The proposed centre aims to position Johor as a regional hub for responsible, industry-driven AI innovation, aligning with Malaysia's digital economy goals while strengthening cross-border collaboration between Southeast Asia and India.

The development follows Prime Minister Narendra Modi's recent visit to Malaysia and discussions on expanding cooperation in digital technologies. The MoU emerged from deliberations at the pre-AI Summit held in Kuala Lumpur under the aegis of the High Commission of India in Malaysia.

High Commissioner of India to Malaysia BN Reddy said, "This MoU aligns with the Malaysia India Digital Council framework covering Digital Public Infrastructure, Cyber Security, Digital Talent and AI. We welcome the initiative to explore a Centre of Excellence for Applied AI in Johor."

Under the agreement, the partners will examine applied AI research, executive education programmes, faculty exchanges, startup engagement and industry testbeds. The centre will focus on responsible AI, including transparency, safety, fairness and governance.

Ahmad Yusri Mohamed, Chief Digital Officer of JCorp, said the collaboration would support Johor's ambition to build globally competitive technology ecosystems. Najmie Noordin, Chief Talent Officer, said it would strengthen deep-tech capability and talent development.

Raghunathan Rengaswamy, Dean (Global Engagement), IIT Madras, said the partnership connects research strength with industry deployment. IITM Global CEO Thirumalai Madhavnarayan said Malaysia is emerging as a key strategic partner in its global innovation roadmap.