The article explores how AI and technology could address Malaysia’s productivity challenges. Despite leading ASEAN in productivity until 2000, Malaysia has seen a decline, with lower contributions from micro, small, and medium enterprises (MSMEs). The New Industrial Master Plan (NIMP) 2030 aims to transform industries by incorporating robotics, automation, and AI to boost productivity and economic complexity. The plan emphasizes retraining workers and supporting MSMEs with digital tools to enhance competitiveness and growth.