THE Penang Island City Council (MBPP) has become the first government agency in Malaysia to introduce a generative artificial intelligence (AI) chatbot, marking a major milestone in the digital transformation of public services.
Mayor Datuk A. Rajendran said the initiative was developed to bring residents closer to municipal services while improving the council’s efficiency in delivering urban management services to both locals and visitors.
“This is an initiative by the council to bring residents closer to our services and improve efficiency in providing urban management services.
“We began the journey to conceptualise, build and develop this chatbot two years ago, and we faced many challenges along the way.
“Technology evolves very rapidly and the systems we used earlier were not stable. We tried several times to develop a stable model, and finally, based on the current version of generative AI, we can provide this service.
“I believe this is the first chatbot by a government agency in Malaysia,” he said when met by reporters after the launch of MBPP’s GenAI Chatbot, ChatMBPP, at Queensbay Mall today.
Rajendran added that while some private sector organisations have adopted AI chatbots, MBPP is ahead among government agencies.
“A lot of other systems are on trial with other agencies, but we managed to stabilise the system with a lot of effort and expert help.
“It is generative, ever-changing and learns from the messages and information provided by users,” he said.
Chief Minister Chow Kon Yeow, who officiated the launch, said the state’s high expectations of the chatbot were closely linked to Penang’s position as a leading economic powerhouse.
“Statistics as of January 2026 show that Penang remains Malaysia’s most vibrant economic engine, contributing 44.2 per cent or RM65 billion to the nation’s total exports. We are economic champions, but this title comes with great responsibility.
“As a global giant in the Electrical and Electronics (E&E) sector, we can no longer rely on traditional administrative methods.
“When our industries are moving towards Industry 4.0 and using artificial intelligence in factories, government service delivery must be equally fast, accurate and free from bureaucracy,” he said.
Chow explained that the launch of ChatMBPP demonstrates Penang’s ambition to be more than a global hardware hub.
“We want to prove that Penang is not just the world’s hardware assembly centre, but also a leading software and AI innovation hub in the region.
“If the world sees us as the Silicon Valley of the East, the way we handle public complaints and business licensing must also be world-class,” he said.
He noted that the initiative aligns with the state’s Smart City aspirations under the City Competitiveness Master Plan (CCMP), which emphasises the use of digital technology and data to enhance urban governance and improve people’s wellbeing.
The chatbot also supports the Digital Economy Master Plan (DEMP) 2025–2030, which aims to have the digital economy contribute 35 per cent to Malaysia’s Gross Domestic Product by 2030.
“ChatMBPP uses generative AI technology to learn and respond to public queries naturally, becoming a key to the ‘Ease of Doing Business’ we aspire to achieve,” Chow added.
Looking ahead, Chow said AI integration would play a crucial role in Penang’s physical development, especially in the Silicon Island project.
“With the first phase of the Green Tech Park now ready for industrial development in the first quarter of 2026, we are preparing an ecosystem for research and development as well as integrated circuit design powered by AI-driven innovation.
“Through this MBPP initiative, we are laying the foundation for a Penang AI City. We want a city where data is used inclusively to improve the quality of life for our people.
“ChatMBPP is the public’s gateway into this smart ecosystem,” he said.
Chow also thanked all partners who collaborated with MBPP to make the initiative a reality.
“I would like to congratulate MBPP, especially the Smart City Unit, as well as all parties involved in developing ChatMBPP.
“I commend the dedication of the technical team for ensuring the technology is not only advanced but user-friendly for all segments of society.
“My appreciation also goes to the Digital Ministry and its agencies for their continued support of the Penang2030 vision to make Penang a smart and liveable state,” he said.
He further expressed gratitude to the Smart City Unit, the Development Planning Department, technology partner Axrail Sdn Bhd, Digital Nasional Berhad (DNB) and the entire MBPP workforce for their efforts in driving the council’s digitalisation agenda.
Public are able to use the ChatMBPP via the hotline number, +60 4-263 7000.
In a separate response, Chow said the state government would await further instructions from the Federal Government regarding the possibility of implementing work-from-home arrangements for civil servants.
“Although this is not new since the Covid-19 pandemic, we will wait for the directive and consider how to implement it so that some civil servants can work from home to reduce travel and physical movement, especially in view of rising petrol and diesel prices,” he said.
Among others present earlier were state Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye, Digital Ministry secretary-general Fabian Bigar, and Digital Nasional Berhad chief executive officer Datuk Azman Ismail.
Story by Kevin Vimal
Pix by Law Suun Ting
Video by Siew Chia En