Oracle Malaysia managing director Fitri Abdullah.
PETALING JAYA: United States-based Oracle Corp’s investment of over US$6.5bil (RM27bil) in Malaysia is expected to nurture the country’s next-generation digital talent and strengthen its digital economy.
The multi-billion-dollar investment will be used to establish a new cloud region aimed at harnessing the power of artificial intelligence (AI) and modernising local businesses.
Oracle Malaysia managing director Fitri Abdullah said Oracle understands the importance of developing Malaysia’s talent pool to ensure a skilled and ready workforce as the country’s digital economy grows.
“We have made great strides with Oracle Academy in Malaysia that has worked with more than 80 educational institutions to help them prepare students for successful technology careers with knowledge, hands-on practice and career-relevant skills. Our investment of more than US$6.5bil continues to build on nurturing Malaysia’s next generation of digital talent,” Fitri told StarBiz.
Yesterday, Oracle said it plans to invest more than US$6.5bil to set up its first public cloud region in Malaysia.
Oracle’s investment in Malaysia marks one of the largest technology commitments in the country, driving the total investment by global tech giants to US$16.9bil to-date.
This follows Microsoft Corp’s US$2.2bil push to expand cloud and AI services, Google’s US$2bil for its first data centre and cloud region, and Amazon Web Services’ US$6.2bil commitment through 2038, underscoring Malaysia’s growing importance as a digital hub in South-East Asia.
Although Oracle did not specify the timeframes for the investment, Fitri said the investment underscored the company’s long-term commitment to the country, where it has operated for over 35 years.
“With Oracle’s cloud region in Malaysia, organisations in the country will be able to migrate mission-critical workloads to the Oracle Cloud Infrastructure (OCI) and leverage cloud and AI infrastructure and services,” he added.
It will enable businesses to modernise their applications, innovate with data and analytics, and capitalise on advanced AI capabilities.
The firm said the new cloud region will offer access to more than 150 services, further driving AI-fuelled innovation and supporting Malaysia’s digital economy.
It will also extend OCI’s footprint in Asia-Pacific to a total of 12 public cloud regions.
Oracle Japan and Asia-Pacific executive vice-president and general manager Garrett Ilg said Malaysia offered unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies.
“Our multi-billion-dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of software as a service (SaaS) applications deployed within Malaysia,” he noted in a statement.
Meanwhile, International Data Corp Asia Pacific vice president for cloud, data centre, and future digital infrastructure Franco Chiam noted that Oracle’s new cloud region will enhance Malaysia’s infrastructure for AI and cloud computing, potentially making the country a hub in Southeast Asia.
Citing IDC FutureScape ‘The Infrastructure and Cloud Impact 2024 Predictions,’ he pointed out that Malaysia’s public cloud services market is expected to grow by a compound annual growth rate of 27.2% from 2022 to 2027.
“The upcoming Oracle cloud region in Malaysia, therefore, signals the country’s potential to become a hub for technological innovation and growth in South-East Asia,” Chiam said.
With OCIs sovereign AI capabilities, businesses will be able to maintain data sovereignty, ensuring compliance with local regulations while benefiting from high-performance AI services.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said that investments by global tech giants, including Oracle, demonstrate their confidence in Malaysia’s potential as a regional hub for cloud infrastructure and AI development.
He attributed this to the government’s clear policies and strategic cooperation.
“The clarity of policies and strategic cooperation approach implemented by the government has successfully attracted investment from the world’s leading technology companies,” he said yesterday in a post of the X platform.
He emphasised the importance of ensuring local companies and the workforce to seize the best opportunities from these investments.
“In a series of discussions with investors, including the top management of these companies, I emphasised the importance of expanding long-term benefits to Malaysia, including the development of centres of excellence, AI faculty and the empowerment of community groups,“ Anwar said.
A check on Oracle’s website shows that Johor Port Bhd and Capital A Bhd
’s AirAsia are among users of OCI.
Analysts say Oracle’s investment is a big shot in the arm towards Malaysia’s rise as a regional’s digital hub, fueled by rising demand for AI, cloud infrastructure and data analytics.
In a report yesterday, RHB Research said Malaysia is set to emerge as the largest data centre hub in the Asean region.
Citing data from DC Byte, the research firm said more than 1 gigawatt (GW) of supply is expected to come on stream over the next two years versus the current installed capacity of under 400 megawatt.
“About 3GW of capacity is in the developmental stages, and will be added progressively over the next 3-5 years. Potential DC inventory by 2028 would be 10 times more than what it took the industry to build over the last two decades.
“This would put Malaysia ahead of Singapore, Asia’s largest DC metro where capacity is projected to stabilise at 1.4GW due to land scarcity and stricter conditions imposed on new builds.”
The research firm said DC investments are a “catalytic enabler to raise Malaysia’s economic complexity and move up the technology ladder”.
