US software giant, Oracle, plans to invest $6.5bn in Malaysia to build a cloud services hub – a network of data centres to serve corporate clients.
It is the second time that a US technology company made headlines in the Southeast Asian nation this week. On Monday, Prime Minister Anwar Ibrahim attended the groundbreaking of Google’s $2bn data centre complex an hour outside of Kuala Lumpur.
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Oracle did not offer a timeframe for the project. The company’s executive vice president and general manager for Japan and Asia Pacific, Garret Ilg, said Malaysia “offers unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies.”
The country’s Investment, Trade and Industry Minister said that Oracle’s announcement aligned within Malaysia’s plan to create 3,000 smart factories by 2030.
There has been ongoing interest in Malaysia from other US technology companies. Micron and Intel have both announced billion-dollar investments in the country. European firms, including AMS Osram and Infineon, have also announced major projects. Most of these developments are taking place in Penang, a part of the country that has a long history in the semiconductor supply chain.
Prime Minister Ibrahim has said that advancing the country’s semiconductor industry was a “critical goal” for his nation.
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By GlobalDataIn a recent interview with CNBC, he also reiterated his commitment to regaining investor confidence by addressing “poor governance and endemic corruption.” He highlighted the upcoming completion of the Johor Singapore Special Economic Zone, which he says some companies have already expressed interest in.
While the US and its allies continue to impose export curbs on Chinese tech, companies and governments are asking themselves where they fit in the yet-to-be-solidified new global order. Malaysia, however, is focused on capitalising on the moment.
