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Microsoft Chairman and CEO Satya Nadella announces a $2.2 billion investment to advance new cloud and AI infrastructure in Malaysia during the Microsoft Build: AI Day on May 02, 2024 in Kuala Lumpur, Malaysia. Photo by Graham Denholm/Getty Images for Microsoft.

Read this in Bahasa Malaysia and Mandarin.

Investment includes building digital infrastructure, creating AI skilling opportunities, establishing a national AI Centre of Excellence, and enhancing the nations cybersecurity capabilities

Kuala Lumpur, May 2, 2024 Today, Microsoft announced it will invest US$2.2 billion over the next four years to support Malaysias digital transformation the single largest investment in its 32-year history in the country.

Microsofts investment includes:

The investment demonstrates Microsofts commitment to developing Malaysia as a hub forcloud computingand related advanced technologies, including generative AI. This will support the nations productivity, competitiveness, resilience, and economic growth.

We are committed to supporting Malaysias AI transformation and ensure it benefits all Malaysians, said Satya Nadella, Chairman and CEO, Microsoft. 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.

YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, Malaysias Minister of Investment, Trade & Industry said, Microsofts 32-year presence in Malaysia showcases a deep partnership built on trust. Indeed, Malaysias 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.

Microsofts development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysias digital capacity and further elevate our position in the global tech landscape. 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 Malaysias digitally empowered growth journey.

We are honored to collaborate with the government to support their National AI Framework, which enhances the countrys global competitiveness. This strategic emphasis on AI not only boosts economic growth but also promotes inclusivity by bridging the digital divide and ensuring everyone gets a seat at the table, so every Malaysian can thrive in this new digital world. As a result, Malaysia is steadily establishing itself as a regional hub for digital innovation and smart technologies, embodying a forward-thinking approach that prioritizes sustainable development and societal well-being through digital transformation, said Andrea Della Mattea, President of Microsoft ASEAN.

Expanding Malaysias digital capacity to seize AI opportunities

The digital infrastructure investment builds on Microsofts Bersama Malaysia (Together with Malaysia) initiative, announced in April 2021, to support inclusive economic growth. This included plans to establish the companys first datacenter region in the country.

The investment announced today will enable Microsoft to meet the growing demand for cloud computing services in Malaysia. It will also allow Malaysia to capitalize on the significant economic and productivity opportunities presented by the latest AI technology.

According to research by Kearney, AI could contribute nearly US$1 trillion to Southeast Asias gross domestic product (GDP) by 2030, with Malaysia poised to capture US$115 billion of this amount.

Equipping people with skills to thrive in the AI era

On Tuesday, Microsoft announced a broader commitment to provide AI skilling opportunities for 2.5 million people in the Association of Southeast Asian Nations (ASEAN) member states by 2025. This training and support will be delivered in partnership with governments, nonprofit and business organizations, and communities in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam.

Microsofts skilling commitment is expected to benefit 200,000 people in Malaysia by providing:

The commitment builds on Microsofts other recent skilling activities in Malaysia, including its success in providing digital skills to more than 1.53 million Malaysians as part of the Bersama Malaysia initiative.

Partnering with government to strengthen AI and cybersecurity capabilities

Microsoft will continue to partner with the Government of Malaysia to enhance the nations digital ecosystem through several initiatives. These include establishing a national AI Centre of Excellence in collaboration with agencies in Malaysias Ministry of Digital to drive AI adoption across key industries, while ensuring AI governance and regulatory compliance. They also include pioneering AI adoption in the public sector through projects with:

Microsoft will also collaborate with the National Cyber Security Agency of Malaysia (NACSA) through the Perisai Siber (Cyber Shield) initiative to enhance the countrys cybersecurity capabilities. The collaboration will focus on promoting security and resilience in the public sector through security assessments and capacity building.

In addition, Microsoft will look to support NACSA in its role as Malaysias lead agency for cybersecurity matters, as it formulates the next stage of the nations cybersecurity strategy. The two organizations will also explore deeper collaborations in developing cybersecurity skills through initiatives such as Microsofts Ready4AI&Security program.

Empowering developers to harness AIs potential

Microsoft will continue to help foster the growth of Malaysias developer community through new initiatives such as AI Odyssey, which is expected to help 2,000 Malaysian developers become AI subject matter experts by learning new skills and earning Microsoft credentials.

Malaysia is a rapidly growing market on GitHub, the Microsoft-owned software development, collaboration, and innovation platform. Almost 680,000 of the nations developers used GitHub in 2023, representing 28 percent year-on-year growth.

Furthermore, many Malaysian organizations are boosting their productivity and accelerating innovation using Microsofts generative AI-powered solutions. For example:

To learn more about Satya Nadellas visit and how Microsoft is empowering organizations in the ASEAN region with AI, visit news.microsoft.com/malaysia-visit-2024.

Leadership statements

YB Rafizi Ramli, Minister of Economy

The advent of ChatGPT created a new vertical in the startup world. As more companies embrace the power of AI, having the right digital infrastructure in Malaysia is key to future-proofing our nations economy. Microsofts investment will help accelerate the adoption of generative AI, building a pipeline of AI-driven startups, and benefitting our economy through increased productivity and higher wages.

YB Gobind Singh Deo, Minister of Digital

As a nation, we are focused on accelerating digitalization and fostering a culture of innovation alongside technological advancement to level the playing field for all Malaysians to prosper in an inclusive digital economy. Microsofts investment is a significant step in our journey towards becoming a digitally inclusive society. It underscores the importance of partnership in driving nationwide digital transformation and reinforces our commitment to equipping Malaysians with the infrastructure, advanced tools, and skills they need to thrive in the digital age.

YB Fahmi Fadzil, Minister of Communications

Microsofts significant investment in Malaysia recognises and supports the governments efforts in building an inclusive digital ecosystem for the country. We are excited to continue partnering with technology leaders like Microsoft to foster a space where Malaysians can seamlessly connect, learn, and benefit from our nations digital transformation.

YB Chang Lih Kang, Minister of Science, Technology & Innovation

Todays investment by Microsoft exemplifies a dynamic public-private partnership aimed at enhancing the socio-economic status and quality of life in Malaysian communities. As we embrace AIs potential, we commend Microsofts commitment to responsible AI, which aligns with our vision for advancing technology in Malaysia responsibly and inclusively.

Laurence Si, Managing Director, Microsoft Malaysia

With rising demand for Cloud and AI, Microsofts investment announced today underscores our commitment to building a robust digital ecosystem in the country. From driving more innovations born in Malaysia, to fostering an ecosystem of skilled talents and enhancing cybersecurity capabilities for Malaysian organizations, we are dedicated to our role as a trusted technology partner to the nation.

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer, Malaysian Investment Development Authority (MIDA)

We are excited to deepen our partnership with Microsoft as they strengthen their commitment by establishing a cloud and AI infrastructure and supporting our vibrant developer community in Malaysia. This strategic collaboration underscores our dedication to innovation and regional industry growth. By leveraging Microsofts expertise, we aim to accelerate economic development, create jobs, and enhance industry competitiveness through digital transformation. We believe we can achieve more together and further advance our partnership. This investment not only reinforces Malaysias position as a leading digital hub but also marks a promising start in attracting more companies to embark on this digital journey with us, promoting inclusive growth and prosperity nationwide.

Ir. Dr. Megat Zuhairy Megat Tajuddin, Chief Executive Officer, National Cyber Security Agency (NACSA)

Microsofts collaboration with NACSA on Perisai Siber is pivotal as one of our strategic partnerships with industry players in establishing a secure digital infrastructure for our nation. Together, our goal is to bolster security and resilience, beginning with the public sector, to ultimately strengthen the nations cybersecurity capabilities.

Ts. Mahadhir Aziz, Chief Executive Officer, Malaysia Digital Economy Corporation (MDEC)

Microsofts commitment to Malaysia demonstrates confidence in our nations digital future. Through this investment in cloud and AI infrastructure, local organizations can tap into more opportunities to upscale and innovate, further propelling Malaysias aspirations for regional leadership in the digital economy.

About Microsoft

Microsoft (Nasdaq MSFT @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Tags: AI, Cloud, digital skills

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