*

National cloud policy to focus on four key areas, Malaysia

PM

says

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National AI office to coordinate initiatives, set up

regulatory

framework within 12 months, PM says

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Google says Malaysia investments to create 26,500 jobs,

add $3

bln to GDP

By Danial Azhar and Rozanna Latiff

KUALA LUMPUR, Oct 1 (Reuters) - Malaysia plans to create

a national cloud policy and introduce regulations to encourage

the ethical use of artificial intelligence (AI), Prime Minister

Anwar Ibrahim said on Tuesday.

The announcement comes amid a wave of investments by global

tech firms in Malaysia over the past year, as they seek to build

critical infrastructure to cater to growing demand for their

cloud and AI services.

Anwar said Malaysia's national cloud policy will focus on

four core areas, namely public service innovation and

efficiency, economic competitiveness and growth, strengthening

user trust and data security, and empowering citizens through

digital inclusivity.

The government would also set up a national AI office to

coordinate initiatives, including completing a five-year

technology action plan as well as a regulatory framework to

increase adoption of ethical and sustainable AI within the next

12 months, he said.

"We aim to position Malaysia as a hub for generative

artificial intelligence and investments from tech partners will

be critical in building a robust and secure digital

infrastructure," Anwar said at a ground-breaking ceremony for

Google's new $2 billion data centre and cloud region

in the country.

Google, which this week announced a multi-year partnership

with a local tech firm to provide sovereign cloud services, said

its investments in Malaysia would create 26,500 jobs and

contribute more than $3 billion to its economy by 2030.

"Our investments are designed to provide high performing and

reliability, meeting demand for cloud and AI services across the

country," Google President and Chief Investment Officer Ruth

Porat said.

Digital investments have helped propel Malaysia's economy

this year, with growth beating market expectations in the last

two quarters and the ringgit currency becoming one of

Asia's top performers.

Google's moves are a part of a wider expansion by global

tech companies into Southeast Asia, as they vie for a greater

presence in a region with a young tech-savvy population of 670

million.

On Monday, Google said it would invest $1 billion in

Thailand to build a data centre and cloud region there, to meet

growing cloud demand and support AI adoption in Southeast Asia.