Microsoft has unveiled its plan to invest a staggering $2.2 billion in Malaysia for cloud and artificial intelligence (AI) infrastructure, marking the company's largest-ever investment in the Southeast Asian nation.
Microsoft's CEO Satya Nadella made the announcement during the Microsoft Build: AI Day event held in Kuala Lumpur, Malaysia.
(Photo : MOHD RASFAN/AFP via Getty Images)
Microsoft CEO Satya Nadella delivers a speech during an event named Microsoft Build AI Day in Kuala Lumpur on May 2, 2024. Microsoft on May 2, 2024 pledged a $2.2 billion investment in artificial intelligence and cloud computing in Malaysia to help develop the country's AI infrastructure, the tech giant said in a statement.
Microsoft Boosts Malaysia's AI, Tech Economy with Major Investment
This substantial investment is set to be rolled out over the course of the next four years, with the primary aim of strengthening Malaysia's digital transformation efforts.
Nadella emphasized Microsoft's commitment to supporting Malaysia's evolution into a regional digital hub, stating, "We really want to make sure that we have world-class infrastructure right here in the country, so that every organization, every software developer, every startup can use it, to really not only build for this country, but for the world and the region."
The investment encompasses various facets, including the development of cloud and AI infrastructure, provision of AI training opportunities, establishment of a national AI Centre of Excellence, and reinforcement of the nation's cybersecurity capabilities.
Nadella reiterated Microsoft's dedication to ensuring that the benefits of this investment extend to all Malaysians, asserting, "We are committed to supporting Malaysia's AI transformation and ensuring it benefits all Malaysians."
Prime Minister Anwar Ibrahim welcomed Microsoft's substantial investment, underscoring its significance in bolstering Malaysia's economic foundation and reinforcing the nation's status as a favorable destination for tech investment.
He remarked, "This investment proves their confidence in the country's strong economic foundation, clear directions in policies, aside from political stability and investor-friendly."
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Microsoft's Strategic Investments in Malaysia and Indonesia
Microsoft's investment in Malaysia follows a similar initiative in Indonesia, where the company pledged $1.7 billion over four years for cloud computing and AI infrastructure.
Nadella emphasized the pivotal role of AI in reshaping how people live and work, stating, "This new generation of AI is reshaping how people live and work everywhere, including in Indonesia."
The company's commitment to Southeast Asia extends beyond infrastructure investment, with plans to provide AI skilling opportunities to 2.5 million people across ASEAN member states by 2025. In Malaysia alone, Microsoft aims to benefit 200,000 individuals through AI training programs, technical education initiatives, and support for underserved communities.
Furthermore, Microsoft will collaborate closely with the Malaysian government to strengthen the nation's digital ecosystem. This includes establishing a national AI Centre of Excellence and partnering with various government agencies to drive AI adoption across key industries while ensuring regulatory compliance and governance.
The investment in Malaysia aligns with Microsoft's broader vision of fostering inclusive economic growth and innovation across the region. Andrea Della Mattea, President of Microsoft ASEAN, highlighted Malaysia's progress as a regional hub for digital innovation and smart technologies.
"This strategic emphasis on AI not only boosts economic growth but also promotes inclusivity by bridging the digital divide and ensuring everyone gets a seat at the table, so every Malaysian can thrive in this new digital world," Della Mattea said.
Research indicates that by 2030, artificial intelligence (AI) could boost Southeast Asia's GDP by almost $1 trillion, with Malaysia expected to account for US$115 billion of this total.
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