Fahmi Says a Second Media Innovation Fund Phase Is Coming and AI Must Not Replace Journalists

Malaysia may announce a second phase of its Media Innovation Fund in the coming weeks, Communications Minister Datuk Seri Fahmi Fadzil said on October 23, adding that artificial intelligence should make newsrooms more productive without replacing the people who work in them, Bernama reported.

The first phase, worth RM30 million, helps media organisations buy equipment, upgrade skills and use AI tools to improve productivity and efficiency as the industry digitalises. Speaking in a podcast interview with Agenda Daily, Fahmi said the size of the next phase would be announced later. He said AI could raise efficiency and cut operating costs but must never replace journalists, arguing that human thought, writing style and the human touch are what set traditional media apart from AI-generated content.

Fahmi went further on fully automated news. Stories produced entirely by AI agents with no human involvement should be avoided to protect what he called the country's news sovereignty, he said, adding that Malaysia should not rely solely on foreign sources and needs genuinely Malaysian ones.

What it means in practice

The pressure on newsrooms is financial. Fahmi said traditional media advertising has fallen by 40 to 50 per cent, from an estimated RM4.5 billion to RM2 billion, as RM2.5 billion moved to social media, a shift also driven by Gen Z and Generation Alpha audiences. He urged media owners to find new digital revenue rather than rely on conventional advertising. Funding AI tools while drawing a line at replacing reporters gives publishers money to automate routine work, but leaves each newsroom to decide where assistance ends. The stance fits the government's wider attention to AI and information integrity, from the MCMC probe into a report on AI-driven voter manipulation to Fahmi's push for a sovereign AI cloud that keeps classified data at home.

Fahmi also reminded journalists that being first must never come at the cost of accuracy, saying breaking news is fine but breaking rules is not, and pointed to the Malaysian Media Council as the body through which the industry sets its own ethical standards without government interference. He voiced concern about possible mergers among local media companies, saying a diversity of voices is essential to democracy.

What to watch: the size and conditions of the second phase, and whether the Malaysian Media Council issues guidance on AI use in newsrooms.