February 25, 2024

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Malaysia and UAE Strengthen Tech Ties

To foster technological collaboration, the Ministry of Investment, Trade, and Industry (MITI) of Malaysia, in conjunction with the Ministry of Investment of the United Arab Emirates (UAE), has solidified their commitment to advancing investment cooperation in the burgeoning digital infrastructure sector.

A Memorandum of Understanding (MoU) was signed between Malaysia’s Minister of Investment, Trade, and Industry for Malaysia, and the Minister of Investment for the UAE. This strategic partnership focuses on the development of data centres in Malaysia, with potential projects anticipated to achieve a total capacity of 500 megawatts.

The MoU underscores a robust commitment towards collaborative efforts in exchanging knowledge and expertise in the digital infrastructure sector between Malaysia and the UAE. The partnership aims not only to strengthen bilateral economic and investment relationships but also to propel both nations to the forefront of technological advancements. The agreement was reached with an understanding that collaboration in the digital realm would yield significant benefits for both the public and private sectors of Malaysia and the UAE.

Malaysia has emerged as a preferred destination for data centres in the Southeast Asia region, attributed to its robust digital and physical infrastructure, adherence to the rule of law, and government-backed measures and initiatives on data centre investments. The partnership aligns with Malaysia’s ambitious plans outlined in the New Industrial Master Plan (NIMP) 2030, stressing the advancement of artificial intelligence (AI) and enhancing the capacity of industries, SMEs, and startups in AI.

Beyond the development of data centres, the MoU also exemplifies Malaysia’s commitment to the advancement of AI technology. This commitment is in line with the NIMP 2030, which aims to position Malaysia as a regional leader in AI development, fostering innovation and growth in the sector. The collaboration anticipates the development of AI solution providers, further contributing to Malaysia’s technological landscape.

Malaysia’s Minister of Investment, Trade, and Industry, Malaysia stated that by positioning Malaysia as a regional data centre hub, the country is well-poised to capture a significant portion of ASEAN’s digital economy, projected to reach USD 1 trillion by 2030. MITI and its agencies are committed to expediting the implementation of all committed investments to ensure that investors, businesses, and the population swiftly benefit from a more robust and thriving digital economy within Malaysia and ASEAN.

Meanwhile, the Minister of Investment for the UAE stated that the arrangement aims to bolster the nation’s digital infrastructure and accelerate the expansion of its internet economy, aligning with shared priorities and interests.

The MoU is a testament to the robust trade relations between Malaysia and the UAE, with a particular focus on the significant growth in non-oil trade volume. Currently, the UAE stands as Malaysia’s second-largest trading partner in the Middle East, and Malaysia plays a pivotal role in the UAE’s exports and re-exports in the ASEAN region.

This collaboration represents a paradigm shift in the technological landscape of both nations, propelling them into the forefront of digital infrastructure development. With a focus on data centres and AI, Malaysia and the UAE are set to not only strengthen their economic ties but also contribute significantly to the technological advancements in the Asia-Pacific region. The MoU stands as a beacon of collaborative innovation, with the potential to reshape the digital future of Malaysia and the UAE.


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