Microsoft’s Largest Investment in Malaysia in 32 years
Is it me or is it a real trend that many global big tech giants are looking at South East Asia to diversify their business operations for the sake of geopolitical diversification? Today (2nd May), $Microsoft(MSFT.US$ announced that it will invest USD2.2bil in Malaysia over the next 4 years to support Malaysia’s digital transformation. This is the single largest investment in 32 years since Microsoft started its venture in Malaysia!
The investment Microsoft will involve in Malaysia includes:
- Building cloud and AI infrastructure
- Creating AI skilling opportunities for 200,000 people
- Establishing a national AI Centre of Excellence and enhance Malaysia’s cybersecurity capabilities
And, supporting the growth of Malaysia’s developer community.
While foreign direct investment is great for Malaysia, and our fellow politicians are taking credit for that achievement, personally I am not entirely impressed by the announcement. I feel we are just at the right geographical location, and that big tech companies are looking to build new regional hubs that benefitted Malaysia to a certain extent.
You see, on Tuesday, Microsoft said that they are going to invest $1.7bil in Indonesia over the next 4 years to build new cloud and AI infrastructure as well. One day later, on Wednesday, again Microsoft announced a ‘significant commitment’ in Thailand to build a new regional data centre. The company also revealed broader plans to provide AI skilling opportunities to 2.5mil people located in SEA as a whole by 2025.
Nonetheless, whether our politicians are good salesmen pitching for foreign direct investments to invest in Malaysia or we are just ‘lucky’ and ‘ride on the trend’, Microsoft’s commitment to invest USD2.2bil will definitely empower local businesses to reap the benefits of a more vibrant digital economy in Malaysia. I don’t rule out that the stock market will start getting excited on publicly listed companies that are going to partner up with Microsoft going forward. An upcoming tech/AI frenzy in Malaysia, maybe?
The investment Microsoft will involve in Malaysia includes:
- Building cloud and AI infrastructure
- Creating AI skilling opportunities for 200,000 people
- Establishing a national AI Centre of Excellence and enhance Malaysia’s cybersecurity capabilities
And, supporting the growth of Malaysia’s developer community.
While foreign direct investment is great for Malaysia, and our fellow politicians are taking credit for that achievement, personally I am not entirely impressed by the announcement. I feel we are just at the right geographical location, and that big tech companies are looking to build new regional hubs that benefitted Malaysia to a certain extent.
You see, on Tuesday, Microsoft said that they are going to invest $1.7bil in Indonesia over the next 4 years to build new cloud and AI infrastructure as well. One day later, on Wednesday, again Microsoft announced a ‘significant commitment’ in Thailand to build a new regional data centre. The company also revealed broader plans to provide AI skilling opportunities to 2.5mil people located in SEA as a whole by 2025.
Nonetheless, whether our politicians are good salesmen pitching for foreign direct investments to invest in Malaysia or we are just ‘lucky’ and ‘ride on the trend’, Microsoft’s commitment to invest USD2.2bil will definitely empower local businesses to reap the benefits of a more vibrant digital economy in Malaysia. I don’t rule out that the stock market will start getting excited on publicly listed companies that are going to partner up with Microsoft going forward. An upcoming tech/AI frenzy in Malaysia, maybe?
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Connect Asia : It is not so much a diversification but fuel growth and expansion. It is an effort of cloud providers like MSFT to strengthen their local presence especially where local/regional customer experience becomes key as well as adherance to local regulations including data localisation. Watch that space more over the next few years.