Malaysia Unveils National Cloud Policy and AI Regulations as Google Invests $2B in Data Centers

Malaysia Announces National Cloud Policy And AI Regulations As Google Breaks Ground On Its New $2B Data Center - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Malaysia's Prime Minister Anwar Ibrahim announced the introduction of a national cloud policy and artificial intelligence regulations on Tuesday, coinciding with significant investments by global tech giants in the country. What Happened: The announcement coincides with a surge of investments by global tech giants in Malaysia over the past year, Reuters reported. These investments aim to build essential infrastructure to meet the rising demand for cloud and AI services. Anwar stated that the national cloud policy will concentrate on four key areas: public service innovation, economic competitiveness, user trust and data security, and digital inclusivity. The government will also establish a national AI office to coordinate initiatives, including a five-year technology action plan and a regulatory framework for ethical AI adoption within the next 12 months. At a ground-breaking ceremony for Alphabet Inc. GOOG GOOGL subsidiary Google's new $2 billion data center, Anwar said, "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." Google announced that its investments in Malaysia would generate 26,500 jobs and add over $3 billion to the country's GDP by 2030. Ruth Porat, Google's President and Chief Investment Officer, stated, "Our investments are designed to provide high performing and reliability, meeting demand for cloud and AI services across the country." Digital investments have significantly boosted Malaysia's economy this year, with growth surpassing market expectations in recent quarters. Google's expansion is part of a broader move by tech companies into Southeast Asia, a region with a young, tech-savvy population of 670 million. See Also: Elon Musk Responds After Y Combinator's Paul Graham Says Twitter Name Change 'Was A Waste Of Time:' 'You Know Nothing' Why It Matters: Malaysia has been aggressively positioning itself as a key player in the global tech industry. In May, the country announced an ambitious plan to attract $107 billion in investments for its semiconductor sector, focusing on integrated circuit design, advanced packaging, and semiconductor chip manufacturing equipment. This move aims to capitalize on Malaysia's role in the semiconductor market, contributing to 13% of global testing and packaging. Major firms like Intel Corp. and Infineon Technologies AG have already made substantial investments in the country. In August, Amazon Web Services committed over $6 billion to establish a new cloud region in Malaysia, expected to contribute around $12.1 billion to the country's GDP and support over 3,500 full-time jobs annually through 2038. This investment underscores the growing importance of Malaysia as a tech hub. Additionally, Micron Technology Inc. is considering Malaysia for high-bandwidth memory chip production to compete with South Korean rivals. This potential move is part of Micron's strategy to capture a larger share of the AI-driven market. Amid escalating U.S.-China tech tensions, Malaysia's well-established infrastructure and skilled labor force have made it an attractive destination for global chip firms. The country's expertise in the "back end" of semiconductor manufacturing, including assembly, testing, and packaging, has been a key factor in its growing importance. Read Next: Elon Musk Gets Labelled As An 'Outspoken' Trump Supporter After Journalist Gets Banned On X For Publishing Leaked JD Vance Docs: 'This Is Political' Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

Malaysia plans national cloud policy, AI regulations

Malaysia is set to develop a national cloud policy and ethical AI regulations, according to Prime Minister Anwar Ibrahim. The policy will focus on innovation, competitiveness, data security, and digital inclusivity. Google is investing significantly in Malaysia, promising job creation and economic growth. The country aims to become a hub for generative AI.Malaysia plans to create a national cloud policy and introduce regulations to encourage the ethical use of artificial intelligence (AI), Prime Minister Anwar Ibrahim said on Tuesday. The announcement comes amid a wave of investments by global tech firms in Malaysia over the past year, as they seek to build critical infrastructure to cater to growing demand for their cloud and AI services. Anwar said Malaysia's national cloud policy will focus on four core areas, namely public service innovation and efficiency, economic competitiveness and growth, strengthening user trust and data security, and empowering citizens through digital inclusivity. The government would also set up a national AI office to coordinate initiatives, including completing a five-year technology action plan as well as a regulatory framework to increase adoption of ethical and sustainable AI within the next 12 months, he said. "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," Anwar said at a ground-breaking ceremony for Google's new $2 billion data centre and cloud region in the country. Google, which this week announced a multi-year partnership with a local tech firm to provide sovereign cloud services, said its investments in Malaysia would create 26,500 jobs and contribute more than $3 billion to its economy by 2030. "Our investments are designed to provide high performing and reliability, meeting demand for cloud and AI services across the country," Google President and Chief Investment Officer Ruth Porat said. Digital investments have helped propel Malaysia's economy this year, with growth beating market expectations in the last two quarters and the ringgit currency becoming one of Asia's top performers. Google's moves are a part of a wider expansion by global tech companies into Southeast Asia, as they vie for a greater presence in a region with a young tech-savvy population of 670 million. On Monday, Google said it would invest $1 billion in Thailand to build a data centre and cloud region there, to meet growing cloud demand and support AI adoption in Southeast Asia.

Malaysia steps up its AI game with regulations and cloud computing policy

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. Related: Thai authorities raid illegal Bitcoin mine behind local power outages 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. Magazine: $12.1M fraud suspect with 'new face' arrested, crypto scam boiler rooms busted: Asia Express