Oracle has announced plans to invest more than $6.5 billion to establish its first public cloud region in Malaysia, marking one of the largest technology investments in the country to date.

The American technology giant's investment aims to meet growing demand for artificial intelligence (AI) and cloud services in Malaysia, enabling local organisations to modernise their operations and drive AI-powered innovation. The new facility will offer more than 150 infrastructure and software services, including Oracle's suite of AI tools and cloud computing capabilities.

Malaysia's minister of investment, trade and industry, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, welcomed the announcement, 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 investment represents a significant expansion of Oracle's 36-year presence in Malaysia and aligns with the country's New Industrial Master Plan, which aims to establish 3,000 smart factories by 2030.

Garrett Ilg, executive vice president and general manager for Japan and Asia Pacific at Oracle, emphasised Malaysia's strategic importance, saying: "Malaysia offers unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies."

Industry analysts are optimistic about the development's timing. Franco Chiam, vice president for cloud, data centre and future digital infrastructure in Asia Pacific at IDC, noted that Malaysia's public cloud services market is expected to grow by 27.2 per cent compound annual growth rate from 2022 to 2027.

The new cloud region will be Oracle's third in Southeast Asia, joining two existing facilities in Singapore. It will provide Malaysian customers with local access to Oracle's full range of cloud services, including AI infrastructure and database solutions. The facility will also enable organisations to meet data residency requirements by storing information within Malaysia's borders.

The investment follows similar moves by other technology giants in Southeast Asia, including Microsoft's $1.7 billion cloud services investment in Indonesia and Amazon's planned $9 billion investment in Singapore, highlighting the region's growing importance as a technology hub.

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