Malaysia plans national cloud policy and artificial intelligence regulation

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 follows a wave of investments by global technology companies in Malaysia last year as they sought to build critical infrastructure to meet growing demand for their cloud and artificial intelligence services.

Anwar said Malaysia’s national cloud computing policy will focus on four key areas, namely public service innovation and efficiency, economic competitiveness and growth, strengthening user trust and data security, and empowering citizens through digital inclusion.

The government will also establish a national AI office to coordinate initiatives including the completion of a five-year technology roadmap and regulatory framework to increase the use of ethical and sustainable AI over the next 12 months, he said.

“We want to position Malaysia as a hub for generative AI and investment from technology partners will be critical in building a robust and secure digital infrastructure,” Anwar said at the groundbreaking ceremony for Google’s new $2 billion data center and cloud region in the country.

Google, which this week announced a multi-year partnership with a local technology company to provide sovereign cloud services, says its investments in Malaysia will create 26,500 jobs and contribute more than $3 billion to the country’s economy by 2030.

“Our investments are designed to deliver high performance and reliability and meet demand for cloud services and artificial intelligence across the country,” said Ruth Porat, Google’s president and chief investment officer.

Digital investments have helped fuel Malaysia’s economy this year, which has grown beyond market expectations over the past two quarters, with the ringgit currency becoming one of the best performers in Asia.

Google’s moves are part of a broader expansion of global technology companies in Southeast Asia as they compete for a greater presence in a region that is home to 670 million young, tech-savvy populations.

Google on Monday said it will invest $1 billion in Thailand to build a data center and cloud region there to meet growing cloud demand and support artificial intelligence deployment in Southeast Asia.