Malaysia’s Prime Minister Anwar Ibrahim has announced the implementation of a national cloud policy and regulations for artificial intelligence (AI) in conjunction with significant investments made by global tech giants in the country. This move comes as Malaysia aims to position itself as a key player in the global tech industry.
According to Reuters, Malaysia has witnessed a surge in investments from global tech giants over the past year, with a focus on developing essential infrastructure to meet the growing demand for cloud and AI services. In line with this, Prime Minister Anwar Ibrahim outlined four key areas of concentration for the national cloud policy: public service innovation, economic competitiveness, user trust and data security, and digital inclusivity.
To coordinate these initiatives, the government will establish a national AI office, which will oversee the implementation of a five-year technology action plan and a regulatory framework for ethical AI adoption within the next 12 months.
During the groundbreaking ceremony for Google’s new $2 billion data center in Malaysia, Prime Minister Anwar Ibrahim expressed his vision of positioning Malaysia as a hub for generative artificial intelligence. Google’s investments in Malaysia are expected to generate 26,500 jobs and contribute over $3 billion to the country’s GDP by 2030. Ruth Porat, Google’s President and Chief Investment Officer, emphasized that these investments aim to meet the increasing demand for cloud and AI services across the country.
Malaysia’s digital investments have significantly boosted its economy, surpassing market expectations in recent quarters. This expansion by Google and other tech companies into Southeast Asia reflects the region’s young and tech-savvy population of 670 million.
The country’s aggressive positioning in the global tech industry includes its ambitious plan to attract $107 billion in investments for its semiconductor sector, particularly in integrated circuit design, advanced packaging, and semiconductor chip manufacturing equipment. Major firms such as Intel Corp. and Infineon Technologies AG have already made substantial investments in Malaysia.
Furthermore, Amazon Web Services has committed over $6 billion to establish a new cloud region in Malaysia, which is projected to contribute around $12.1 billion to the country’s GDP and support over 3,500 full-time jobs annually through 2038. Micron Technology Inc. is also considering Malaysia for high-bandwidth memory chip production, aiming 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 played a significant role in its growing importance.