Maran Perianen
Malaysia’s AI City Initiative has cut traffic congestion in Penang by 10% to 15%. In Ipoh, waits at congested lights fell from two minutes to 40 seconds.
The Digital Ministry gave the figures in a written parliamentary reply on Monday. It said nine local authorities took part in the first phase.
Here is what the results show, how Ipoh got here and where the plan goes next.
What the ministry reported
The ministry replied to Bakri MP Tan Hong Pin. It said the AI City Initiative delivered positive results in nine councils under the National AI Action Plan 2026-2030.
The Penang Island City Council recorded the 10% to 15% drop in congestion. The reply did not say which junctions or tools were involved.
In Ipoh, coordinated traffic-light timings cut waits at busy points from two minutes to 40 seconds. That helped traffic move more smoothly. The ministry calls the nine councils “living labs” for AI.
The nine councils are Penang Island, Ipoh, Kuala Lumpur, Petaling Jaya, Putrajaya, Kuching North, Jasin, Johor Bahru and Shah Alam. Together they ran 28 projects as test sites.
In addition, the 5G Enterprise and AI City Grant, launched on 13 August 2025, funds the work. The reply gave no grant amount.
How Ipoh got here with AI City Initiative
Ipoh has used AI traffic lights since 2022. The city council and Telekom Malaysia installed them at four junctions on Jalan Sultan Idris Shah.
The junctions meet Jalan Laksamana, Jalan Datuk Onn Jaafar, Jalan Raja Musa Aziz and Jalan Raja Ekram. The system uses HD cameras and video analytics.
At the 2022 launch, then mayor Datuk Rumaizi Baharin said the lights could lift peak-hour flow by up to 51%. That was a 2022 target, not a 2026 result.
However, the ministry reply did not say whether the new figures come from those same four junctions.
The launch also opened the Ipoh Integrated Operation Centre. It was the first northern city with 5G at one gigabit per second, Telekom Malaysia and Digital Nasional said then.
Ipoh has pursued other digital steps. Our reports cover its traffic master plan and its smart lampposts for 5G.
Sharing the technology nationwide
The ministry said not all 156 local authorities need their own AI systems. Therefore, it plans an integrated data platform instead.
The platform will include an AI Algorithm Bank and an AI Marketplace. Councils can share proven tools, data and solutions through them.
The ministry calls the approach “Build Once, Reuse and Scale”. It follows a directive from the Prime Minister on 10 April and the AI City Task Force formed in August.
It also proposes a National Command Centre that combines AI analytics and Digital Twin technology. The aim is a “Thinking City” that spots problems early.
Other cities test different tools. For example, Putrajaya trials a 5G autonomous electric bus, reports said. Johor Bahru tests drone-based traffic monitoring.
Meanwhile, Kuala Lumpur works on digital twins and AI road asset mapping. Kuching tests traffic violation detection and smart tree management.
Older towns can join too. Muar rates as a Level 1 Smart City Early Adopter. The ministry said the AI City Initiative could upgrade its systems in phases. Our report on homegrown AI solutions covers the wider push.
Sashidaran Gunathevan
Amirull Salihing
C. Khor
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