Microsoft invests $2.2 billion to develop AI and cloud computing in Malaysia

Microsoft CEO Satya Nadella is currently touring three Southeast Asian countries, including Indonesia, Thailand and Malaysia, to announce a series of investments in data centers, AI and cloud services.

“Today, Microsoft announced it will invest $2.2 billion over the next four years to support Malaysia’s digital transformation – the largest investment in the country in its 32-year history,” Nadella said in Kuala Lumpur.

According to Microsoft, the funding will help build AI and cloud infrastructure in Malaysia, create an AI center of excellence, and provide AI training for approximately 200,000 Malaysians. “Microsoft is committed to supporting Malaysia’s AI transformation and ensuring AI benefits all Malaysians,” Nadella said. The investments in digital infrastructure and skills will help Malaysian businesses, communities, and developers adopt the latest technology to drive inclusive economic growth and innovation across the country.

For his part, Malaysian Trade Minister Zafrul Abdul Aziz said that Microsoft's development of essential cloud and AI infrastructure, along with opportunities to improve AI skills, will significantly enhance Malaysia's digital capabilities.

The investment commitment comes after Microsoft CEO announced a $1.7 billion investment in Indonesia and Thailand's first data center region this week to boost cloud infrastructure and AI.

Research by global consultancy Kearney shows that AI is expected to contribute $1 trillion to Southeast Asia's gross domestic product (GDP) by 2030, with Malaysia expected to contribute more than a tenth.

Microsoft began operating in Malaysia in 1992 and now has more than 200 employees in offices in Kuala Lumpur and the northern state of Penang. The company has been highly regarded by investors since it aggressively embraced generative AI, starting with a $13 billion partnership with ChatGPT creator OpenAI in 2023. Nadella said Microsoft's first-quarter 2024 revenue rose 17% year-on-year to $61.9 billion, with net income rising 20% ​​to $21.9 billion. The use of AI has boosted sales of Microsoft's key cloud services such as Azure, which have become the core of the company's business under Nadella's leadership.

This activity is part of Microsoft's commitment to equip AI skills for 2.5 million people in member countries of the Association of Southeast Asian Nations (ASEAN) by 2025, which was announced in late April 2024.

The skills enhancement initiatives will be implemented in partnership with governments, non-profits, businesses and communities in Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

Microsoft’s commitment is in line with the ASEAN Digital Masterplan 2025 to build the AI ​​talent pool in the region; focusing on four areas: Building an inclusive workforce ready for the era of AI; closing the cybersecurity talent gap; enhancing developer AI skills; and empowering non-profits to maximize their social impact.

Specifically, on building an inclusive, AI-ready workforce, Microsoft will help strengthen vocational education systems across the ASEAN region to deliver AI skills in partnership with the ASEAN Foundation and the ministries of education and training of the 10 member countries, which will benefit approximately 644,000 vocational school students.

Through the AI ​​TEACH for Indonesia and AI TEACH Malaysia programs, Microsoft and the ASEAN Foundation will provide AI skills to students of vocational training centers. Microsoft is also providing AI training to 100,000 youth, vulnerable groups, and job seekers in AI, data, and security through an existing partnership with Kartu Prakerja, the largest pre-employment program in Indonesia.

In addition, Microsoft is also implementing the AI ​​Skills for Tourism program in partnership with the Ministry of Digital Economy and Society, Ministry of Tourism and Sports, Ministry of Labor, and the National Institute of Technical Vocational Education. This initiative will train 100,000 young entrepreneurs to engage in tourism businesses across sub-provinces in all five regions of Thailand.

In the Philippines, Microsoft is committed to equipping 1 million students from kindergarten to grade 12 with AI and cybersecurity skills to ensure they are ready for the jobs of the future. In addition, Microsoft will deepen its partnership with the Technical Education and Skills Development Authority (TESDA) by investing in a new initiative to equip 100,000 female TESDA students with AI and cybersecurity skills. This will help foster a diverse talent pool for the Philippines’ digital transformation.

Microsoft will also expand its partnership with the United Nations Development Programme Asia Pacific in Indonesia, Malaysia, and Vietnam, helping 570,000 youth from marginalized communities improve their employability and work readiness through access to AI.

To help close the cybersecurity talent gap, as part of the Global Cybersecurity Skills Initiative, Microsoft has designed and managed training programs with nonprofits to help create opportunities for underrepresented youth to enter the cybersecurity industry. Microsoft’s Ready4AI&Security program will train 15,000 youth in Indonesia and Malaysia, with a focus on creating opportunities for women to build cybersecurity careers. This will include access to Microsoft Security certifications and training.

On AI skills for developers to drive innovation, to support the 7 million developer community in the ASEAN region, Microsoft launched the Asia AI Odyssey campaign, which highlights how Microsoft AI Skills validates the specific technical competencies needed to build AI applications. The campaign is running across Asia and aims to train 30,000 developers in ASEAN countries, encouraging greater use of AI services in the digital economy.

On empowering nonprofits to maximize social impact,In June 2024, Microsoft will host its first Nonprofit Leadership Summit to equip 1,500 nonprofit leaders with knowledge and skills in AI and digital technologies. Microsoft will also provide nonprofits in ASEAN countries with access to the Microsoft Resources Hub and LinkedIn for Nonprofits Resource Hub to help them maximize their social impact and lead change in the AI ​​era.