SoftBank and Grab Announce $1.85 Billion AI Investment in Malaysia

SoftBank Group Corp and Grab Holdings Ltd have announced a substantial investment of $1.85 billion (RM7.5 billion) to develop artificial intelligence (AI) infrastructure in Malaysia, in collaboration with Petroleum Sarawak Berhad (Petros). This initiative is part of a broader strategy to enhance Malaysia's computing capacity and meet the growing demand for AI solutions across Southeast Asia.

The investment, which consists of $1 billion from SoftBank, $750 million from Grab, and $100 million from Petros, aims to establish facilities that are expected to be among the largest of their kind in Asia. These facilities will provide advanced computing capabilities to governments, multinational corporations, and small businesses alike, according to a joint statement from the companies.

“This infrastructure will allow us to accelerate the development of localized AI solutions for our communities.”Anthony Tan, CEO of Grab

Anthony Tan, co-founder and CEO of Grab, emphasized the importance of this infrastructure in accelerating the development of localized AI solutions tailored to the needs of the community. He stated, "Through this partnership, we can drive faster regional AI development and adoption, bringing its transformative benefits to many millions of people, while contributing to Malaysia’s economy through the creation of high-value jobs and AI upskilling."

Prime Minister Anwar Ibrahim welcomed the investment, describing it as a vote of confidence in Malaysia's potential to develop and utilize AI technologies. He noted that this collaboration aligns with Malaysia's National AI Action Plan 2026-2030, which aims to position the country as an inclusive and sustainable AI nation. Anwar remarked, "The willingness of global investors like SoftBank to invest in Malaysia reflects high confidence in the country's capabilities, investment climate, and political stability."

The proposed AI infrastructure will be developed in stages, contingent on achieving key development milestones and securing necessary contracts. The facilities will also adhere to Malaysia's renewable energy guidelines, aiming to reduce environmental impact while supporting the country's digital transformation goals.

“The willingness of global investors like SoftBank to invest in Malaysia reflects high confidence in the country's capabilities.”Anwar Ibrahim, Prime Minister of Malaysia

In addition to AI infrastructure, the collaboration will explore opportunities in advanced manufacturing, creating high-value employment in engineering and technical fields. This initiative is expected to bolster Malaysia's workforce capabilities and enhance productivity in line with the National Fourth Industrial Revolution (4IR) Policy and the Malaysia Digital Economy Blueprint (MDEB).

As the demand for AI solutions continues to surge across Southeast Asia, this investment marks a significant step in Malaysia's journey towards becoming a regional hub for AI technology, positioning it to capture a share of the burgeoning digital economy.