Cloud Space COO Aaron Chong On AI Adoption In Malaysia’s Public Sector And Digital Growth

Aaron Chong (Director & COO of Cloud Space Sdn. Bhd.)

1. There is increasing focus on AI adoption within the public sector. What are you seeing in Malaysia today?

 

There is clear and accelerating momentum across both federal and state levels. Public sector organisations are actively exploring how AI can be used to improve operational efficiency, decision-making, and service delivery.

Based on early 2026 indicators from national digital initiatives, many agencies are still in exploratory or pilot phases, which suggests significant opportunity for broader, scaled implementation. This also reflects a broader shift where digital transformation is no longer optional but a necessity driven by rising expectations from citizens and stakeholders.


2. Cloud Space has worked with Google Cloud and the Selangor state government under the Teraju AI programme. What were the key objectives?

 

The main objective was to identify high-impact, practical use cases where AI could deliver measurable improvements in a short timeframe.

Rather than pursuing broad experimentation, the programme focused on solving specific operational challenges within departments. This ensured outcomes were relevant, actionable, and easier to scale later.

A key priority was also to create a structured framework where successful implementations could be replicated across other agencies over time.


3. Can you share examples of how AI was applied in these initiatives?

 

One of the key applications involved improving accuracy in water meter readings using AI-driven validation. This significantly reduced manual errors by automating parts of the data capture process.

Early implementations have demonstrated the potential to reduce reading and transcription errors by up to 95%, primarily by replacing manual entry with computer vision and automated data transmission systems.

Another use case involved streamlining report generation processes within state-level administrative workflows, improving both turnaround time and consistency.

In some pioneering implementations, such as automated transcription systems for legislative reporting, turnaround times have been reduced by more than 60%, enabling faster publication cycles and improved operational efficiency.


4. How important is speed of deployment in public sector projects today?

 

Speed has become increasingly important, particularly for high-visibility or citizen-facing services.

For example, during large-scale events such as the ASEAN Business and Investment Summit 2025, rapid deployment of AI-powered multilingual translation tools demonstrated that cloud-based solutions can be implemented quickly when alignment between stakeholders is strong.

This shows that agility is now a critical factor in delivering meaningful digital transformation in the public sector.


Cloud Space Named 2026 Google Cloud Partner of the Year for Malaysia (L-R: Benjamin Kok, Head of Data & Projects; Kishan Singh, Head of Sales).

5. What are the biggest barriers to AI adoption in government?

 

One of the key challenges is moving from pilot projects to full-scale implementation. Many initiatives show strong early results but face complexity when scaling across departments.

Integration with legacy systems also remains a challenge, as many existing infrastructures were not designed for modern AI applications.

In addition, organisational alignment and change management are equally important, as successful adoption depends not just on technology but also on people and processes.


6. How can public sector organisations ensure responsible use of AI?

 

Responsible AI starts with strong governance frameworks, including clear guidelines on data usage, transparency, and accountability.

It is also important that AI solutions are deployed with clearly defined objectives and measurable outcomes, rather than being implemented without a specific purpose.

Continuous monitoring is equally critical to ensure systems remain effective, compliant, and aligned with evolving policy and regulatory requirements.


7. Cloud Space was recently named the 2026 Google Cloud Partner of the Year for Malaysia. How does this position you in supporting government initiatives?

 

This recognition reflects our capability to deliver complex, high-impact projects at scale, including within the public sector.

It reinforces the trust placed in us to execute initiatives that require both technical depth and structured delivery.

More importantly, it strengthens our role in bridging the gap between advanced technology and real-world implementation in government environments.


8. How do you see collaboration between the public and private sectors evolving in this space?

 

Collaboration will be central to accelerating digital transformation.

The private sector brings innovation, speed, and technical expertise, while the public sector provides scale, governance, and long-term impact.

When both sides work in alignment, it creates a stronger ecosystem for sustainable innovation, particularly in AI, data, and digital infrastructure.


9. What role can Malaysia play in the regional AI landscape?

 

Malaysia has strong potential to be a regional leader in applied AI, supported by its talent pool and growing digital infrastructure.

However, the key differentiator will be execution—specifically the ability to scale successful initiatives beyond pilots and sustain momentum across sectors.

With consistent execution, Malaysia can position itself as a practical innovation hub for ASEAN, particularly in scalable AI adoption.


10. What should be the priority for Malaysia in the next phase of digital transformation?

 

The priority should be scaling proven solutions. There are already many successful pilot programmes across agencies that can be expanded nationally with the right coordination.

This requires structured governance, aligned funding, and cross-agency collaboration.

Ultimately, the focus should be on ensuring that AI and digital transformation translate into measurable improvements in public service delivery and citizen experience.

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