The U.S. tech giant said it would be investing RM10.5 billion in Malaysia over the next four years, its largest single investment throughout the region.

Microsoft CEO Satya Nadella during his visit to Malaysia at Thursday’s ‘Microsoft Build: AI Day’ said that the significant investment marks the American tech giant’s largest commitment to the country in its 32-year history.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians. 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,” Nadella said in his address.

Microsoft’s announced investment in Malaysia encompasses a suite of pivotal initiatives designed to fortify the nation’s digital infrastructure and cultivate technological innovation. At the core of this endeavour lies the construction of cloud and AI infrastructure, alongside the provision of AI skilling opportunities for an additional 200,000 Malaysians. Furthermore, in collaboration with the Malaysian government, Microsoft plans to establish a national AI Centre of Excellence, aimed at bolstering cybersecurity capabilities.

MICROSOFT’S INVESTMENT BENEFITS MALAYSIA’S POSITIONING

This substantial investment underscores Microsoft’s commitment to positioning Malaysia as a central hub for cloud computing and cutting-edge technologies, including generative AI. These advancements are poised to catalyse the nation’s productivity, competitiveness, resilience, and economic growth.

Beyond infrastructure development, Microsoft is steadfast in its pledge to provide AI upskilling opportunities for 2.5 million individuals across ASEAN member states by 2025, with some 200,000 Malaysians set to benefit. These initiatives are geared towards equipping individuals with the requisite skills to flourish in the AI era and bridging the digital divide.

Moreover, the investment will offer support to Malaysia’s developer community through programmes like AI Odyssey, which aims to cultivate 2,000 local developers into AI subject matter experts.

This latest investment builds upon Microsoft’s Bersama Malaysia initiative, unveiled in 2021, which sought to foster inclusive economic growth and establish the company’s inaugural data centre region in Malaysia. With this additional investment, Microsoft aims to meet the burgeoning demand for cloud computing services and seize the economic opportunities presented by AI technology.

MICROSOFT’S COMMITMENT MAY DRIVE FURTHER TECH INVESTMENT

Datuk Seri Tengku Zafrul Abdul Aziz, Malaysia’s Minister of International Trade and Industry (MITI), commended Microsoft’s longstanding partnership with Malaysia and its recognition of the country’s potential as a prime tech investment destination. The minister underscored the transformative impact of Microsoft’s investment on Malaysia’s digital capacity and global competitiveness.

“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 recognized by world-recognized names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts’,” remarked the minister.

He further highlighted the significance of Microsoft’s development of essential cloud and AI infrastructure, coupled with AI skilling opportunities, in enhancing Malaysia’s digital capacity and fortifying its position in the global tech arena. Together with Microsoft, he expressed anticipation for the creation of more opportunities for SMEs and the generation of better-paying jobs, as Malaysia embarks on its digitally empowered growth journey fuelled by the AI revolution.

To learn more about Microsoft’s investment and its impact on Malaysia’s digital transformation, check out Microsoft’s site about the company’s visit to Malaysia here.