TikTok owner ByteDance has announced plans to invest in artificial intelligence (AI) and transform Malaysia into a regional AI hub. The proposed investment amounts to approximately RM10 billion.
Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz shared this information on X (formerly Twitter) after meeting with TikTok Vice President Helena Lersch in Singapore.
ByteDance’s additional investment is expected to contribute to Malaysia’s goal of growing the digital economy to 22.6% of the country’s Gross Domestic Product by 2025.
Additionally, TikTok, through ByteDance System Sdn Bhd, has already established a data centre at Sedenak Tech Park in Kulai, Johor.
Considering future requirements, the company plans to expand the data centre facility with an additional investment of RM1.5 billion.
Statista’s data indicates that in 2023, TikTok’s user base in Malaysia was projected to hit approximately 17 million. This figure is expected to rise steadily from 2024 to 2029. The projections suggest that by 2029, TikTok users in Malaysia could total 21.7 million.
On 2 May 2024, Microsoft pledged to invest RM10.5 billion investment in AI and cloud computing in Malaysia to aid in the development of the country’s AI infrastructure.
This significant investment by ByteDance and Microsoft underscores Malaysia’s potential as an AI hub, fostering technological advancements and economic growth in the region.
