ByteDance, the Chinese technology company renowned for its popular video-sharing platform TikTok, has announced a substantial investment of US$2.13 billion in Malaysia (via Reuters).
This investment aims to establish a regional hub dedicated to artificial intelligence (AI) and further solidify the company's presence in Southeast Asia.
The significant investment, unveiled on Friday, June 7, by Malaysia's Minister of Investment, Trade, and Industry, Tengku Zafrul Aziz, will be channeled into developing advanced AI capabilities within the country.
Additionally, ByteDance has outlined plans to expand its data center operations in Johor state with an additional investment of US$337 million.
TikTok terus tingkatkan pelaburan di Malaysia!
Saya mengadakan pertemuan bersama Helena Lersch, Naib Presiden TikTok, bagi membincangkan perkembangan TikTok di Malaysia.
Setakat ini, TikTok melalui ByteDance System telah membangunkan pusat data di Sedenak Tech Park, Kulai,… pic.twitter.com/Apw2voOOGQ
In a recent post on X, Malaysia's trade minister emphasized the pivotal role this investment will play in accelerating the growth of Malaysia's digital economy, noting that the additional investment by ByteDance will significantly aid Malaysia in reaching its target of growing the digital economy to 22.6% of the gross domestic product by 2025.
To date, TikTok, under ByteDance, has established a data center in Sedenak Tech Park, Kulai, Johor. Looking ahead, ByteDance plans to further expand its data center facilities with an additional investment of RM1.5 billion (approximately US$337 million).
ByteDance's investment follows similar strategic moves by other tech giants in Malaysia. In May, Google committed US$2 billion to develop its first data center and a new Google Cloud region in Malaysia. The tech giant highlighted this investment as Google's largest planned investment in the Southeast Asian nation.
Google's initiatives include programs to enhance AI literacy among local communities, generate more than US$3.2 billion in contributions to Malaysia's GDP, and create 26,500 jobs by 2030.
Similarly, Microsoft announced a US$2.2 billion investment to expand cloud and AI services in Malaysia. This investment, as described by Microsoft's CEO Satya Nadella, will focus on developing cloud and AI infrastructure, providing AI training opportunities, and establishing a national AI Centre of Excellence.
Prime Minister Anwar Ibrahim expressed his support for Microsoft's investment, highlighting its significance in strengthening Malaysia's economic foundation and reinforcing its position as an attractive destination for technology investment.
"This investment proves their confidence in the country's strong economic foundation, clear directions in policies, aside from political stability and investor-friendly," he stated.
ByteDance's investment, along with those from Google and Microsoft, is poised to play a pivotal role in propelling Malaysia's digital transformation. These combined efforts are anticipated to foster technological advancements, create numerous job opportunities, and contribute significantly to the country's GDP in the coming years.
