ILMU launch marks Malaysia’s breakthrough in AI race

Malaysia has staked its claim in the global artificial intelligence arena with the launch of ILMU, the country’s first home-grown multimodal large language model (LLM), at the ASEAN AI Malaysia Summit 2025. Prime Minister Datuk Seri Anwar Ibrahim officiated the milestone unveiling at the Malaysia International Trade and Exhibition Centre, positioning the nation in the fast-intensifying regional contest to lead Southeast Asia’s AI development.

Developed by YTL AI Labs in collaboration with Universiti Malaya, ILMU is capable of processing text, voice, and images, while understanding Malay, Manglish, and local dialects such as Kelate. Hosted on YTL’s local AI Cloud, the model ensures data sovereignty, aligning with Malaysia’s strategic push for technological independence and cultural representation in AI systems.

A model built for Malaysia’s linguistic identity

ILMU’s development reflects a deliberate strategy to bridge a long-standing gap in AI language representation. With over 1,200 languages spoken across Southeast Asia, regional AI developers have increasingly prioritised localisation over competing solely on technical specifications. ILMU’s record-breaking performance in Bahasa Melayu language understanding benchmarks places it ahead of other frontier models, including GPT-4 and Llama, for Malaysia’s national language.

By embedding cultural and linguistic nuances into its core, the model is designed not just to match international capabilities, but to serve as a tool rooted in Malaysian values and communication styles. This approach offers Malaysia a competitive edge by appealing to both local users and businesses seeking AI tools that reflect the country’s social and cultural fabric.

Accelerating local AI adoption

YTL AI Labs, part of YTL Power International Berhad, has also launched the ILMU AI Accelerator Programme in partnership with the Malaysia Digital Economy Corporation (MDEC). This initiative offers RM5 million in free ILMU API credits, Malaysia Digital (MD) Status incentives, and talent facilitation for startups, SMEs, and global solution providers operating in the country.

The move aligns with government data showing that 70% of Malaysian business leaders consider AI crucial for competitiveness. By removing cost barriers to adoption, the programme is expected to stimulate the creation of AI-powered solutions tailored to local markets, further embedding ILMU into the national digital economy.

Malaysia’s regional AI ambition

The unveiling of ILMU underscores Malaysia’s broader ambition to become a regional AI hub. Annual government investments of RM10 billion in skills training and workforce development, alongside the establishment of the National Artificial Intelligence Office, have laid the groundwork for such breakthroughs. Strategic partnerships with major technology players, including Microsoft’s cloud region launch and collaborations with Petronas, have strengthened the nation’s digital infrastructure.

While Singapore remains the dominant force in ASEAN AI investment, with USD 741 million committed over five years, Malaysia’s focus on linguistic sovereignty and cultural integration offers a distinct competitive pathway. ILMUchat, the consumer-facing chatbot based on the model, will be available for early access from September 16, 2025, symbolically coinciding with Malaysia Day.

With this launch, Malaysia has not only taken a bold step toward AI self-reliance but also signalled its intent to lead a Southeast Asian AI movement grounded in diversity, language, and shared innovation.