ByteDance, the parent company of popular social media platform TikTok, has announced plans to catalyze Malaysia’s artificial intelligence (AI) sector by investing approximately RM10 billion. This significant commitment aims to establish Malaysia as a key regional hub for AI development.
The revelation came during a meeting between Malaysia’s Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz, and Helena Lersch, Vice President of TikTok, held in Singapore. Minister Zafrul conveyed that ByteDance’s substantial investment is poised to bolster Malaysia’s digital economy, targeting a substantial 22.6 percent contribution to the nation’s Gross Domestic Product (GDP) by 2025.
“This additional investment from ByteDance is a testament to Malaysia’s growing prominence in the digital landscape,” noted Minister Zafrul, emphasizing the pivotal role of such investments in achieving national economic goals.
ByteDance has already made strides in Malaysia with the establishment of a cutting-edge data center at Sedenak Tech Park in Kulai, Johor, operated through its subsidiary, ByteDance System Sdn Bhd. Minister Zafrul highlighted plans for further expansion of the data center, with an additional investment totaling RM1.5 billion, to meet anticipated future demands.
“The development of AI capabilities is crucial not only for economic growth but also for enhancing technological innovation across various sectors,” Minister Zafrul remarked, underscoring the broader impact of ByteDance’s initiative on Malaysia’s digital transformation agenda.
The envisioned AI hub in Malaysia is poised to attract talent and foster collaborations that advance AI research and applications throughout Southeast Asia. ByteDance’s strategic move aligns with Malaysia’s ambition to become a regional leader in technology and innovation, further solidifying its position in the global digital economy landscape.
As discussions progress, stakeholders anticipate the tangible outcomes of this substantial investment, which promises to propel Malaysia into a new era of technological advancement and economic resilience.