Malaysia to Gain $3B in GDP and 26,500 Jobs from Google Investments by 2030
- Alphabet Inc. (GOOGL) expects to add $3 billion to Malaysia’s GDP by 2030 through its investments.
- These investments will also create 26,500 jobs in the country.
- Google is positioning Malaysia as a hub for cloud and AI services.
Alphabet Inc. (NASDAQ: GOOGL) has partnered with a local technology company to provide sovereign cloud services in Malaysia. According to the company’s Chief Financial Officer Ruth Porat, Google’s investments are set to add over $3 billion to Malaysia’s economy by 2030 and create 26,500 new jobs.
“Our investments are aimed at delivering high performance and reliability, catering to the growing demand for cloud and AI services across Malaysia,” Porat said in a statement today.
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Tech Companies Boosting Malaysia’s AI Ambitions
Tech companies have been investing heavily in Malaysia this year as part of the government’s strategy to transform the country into a hub for generative artificial intelligence (AI).
Google is building a $2 billion data center in Malaysia and has committed an additional $1 billion to establish a cloud region in Thailand. These investments align with Google’s broader push to meet the growing demand for cloud services and drive AI adoption in Southeast Asia.
Since 2019, Google has trained 355,000 Malaysians in digital skills. Tengku Zafrul Aziz, Malaysia’s Minister of Trade and Industry, highlighted the country’s readiness to meet increasing regional demand for data processing and storage solutions.
“Regionally, the demand for data processing and storage solutions is rising exponentially, and Malaysia is well-positioned to meet this demand,” Zafrul said.
With its economy exceeding growth expectations in recent quarters, Malaysia is already seeing the benefits of these tech investments. The Malaysian ringgit has also emerged as one of Asia’s top-performing currencies.
Is Google Stock a Buy at Current Levels?
As Google continues expanding its cloud and AI services globally, the company’s stock could benefit significantly from these growth strategies.
Investment analysts at Pivotal Research initiated coverage of Alphabet Inc. today, giving it a “buy” rating. They set a price target of $215, implying a potential upside of more than 30% from current levels.
Pivotal Research expects accelerated growth in Google’s cloud computing and AI divisions, noting that the stock presents a favorable risk/reward opportunity at its current valuation.
Although Google faces regulatory scrutiny, with the Department of Justice calling its search business a monopoly, analysts believe a Harris administration could bring positive developments in this regard.
Pivotal praised Google’s “strong competitive position with a deep moat” in search and maintained that the stock is worth owning even if the AI push takes longer than expected to reflect in financial results.
Additionally, Google’s status as a dividend-paying stock further strengthens the case for including it in investment portfolios.
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