning,” he continued. “That’s why we’re complementing the app with 26 weather stations across the island and open-source data feeds. This will give both citizens and tourists real-time updates on climate, air quality, and predictive forecasts. Over time, the app will evolve into multilingual guides and real-time navigation, so everyone benefits from Penang’s digital ecosystem.”
In Johor Bahru, just across the causeway from Singapore, smart city ambitions are closely tied to cross-border flows. “Every day about 300,000 people travel between Singapore and Johor Bahru. By 2026, the Rapid Transit System (RTS) will carry 10,000 passengers per hour in each direction, so we must use AI to ensure seamless movement,” said Kok Wah.
Tourism is equally central, with 2026 declared Visit Johor Year. Autonomous buses will be introduced, while the newly opened Royal Johor Botanical Garden features AI monitoring and sensors to manage crowds and enhance visitor safety.
Meanwhile, Kuala Lumpur is consolidating city data into a single data lake, enabling AI-driven decision-making across departments. “Before AI, we had to move from manual to digital. Now, with concrete data, AI can help us provide better services,” explained Azwal. “The capital is deploying smart street lighting, AI-enabled traffic systems, and mobile applications aimed at reducing congestion and cutting carbon emissions.”
The hard realities and challenges
Despite Malaysia’s ambitions, Anuar noted that older cities face very different challenges compared to purpose-built ones.
“Penang, for example, has been a city since the 1700s. The roads, the lanes, the heritage zones, they can’t just be changed. Putrajaya, on the other hand, was planned, with fiber and straight roads that make it easier to adopt things like autonomous driving. So, the foundation of a city cannot change, and that makes retrofitting AI much harder,” he explained.
Funding adds another layer of complexity. Bashir stressed that resources are always stretched thin. “City councils work on limited budgets, and when you put digital projects next to other pressing needs, the funding is not always there. That’s why federal support and partnerships with the private sector are so important.”
Musabri pointed out that even with technology, impact is limited without coordination. “If the police, transport, and city hall all keep their own datasets and don’t share, you end up with siloed systems. Data integration is critical if we want AI to really work in our cities,” he emphasized.
Looking Ahead with digital twins
Malaysia’s urban transformation will increasingly hinge on advanced modeling and simulation. Digital twin technology - virtual replicas of cities, offers policymakers a way to test and predict scenarios before implementing solutions on the ground.
“With this, you can simulate different scenarios, whether it’s flood management, traffic control, or urban planning, before applying them in the real world. It helps predict outcomes, save costs, and improve decision-making,” said Anuar.
Both Azwal and Bashir reinforced this vision, noting that their cities are already embedding digital twin principles into internal operations to enhance decision-making, streamline asset management, and optimize zoning plans.
As Malaysia prepares to showcase its progress on the global stage at SCEKL25, one point became unmistakably clear. The country’s urban future will be shaped not just by algorithms and sensors, but by the foresight, strategy, and collaboration of its leaders.
---
Autor(en)/Author(s): Lan Ghafar
Dieser Artikel ist neu veröffentlicht von / This article is republished from: Digital News Asia, 12.09.2025
Bitte besuchen Sie/Please visit:
