Business
AI at work and in the economy
South Korea is lining up a US$350 billion AI data centre buildout, here's why it matters beyond Seoul
SK Group's data centre arm is in talks to fund a US$350 billion AI infrastructure buildout across South Korea, one of the largest such commitments announced in Asia so far. The financing would cover new facilities, power supply upgrades and chip-adjacent infrastructure needed to keep pace with AI compute demand. Negotiations are still ongoing, so the final structure, timeline and foreign partner involvement remain unconfirmed. The scale of the plan illustrates how aggressively regional economies are now competing to host AI infrastructure, with South Korea, Japan, Australia and Southeast Asian nations all racing for similar capital and power capacity. It's a useful benchmark for judging how big Malaysia's own pending AI investment pledges really are in a regional context.
Zetrix AI bondholders meet over a covenant breach, but there's no default yet
Holders of Zetrix AI's Islamic bonds (sukuk) met on 23 October to discuss a breach of covenant terms attached to the debt. The company has stressed there has been no missed payment or default so far, but the breach gives bondholders leverage to demand changes, extra guarantees, or renegotiated terms. The meeting outcome will determine whether the sukuk continues on its original terms or gets restructured, and will be closely watched by other investors in Malaysia's smaller AI and blockchain-linked issuers. For now, the practical takeaway for retail investors is that this is a governance and compliance issue, not yet a cash crunch, but it is worth tracking for follow-up disclosures to Bursa Malaysia or the trustee.
Bitdeer's new 67MW Malaysia deal pushes its AI cloud pipeline past $10 billion
Bitdeer AI has signed a 67MW AI cloud agreement for a Malaysia data centre, taking its total secured capacity to 273.5MW and pushing its contracted cloud pipeline above $10 billion. The deal adds Malaysia to the company's growing footprint of AI compute facilities across the region as demand for GPU capacity keeps outstripping supply. No specific site location or timeline for full operation has been disclosed yet. This is part of a broader trend of global AI infrastructure players choosing Malaysia for new capacity, drawn by land, power and connectivity advantages. For businesses watching the AI compute market, it signals more capacity coming online regionally in the near term.
Your ChatGPT or Gemini subscription just became tax deductible in Malaysia
Under Budget 2027, Malaysia will let individual taxpayers claim income tax relief on AI subscription fees, covering services like ChatGPT, Gemini and other AI tools. The move is aimed at encouraging everyday Malaysians and professionals to adopt paid AI tools without worrying as much about the cost. Details on the exact relief cap and which subscriptions qualify are expected when the Finance Bill is tabled, so keep your receipts. This sits alongside other AI-focused measures in the same budget, including expanded free AI subscriptions for youth. For anyone already paying for a premium AI plan, or considering upgrading from a free tier, this changes the math on whether it's worth it.
Singapore chip optics firm MetaOptics sets up shop in Malaysia to serve the AI hardware boom
MetaOptics, a Singapore-listed semiconductor optics company, has incorporated a wholly-owned subsidiary in Malaysia as part of a strategic expansion to support growing demand for AI hardware components. The company specialises in advanced optics used in chip manufacturing and packaging, a niche that feeds directly into the AI server and data centre supply chain. While the announcement does not detail specific factory locations or hiring numbers yet, it signals continued interest from regional semiconductor players in building out capacity in Malaysia rather than just using it as an assembly hub. The move adds to a steady stream of chip-adjacent companies setting up Malaysian operations as the country courts AI infrastructure investment.
Malaysia told to stop being just an AI user and start exporting homegrown solutions to ASEAN
A senior Malaysian official, Teo, has argued that Malaysia needs to move beyond being a consumer of foreign AI tools and instead scale up homegrown AI solutions that can be exported across ASEAN. The remarks push back against a narrative that Malaysia's AI strategy is mostly about attracting data centres and adopting global tools, calling instead for investment in local AI companies and products with regional ambitions. The comments come as Malaysia positions itself as a regional AI hub through infrastructure investment, but critics argue that without building exportable local technology, the country risks becoming a host for other nations' AI ambitions rather than a producer in its own right. No specific funding commitments were announced alongside the statement.
Why Malaysia's next budget needs to fund AI results, not just data centres
This analysis argues that Malaysia's Budget 2027 needs to shift AI spending away from building more data centre infrastructure and toward programmes that actually help businesses and citizens use AI productively. Despite billions in data centre investment, the piece notes that adoption of AI tools among small and medium businesses remains low, and that infrastructure alone does not translate into economic value. Suggested priorities include AI literacy training, grants for SME adoption, and support for local AI applications rather than just server farms. It is a useful counterpoint to the steady stream of data centre investment headlines, asking whether Malaysia is investing in the right layer of the AI stack.
AI data centres are set to push Malaysia's power demand up 3.3% a year
BMI research forecasts Malaysia's electricity demand climbing 3.3% annually as AI data centres, mostly serving regional and global cloud demand, multiply across Johor and the Klang Valley. That's a faster growth rate than the grid has handled in years, raising questions about capacity, tariffs and whether renewable buildout can keep pace. If you work in energy, property or manufacturing, this is worth tracking since it affects electricity pricing, grid investment priorities and where new industrial capacity gets approved. It's also a reminder that Malaysia's AI boom has a real physical footprint, not just a digital one.
Meta and Local Startup Partner to Bring AI Solutions to Southeast Asia!
Meta has partnered with a local startup in Malaysia to develop AI solutions that address specific challenges faced by the region. This collaboration aims to bring innovative technology closer to home.