Why IoT and AI Are the Backbone of a Nation’s Technological Sovereignty

I often wonder what truly defines a nation’s strength in today’s digital world. Is it the size of its economy, its military prowess, or the natural resources it possesses? While all these play a role, I believe that a country’s real power lies in its ability to control and innovate its own technology. At the heart of this technological sovereignty are two game-changing forces: the Internet of Things (IoT) and Artificial Intelligence (AI).

We are entering an era where data is the new oil and intelligence is the new currency. Nations that fail to embrace AI and IoT risk becoming mere consumers rather than leaders in the global tech race. The question is: Will we take charge of our technological destiny, or will we remain dependent on foreign players for our critical infrastructure? Let’s explore why IoT and AI are not just smart devices and automation but also securing our future.

1. The Battle for Data Control and National Security

Technology is no longer just about convenience; it’s about sovereignty. The more we rely on foreign AI models and IoT infrastructures, the more we expose our data, businesses, and government operations to external threats.

Owning Our Data: The First Step to Sovereignty

I’ve always believed that data is a nation’s most valuable resource. Just like oil fueled the Industrial Revolution, data is fueling the digital revolution. But imagine if a country had to depend on foreign companies to extract, refine, and distribute its oil. It would be at the mercy of external forces. The same applies to data.

With AI and IoT, we can take charge of our data. Local data centres, secure cloud computing infrastructures, and homegrown AI models ensure that our national data stays within our borders and is protected from cyber threats and foreign surveillance.

Preventing Foreign Surveillance and Cyber Threats

Cybersecurity threats are real. We risk exposing sensitive information to external parties whenever we use a foreign AI-powered application or cloud-based IoT system. Governments, businesses, and even individuals can become targets of cyber espionage. Malaysia’s Cyber Security Act 2024 is a step in the right direction, ensuring our digital assets remain protected. But laws alone are insufficient—we need the technological infrastructure to support these policies.

Investing in sovereign AI and IoT solutions ensures that our government, military, and critical industries are shielded from external interference.

2. Economic Growth and Global Competitiveness

Technological sovereignty is not just about security—it’s about economic independence. The nations that control their AI and IoT ecosystems will shape the future of global industries.

Job Creation and Economic Empowerment

One of the most inspiring developments in Malaysia has been the influx of tech investments to build local AI and IoT capabilities. Companies like Google and Oracle are pumping billions into Malaysia’s digital economy. Google’s $2 billion investment in a new cloud and AI region will create over 26,500 jobs and contribute $3.2 billion to the country’s GDP by 2030. On the other hand, Oracle is investing $6.5 billion to establish its cloud region in Malaysia.

These aren’t just numbers. They represent real opportunities—high-paying jobs for our youth, local innovation hubs, and a digital economy that doesn’t rely on foreign tech dominance.

Building Our Own Technology Ecosystem

Relying on foreign technologies means giving control of our economic future to external entities. But when we develop our AI-powered IoT systems, we create an ecosystem that is resilient, self-sustaining, and globally competitive.

Take the example of Malaysia’s AI Park—a $1 billion investment by India’s Eros Investments. It’s not just about developing AI models; it’s about setting up an entire industry that will support local entrepreneurs, researchers, and businesses in the AI and IoT space.

3. AI-Driven National Decision-Making

AI isn’t just about robots and automation—it’s about making intelligent decisions at a national level. From predicting economic trends to managing city infrastructures, AI allows governments to plan with precision.

Smart Governance and Public Services

Imagine a government where AI can predict and manage traffic congestion, optimize public transport, and even analyze healthcare trends to prevent disease outbreaks before they happen. With IoT sensors collecting real-time data and AI models processing it, governments can make data-driven, efficient, and responsive policies.

Malaysia’s National AI Office is a significant step in this direction. By creating an AI-first policy framework, we are moving towards an intelligent, proactive, and future-ready governance model.

4. Strategic Autonomy in Emerging Technologies

AI and IoT in Smart Cities and Agriculture

One of the most exciting applications of IoT and AI is in smart cities and agriculture. A self-reliant nation must feed itself, sustain itself, and protect itself. IoT-driven precision farming can help Malaysia ensure food security by monitoring soil quality, automating irrigation, and predicting weather patterns to maximize crop yields.

Smart city projects powered by AI can reduce energy consumption, improve waste management, and even prevent crime through intelligent surveillance systems. The less we depend on foreign companies to build these infrastructures, the more control we have over our cities and resources.

5. Resilience Against Geopolitical Risks

Avoiding Foreign Tech Restrictions

What happens when a country suddenly loses access to a critical technology because of geopolitical tensions? We’ve seen how trade restrictions can cripple industries overnight. Countries that are overly dependent on foreign technologies risk sudden disruptions in essential services and infrastructure.

Take AI chips, for example. The US-China tech war has shown us how a simple export restriction can paralyze entire industries. If Malaysia or any other country wants to future-proof its technological capabilities, it must invest in developing its own AI chips, cloud services, and IoT ecosystems.

A Self-Reliant Digital Economy

A nation’s strength is measured by its ability to stand independently. AI and IoT empower countries to build a self-reliant digital economy not easily shaken by external forces. By controlling our own cloud platforms, AI models, and IoT networks, we reduce our vulnerability to external trade wars and policy shifts.

Final Thoughts: The Road to True Digital Independence

The future belongs to those who control their own technology. AI and IoT are not just tools but the foundation of a nation’s economic, security, and governance infrastructure.

If Malaysia continues on this path—investing in local AI research, securing its IoT infrastructure, and building sovereign digital policies—we will not only compete in the global tech race but also lead it.

We are at a crossroads. Should we take charge of our future or allow others to dictate our technological destiny? The choice is ours.