Microsoft’s US$2.2 billion investment is due to NETR: Rafizi

KUALA LUMPUR: Microsoft’s recent announcement of US$2.2 billion (RM10.5 billion) investment in artificial intelligence (AI) and cloud computing in Malaysia is due to the Malaysian government’s National Energy Transition Roadmap (NETR), said Economy Minister Rafizi Ramli.

Rafizi said Malaysia’s clarity in energy transition positions the country as a prime investment destination.

“The government’s efforts through the energy transition agenda have begun to yield early results especially with investors,” he said at the National Institute of Public Administration (Intan) Minister’s Conversation 2024 on Friday.

Rafizi said there is now a continuous flow of new investments facilitated by the regular interactions between the prime minister and major investors. “I always attend most of the meetings,” he shared.

Rafizi mentioned that Microsoft CEO Satya Nadella highlighted a few things about Malaysia during the discussion with the prime minister.

“One is that we seem to be doing better … we have clarity about energy transition because they can’t invest in countries that lack an agenda and clarity in energy transition,” the economy minister added.

The second aspect is the presence of digitisation in Malaysia, given its advantages for technology companies.

“As a society that is digitised, one that uses cloud, APIs, and so on, it’s better for them, so I think we are seeing the early result of the energy transition agenda,” Rafizi said.

Turning to another topic, he said Malaysia will face more gas imports for electricity use in the coming years unless it ramps up efforts to transition towards sustainable energy sources.

The country imported about 25% of its gas requirements last year because of limited domestic production of natural resources such as oil and gas, he disclosed.

Rafizi said the current state of crude oil production is low, at about 400,000 barrels per day compared with 700,000 barrels per day over the past two years.

“I think not many people know that we have started importing gas. This year, it is expected that we will import about 30% of our gas, and this situation will continue. So, we have to tell the truth to the people, and the truth is painful,” he said.

He added that if no action is taken by 2050, Malaysia could become entirely reliant on imported gas energy, resulting in an increased cost of living.