Malaysia is stepping up its game to encourage the ethical use of artificial intelligence and advance local cloud computing efforts. 

According to an Oct. 1 report from Reuters, Malaysian Prime Minister Anwar Ibrahim said the country will introduce a national AI office to coordinate initiatives surrounding AI developments in its jurisdiction — a move that reflects a growing global trend of governments embracing AI while ensuring responsible regulation.

Malaysian AI and cloud computing regulations

The prime minister also unveiled plans for a national cloud computing policy aimed at improving public service innovation, economic growth, competitiveness and digital inclusion. The policy will prioritize data security and user trust, ensuring that all citizens benefit from technological advancements.

The national AI office is tasked with completing a five-year technology “action plan” and a regulatory framework that will help promote the adoption of ethical and sustainable AI within the next year. 

While this is Malaysia’s first major regulatory development around AI, the government has already introduced other laws affecting Big Tech. 

On Aug. 1, Malaysia proposed licensing requirements for social media and messaging providers with more than eight million users, which prompted reactions from industry leaders. 

The proposed “light-touch” regulation is expected to take effect in January 2025. It aims to avoid stifling innovation while reducing online harm, such as cyberbullying, scams and gambling. 

However, in response to the regulation, the Asia Internet Coalition (AIC) lobby group — which includes Big Tech companies like Google, Meta, Amazon, Apple and X — called on the prime minister to reconsider. 

Big Tech investments in Malaysia

While lobbying against some regulations, Big Tech companies have been actively investing in Malaysia’s tech sector. 

Following the announcement of AI and cloud policies, Google revealed a multi-year partnership with a Malaysian tech firm to provide cloud services, which is expected to create 26,500 jobs and contribute over $3 billion to the local economy by 2030. Google is also building a $2 billion data center to support the region’s cloud infrastructure. 

Ibrahim commented on the developments: 

“We aim to position Malaysia as a hub for generative artificial intelligence and investments from tech partners will be critical in building a robust and secure digital infrastructure.” 

Before Google’s announcement, Microsoft committed $2.2 billion in May 2024 for its own expansion in Malaysia, focusing on AI and cloud computing. Microsoft said it will collaborate with the government to create a “national AI Center of Excellence” and improve cybersecurity capabilities.

Big Tech’s growing involvement in Malaysia comes as the country develops more comprehensive regulations that could impact the tech industry.

Cointelegraph has reached out to the Malaysian Ministry of Science, Technology and Innovation for additional details. 

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