Malaysia has announced a national strategy on AI and cloud computing, aiming to create 26,500 new jobs by 2030 and attract investment from tech giants such as Google and Microsoft.

The Malaysian government officially announced a national strategy on AI and cloud computing on October 1, with the goal of boosting economic growth and creating 26,500 new jobs by 2030.

Malaysia will set up a National AI Office to coordinate artificial intelligence (AI) development initiatives, Prime Minister Anwar Ibrahim said, adding that the office will be responsible for finalizing a five-year technology action plan and a regulatory framework to promote ethical and sustainable AI adoption within the next year.

A national cloud computing policy was also announced, with a focus on ensuring data security and building consumer trust, while ensuring equitable access to the benefits of the technology. This is Malaysia’s first official move to regulate the AI ​​sector, after several regulations were introduced that targeted major tech companies.

New regulations and investment from tech giants

Earlier, on August 1, Malaysia proposed licensing social media and messaging platforms with more than 8 million users, which is expected to take effect in January 2025. The regulation is expected to reduce online harms such as cyberbullying, fraud and gambling, while not hindering innovation. However, the Asia Internet Consortium (AIC), which includes major technology companies such as Google, Meta, Amazon, Apple and X, has called on the Prime Minister to reconsider the regulation.

Despite this, tech giants are still investing heavily in Malaysia’s tech sector. Following the announcement of its AI and cloud computing policy, Google announced a multi-year partnership with a Malaysian tech company to provide cloud services. The project is expected to create 26,500 jobs and contribute more than $3 billion to the local economy by 2030. In addition, Google is also building a $2 billion data center to support cloud infrastructure in the region.

In May, Microsoft pledged to invest $2.2 billion to expand its operations in Malaysia, focusing on AI and cloud computing. Microsoft said it would work with the government to establish a “National AI Center of Excellence” and enhance cybersecurity capabilities.

“We aim to position Malaysia as a hub for next-generation AI, and investment from technology partners will be crucial in building a robust and secure digital infrastructure,” Prime Minister Ibrahim stressed.

Microsoft's investment commitment in Malaysia. Source: Microsoft