Malaysia’s Prime Minister Anwar Ibrahim announced the introduction of a national cloud policy and artificial intelligence regulations on Tuesday, coinciding with significant investments by global tech giants in the country.
What Happened: The announcement coincides with a surge of investments by global tech giants in Malaysia over the past year, Reuters reported. These investments aim to build essential infrastructure to meet the rising demand for cloud and AI services.
Anwar stated that the national cloud policy will concentrate on four key areas: public service innovation, economic competitiveness, user trust and data security, and digital inclusivity.
The government will also establish a national AI office to coordinate initiatives, including a five-year technology action plan and a regulatory framework for ethical AI adoption within the next 12 months.
At a ground-breaking ceremony for Alphabet Inc. GOOG GOOGL subsidiary Google’s new $2 billion data center, Anwar said, “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.”
Google announced that its investments in Malaysia would generate 26,500 jobs and add over $3 billion to the country’s GDP by 2030.
Ruth Porat, Google’s President and Chief Investment Officer, stated, “Our investments are designed to provide high performing and reliability, meeting demand for cloud and AI services across the country.”
Digital investments have significantly boosted Malaysia’s economy this year, with growth surpassing market expectations in recent quarters.
Google’s expansion is part of a broader move by tech companies into Southeast Asia, a region with a young, tech-savvy population of 670 million.
Why It Matters: Malaysia has been aggressively positioning itself as a key player in the global tech industry.
In May, the country announced an ambitious plan to attract $107 billion in investments for its semiconductor sector, focusing on integrated circuit design, advanced packaging, and semiconductor chip manufacturing equipment.
This move aims to capitalize on Malaysia’s role in the semiconductor market, contributing to 13% of global testing and packaging. Major firms like Intel Corp. and Infineon Technologies AG have already made substantial investments in the country.
In August, Amazon Web Services committed over $6 billion to establish a new cloud region in Malaysia, expected to contribute around $12.1 billion to the country’s GDP and support over 3,500 full-time jobs annually through 2038. This investment underscores the growing importance of Malaysia as a tech hub.
Additionally, Micron Technology Inc. is considering Malaysia for high-bandwidth memory chip production to compete with South Korean rivals. This potential move is part of Micron’s strategy to capture a larger share of the AI-driven market.
Amid escalating U.S.-China tech tensions, Malaysia’s well-established infrastructure and skilled labor force have made it an attractive destination for global chip firms. The country’s expertise in the “back end” of semiconductor manufacturing, including assembly, testing, and packaging, has been a key factor in its growing importance.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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