KUALA LUMPUR (Feb 4): Malaysia is confident that the emergence of Chinese artificial intelligence (AI) company DeepSeek will not derail data centre investments in the country.
While DeepSeek has triggered the sell-off of local AI proxy stocks, such technological advancements are crucial to support data centre development, Digital Minister Gobind Singh Deo told reporters after the launch of 5G Advanced with Digital Nasional Bhd and Ericsson.
Malaysia provides a low-cost environment for data centre investments, and the government will continue to review and refine the related investment policies, he said, noting that “if you are able to provide services at a much lower cost, you are going to be able to scale it a lot faster”.
The remarks follow the release of an AI model by the relatively unknown Chinese firm which has sowed doubts on whether advanced semiconductors and pricey chips are necessary, sparking a sell-off in incumbent giants such as US-based Nvidia.
In October last year, the government announced that it would adopt a new investment incentive framework, which will use a “scorecard” approach, which is slated to be launched by the middle of this year, according to Treasury Secretary General Datuk Johan Mahmood Merican.
Investments will be assessed on the ability to generate high-income jobs, linkages to local businesses and sustainability features, among others.
The government is reviewing and adapting existing policies to ensure relevance and support for data centre developments, he said. The policies will focus on several things like development costs and energy consumption, among others.
“So there is a different series of things that we are looking at, and that is what I meant when I said that we are looking into it,” he added.