Amazon Web Services (AWS) celebrated a significant milestone today with the announcement of plans to open a Cloud Computing Infrastructure in Malaysia. The Malaysian Investment Development Authority (MIDA) views AWS’s plans to invest approximately RM25.5 billion (USD6 billion) by 2037 to establish an AWS Region, a testament to their confidence in Malaysia’s promising digital economy and its capacity to drive long-term growth. This investment will advance nationwide digitalisation, foster a spirit of creativity, and cultivate a world-class digital workforce to accomplish Malaysia’s ambition of becoming a cloud-first nation.
Datuk Seri Anwar Ibrahim, Prime Minister of Malaysia, announced AWS’s investment at the AWS Cloud Day Malaysia event, which was attended by YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of International Trade and Industry (MITI); YB Rafizi Ramli, Minister of Economy; YB Teo Nie Ching, Deputy Minister of Communications and Digital; and YB Tuan Mustapha Sakmud, Deputy Minister of Human Resources.
Minister of MITI, YB Senator Tengku Datuk Seri Utama Zafrul Aziz applauded AWS’s decision to establish its Cloud Computing Infrastructure in Malaysia. “We welcome AWS’s investment to bring an infrastructure for cloud computing to Malaysia, which will create value and opportunities for growth using data and cloud-based technologies. By embracing cloud, Malaysia will enhance its global competitiveness by attracting foreign investors and creating market-ready talent, Equally important is the empowerment of all industries and local SMEs to expand their operations and pursue innovation. We also look forward to AWS’s continued investment in talent training and development, particularly on cloud-based technologies among Malaysia’s workforce. On a personal level, I am also pleased that the relations I have built with AWS in the last two years have finally borne fruit for Malaysia’s benefit,” said Tengku Zafrul.
Datuk Wira Arham Abdul Rahman, Chief Executive Officer of MIDA, attended the event and expressed, “MIDA has been facilitating and assisting AWS on their investment in the country, and we are proud and excited to witness this momentous event today. Malaysia already has a reputation as a “rising star” of the global data centre sector and by having AWS, the world’s leading cloud provider, make this investment in Malaysia will solidify our position as a data centre hub in the region. The investment and initiatives from AWS will provide Malaysia with cutting-edge technologies, which provides competitive edge to local businesses especially SMEs, and MNCs, helping them to grow.”
Malaysia has one of the most developed data centre markets in Southeast Asia, valued at RM4.7 billion (USD1.06 billion) in 2021 according to market analyst organization Arizton. This figure is expected to grow rapidly in the near future, rising to RM7 billion (USD1.57 billion) by 2027.
From January to September 2022, the information and communications sub-sector recorded approved investments valued at RM69.2 billion (USD14.9 billion). From the total approved investments of this sub-sector, RM60.7 billion (USD13.1 billion) investments for data centre activity were approved.
The Digital Investment Office (DIO) is at the forefront of facilitating digital investments, helping investors connect with local partners and navigate regulatory requirements. Through DIO, the Malaysian Government’s objective of attracting RM70 billion in digitalisation investments by 2025 is on track.
This is being further facilitated by strong investment in a range of other tech areas, including the communication network infrastructure as the nation transitions to 5G, which is also in tandem with a business-beneficial geographical location, abundant natural resources and a skilled workforce.
Key to developments to date – and more to come in the future – is the support from the Malaysian Government, with MIDA taking the lead to attract quality investments, harness the vast possibilities opened up by the digital revolution and leverage technology to navigate the challenges ahead.
Note: 1USD = RM4.48