Malaysia's digital economy is set to receive a substantial boost with a significant investment of around 10 billion ringgit ($2.13 billion) aimed at establishing a state-of-the-art artificial intelligence (AI) hub in the country. This announcement, made by Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Aziz, highlights the country's growing attractiveness as a hub for tech investment in Southeast Asia.
In addition to the AI hub, the investment includes a further 1.5 billion ringgit dedicated to expanding data center facilities in Johor. These enhancements are poised to strengthen Malaysia’s infrastructure, increasing its capacity to manage large volumes of data and supporting its ambition to become a leading digital economy in the region.
“This major investment is a pivotal step towards our target of growing the digital economy to 22.6% of Malaysia’s GDP by 2025,” stated Tengku Zafrul Aziz on social media platform X. He emphasized how this initiative aligns with Malaysia's broader strategy for digital transformation and economic advancement.
This new venture follows a series of significant investments from other global tech leaders in recent months. Last month, a major player announced a $2 billion investment to develop its first data center and cloud region in Malaysia, while another tech giant committed $2.2 billion to expand its cloud and AI services in the country. These developments underscore Malaysia's rising status as a crucial center for technology and innovation in Southeast Asia.
The establishment of the AI hub is expected to generate numerous benefits, including the creation of high-value jobs, fostering technological expertise, and stimulating economic activities within the digital sector. By focusing on AI and enhancing data center capabilities, this investment not only contributes to Malaysia’s digital infrastructure but also positions the country at the forefront of technological advancements in the region.
These investments reflect a broader trend of increasing digital engagement in Southeast Asia. As Malaysia continues to attract substantial contributions from leading tech companies, it is poised to become a central player in the global digital economy, driving innovation and growth across the sector.
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