In a significant move to bolster Malaysia’s digital economy, Oracle Corporation has announced plans to invest more than US$6.5 billion (RM27 billion) to establish a public cloud region in the country. This investment aims to meet the rapidly growing demand for artificial intelligence (AI) and cloud services in Malaysia, marking a substantial expansion of Oracle’s 36-year presence in the nation.
Boosting Malaysia’s Digital Infrastructure
The upcoming cloud region will enable Oracle customers and partners in Malaysia to leverage advanced AI infrastructure and services, facilitating the migration of mission-critical workloads to Oracle Cloud Infrastructure (OCI). This move is expected to accelerate AI innovation across various sectors in Malaysia.
YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI) of Malaysia, welcomed the investment, stating, “This investment will empower Malaysian entities, especially small and medium-sized enterprises, with innovative and cutting-edge AI and cloud technologies to enhance their global competitiveness.”
The minister also highlighted that Oracle’s decision underscores Malaysia’s infrastructure readiness and its growing position as a premier Southeast Asian destination for digital investments. He added that this investment aligns with the country’s New Industrial Master Plan, which aims to create 3,000 smart factories by 2030.
Comprehensive Cloud Services
Oracle’s planned public cloud region in Malaysia will offer over 150 infrastructure and Software as a Service (SaaS) services. These include:
- OCI Generative AI Agents with retrieval-augmented generation (RAG) capabilities
- Accelerated computing and generative AI services
- OCI Supercluster, touted as the largest AI supercomputer in the cloud
- Oracle Autonomous Database
- HeatWave MySQL Database Service
- Oracle Cloud VMware Solution
- OCI Kubernetes Engine
- Oracle Fusion Cloud Applications Suite
The cloud region will also feature NVIDIA AI infrastructure services, including NVIDIA AI Enterprise, NVIDIA Omniverse, and NVIDIA DGX Cloud.
Market Growth and Regional Impact
According to IDC FutureScape’s “The Infrastructure and Cloud Impact 2024 Predictions,” Malaysia’s public cloud services market is expected to grow at a compound annual growth rate (CAGR) of 27.2% from 2022 to 2027. Franco Chiam, Vice President of Cloud, Data Center and Future Digital Infrastructure for Asia Pacific at IDC, noted that Oracle’s investment signals Malaysia’s potential to become a hub for technological innovation and growth in Southeast Asia.
Garrett Ilg, Executive Vice President and General Manager for Japan & Asia Pacific at Oracle, emphasized the unique growth opportunities Malaysia offers for organizations looking to expand with the latest digital technologies. He stated, “Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of SaaS applications deployed within Malaysia.”
Oracle’s Distributed Cloud Strategy
The investment in Malaysia is part of Oracle’s broader distributed cloud strategy, which aims to provide cloud benefits with greater control and flexibility. Oracle’s distributed cloud lineup includes:
- Public cloud: Hyperscale public cloud regions serving organizations of all sizes
- Dedicated cloud: Allowing customers to run OCI cloud services in their own data centers
- Hybrid cloud: Delivering key cloud services on-premises
- Multicloud: Options for integrating with other major cloud providers
Data Sovereignty and AI Innovation
Oracle’s cloud region in Malaysia will enable customers to gain low-latency access to cloud services while addressing data residency requirements. The company’s sovereign AI capabilities will provide customers with increased control over their data and computing infrastructure, allowing them to achieve AI sovereignty aligned with digital sovereignty frameworks.
Expanding Regional Presence
With the addition of the Malaysian cloud region, Oracle will extend its OCI footprint in Asia Pacific to 12 public cloud regions. This expansion is part of Oracle’s global strategy to meet the increasing demand for AI and cloud services across various markets.
Impact on Local Businesses
The investment is expected to have a significant impact on Malaysian businesses, particularly small and medium-sized enterprises. By providing access to advanced AI and cloud technologies, Oracle aims to enhance the global competitiveness of local companies and drive innovation across various sectors of the Malaysian economy.
As Malaysia continues to position itself as a key player in the digital economy of Southeast Asia, Oracle’s substantial investment reinforces the country’s attractiveness as a destination for high-tech infrastructure and services. The move is set to accelerate Malaysia’s digital transformation journey and contribute to its vision of becoming a regional hub for technological innovation and growth.
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