Microsoft to invest $2.2bn for AI and cloud growth in Malaysia

2 May 2024

Image: © Richie Chan/Stock.adobe.com

Earlier this week, Microsoft revealed plans to invest $1.7bn in Indonesia over the next four years as it aims to establish its AI dominance in Southeast Asia.

Microsoft is continuing its AI investment spree around the world with a $2.2bn commitment to Malaysia over the next four years.

In an announcement today (2 May), the software giant said that the investment – the largest in its 32-year history in the country – will help make Malaysia a “hub for cloud computing” by building its cloud and AI infrastructure and helping its population to upskill.

This is the latest in a string of major AI investment commitments Microsoft has made around the world: the UK last November; Germany and Spain in February this year; and Japan and Indonesia last month.

Microsoft said that its investment will help around 200,000 people in Malaysia to upskill in AI technologies and support the growth of its developer community. The company will also establish a national AI centre of excellence and work with the government to enhance its cybersecurity capabilities.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” said Satya Nadella, CEO and chair at Microsoft. “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.”

Microsoft said the investment over the next four years is a response to growing demand for cloud computing services in Malaysia.

Tengku Zafrul Aziz, the country’s minister of investment, trade and industry, said the partnership with Microsoft has the potential to create more opportunities for SMEs and better paying jobs for people as the country “rides the AI revolution to fast-track” its growth.

“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,” said Andrea Della Mattea, president of Microsoft ASEAN.

“As a result, Malaysia is steadily establishing itself as a regional hub for digital innovation and smart technologies, embodying a forward-thinking approach that prioritises sustainable development and societal wellbeing through digital transformation.”

Earlier this week, Microsoft revealed plans to invest $1.7bn in Indonesia over the next four years in a bid to develop new cloud and AI infrastructure in the country. This came just days after the company reported strong quarterly earnings and attributed its recent success to AI, while its dominance in the cloud sector has grown.

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Vish Gain is a journalist with Silicon Republic

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