AWS Expands in Malaysia with New Cloud Region
Amazon Web Services (AWS), an Amazon.com, Inc. The company has unveiled the AWS Asia Pacific (Malaysia) Region. This new region provides developers, startups, entrepreneurs, enterprises, and public sector organisations in Malaysia with enhanced options for running applications and storing data, while delivering lower latency to end users.
Investment and Economic Impact
AWS plans to invest approximately $6.2 billion (MYR 29.2 billion) in Malaysia through 2038. This investment is expected to add about $12.1 billion (MYR 57.3 billion) to Malaysia’s gross domestic product (GDP) and support an average of over 3,500 full-time equivalent jobs annually. These jobs will span construction, maintenance, engineering, telecommunications, and other sectors, contributing significantly to Malaysia’s broader economy.
Government and Industry Reactions
Tengku Zafrul, Malaysia’s Minister of Investment, Trade & Industry, highlighted the launch as a milestone for Malaysia’s digital economy. This AWS Region will enhance our capacity for digital innovation and advance Malaysia’s New Industrial Master Plan 2030. This investment is a crucial step in strengthening Malaysia’s position as a manufacturing and services hub within Asia,” he said.
Prasad Kalyanaraman, AWS Vice President of Infrastructure Services, emphasised the role of the new region in advancing Malaysia’s digital transformation. Malaysia’s digital economy requires robust and secure cloud infrastructure to thrive. This launch supports Malaysia’s role as a regional hub for AI and allows organisations across Asia Pacific to leverage AWS’s extensive cloud technologies,” he added.
AWS Global Infrastructure
The AWS Asia Pacific (Malaysia) Region enhances AWS’s global infrastructure, bringing the total to 108 Availability Zones across 34 regions. This new region features three distinct Availability Zones, each equipped with its own power supply, cooling systems, and security measures. These zones are connected through ultra-low-latency networks, allowing businesses to run applications with high availability and fault tolerance.
Supporting Malaysian Businesses
AWS is already supporting several prominent Malaysian organisations. Bursa Malaysia has, for example, introduced the Centralized Sustainability Intelligence (CSI) platform on AWS. “The AWS cloud infrastructure is a significant advancement for Malaysia’s digital economy, fostering innovation in capital markets and sustainability,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia.
CelcomDigi, a leading Malaysian telecommunications provider, is using AWS’s infrastructure and AI services to enhance its digital transformation. Datuk Idham Nawawi, CEO of CelcomDigi, stated, The new AWS Region opens up thrilling possibilities for enhancing our business support systems and consumer applications, allowing us to offer improved experiences and greater operational efficiency.
Impact on Startups and SMEs
Local startups and small businesses are also set to benefit. Tapway, a Malaysian AI solution provider, is leveraging AWS data analytics and ML technologies to scale its operations. Lim Chee How, founder and CEO of Tapway, commented, The AWS Region allows us to deliver fast, low-latency solutions for our AI vision technology, aiding our swift expansion.
ELSA Corp., which uses speech technology to aid English learners, and GXBank, Malaysia’s first digital bank, are also among the beneficiaries of AWS’s new infrastructure. ELSA’s VP, Will Polese, noted, “AWS’s flexible configurations enhance our capabilities to manage user growth and deliver reliable solutions.” GXBank’s CEO, Pei-Si Lai, highlighted the role of AWS in their operational readiness and customer service excellence.
Commitment to Workforce Development
Since 2017, AWS Malaysia has provided cloud skills training to more than 100,000 individuals. The company is investing further in upskilling through AWS Skills to Jobs Tech Alliance and AWS Training & Certification programs. AWS Academy is delivering cloud computing courses at 49 universities throughout Malaysia, including Asia Pacific University of Technology and Innovation and Universiti Teknologi Malaysia.
In July 2024, AWS and PayNet launched Program AKAR, a cloud skills initiative for entry-level talent in the financial services sector. This program, culminating in AWS Cloud Practitioner Certification, aims to bridge the skills gap in Malaysia’s digital economy.
Sustainability Efforts
Amazon is committed to sustainability and aims to achieve net-zero carbon across its operations by 2040. The company, a co-founder of The Climate Pledge, met its 2023 goal of matching all electricity consumption with renewable energy. AWS also strives to be water positive by 2030, aiming to return more water to communities than it uses.
A recent report by Accenture revealed that AWS’s infrastructure is up to 4.1 times more efficient than on-premises alternatives. Optimising data centre design and investing in new technologies contribute to reducing the carbon footprint by up to 99%.
The launch of the AWS Asia Pacific (Malaysia) Region marks a significant milestone for both AWS and Malaysia. With substantial investment, job creation, and support for digital innovation, AWS is poised to play a pivotal role in shaping Malaysia’s future as a digital and technological leader in the region.
