Microsoft Chairman and CEO Satya Nadella has announced today (May 2, 2024) that the company will be investing US$2.2 billion (RM10.5 billion) in Malaysia, to be dispersed over the next four years.
To go towards advancing cloud and AI technology, this marks the single largest investment Microsoft has made in Malaysia. It was announced during Nadella’s keynote speech during Microsoft Build: AI Day in Kuala Lumpur.
Nadella has been on a three-nation tour of Southeast Asia, covering ground in Indonesia and Thailand as well to announce a range of investments in data centres, AI, and cloud services.
In Malaysia, the investment will specifically go towards:
Building cloud and AI infrastructure in Malaysia
Creating AI skilling opportunities for an additional 200,000 people in Malaysia
Strengthening its partnership with the Malaysian government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities
Supporting the growth of Malaysia’s developer community
To the second point, Microsoft will provide technical and vocational education, training students with AI skills through an AI TECH Malaysia programme, done in collaboration with ASEAN Foundation and Biji-biji Initiative.
Another programme under this commitment is Ready4AI&Security, designed to provide women with opportunities to build careers in cybersecurity.
Microsoft will also give young people from underserved and underrepresented communities AI fluency training, enhancing their employability and work readiness. It also aims to upskill employees of non-profit organisations with AI knowledge and skills.
As for its commitment to work with the government to enhance our digital ecosystem, the key initiatives include establishing a national AI Centre of Excellence to drive AI adoption while ensuring AI governance and regulatory compliance.
According to the press release, Microsoft will also launch AI adoption projects with other governmental organisations such as the Ministry of Investment, Trade and Industry (MITI), Cradle, MDEC, and the Malaysia Energy Commission.
Microsoft will also collaborate with the National Cyber Security Agency of Malaysia (NACSA) to enhance Malaysia’s cybersecurity capabilities.
Fostering the growth of Malaysia’s developer community is initiatives like AI Odyssey, which is expected to help 2,000 Malaysian developers become AI subject matter experts.
On top of that, Malaysian organisations are already boosting their operations with Microsoft’s generative AI-powered solutions.
For instance, homegrown agritech startup Agroz used the Azure OpenAI Service to create Agroz Copilot for Farmers. PETRONAS has adopted Copilot for Microsoft 365 to enhance employee productivity and creativity.
What this means for Malaysia
During his announcement, Microsoft CEO and Chairman Nadella stated, “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.”
The investment will support Malaysia’s National AI Framework, which in turn will enhance our country’s global competitiveness.
YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade & Industry also stated that the partnership is what was envisaged by Malaysia’s New Industrial Master Plan 2030 (NIMP2030).
This will enhance Malaysia’s digital capacity and elevate our position in the global tech landscape, he said.
“Together with Microsoft, we look forward to creating more opportunities for our SMEs and better-paying jobs for our people, as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey.”
Fostering a longstanding trust
Microsoft’s presence in Malaysia extends to over three decades, having arrived on our shores in 1992.
Back in April 2021, Microsoft had first announced plans to establish its first data centre region in Malaysia. It was said that it would be investing US$1 billion over the next five years in Malaysia as part of its Bersama Malaysia (Together with Malaysia) initiative.
The newly announced digital infrastructure investment builds on that same initiative.
Earlier in April this year, it was reported that Microsoft acquired a plot of land in Johor, Malaysia, which was speculated to be for a data centre.
Our Minister of Investment, Trade and Industry stated, “Microsoft’s 32-year presence in Malaysia showcases a deep partnership built on trust.”
“Indeed, Malaysia’s position as a vibrant tech investment destination is increasingly being recognised by world-recognised names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts’.”
This news comes over a week after the inaugural KL20 Summit 2024, which had envisioned Kuala Lumpur as a top 20 global startup hub by 2024.
En route to meeting this goal, we hope Malaysia will continue to be acknowledged by global giants, and that the country will keep propelling forward with players like Microsoft.
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Read other articles we’ve written about Malaysian startups here.
Featured Image Credit: Graham Denholm / Getty Images for Microsoft
