Microsoft CEO Satya Nadella announced a $2.2 billion investment in Malaysia’s cloud and artificial intelligence infrastructure, marking the tech giant’s largest investment in the country. The investment aims to support Malaysia’s AI transformation and benefit its citizens by driving inclusive economic growth and innovation. Microsoft also plans to provide AI training for 2.5 million people in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam by 2025. This investment aligns with Microsoft’s strategy to bolster AI development in the region and globally.
During his Southeast Asia tour, Nadella also announced a $1.7 billion investment in cloud and AI services in Indonesia and the construction of Microsoft’s first regional data center in Thailand. These investments demonstrate Microsoft’s commitment to expanding its cloud and AI services in the region. The tech giant previously unveiled investments in Japan and G42, an AI firm in Abu Dhabi, further solidifying its presence in the AI industry.
The Malaysian government expressed its support for Microsoft’s investment, with Prime Minister Anwar Ibrahim emphasizing the importance of enhancing AI capacity in the country. The investment includes AI training for an additional 300,000 people, the establishment of a national AI center of excellence, enhancing cybersecurity capabilities, and supporting the growth of Malaysia’s developer community. Microsoft’s goal is to drive AI adoption across key industries and the public sector, while ensuring AI governance and regulatory compliance.
Microsoft’s expansion into AI is exemplified by its partnership with OpenAI, developers of ChatGPT, and the integration of an AI assistant called Copilot into its Microsoft Edge browser. This move has contributed to a 20% increase in profits in the first quarter for Microsoft. With a growing market in Southeast Asia, which has a population of over 600 million people, Microsoft sees potential for more AI product development in the region. A study by global consulting firm Kearney forecasted that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, with Indonesia expected to capture $366 billion and Malaysia $115 billion.
The investment in Malaysia is part of Microsoft’s 2021 program to support inclusive economic growth. The proposed national AI center will play a crucial role in driving AI adoption across various industries and the public sector. Trade Minister Zafrul Aziz stated that the partnership with Microsoft will create more opportunities for small and medium-sized enterprises and lead to better-paying jobs for the people as Malaysia embraces the AI revolution to fast-track its digitally empowered growth journey. This investment signifies Microsoft’s commitment to fostering AI development and economic growth in Malaysia and the wider Southeast Asia region.
