As the government announces 26,500 job cuts, Google announces a $2 billion investment in Malaysia.

Highlights:

• Google recently mentioned that investing in a Southeast Asian nation will “open an environment for unleashing AI’s revolutionary power.
• Google’s recent announcement shook the financial world after it declared a 2 billion US dollar investment in Malaysia.
• The goal is to create the nation of Southeast Asia’s “cloud region” and first data center.

Google’s $2 Billion Investment Announcement:

The Malaysian government recently announced that Google is the latest to pour $2 billion into the region to establish the company’s first data center there. The Thursday, May 30, 2024, announcement is the most recent in a string of international tech companies’ Southeast Asian growth.

While Google’s cloud service is meant to assist Malaysia’s corporate and public sectors, the new data centre will help in power Search, Workspace, and Maps, the Google services in Malaysia.

The Positive Impact

Southeast Asia has 670 million young, internet-savvy people, and the big giants, Amazon, Microsoft, Apple, and Nvidia, have recently shown great interest in and invested in the region.

The Malaysian government also mentioned that Artificial intelligence (AI) capabilities and other cutting-edge technology would help local industries climb up the global value chain and further Malaysia’s digital objectives.

The statement released by Anwar Ibrahim, the Prime Minister of Malaysia also stated through Twitter that Google’s investment is expected to create around 26,000 employment for the region’s economy by 2030.

Google Announcement: Statement By Prime Minister

The Malaysian Prime Minister, Anwar Ibrahim, had set aside a considerable amount for the semiconductor industry. The investment amount kept aside is at least 107 billion US dollars. The government estimated that this amount would sustain 26,500 jobs in the region across finance, healthcare, education, and other industries.

The Prime Minister also announced in April 2024 that he intended to attract investors and international IT businesses by constructing the most extensive integrated circuit design park in Southeast Asia, offering tax advantages, and offering other giveaways.

Ruth Porat, Google’s chief investment officer, and Alphabet, its parent company, stated that the Google Cloud region and first data center of Google is their most excellent planned investment until now in the nation that a tech giant like Google has been honored to consider hosting for 13 years.

As reported by Bosch, the German tech giant, the country produces over 13 percent of the world’s back-end electronics.

Interesting facts

• The region has also been a significant participant in the semiconductor business for multiple years.
• The international consulting firm’s research indicates that the region is expected to receive over a tenth of the $1 trillion. It is the amount that Kearney states that AI or artificial intelligence is likely to contribute to Southeast Asia’s GDP by 2030.
• Amazon also announced for its nine billion dollars investment in Singapore over the coming four years to increase the city’s cloud computing capacity.
• Many organizations, such as startups, public sector, and large organizations can significantly benefit from Google Cloud’s low-latency cloud infrastructure, high performance, AI capabilities, and analytics.

Conclusion

In an effort to pursue development prospects, Google invested $2 billion in Malaysia to establish the company’s first data center there, becoming the latest internet giant to do so.

With its long history in the high-tech sector, Malaysia is well-positioned to welcome the migration of these American tech giants’ operations, as many of them seek to diversify their investment hazards far from China.

Keep yourself updated and knowledgeable! For up-to-date information, breaking news, and unique material, stay tuned with The Financial Review.