Malaysian businesses are adopting AI technologies but are lagging behind in cybersecurity measures, highlighting growing digital risks, according to a new industry report.
Kuala Lumpur, Malaysia – Media OutReach Newswire – 27 November 2025 – Malaysian businesses are rapidly adopting AI and data analytics, but weak cybersecurity strategies leave them exposed to growing digital threats, according to CPA Australia’s latest Business Technology Survey.
Although 87% of companies use data analysis and visualization tools and 85% have implemented AI, only 18% have fully integrated cybersecurity into their operational strategy, significantly lower than the survey average of 28%.
Worryingly, 17 per cent of Malaysian companies only respond to cyber threats when they occur, and 19 per cent are unaware or unsure of how cybersecurity is managed by their employer.
“As AI reshapes the business landscape, companies need to embed clear processes for protecting their digital assets into their core business strategies,” said Priya Thermarai, CPA Australia’s regional director for South East Asia.
“With the proliferation of AI-powered fraud, deepfake impersonation, and highly targeted phishing attacks, structured prevention and close monitoring are critical.”
Despite the rapid adoption of AI tools, deep integration into business operations remains low at just 11 percent, compared to the survey average of 16 percent. Most businesses use AI tools from time to time, relying on readily available tools such as ChatGPT and Microsoft Copilot, or built-in AI assistants.
Companies using AI are already seeing benefits such as increased productivity, improved employee experience such as reducing routine tasks and enabling focus on strategic priorities, and increased accuracy and efficiency for repetitive tasks, among other things.
Survey respondents cited high implementation costs, limited technology literacy among boards and senior management, and a lack of technology talent as key barriers to technology adoption.
“Malaysian companies should prioritize strengthening the technology capabilities of their senior leaders. Our research shows that Malaysia is not far behind developed countries in digital adoption, but without a clearer tone from the top, the country could fall further behind regional and global competitors in digital maturity,” Priya said.
The Malaysian government is committed to positioning the country as an AI-driven economy, with the AI Technology Action Plan 2026-2030 expected to be submitted to parliament in December.
Against this backdrop, Priya emphasized, “The increasing maturity of technologies such as AI is accelerating business transformation. AI tools are streamlining repetitive tasks and increasing productivity across organizations.”
“Although the potential of AI is immense, it cannot replace human ingenuity. As adoption increases, companies must balance leveraging technological advances while retaining and better leveraging human expertise.
“As AI reshapes various industries and operations, its true impact is yet to be determined, and possibilities, risks, challenges, and opportunities are still being discussed and discovered.”
https://www.cpaaustralia.com.au
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