Kuala Lumpur, Malaysia – The latest report from CPA Australia finds that organisations in Malaysia are rapidly increasing their use of AI and data-driven tools, but their cybersecurity preparedness is developing at a slower pace.
The findings show that Malaysian businesses are among the most active adopters of data analytics and AI across the markets surveyed, with usage rates between 87% and 85%. However, deep integration of these tools into day-to-day operations remains limited.
Only a small proportion have embedded AI into multiple functions, and most rely primarily on free or readily available applications rather than purpose-built systems.
The report also indicates that businesses using AI most frequently experience gains in efficiency and productivity, with many also reporting improvements in EX as repetitive processes are automated and workloads reduced. Accounting and finance teams are particularly active users of AI, especially for data analysis, reporting tasks and research.
“While our survey shows that Malaysia is not far behind leading countries in digital adoption, without a clearer tone at the top, the nation could fall further behind regional and global competitors in digital maturity,” Priya Terumalay, CPA Australia’s regional head for Southeast Asia, stated.
“Though the potential of AI is immense, it is not a substitute for human ingenuity. As adoption increases, businesses must strike a balance between leveraging technological advancements while preserving and making better use of human expertise.”
Despite this strong adoption, several constraints continue to slow broader technological progress. Respondents commonly cited high investment costs, shortages of specialised talent and limited digital fluency among senior leaders as major barriers. These challenges are more pronounced in smaller organisations, which are also more likely to identify training gaps as an obstacle.
Cybersecurity readiness in Malaysia remains uneven. Only 18% of Malaysian respondents said their organisation has fully integrated cybersecurity into its operational strategy, trailing the survey average. A further proportion indicated that practices are still reactive, while some were unsure how cybersecurity is handled within their organisation.
This lag persists even as digital threats increase, with nearly one in five Malaysian respondents stating that their business responds to incidents only as they arise.
The report highlights that cybersecurity maturity tends to correlate with business size, with larger organisations more likely to have structured processes and regular reviews in place. Across all markets, around 20% of respondents reported losing time or money due to cyber incidents in the past year, most describing the impact as minor.
Looking ahead, businesses across the region expect to expand their use of AI, data analytics and business intelligence tools over the next 12 months. Malaysian respondents expressed similar expectations, though at a slightly slower pace than some neighbouring markets.
Overall, the report reveals a widening gap between rapid AI adoption and slower cybersecurity development in Malaysia, underscoring the need for stronger governance, skills development, and strategic leadership as organisations expand their use of emerging technologies.
