Big tech continues to pour significant investments into Southeast Asia, with Malaysia recently securing a multi-billion dollar commitment from Google. This comes just weeks after Microsoft announced its own substantial investment of $2.2 billion into Malaysia’s tech sector.
On Thursday, Google declared its intention to invest $2 billion in Malaysia, focusing on the development of a data centre and cloud facility. This marks Google’s largest investment in the country to date. According to Bernama, Malaysia’s state news agency, this investment is projected to create 26,500 jobs and contribute up to $3.2 billion to the Malaysian economy.
Earlier this month, during a visit to Kuala Lumpur, Microsoft CEO Satya Nadella announced a $2.2 billion investment in Malaysia. This includes providing AI skills training to 200,000 Malaysians and establishing a national AI “Centre of Excellence.”
Since 2022, the Malaysian government has introduced tax incentives for technology-related investments, including data centres. Malaysia offers advantages such as cheaper land, power, and water compared to neighbouring Singapore. These factors have made Malaysia an attractive destination for data centre investments, especially after Singapore paused new developments between 2019 and 2022 due to concerns about energy and land requirements for digital infrastructure.
Malaysia is also striving to enhance its position in the semiconductor value chain. Prime Minister Anwar Ibrahim recently highlighted the country’s “neutral and non-aligned” stance between the U.S. and China, positioning Malaysia as a strategic player in the region.
U.S. tech giants are increasing their investments in Southeast Asia to capitalise on the region’s young workforce, rising incomes, and neutral geopolitical stance. In addition to its investment in Malaysia, Microsoft plans to invest $1.7 billion in Indonesia over the next four years, focusing on new cloud and AI infrastructure. The company also intends to make significant commitments to Thailand’s cloud and AI sectors.
Amazon is set to invest approximately $9 billion in Singapore over the next five years to expand the city-state’s cloud infrastructure sector. Meanwhile, Apple CEO Tim Cook visited the region earlier this year. Apple plans to increase spending on Vietnam-based suppliers and has pledged $250 million to expand its operations in Singapore. Analysts believe Cook’s visit was aimed at diversifying Apple’s supply chain and preparing for future investments in the rapidly growing region.
More broadly, technology firms and manufacturers are adjusting their supply chains amid the ongoing U.S.-China tensions. Notably, chipmakers like Intel, Infineon, GlobalFoundries, and Samsung have recently committed to investing in Southeast Asian countries, including Malaysia, Singapore, and Vietnam.
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