Google’s investment in Malaysia will have a positive impact on the economy in all sectors, says an economist

KUALA LUMPUR, May 30 — Tech giant Google’s commitment to invest US$2 billion (RM9.4 billion) in Malaysia will trigger a positive economic recovery effect across various sectors and industries in the country.

Universiti Sains Islam Malaysia (USIM) economist Associate Professor Dr Nuradli Ridzwan Shah Mohd Dali said the development of Google’s first data center in Malaysia and the Google Cloud region will open opportunities for other sectors, particularly the technology sector, to benefit from this initiative.

“At the same time, there will be economic impacts in our energy and telecommunications sectors as the data center will require large amounts of energy supply.

“The construction and real estate industries will also benefit from the development of infrastructure and surrounding areas in the future,” he said during BernamaTV’s Malaysia Petang Ini today.

After more than 13 years on the market, Google, an Alphabet Inc group company, today announced its largest ever investment in Malaysia.

Google says its investment is estimated to generate a positive economic impact of over US$3.2 billion (RM15.04 billion) and create 26,500 jobs by 2030.

The investment is expected to attract other global giants to invest in Malaysia as Google’s previous investments have attracted interest from other large companies, Nuradli Ridzwan Shah said.

Moreover, Google’s latest investment in Malaysia is in line with the Madani government’s aspirations to transform towards a digital economy.

“This transformation requires us to be prepared in every respect, including the digitization of the public and social sectors, as well as the adoption of artificial intelligence,” he added. — Bernama