SoftBank, Grab propose US$1.85b investment in Malaysia’s AI infrastructure

SoftBank and Grab have announced an ambitious US$1.85 billion (RM7.7 billion) investment aimed at developing artificial intelligence (AI) infrastructure in Malaysia. The multi-year plan, which will span Sarawak and Peninsular Malaysia, aims to establish at least five gigawatts of computing capacity. This investment comes amid growing foreign interest in Malaysia, particularly in technology and high-value industries.

Deputy Tourism, Arts and Culture Minister Chiew Choon Man highlighted the proposal as part of a broader trend of major investment developments in the country. Earlier this week, Google revealed plans to invest US$15 billion in Malaysia over the next two years, focusing on energy-efficient data center campuses in Selangor and Negeri Sembilan, which are expected to create 37,000 jobs annually, including 6,000 in construction.

Chiew also mentioned a Chinese business delegation led by Pansy Ho, who expressed interest in potentially investing US$15 billion in Malaysia. Discussions with the delegation centered on opportunities in six sectors, including electrical and electronics, semiconductors, digital economy and technology infrastructure, food processing and halal products, health and pharmaceutical technology, and tourism.

Chiew emphasized that the proposed investments target high-value, technology-driven industries rather than labor-intensive businesses. Malaysia's economic performance has contributed to investor confidence, with GDP growing 5.1% in 2024, up from 3.5% in 2023, and continuing to expand by 5.2% in 2025. The ringgit has strengthened against the US dollar, potentially reaching RM4.00 by year-end, according to CIMB Treasury and Markets Research.

Chiew credited the MADANI administration, led by Prime Minister Anwar Ibrahim, for its efforts to position Malaysia as an attractive destination for international businesses since November 2022. The government remains committed to attracting foreign capital, particularly in industries that promote technology, create skilled jobs, and provide greater economic value.