Malaysia’s recent political stability convinced Amazon Web Services to invest, says PM

Why AWS chose Malaysia

Amazon Web Services (AWS) took a cautious, wait-and-see approach before committing RM25.5 billion to Malaysia, Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat, responding to a question from Sim Tze Tzin (PH-Bayan Baru).

"Negotiations started in December 2019 and were ongoing. They (AWS) waited and believed that there was political stability in the administration with clear policies and direction. In the end, they contacted us to state that it was because of political stability and clear policies that Amazon chose Malaysia to set up their base," — Prime Minister Anwar Ibrahim

Anwar said transparency throughout the negotiations was also a factor — the government didn't route talks through hand-picked agents or private intermediaries, instead giving AWS the freedom to make its own choice within stipulated conditions. He added that ease of doing business, not just the incentives on offer, was AWS's central concern, particularly around how quickly approvals could move — prompting the government to set up a dedicated task force to oversee the project rather than rely on the old way of doing things.

The AWS investment

AWS announced on 2 March that it would launch a new infrastructure region in Malaysia through a public-private partnership with the government, confirming plans to invest at least RM25.5 billion in the country by 2037 to develop Malaysia as a cloud data storage region.

Tesla and other investors

Tesla has also recently announced plans to invest in Malaysia. International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz previously said Tesla's decision was driven by Malaysia's strong electrical and electronics (E&E) ecosystem supporting EV manufacturing; the company plans to set up an operating office, Experience Centres, and aftersales support facilities in the country.

Anwar said businesses from Singapore and the Philippines have already expressed interest in using AWS's planned cloud facilities once operational, and said the AWS and Tesla investments combined are expected to create several thousand jobs, with spillover benefits for surrounding SMEs, though he did not give specific figures.

Source: The Star