ByteDance to invest $2.13bn in Malaysia for AI Hub

China’s ByteDance, parent of social media app TikTok, intends to fund about 10 billion ringgit ($2.13 billion) to set up an artificial intelligence hub in Malaysia, the nation’s trade minister said on Friday.

China’s ByteDance, the parent company of the popular social media app TikTok, is set to invest approximately 10 billion ringgit ($2.13 billion) to establish an artificial intelligence (AI) hub in Malaysia, as announced by the country’s Trade Minister on Friday.

Expansion in Southeast Asia

This investment marks the latest move by global tech companies expanding their operations into Southeast Asia. In addition to the AI hub, ByteDance will invest an extra 1.5 billion ringgit to enhance its data centre facilities in Malaysia’s Johor state, according to Investment, Trade and Industry Minister Tengku Zafrul Aziz.

Boosting Malaysia’s Digital Economy

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“This additional investment by ByteDance will undoubtedly help Malaysia achieve its target of growing the digital economy to 22.6% of Malaysia’s gross domestic product by 2025,” Tengku Zafrul stated in a post on X.

Trend of Major Tech Investments

The announcement follows a trend of substantial investments in Malaysia by other technology giants in recent months.

Last month, Google revealed plans for a $2 billion investment to develop its first data centre and Google Cloud region in Malaysia. Similarly, Microsoft announced a $2.2 billion investment to expand its cloud and AI services in the country.

These investments signify Malaysia’s rising prominence as a strategic hub for digital and technological development in the region. The influx of global tech companies and their substantial investments are expected to significantly contribute to Malaysia’s economic growth and digital transformation goals.