Malaysia Prepares National Cloud Policy And AI Rules, Google Will Invest IDR 30.3 Trillion

Malaysian Prime Minister, Anwar Ibrahim (photo: x @anwaribrahim)

JAKARTA - Malaysian Prime Minister Anwar Ibrahim announced plans to make a national cloud policy and introduce regulations to encourage the ethical use of artificial intelligence (AI). This step was taken amid a wave of investment from global technology companies in an effort to build critical infrastructure to meet the growing demand for cloud and AI services in the country.

Anwar explained that Malaysia's cloud national policy will focus on four main areas: innovation and efficiency of public services, competitiveness and economic growth, strengthening user confidence and data security, and empowering the community through digital inclusiveness.

In addition, the government will also establish a national AI office that will coordinate various initiatives, including the preparation of a five-year technology action plan and a regulatory framework to increase ethical and sustainable AI adoption within the next 12 months.

"We aim to make Malaysia the center of generative artificial intelligence, and investment from technology partners will be very important in building strong and secure digital infrastructure," Anwar said at a groundbreaking event for Google's new data center and cloud area worth US$2 billion (Rp30.3 trillion).

Google, which this week announced a multi-year partnership with local technology companies to provide cloud sovereignty services, said its investment in Malaysia would create 26,500 jobs and contribute more than $3 billion to the country's economy by 2030.

"Our investment is designed to provide high performance and reliability, meeting demands for cloud and AI services across the country," said Ruth Porat, President and Head of Google Investment, quoted by VOI from Reuters.

Digital investment has helped boost Malaysia's economy this year, with growth exceeding market expectations in the last two quarters and the ringgit currency being one of the best performing in Asia. Google also announced a $1 billion investment in Thailand to build data centers and cloud areas to support growing cloud demand and AI adoption in Southeast Asia.