Malaysia Smart City Projects Lead Southeast Asia’s Digital Twin Push

Malaysia smart city project initiatives like Putrajaya and Penang’s digital twins are reshaping urban planning and sustainability in Southeast Asia

The Malaysia smart city project is coming together in a grand manner as the country ramps up the use of digital twin technology. Far from the science fiction visuals of drones and robots that so commonly spring to mind with the concept of "smart cities," the revolution in Malaysia starts softly enough—with sensors, data, and smart systems that do things better in the city.

During the latest Smart City Expo Kuala Lumpur (SCEKL) 2025, the private and public partners launched the development of Malaysia smart city project initiatives throughout Putrajaya, Kuala Lumpur, as well as Penang. Among the initiatives is the creation of digital twins, or virtual replicas that mirror actual cities with the assistance of historical as well as real-time data to facilitate enhanced planning among officials.

Digital Twins in Action

Putrajaya Corp ICT director Mohd Musabri Shaharom defined simulations from the digital twin platform as already being utilized in the planning of the city. "We can already simulate what new developments will do to the surrounding areas, the traffic, as well as the density of the population, before we finalise new developments," he said.

The Putrajaya Malaysia smart city initiative also includes the Melor AI avatar chatbot that is linked to the Urban Observatory to give real-time data on city performance measures as well as city indicators. The city is also trialing self-driving electric buses that will be standardized to be used as part of the public transport within the city in the near future.

Penang Virtual Island

Meanwhile, the Virtual Island of Penang project that kicked off on October 3 is yet another milestone in the Malaysia smart city project timeline. The platform puts together the geospatial data, traffic, as well as the zoning data, onto one platform. According to Mohd Bashir Sulaiman, director of planning and development of the Penang Island City Council, the digital twin lets the planners assess to what degree the new-age buildings blend with the environment. "We can actually visualize in 3D whether a new-age building is suitable in a heritage area prior to approval," he said.

The digital twin of Penang also aids crime and traffic prevention, operating alongside the Royal Malaysia Police. CCTV networks and sensors with AI detect hotspots that are prone to accidents and aid in the prioritization of upgrading the infrastructure.

Data, Sensors, and IoT at the Centre

In order to energize these systems, Penang installed a vast range of IoT-linked sensors, weather monitoring stations, as well as flood sensors. The equipment feeds the digital twin with information to aid the predictive analytics of disasters such as landslides and floods.

Likewise, Putrajaya uses thousands of Internet of Things sensors that send data over 5G as well as LoRa networks. This enables the use of smart street lights, environmental sensors, as well as the weather monitoring systems.

Smarter, Sustainable Cities Ahead

Exhibitors like Henan Shengzhiyuan Intelligent Technology showcased energy-saving intelligent streetlights that can automatically decrease brightness to reduce as much as 60% in energy consumption. The same artificial intelligence-controlled traffic lights that have shown success in Pakistan and China are now being rolled out across Malaysian cities.

The intelligent city initiative in Malaysia is about more than technological innovation; it is about sustainability as well as smarter government. As Mohd Bashir explained, "Decisions must be based on data and evidence. That ensures funds are well-spent for the people's benefit."

With climate challenges as well as urbanization expansion coming over the horizon, Malaysia's internet-of-things-led and digital twinning management places it at the helm of the region's smart city revolution.