Microsoft announces key investments in Malaysia, Thailand

Photo by Graham Denholm/Getty Images for Microsoft. Microsoft Chairman and CEO Satya Nadella announced a US$2.2 B investment to advance new cloud and AI infrastructure in Malaysia during the Microsoft Build: AI Day on May 2, 2024 in Kuala Lumpur, Malaysia. The day before, Nadella had announced a new data centre region in Thailand during Microsoft Build: AI Day in Bangkok, Thailand.

Microsoft announced on May 2 that it will invest US$2.2 B over the next four years to support Malaysia’s digital transformation – the single largest investment in its 32-year history in the country. The investment will enable Microsoft to meet the growing demand for cloud computing services in Malaysia. It will also allow Malaysia to capitalise on the significant economic and productivity opportunities presented by the latest AI technology.

Microsoft’s investment includes:

- Building cloud and AI infrastructure in Malaysia

- Creating AI skilling opportunities for an additional 200,000 people in Malaysia

- Strengthening its partnership with the government of Malaysia to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities 

- Supporting the growth of Malaysia’s developer community.

The investment demonstrates Microsoft’s commitment to developing Malaysia as a hub for cloud computing and related advanced technologies, including generative AI. This will support the nation’s productivity, competitiveness, resilience, and economic growth.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” said Satya Nadella, Chairman and CEO, Microsoft. “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.”

YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade & Industry said: “Microsoft’s 32-year presence in Malaysia showcases a deep partnership built on trust. Indeed, Malaysia’s position as a vibrant tech investment destination is increasingly being recognised by world-recognised names due to our well-established semiconductor ecosystem, underscored by our value proposition that ‘this is where global starts’.

“Microsoft’s development of essential cloud and AI infrastructure, together with AI skilling opportunities, will significantly enhance Malaysia’s digital capacity and further elevate our position in the global tech landscape. Together with Microsoft, we look forward to creating more opportunities for our SMEs and better-paying jobs for our people, as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey.”

“We are honoured to collaborate with the government to support their National AI Framework, which enhances the country’s global competitiveness. This strategic emphasis on AI not only boosts economic growth but also promotes inclusivity by bridging the digital divide and ensuring everyone gets a seat at the table, so every Malaysian can thrive in this new digital world. 

"As a result, Malaysia is steadily establishing itself as a regional hub for digital innovation and smart technologies, embodying a forward-thinking approach that prioritises sustainable development and societal wellbeing through digital transformation,” said Andrea Della Mattea, President of Microsoft ASEAN.

The digital infrastructure investment builds on Microsoft’s Bersama Malaysia (Together with Malaysia) initiative, announced in April 2021, to support inclusive economic growth. This included plans to establish the company’s first data centre region in the country.

In late April, Microsoft announced a broader commitment to provide AI skilling opportunities for 2.5 million people in ASEAN member states by 2025. This training and support will be delivered in partnership with governments, nonprofit and business organisations, and communities in Malaysia, Indonesia, the Philippines, Thailand, and Vietnam.

Microsoft’s skilling commitment is expected to benefit 200,000 people in Malaysia by providing: 

- Technical and vocational education and training students with AI skills through the AI TEACH Malaysia programme 

- Women with opportunities and support to build careers in cybersecurity via the Ready4AI&Security programme

- Young people with AI fluency training to enhance the employability and work readiness of those from underserved and underrepresented communities 

- Employees of non-profit organisations with knowledge of, and skills in, AI and digital technologies. 

Microsoft’s other recent skilling activities in Malaysia include its success in providing digital skills to more than 1.53 million Malaysians as part of the Bersama Malaysia initiative.

Microsoft will also continue to partner with the Malaysian government to enhance the nation’s digital ecosystem through several initiatives. These include establishing a national AI Centre of Excellence in collaboration with agencies in Malaysia’s Ministry of Digital to drive AI adoption across key industries, while ensuring AI governance and regulatory compliance. They further include pioneering AI adoption in the public sector through projects with:

- The Ministry of Investment, Trade and Industry (MITI) in Malaysia to better analyse economic trajectories of different negotiating partners in international trade negotiations 

- Cradle, an agency under Malaysia’s Ministry of Science, Technology and Innovation. Cradle is leveraging Azure OpenAI Service to develop a virtual information assistant for its MYStartup platform, the ‘single window’ to Malaysia’s startup ecosystem. 

Microsoft will also collaborate with the National Cyber Security Agency of Malaysia (NACSA) through the Perisai Siber (Cyber Shield) initiative to enhance the country’s cybersecurity capabilities. The collaboration will focus on promoting security and resilience in the public sector through security assessments and capacity building.

Ir. Dr Megat Zuhairy Megat Tajuddin, CEO, National Cyber Security Agency (NACSA) stated: “Microsoft’s collaboration with NACSA on Perisai Siber is pivotal as one of our strategic partnerships with industry players in establishing a secure digital infrastructure for our nation. Together, our goal is to bolster security and resilience, beginning with the public sector, to ultimately strengthen the nation’s cybersecurity capabilities.” 

In addition, Microsoft will look to support NACSA in its role as Malaysia’s lead agency for cybersecurity matters, as it formulates the next stage of the nation’s cybersecurity strategy. The two organisations will also explore deeper collaborations in developing cybersecurity skills through initiatives such as Microsoft’s Ready4AI&Security programme.

Microsoft will continue to help foster the growth of Malaysia’s developer community through new initiatives such as AI Odyssey, which is expected to help 2,000 Malaysian developers become AI subject matter experts by learning new skills and earning Microsoft credentials.

Malaysian representation is rapidly growing on GitHub, the Microsoft-owned software development, collaboration, and innovation platform. Almost 680,000 of the nation’s developers used GitHub in 2023, representing 28% year-on-year growth. In contrast, 900,000 Thailand-based developers used GitHub in 2023, representing 24% growth year-on-year.

Microsoft shared that many Malaysian organisations have been using its generative AI-powered solutions. One such customer is Agroz, a Malaysian agriculture tech company that designs and operates controlled environment indoor vertical farms in Malaysia. It built Agroz Copilot for Farmers using Azure OpenAI Service, which helps farmers query Agroz’s farming system using their natural language or images and get recommendations on what daily tasks they should do to improve crop productivity and farm efficiency. 

Doctor2U, one of Malaysia’s healthcare super apps, is using GitHub Copilot to expedite development, with tasks that previously took two hours now being completed in 30 minutes. In addition, the implementation of Azure AI Search has sped up the record retrieval process, reducing the time it takes to return results from a multimillion patient data set from one minute to one second. 

Pandai helps more than 800,000 students learn, practice, and improve their academic performance via an app. It recently deployed a personalised study bot called Pbot using Azure OpenAI Service. The bot monitors students’ progress and provides academic support. Pandai’s aim is for the bot to be a “personal friend and tutor” in each student’s educational experience.

PETRONAS, Malaysia’s fully integrated global energy provider, is transforming the future of its global workforce through the adoption of Copilot for Microsoft 365 to enhance employee productivity and creativity. The company is also leveraging Azure OpenAI Service to create AI-powered solutions that help improve operational efficiency, reliability, and employee safety. 

Perumahan Rakyat 1Malaysia (PR1MA), the main housing agency under Malaysia’s Ministry of Housing and Local Government, has deployed Copilot for Microsoft 365 across its information technology, human resources, finance, and legal departments. PR1MA has already seen a 30% reduction in time spent on routine administrative tasks, allowing employees to focus more on strategic initiatives and value-adding activities. 

Prudential, a life and health insurer in Malaysia, has embedded an in-house AI tool in its call centre using Azure OpenAI Service. The tool reduces the time it takes for Prudential’s servicing team to gather product information for agents from four minutes to under 30 seconds, allowing them to respond to customers more quickly. The company anticipates expanding the tool for additional use cases soon.

Said YB Rafizi Ramli, Minister of Economy, Malaysia: “The advent of ChatGPT created a new vertical in the startup world. As more companies embrace the power of AI, having the right digital infrastructure in Malaysia is key to futureproofing our nation’s economy. Microsoft’s investment will help accelerate the adoption of generative AI, building a pipeline of AI-driven startups, and benefitting our economy through increased productivity and higher wages.”

Added YB Gobind Singh Deo, Minister of Digital, Malaysia: “As a nation, we are focused on accelerating digitalisation and fostering a culture of innovation alongside technological advancement to level the playing field for all Malaysians to prosper in an inclusive digital economy. Microsoft’s investment is a significant step in our journey towards becoming a digitally inclusive society. It underscores the importance of partnership in driving nationwide digital transformation and reinforces our commitment to equipping Malaysians with the infrastructure, advanced tools, and skills they need to thrive in the digital age.”

“Microsoft’s significant investment in Malaysia recognises and supports the government’s efforts in building an inclusive digital ecosystem for the country. We are excited to continue partnering with technology leaders like Microsoft to foster a space where Malaysians can seamlessly connect, learn, and benefit from our nation’s digital transformation,” said YB Fahmi Fadzil, Minister of Communications, Malaysia.

YB Chang Lih Kang, Malaysia Minister of Science, Technology & Innovation commented: “Today’s (May 2) investment by Microsoft exemplifies a dynamic public-private partnership aimed at enhancing the socio-economic status and quality of life in Malaysian communities. As we embrace AI’s potential, we commend Microsoft’s commitment to responsible AI, which aligns with our vision for advancing technology in Malaysia responsibly and inclusively.”

Laurence Si, MD, Microsoft Malaysia noted: “With rising demand for cloud and AI, Microsoft’s investment announced today (May 2) underscores our commitment to building a robust digital ecosystem in the country. From driving more innovations born in Malaysia, to fostering an ecosystem of skilled talents and enhancing cybersecurity capabilities for Malaysian organisations, we are dedicated to our role as a trusted technology partner to the nation.” 

Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO, Malaysian Investment Development Authority (MIDA) said: “We are excited to deepen our partnership with Microsoft as they strengthen their commitment by establishing a cloud and AI infrastructure and supporting our vibrant developer community in Malaysia. This strategic collaboration underscores our dedication to innovation and regional industry growth. By leveraging Microsoft’s expertise, we aim to accelerate economic development, create jobs, and enhance industry competitiveness through digital transformation. 

"We believe we can achieve more together and further advance our partnership. This investment not only reinforces Malaysia’s position as a leading digital hub but also marks a promising start in attracting more companies to embark on this digital journey with us, promoting inclusive growth and prosperity nationwide.”

“Microsoft’s commitment to Malaysia demonstrates confidence in our nation’s digital future. Through this investment in cloud and AI infrastructure, local organisations can tap into more opportunities to upscale and innovate, further propelling Malaysia’s aspirations for regional leadership in the digital economy,” added Ts. Mahadhir Aziz, CEO, Malaysia Digital Economy Corporation (MDEC).

Microsoft also announced significant commitments to build new cloud and AI infrastructure in Thailand, provide AI skilling opportunities for over 100,000 people, and support the nation’s developer community. Announced on 1 May, the commitments build on Microsoft’s memorandum of understanding (MoU) with the Royal Thai government to envision the nation’s digital-first, AI-powered future. 

“Our Ignite Thailand vision for 2030 aims to achieve the goal of developing the country’s stature as a regional digital economy hub that significantly enhances our innovation and R&D capabilities while also strengthening our tech workforce,” said Thai Prime Minister Thavisin said on May 1. He called the Microsoft announcement "is a significant milestone in the journey for Ignite Thailand, and said it "promises new opportunities for growth, innovation, and prosperity for all Thais.”

“Thailand has an incredible opportunity to build a digital-first, AI-powered future,” said Nadella. “Our new data centre region, along with the investments we are making in cloud and AI infrastructure, as well as AI skilling, build on our long-standing commitment to the country – and will help Thai organisations across the public and private sector drive new impact and growth.”

Dhanawat Suthumpun, MD of Microsoft Thailand, said: “Microsoft is dedicated to helping Thailand excel as a digital economy, ensuring that the benefits of cloud and AI technologies are widespread and contribute to the prosperity and wellbeing of Thais. Together, we are laying the foundations for a future that is not only technologically advanced but also inclusive and sustainable.”

Microsoft’s digital infrastructure commitment includes establishing a new data centre region in Thailand. The region will expand the availability of Microsoft’s hyperscale cloud services, facilitating enterprise-grade reliability, performance, and compliance with data residency and privacy standards.

It follows growing demand for cloud computing services in Thailand from enterprises, local businesses, and public sector organisations. The move will also allow Thailand to capitalise on the significant economic and productivity opportunities presented by the latest AI technology.

Microsoft’s skilling commitment for Thailand is expected to benefit more than 100,000 individuals. It will enhance the AI proficiency of those involved in the nation’s tourism sector through the AI Skills for the AI-enabled Tourism Industry programme. The initiative is a partnership between Microsoft and Thailand’s Ministry of Digital Economy and Society, Ministry of Tourism and Sports, the Thai Ministry of Labour, and the nation’s Technology Vocational Education Training Institute. It aims to empower young entrepreneurs and youths involved in tourism businesses across minor-tier geographic provinces in all five regions of Thailand.

The program will focus on enhancing the capabilities of 500 trainers from technology vocational education training institutes in AI for Thailand’s tourism sector. These trainers will then equip young individuals in tourism and hospitality with AI skills. The learning module will be accessible through partners’ learning platforms to ensure sustainability and scalability.

The tourism initiative builds on other Microsoft-supported skilling initiatives in Thailand, including Accelerating Thailand, the ASEAN Cyber Security Programme, Code; Without Barriers, and the Junior Software Developer Program.

Microsoft will also enable the Royal Thai Government to adopt a cloud-first policy with an AI skill development program for developers and government IT personnel.

Microsoft will continue to help foster the growth of the country’s developer community through new initiatives such as AI Odyssey, which is expected to help 6,000 Thai developers become AI subject matter experts by learning new skills and earning Microsoft credentials.  

Furthermore, many Thai organisations are boosting their productivity and accelerating innovation using Microsoft’s generative AI-powered solutions. Advanced Info Service Public Company (AIS), Thailand’s largest digital life service provider, is a case in point. 

The company has enhanced its workforce productivity by adopting Copilot for Microsoft 365. The tool has been instrumental for employees across AIS, including those in its legal and compliance teams. The company has also deployed GitHub Copilot and Azure OpenAI Service to develop applications and AI-powered assistants.

The National Health Security Office (NHSO) has built a transformative platform as part of its AI for a Healthier Thailand initiative. The platform makes care more accessible for more than 66 million people in Thailand, and uses Azure OpenAI Service, Azure Machine Learning, and other Microsoft technologies to simplify healthcare policy data. It also offers personalised healthcare advice, including information on rights, received services, and access to healthcare facilities tailored to individual health requirements.

SCBX Public Company, a financial technology conglomerate that operates one of the largest banks in Thailand, Siam Commercial Bank (SCB), is harnessing Azure OpenAI Service to become an AI-first organisation. Its subsidiary, InnovestX, is using the service to process and summarise analysts’ reports and earnings briefs for listed companies. SCBX has also used Azure OpenAI Service to develop an in-house social media sentiment analysis tool that enhances the precision of automated online monitoring and improves reputation management. 

The Office of the Council of State (OCS) is an agency under the Office of the Prime Minister that provides legal advice, as well as legislative drafting and review to the Royal Thai government. The OCS has announced it will use Copilot for Microsoft 365 for its government lawyers and other professionals.

Other organisations in Thailand working with Microsoft to explore new possibilities with AI include the nation’s largest privately-held company, Charoen Pokphand Group, as well as petrochemical and refining business PTT Global Chemical Public Company.

Microsoft also collaborates with Thailand’s National Cyber Security Agency to provide information on Internet safety, cyberthreats and vulnerabilities, and other related guidance to enhance the nation’s cybersecurity posture in the AI era. Meanwhile, the Thai Ministry of Finance is using AI to enhance cross-agency data collaboration. 

According to research by Kearney, AI could contribute nearly US$1 T to Southeast Asia’s gross domestic product (GDP) by 2030. Malaysia is expected to account for US$115 B of this amount, and Thailand, US$117 B.