On May 2nd, CEO Satya Nadella announced that Microsoft is committing $2.2 billion over the next four years to Malaysia’s emerging cloud and artificial intelligence infrastructure. This investment also includes a partnership with the government to pioneer a national AI centre.
This significant investment stands as Microsoft’s most prominent single commitment to Malaysia, reflecting the tech giant’s dedication to advancing AI development locally and globally.
“We are dedicated to fostering Malaysia’s AI evolution to benefit all Malaysians,” he stated. “Through our investments in digital infrastructure and education, we aim to empower Malaysian businesses, communities, and developers to leverage cutting-edge technology for inclusive economic growth and innovation nationwide.”
During his Southeast Asia tour, Nadella also revealed a $1.7 billion commitment to cloud and AI services in Indonesia and Microsoft also unveiled plans to construct its first regional data centre in Thailand.
In April, the tech giant made headlines with a $2.9 billion investment in Japan and a separate $1.5 billion investment in G42, an AI firm based in Abu Dhabi.
Microsoft additionally committed to offering AI training to 2.5 million individuals across Malaysia, Indonesia, the Philippines, Thailand, and Vietnam by 2025.
Nadella had a prior meeting with Prime Minister Anwar Ibrahim, during which the Prime Minister expressed that the investment would be a pivotal support pillar for the government’s ambition to strengthen Malaysia’s AI capabilities.
On Facebook, Anwar elaborated that the new investment encompasses AI training for an additional 300,000 individuals, establishing a national AI centre of excellence, enhancing the nation’s cybersecurity capabilities, and bolstering the growth of Malaysia’s developer community.
Microsoft operates one of the world’s most extensive cloud computing infrastructures and has significantly ventured into artificial intelligence, notably through its collaboration with OpenAI, the creators of ChatGPT.
Following this collaboration, Microsoft has seamlessly integrated an AI assistant called Copilot into its Microsoft Edge browser, contributing to a remarkable 20% increase in profits during the first quarter.
Viewing Southeast Asia as a burgeoning market with an expansive population exceeding 600 million, Microsoft envisions it as a promising locale for further AI product development. According to a study by the global consulting firm Kearney, AI is poised to inject nearly $1 trillion into Southeast Asia’s GDP by 2030. Notably, Indonesia is projected to secure $366 billion of this total, with Malaysia following closely at $115 billion.
In a statement, Microsoft emphasised that its investment in Malaysia will extend the initiatives established in 2021 to foster inclusive economic growth. The proposed national AI centre will be pivotal in catalyzing AI adoption across crucial industries and the public sector. Moreover, it will uphold AI governance standards and ensure regulatory compliance.
“In collaboration with Microsoft, we anticipate generating numerous opportunities for our small and medium-sized enterprises (SMEs) and facilitating the creation of higher-paying jobs for our populace as we harness the AI revolution to accelerate Malaysia’s digitally empowered growth trajectory,” expressed Trade Minister Zafrul Aziz in the statement.
As Microsoft’s investments continue to shape the landscape of technology and AI in Malaysia and beyond, the stage is set for a transformative journey towards inclusive economic growth and innovation. With collaborative efforts between governments, businesses, and communities, the future holds promise for leveraging cutting-edge technology to drive progress and prosperity for all.
