Heaptalk, Jakarta — TikTok’s parent company, ByteDance, announced an extension of its strategic investment worth US$2.13 billion, or approximately MYR10 billion, to construct an artificial intelligence hub in Malaysia, the country’s Trade Minister revealed on social media X.
“ByteDance’s additional investment will certainly bolster Malaysia in accomplishing the target of growing the digital economy to 22.6% of Malaysia’s Gross Domestic Product next year,” Malaysia’s Trade and Industry Minister, Tengku Zafrul Aziz, conveyed.
In a bid to evolve the digital landscape, ByteDance will further expand its technological facility by establishing a data center in the southern state of Johor, Malaysia, with an additional investment of US$318 million (around MYR1.5 billion).
This attempt is an integral part of a more comprehensive investment deal. It also marks the latest in a series of global technology companies deepening their business ties in Southeast Asia. Moreover, Minister Tengku claimed that Malaysia has a stable semiconductor ecosystem, making this a potential market for strategic investment from global players.
At the end of last month, 2024, Malaysia also secured another fresh injection from tech behemoth Google, which plans to establish its first data center and cloud region worth US$2 billion. These facilities will be located in Sime Darby Property’s Elina Business Park, Greater Kuala Lumpur.
“As this attracts further investments, it will spur innovation and drive growth for organizations of all sizes. We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision toward a more technologically advanced Malaysia,” YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry (MITI), responded separately to Google’s investment last month.
In early May 2024, giant tech Microsoft announced plans to invest US$2.2 billion over the next four years to support Malaysia’s digital transformation. This will cover cloud and AI infrastructure construction, creating AI skilling opportunities for an additional 200,000 people, establishing a national AI Center of Excellence, and improving the nation’s cybersecurity capabilities.