On October 1, 2024, Malaysia's Prime Minister Anwar Ibrahim announced plans to develop a national cloud policy and establish ethical regulations for artificial intelligence (AI). This initiative aims to enhance innovation, competitiveness, data security, and digital inclusivity within the country.
The announcement coincides with significant investments from global tech companies, particularly Google, which is investing $2 billion to build a new data center and cloud region in Malaysia. This investment is expected to create 26,500 jobs and contribute over $3 billion to the Malaysian economy by 2030.
Malaysia's national cloud policy will focus on four key areas: public service innovation and efficiency, economic competitiveness and growth, strengthening user trust and data security, and empowering citizens through digital inclusivity. To support these efforts, the government plans to establish a national AI office and complete a five-year technology action plan within the next year.
Google's investment is part of a broader trend of global tech firms expanding into Southeast Asia, which boasts a young, tech-savvy population of 670 million. The region has seen a surge in digital investments, with Malaysia's economy outperforming expectations in recent quarters.
This strategic move positions Malaysia as a potential hub for generative AI, aligning with the growing demand for cloud and AI services across the region.