TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Google to invest $2 billion in Malaysia: Govt

The government said the cash would support 26,500 jobs across various sectors in Malaysia, including healthcare, education, and finance, and comes days after Prime Minister Anwar Ibrahim targeted at least $107 billion in investments for the semiconductor industry.

M Jegathesan (AFP)
Kuala Lumpur
Thu, May 30, 2024 Published on May. 30, 2024 Published on 2024-05-30T13:51:59+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Google to invest $2 billion in Malaysia: Govt Big player: Figurines stand next to a screen displaying the logo of United States multinational technology company Google in Mulhouse, France, on Oct. 30, 2023. (AFP/Sebastien Bozon)

G

oogle will invest $2 billion in Malaysia to house the firm's first data center in the country, the government said Thursday, making it the latest tech titan to pump cash into the region in search of growth opportunities.

The government said the cash would support 26,500 jobs across various sectors in Malaysia, including healthcare, education, and finance, and comes days after Prime Minister Anwar Ibrahim targeted at least $107 billion in investments for the semiconductor industry.

Anwar said in April that he planned to build Southeast Asia's largest integrated circuit design park, while offering incentives including tax breaks and subsidies to attract global tech companies and investors.

Ruth Porat, president and chief investment officer of Google and its parent firm Alphabet, said: "Google's first data center and Google Cloud region is our largest planned investment so far in Malaysia -- a place Google has been proud to call home for 13 years.

"This investment builds on our partnership with the Malaysian government to advance its 'Cloud First Policy', including best-in-class cybersecurity standards."

Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz said the cash "will significantly advance" Malaysia's digital ambitions outlined in a 2030 masterplan.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

He added that the data center and cloud region "will empower our manufacturing and service-based industries to leverage artificial intelligence (AI) and other advanced technologies to move up the global value chain".

Earlier this month Microsoft said it would spend $2.2 billion on AI and cloud computing in Malaysia, with boss Satya Nadella pledging to invest billions in Thailand and Indonesia during a tour of the region.

And Amazon said it would spend US$9 billion in Singapore over the next four years to expand its cloud computing capabilities in the city.

The facility announced on Thursday will be located at a business park west of the capital Kuala Lumpur and will power Google's popular digital services such as Search, Maps, and Workspace.

"When operational, Malaysia will join the 11 countries where Google has built and currently operates data centers to serve users around the world," the statement said.

The Google Cloud region "will deliver high-performance and low-latency cloud infrastructure, analytics, and AI services to large enterprises, startups, and public sector organizations", it added.

A key player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch.

Research by global consulting firm Kearney showed AI was poised to contribute $1 trillion to Southeast Asia's gross domestic product by 2030, with Malaysia predicted to see more than a tenth of that.

"Now that many of these American tech giants are diversifying their investment risks away from China, Malaysia with its traditional involvement in high-tech industry is in a good position to welcome the relocation of their operations," said Oh Ei Sun, an analyst with the Pacific Research Center of Malaysia.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.