- Unlocking ASEAN’s Digital Boom & the path to becoming a regional hub
- At the heart of Malaysia’s digital ambitions is the data center infrastructure
Southeast Asia’s digital economy continues its impressive growth. At its current rate, the region’s digital economy is expected to deliver US$1 trillion in value by 2030 – a massive opportunity Malaysia is well-positioned to capitalise on. With a population of over 700 million and rapidly growing digital adoption, ASEAN is quickly becoming a global powerhouse in the digital age.
The Top In Tech series recently aired its 40th episode, “The Silicon Straits: How Malaysia Can Unlock ASEAN’s Digital Boom”, which sought to discover Malaysia’s potential as a digital hub for ASEAN, exploring the role of robust infrastructure in driving regional innovation and economic growth, while also navigating the challenges and opportunities of cross-border data flow.
A lineup of experienced speakers, including MA Sivanesan, Deputy Secretary General (Digital Development), Ministry of Digital; Maciej Surowiec, Head of ASEAN Government Affairs, Microsoft; Dr. Endry Lim, Chief of Staff, PayNet; and Chiun Chiek Wong, Director, Bursa Intelligence at Bursa Malaysia shared their views. The discussion was moderated by Karamjit Singh, CEO of Digital News Asia.
Malaysia’s digital transformation journey
“Malaysia has long recognised the importance of digital transformation, laying the groundwork over the past two decades. Establishing Malaysia Digital Economy Corporation (MDEC) in 1996 was an early step in positioning Malaysia as a regional digital hub. Throughout the years MDEC has rolled out market access programs and assistance through grants, which support Malaysia Digital Hub startups that are ready to expand into ASEAN countries. From a policy perspective, the launch of Malaysia’s Malaysia Digital Economy Blueprint in 2021 provided a comprehensive roadmap to drive the country’s digital growth,” said Sivanesan.
Chiun Chiek drew attention to ASEAN’s emerges as the world’s 5th largest economy, where inter-regional collaboration becomes ever more crucial. Malaysia’s 2025 ASEAN chairmanship will spotlight the country’s regional leadership role and propositions. Government initiatives facilitating investments, particularly in data centers, deserve significant acknowledgment. With these infrastructures in place, the focus shifts to maximizing their utility, integrating AI capabilities to attract diverse workloads that align with global cloud computing trends over the past decade. This juncture offers a strategic moment for government bodies, private enterprises, and SMEs to collaborate. Together, they can pinpoint industry challenges, generate jobs, business prospects, and foster technological advancements.
Collaboration and coordination for regional success
To fully unlock ASEAN’s digital potential, Malaysia recognises the need for greater regional collaboration and coordination.
“Malaysia’s historical position of neutrality in international relations is a significant strategic advantage. This neutral stance has allowed the country to maintain good relations with other nations, attracting diverse investments. Hence, the next steps should involve leveraging these relationships by accelerating policy development and implementation. Agility in policymaking is crucial to keeping pace with rapid technological advancements and protecting the interests of all stakeholders, including small and medium enterprises (SMEs),” said Dr Endry.
Harnessing the power of data centers
“At the heart of Malaysia’s digital ambitions is the data center infrastructure, connected to the global technology fabric. Data center investments bring broad economic benefits, serving as anchors for the digital ecosystem, attracting other businesses and fostering innovation. Malaysia’s strategic location, vibrant and diversified economy as well as commitment to sustainable energy positions the country as Southeast Asia’s data hub,” said Maciej.
Unlike manufacturing, where a new plant can rapidly create thousands of jobs, data centers serve as anchors for the technology industry, elevating Malaysia’s profile on the global stage, attracting data-driven investments, and potentially fostering silicon manufacturing plants.
Capturing the AI Opportunity
Malaysia’s digital transformation journey is well underway, and the country’s aspirations to become the digital hub of ASEAN are within reach. By continuing to attract investments, develop world-class digital infrastructure, cultivate talent, and drive collaboration across the region, Malaysia can unlock the full potential of the ASEAN digital boom and cement its status as a leading player in the global digital economy.
This episode is in-collaboration with Microsoft Malaysia.