By Zufazlin Baharuddin
KUALA LUMPUR, Oct 2 (Bernama) -- Oracle's investment in Malaysia's artificial intelligence (AI) and cloud computing sectors is set to catalyse substantial growth within the country's digital economy, enhancing technological innovation and economic competitiveness.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said as Malaysia progresses with its New Industrial Master Plan (NIMP) 2030, this investment will accelerate the nation’s digital transformation, with significant implications for productivity, job creation and economic growth.
"By deploying advanced cloud computing and AI technologies, Oracle can drive productivity gains across sectors, reduce operational costs, and enhance the competitiveness of Malaysian firms on the global stage.
"This influx of technology and expertise is expected to boost economic output, stimulate job creation, and contribute to Malaysia's long-term economic trajectory,” he told Bernama.
Today, Oracle announced plans to invest over US$6.5 billion (US$1 = RM4.15) to establish a public cloud region in Malaysia to meet the rapidly growing demand for its AI and cloud services.
Mohd Sedek noted that Oracle's investment, alongside those of other tech giants such as Amazon Web Services, Nvidia and Google, will significantly increase the demand for highly skilled professionals in these fields.
"This will not only drive direct job creation but also signal a broader transition towards a knowledge-based economy.
"Additionally, this investment is likely to spur indirect job growth in sectors like software development, data analytics, and cybersecurity, creating a ripple effect across the digital services industry,” he added, suggesting it could attract top-tier talent from other regions, further expanding Malaysia’s tech workforce.
He emphasised that while Oracle's investment could indeed draw more foreign direct investment into the technology sector, the extent of this effect will depend on factors such as the overall investment climate and the country's ability to foster innovation and cultivate a skilled workforce.
“The ripple effects on other industries will be significant but may vary depending on the specific sectors and the level of digital adoption,” he said.
Meanwhile, economist Professor Dr Geoffrey Williams highlighted that the actual impact on Malaysia’s broader economic growth will depend on various factors, including the adoption of new technologies and the readiness of industries to embrace this digital evolution.
“There will be an impact on real estate and supply-chain companies, as with any investment, but the true effect on the local economy will only be realised through wider adoption of these technologies.
"The challenges include leveraging the investment for job creation, retaining value-added processes within Malaysia, and balancing investment benefits with economic and social costs,” he said.
Therefore, Williams concluded that the spillover effects need to be better understood and researched for the benefit of both companies and the Malaysian workforce.
-- BERNAMA
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