Microsoft invests $2.2Bn in Malaysia’s AI, cloud future
KUALA LUMPUR, MALAYSIA — Microsoft has announced a massive $2.2 billion investment in Malaysia over the next four years to support the country’s digital transformation and drive inclusive economic growth through artificial intelligence (AI) and cloud computing.
This is Microsoft’s largest investment in its 32-year history in Malaysia. It will focus on building cloud and AI infrastructure, creating AI skills opportunities for 200,000 Malaysians, establishing a national AI Center of Excellence, and enhancing the nation’s cybersecurity capabilities.
“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,” said Satya Nadella, Microsoft’s Chairman and CEO.
Malaysia’s Minister of Investment, Trade & Industry, YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, lauded the partnership: “Malaysia’s position as a vibrant tech investment destination is increasingly being recognized by world-recognized names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts.’”
Boosting Malaysia’s digital capacity
The digital infrastructure investment builds on Microsoft’s “Bersama Malaysia” (Together with Malaysia) initiative launched in 2021, which included plans to establish the company’s first data center region in the country.
According to research by Kearney, AI could contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030, with Malaysia poised to capture $115 billion of this amount.
Microsoft announces US$2.2 billion investment to fuel Malaysia’s cloud and AI transformation.
Read more ➡️ https://t.co/clz9CnHeLE#MSBuildAIDay #MicrosoftMalaysia #CEOVisit
— Microsoft Malaysia (@MYMicrosoft) May 2, 2024
Outsourcing and AI adoption in Malaysia
Malaysia is a scenic Asian country that is known for its tight-knit community and rich culture – it’s not falling behind when it comes to producing a young, booming, and talented workforce.
The business process outsourcing industry in Malaysia—and the rest of Asia—continues to grow exponentially, all thanks to the globalization of jobs. Despite dire circumstances, the Malaysian BPO industry managed to maintain a growth rate of 3.1% over the period of 2019 to 2024, according to Global Data.
However, one of the key challenges for the Malaysian outsourcing industry is the need to move up the value chain and offer high-value services, including AI-powered solutions. Microsoft’s investment in AI infrastructure and skilling could help address this challenge by enabling local service providers to adopt and leverage AI technologies more effectively.
“As designers of the technology, we understand there is a crucial need for responsibility when creating and working with AI, and we aim to continue collaborating in this area, including with sharing our best practices,” said Adilah Junid, Director of Legal & Government Affairs at Microsoft Malaysia.
