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PETALING JAYA: Microsoft Corp will invest RM10.5 billion in cloud and artificial intelligence (AI) infrastructure in Malaysia over the next four years, says the investment, trade and industry ministry.

The ministry said Microsoft CEO Satya Nadella made the announcement during today’s AI National Leadership Forum attended by Prime Minister Anwar Ibrahim.

“This latest announcement by Microsoft is set to transform Malaysia into a leading digital hub regionally, while targeting to skill 200,000 Malaysians, as well as power up the nation’s economic growth and inclusivity through innovative, cutting-edge technology,” it said in a statement today.

“This investment – facilitated by one of Miti’s agencies, the Malaysian Investment Development Authority, together with other public agencies – firmly positions Malaysia as a preferred destination for digital investments.”

The US tech giant had pledged in 2021 to invest RM4.12 billion in Malaysia over five years to build hyper-scale data centres and provide cloud services.

The ministry said Microsoft’s new investment, part of its ongoing “Bersama Malaysia” commitment since 2021, aligns with the national initiative to embrace new technology like AI, potentially unlocking RM540 billion in productive capacity.

In the statement, investment, trade and industry minister Tengku Zafrul Aziz also said the partnership with Microsoft aligns with the New Industrial Master Plan 2030 launched last year.

“While our priority is to attract quality investments, we are also looking for partners who can help champion our commitment to empowering our small and medium-sized enterprises and people – through new enabling technology including AI – so that they can also reap the benefits of a more vibrant digital economy in Malaysia,” he said.

“Microsoft’s RM10.5 billion committed investment is an accelerated step towards that positive outcome.”

Meanwhile, Nadella reiterated Microsoft’s commitment to supporting the country’s AI transformation and ensuring that its benefits reach all Malaysians.

“Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country,” he said.

In an X posting, Anwar welcomed the investment and said it was Microsoft’s largest at any time throughout its 32-year presence in Malaysia.

“Malaysia welcomes this investment decision, which demonstrates Microsoft’s confidence in the country’s strong economic fundamentals, clear and focussed policies, investor-friendly environment, and political stability,” he said.