Microsoft CEO Satya Nadella is currently in Malaysia as part of his Southeast Asian tour. During his visit, the tech giant announced an investment of RM10.5 billion (USD 2.2 billion) over the next four years to support Malaysia’s digital transformation. According to Microsoft, this is their single largest investment in its 32-year history in the country.
Microsoft to build cloud and AI infrastructure in Malaysia
Microsoft’s latest investment will include building cloud and AI infrastructure in Malaysia, creating AI skilling opportunities for an additional 200,000 people in Malaysia, strengthening its partnership with the Malaysian government to establish a National AI Centre of Excellence and enhancing the nation’s cybersecurity capabilities, and to support the growth of Malaysia’s developer community.
According to Microsoft, the latest investment demonstrates their commitment to developing Malaysia as a hub for cloud computing and related advanced technologies, including generative AI. The latest developments aim to support the nation’s productivity, competitiveness, resilience and economic growth.
Satya said, “We are committed to supporting Malaysia’s AI transformation and ensuring it benefits all Malaysians. Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
Commenting on the investment, Minister of Investment, Trade and Industry, Tengku Zafrul said “Microsoft’s 32-year presence in Malaysia showcases a deep partnership built on trust. Indeed, Malaysia’s position as a vibrant tech investment destination is increasingly being recognized by world-recognized names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts’.”
“Microsoft’s development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysia’s digital capacity and further elevate our position in the global tech landscape. Together with Microsoft, we look forward to creating more opportunities for our SMEs and better-paying jobs for our people, as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey,” he added.
The latest investment will enable Microsoft to meet the growing demand for cloud computing services in Malaysia and allow the country to capitalise on the significant economic and productivity opportunities presented by the latest AI technology. Quoting research by Kearney, AI could contribute nearly USD 1 trillion (about RM4.7 trillion) to Southeast Asia’s gross domestic product (GDP) by 2030, with Malaysia poised to capture USD 115 billion (about RM548 billion) from the expected amount.
Microsoft’s recent investments in ASEAN
Before he visited Malaysia, Satya also announced a USD 1.7 billion investment in Indonesia for cloud and AI which will provide AI skilling opportunities for 840,000 people. Microsoft says it is committed to equipping 2.5 million people in member states of ASEAN with AI skills by 2025.
This is followed by the announcement of Microsoft’s first data centre region in Thailand which is expected to provide AI skilling opportunities for over 100,000 people. Microsoft’s investment to build its Azure data centre in Thailand is estimated at USD 1 billion.
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