Malaysia is making a bold move to become a leading force in the global tech industry. Prime Minister Anwar Ibrahim announced the introduction of a national cloud policy and regulations for artificial intelligence (AI) on Tuesday, a move that coincides with a wave of investments from tech giants. This strategic move is part of Malaysia’s ambitious plan to build a strong digital economy.
Over the past year, Malaysia has seen a surge in investments from global tech giants. These investments aim to build critical infrastructure to meet the growing demand for cloud and AI services. The national cloud policy will focus on four key areas:
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Public service innovation:
The government aims to use cloud technology to improve public services and make them more efficient.*
Economic competitiveness:
The policy aims to enhance Malaysia’s competitiveness in the global economy by promoting the use of cloud and AI.*
User trust and data security:
The government will prioritize user trust and data security by establishing strong regulations and oversight for cloud services.*
Digital inclusivity:
The policy aims to ensure that everyone in Malaysia has access to the benefits of the digital economy.In addition to the cloud policy, Malaysia is also establishing a national AI office. This office will coordinate AI initiatives, including a five-year technology action plan and a regulatory framework for ethical AI adoption. This framework will ensure responsible and ethical use of AI technology in Malaysia.
This push for AI and cloud technology is underscored by the recent $2 billion investment from Google in Malaysia. The investment will go towards building a new data center and is expected to generate 26,500 jobs and add over $3 billion to the country’s GDP by 2030.
“We aim to position Malaysia as a hub for generative artificial intelligence and investments from tech partners will be critical in building a robust and secure digital infrastructure,” said Anwar Ibrahim at the groundbreaking ceremony for Google’s new data center.
Ruth Porat, Google’s President and Chief Investment Officer, added, “Our investments are designed to provide high performing and reliability, meeting demand for cloud and AI services across the country.”
This investment from Google is part of a broader trend of tech companies investing in Southeast Asia. This region has a large and tech-savvy population, making it an attractive market for tech giants.
Malaysia is actively capitalizing on its strategic location and skilled workforce to become a key player in the global tech industry. The country’s recent investments in its semiconductor sector, attracting major players like Intel and Infineon, are a testament to this commitment.
In August, Amazon Web Services announced a $6 billion investment to establish a new cloud region in Malaysia, expected to contribute $12.1 billion to the country’s GDP and create over 3,500 jobs annually.
Micron Technology Inc. is also considering Malaysia for its high-bandwidth memory chip production, aiming to compete with South Korean rivals. This move reflects Micron’s strategy to expand its reach in the AI-driven market.
Amid escalating U.S.-China tech tensions, Malaysia’s well-established infrastructure and skilled labor force have made it a desirable destination for global chip firms. The country’s expertise in the “back end” of semiconductor manufacturing, including assembly, testing, and packaging, has further cemented its importance in the global semiconductor supply chain.
Malaysia’s proactive approach to embracing AI and cloud technology, coupled with its strategic location and skilled workforce, positions it as a strong contender in the global tech landscape. This shift towards a digital economy is set to drive economic growth and create opportunities for the future.
