Microsoft cloud region promises business results with AI agents in Malaysia

(pics: HUSSEIN SHAHARUDDIN/TMR)


KUALA LUMPUR, 11 JUNE 2025: Microsoft Corp first local cloud region in Malaysia — dubbed “Malaysia West” — is now officially live, marking a significant step in the country’s digital transformation and intensifying efforts to embed artificial intelligence (AI) into enterprise operations.

Unveiled during the Microsoft AI Tour in Kuala Lumpur, the launch drew business leaders, government agencies and technology innovators into the conversation on how AI-enabled cloud infrastructure can move beyond hype to deliver measurable business outcomes.

More than just a data centre, the new Malaysia West region is designed to accelerate digital competitiveness by offering local businesses secure, scalable access to Microsoft’s global AI capabilities — all while ensuring in-country data residency.

Microsoft’s Cloud + AI Group executive VP Scott Guthrie stressed that the cloud region is not just a technological upgrade but a national opportunity to future-proof industries and workforce alike.

“This is not just about infrastructure. It’s about empowering Malaysian businesses to drive results through AI,

“With our trusted cloud now on Malaysian soil, organisations here can innovate at scale with confidence,” he said.

Located in Kuala Lumpur, the Malaysia West cloud region comprises three availability zones — a design standard seen in Microsoft’s hyperscale cloud architecture. These zones enhance service reliability, operational resilience and disaster recovery readiness, which are essential for mission-critical workloads.

More crucially, localised infrastructure ensures that organisations in regulated sectors such as finance, healthcare and public services can host applications and data while complying with national data residency requirements.
Veeam is an early adopter of Microsoft’s Malaysia West cloud region, driving secure, compliant AI solutions



This becomes particularly valuable as businesses seek to integrate generative AI and large language models (LLM) into their operations, which require significant compute power and often raise concerns around data governance.

Among the early adopters of the new cloud region is Petronas Nasional Bhd (Petronas). Already a strategic partner of Microsoft, Petronas is expected to anchor the development of industry-grade AI applications in the energy sector.

Other adopters include Scicom (MSC) Bhd, a technology-enabled business process outsourcing firm; fintech startup FinHero Capital Sdn Bhd; insurtech platform Senang; Sirim Bhd; TNG Digital Sdn Bhd; and global data protection provider Veeam Software Group.

The diversity of these organisations — ranging from public service to consumer tech — highlights the growing cross-sector appetite for enterprise AI tools that are secure, compliant and efficient.

Microsoft Malaysia MD Laurence Si noted that the excitement is not limited to big corporations.

“Startups, small and medium enterprises (SME) and even social enterprises are exploring how AI agents and Microsoft’s Copilot tools can solve real business problems,” he added.
Si explains how Copilot transforms daily tasks by generating proposals and analysing data with simple prompts



Embedding AI at Work: Concept to Execution

A core highlight of the AI Tour was the concept of “AI at Work” — Microsoft’s initiative to deeply embed generative AI into the daily operations of knowledge workers across every industry.

The initiative reimagines how routine business functions, decision-making processes and collaborative efforts can be transformed through intelligent automation.

At the heart of this strategy is Microsoft 365 Copilot, an AI-powered assistant integrated into familiar productivity tools such as Word, Excel, PowerPoint, Outlook and Teams.

Rather than adding new applications to learn, Copilot enhances the existing software ecosystem used by millions, functioning as a real-time digital collaborator.

The tool assists users in drafting content, analysing data sets, generating visual presentations, summarising lengthy email threads and synthesising meeting discussions. It turns raw inputs — from internal reports to customer feedback — into structured, actionable content.

In doing so, it effectively gives every employee an intelligent assistant, amplifying their capabilities without the need to expand the workforce.

“Imagine being able to generate a full proposal based on an email thread or to analyse 100 rows of sales data with a single prompt — this is what Copilot does,” Si said.

This capability is more than just a time-saver; it represents a cultural shift in how work is approached.

For example, finance teams can use Copilot to reconcile monthly statements and flag anomalies, while marketing departments can quickly build decks using insights pulled from multiple campaign reports.

In legal departments, contract summaries can be generated in seconds, freeing up professionals to focus on strategic analysis rather than administrative review.

Malaysian companies across sectors are actively exploring the deployment of Copilot within internal operations, recognising its potential to reduce inefficiencies and strengthen output.

Si confirmed that financial services firms are using it to automate compliance documentation and enhance customer onboarding processes.

In the healthcare sector, hospital administrators are employing the tool to streamline appointment scheduling and collate patient data summaries.

Meanwhile, telcos and logistics providers are trialling Copilot to support their operations, from managing customer interactions to optimising delivery schedules.

This early momentum is being catalysed by the fact that Microsoft’s generative AI infrastructure is now locally hosted. With the Malaysia West cloud region in place, businesses benefit from significantly reduced latency and faster system responses.

Moreover, this local hosting ensures data compliance with Malaysian regulations — a crucial factor for industries bound by strict information governance frameworks, such as banking and healthcare.

Microsoft’s broader messaging remains consistent: AI is not a luxury nor a peripheral tool for a select few. It is foundational.

The company’s vision of “Copilot for all” aims to break down barriers to adoption by making AI capabilities accessible to everyone — from C-suite executives and middle managers to operations staff and customer-facing teams.

This democratisation effort is supported by cloud-based platforms and no-code interfaces, which allow businesses without large IT departments to build, customise and scale AI applications.

These systems enable startups, SMEs and public service bodies to take advantage of AI without hiring armies of developers or investing in expensive infrastructure. Instead, AI becomes a utility — consumed as needed, adapted in real time and updated continuously to keep pace with changing business needs.

“Every layer of the workforce, from managers to customer service teams, stands to benefit,

“With the right tools and training, AI becomes an enabler for everyone,” said Si.

As this integration deepens, so do questions around the ethical use of AI — parti- cularly in areas like data security, algorithmic bias, misinformation and automation-related job displacement.

These concerns are not merely theoretical. In real-world deployment, issues such as model transparency, output reliability and compliance with local data laws can become deal-breakers if left unaddressed.

To meet these challenges head-on, Microsoft has introduced its “Secure Your Future in the Age of AI” framework — a comprehensive approach to building AI solutions that are responsible by design.

This framework includes strict engineering protocols, policy guardrails and customer tools to ensure that AI deployments uphold key values such as fairness, accountability and inclusivity.

Within this framework, Malaysia West plays a central role. As part of Microsoft’s global trusted cloud network, the local region operates under principles that emphasise transparency, cybersecurity, privacy and data sovereignty.

Its physical and digital infrastructure includes in-country data storage, role-based access controls, encryption at rest and in transit and continuous threat monitoring through Microsoft Defender services. Guthrie said these are not just marketing phrases — they represent engineering work that runs deep.

“It’s about helping Malaysian organisations build trust into every layer of their digital operations,” he said.

Microsoft’s approach includes enabling customers to understand and audit how AI decisions are made, offering them control over the training data and logic that underpins their AI tools.

In practical terms, this allows businesses to monitor outputs, fine-tune performance and set ethical boundaries — all while ensuring compliance with both domestic regulations and international standards like ISO/ IEC 27001 and General Data Protection Regulation (GDPR).

What emerges from this multi-pronged approach is a blueprint for responsible AI integration that is both accessible and enterprise-ready.

By focusing on productivity, trust and scalability, Microsoft’s AI at Work strategy transforms the conversation from theoretical disruption to practical, results-oriented deployment. Malaysian businesses now have the tools — and the local infrastructure — to build a future where intelligent systems are not just supportive, but strategic.
Microsoft partners with the Ministry of Digital’s National AI Office to train 800,000 Malaysians in AI skills by 2025 through the AIForMYFuture initiative



Talent Development: AI for Malaysia’s Future

To support Malaysia’s digital acceleration and ensure that businesses have the workforce to sustain AI-driven transformation, Microsoft is intensifying its investments in talent development — positioning human capital as a critical pillar of the nation’s AI journey.

At the centre of this effort is the AIForMYFuture initiative, a large-scale, multi-stakeholder collaboration launched in December 2024 in partnership with the Ministry of Digital’s National AI Office.

Designed to build national capacity across multiple layers of society, the programme sets out an ambitious but necessary goal: to equip 800,000 Malaysians with AI-related competencies by the end of 2025.

Now at its midway point, the programme has already trained over 400,000 individuals, spanning a broad and diverse demographic. Beneficiaries include underserved communities, early-stage entrepreneurs, corporate professionals, civil servants and students from both urban and rural backgrounds — reflecting Microsoft’s vision of AI as a democratising force that should leave no one behind.

The initiative is delivered through a growing network of education and training partners, including Biji-biji Design Sdn Bhd, International Women’s Federation of Commerce and Industry Malaysia (IWFCIM), iTrain (M) Sdn Bhd, PEOPLElogy Development Sdn Bhd, Pepper Labs Sdn Bhd, National Malaysian Technical and Vocational Education and Training (MTVET) and Talent Corporation Malaysia Bhd (TalentCorp).

These partners play a key role in ensuring that training programmes are not only accessible, but also tailored to specific industry and community needs. Training modules are varied in complexity — ranging from basic digital and AI literacy to applied data science, AI model development, prompt engineering and machine learning operations (MLOps).

According to Si, the vision is not just about increasing technical proficiency, but about preparing Malaysians to lead and thrive in an AI-enabled economy.

“This is not just about upskilling, it’s about building a workforce that can lead in the AI age,” he said.

To that end, AIForMYFuture includes both online and in-person learning pathways, hands-on labs, mentorship opportunities and exposure to real-world problem-solving using Microsoft’s AI and cloud tools.

Some programmes are offered in local languages, with contextualised examples that relate to agriculture, education, logistics, healthcare and other sectors vital to Malaysia’s economy.

Others include simulated environments that allow learners to build and test AI models in sandbox conditions — reinforcing the link between theory and practice.

The programme also includes a strong inclusivity component, with deliberate outreach to women, youth, people with disabilities and communities in less digitally connected regions.

In doing so, it contributes not only to workforce readiness, but to digital equity, ensuring that Malaysia’s AI transformation does not widen socioeconomic divides.

AIForMYFuture also complements national efforts to address labour market disruptions. As automation alters traditional job scopes, mid-career workers are particularly vulnerable.

Microsoft’s initiative supports this segment through reskilling modules that focus on transferable digital and analytical skills — helping individuals transition into new roles in data analysis, customer experience, IT support and business operations powered by AI tools.

Furthermore, partnerships with vocational institutions, universities and technical colleges are helping to embed AI competencies into formal education systems.

These efforts aim to align academic curriculum with industry needs, producing graduates who are not only tech-savvy but also prepared for AI-integrated work environments. Several universities have already begun adopting Microsoft’s skilling content into their IT and engineering courses, while technical colleges are piloting AI bootcamps and capstone projects in collaboration with Microsoft mentors.

In the private sector, Microsoft is working with employers to promote upskilling from within — encouraging companies to enrol their teams in AI training as part of digital transformation efforts.

This internal capacity building is particularly important for SMEs, which often face resource constraints but stand to gain substantially from AI-led productivity gains.

As Malaysia strengthens its digital economy, the development of a resilient, adaptable and inclusive workforce will be essential to sustaining long-term growth. With AI increasingly integrated into daily life and work, Microsoft’s talent-building approach is about preparing Malaysians not just to use AI — but to shape it, challenge it and lead with it.
EY partners with Microsoft and national agencies to co-develop the National AI Innovation Centre, uniting infrastructure, business and AI for Malaysia’s future



Bina AI Malaysia: Infrastructure to Innovation

Microsoft’s latest initiative, Bina AI Malaysia, aims to embed AI at the core of Malaysia’s long-term digital and economic transformation.

Unveiled during the Microsoft AI Tour, this long-term programme is not just about enhancing digital capabilities. It is about building sovereign intelligence infrastructure that can serve Malaysia’s strategic ambitions for decades to come.

The name “Bina,” meaning “build” in Malay, reflects the programme’s mission to establish an inclusive and future-ready AI ecosystem.

Bina AI Malaysia is built upon four interconnected focus areas that work together to support both immediate priorities and long-term objectives.

The first focus is on education and skilling — ensuring that Malaysians across every demographic and professional level have access to the tools, training and learning pathways needed to participate meaningfully in an AI-driven world.

This involves equipping students, job seekers, professionals and policymakers with relevant competencies that match the evolving demands of industries and public services.

The second focus is on research and innovation, encouraging the development of locally relevant AI solutions through experimentation, collaboration and academic engagement.

This includes support for applied AI studies and partnerships between academia, industry and government to generate new ideas and turn them into real-world applications.

The third area is industry transformation, where the goal is to help businesses — from multinationals to microenterprises — integrate AI into their operations to drive productivity, unlock efficiency gains and foster innovation.

Finally, the fourth focus area revolves around governance and trust, which seeks to develop a policy and ethical framework that ensures AI is used safely, transparently and responsibly in all spheres of society.

Central to this is the proposed National AI Innovation Centre, to be co-developed with Ernst & Young Consulting Sdn Bhd (EY), the National AI Office under the Digital Ministry and the Petronas Leadership Centre.

Microsoft Malaysia MD K Raman described the Centre as the place where infrastructure, talent and innovation come together with national strategy.

“The Centre is where infrastructure meets ideas — where business needs, national goals and AI capabilities converge.

“This is the platform that brings it all together — infrastructure, capability, partnerships and policy. Bina AI is how we build the future together,” Raman said.

The Centre will serve as a national platform for collaboration, experimentation and deployment, bringing together startups, corporates, researchers and policymakers to co-create AI solutions tailored to Malaysia’s priorities.

Planned pilot projects will focus on areas such as healthcare, agriculture, education and public services. For instance, AI can help hospitals deploy predictive diagnostics, schools personalise learning and farmers optimise yield through data insights.

These early-stage projects are expected to begin in 2025, with a broader rollout scheduled for early 2026.

Beyond technology deployment, the Centre will support Malaysia’s leadership in AI ethics, data governance and regulatory development.

This aligns with ongoing national efforts under the Malaysia’s National Artificial Intelligence Roadmap (AI-Rmap) and Malaysia Digital Economy Blueprint (MDEB).

Microsoft’s long-term vision is to make Malaysia a regional hub for responsible AI development. By pairing its global expertise with local insight, the company aims to create AI tools that are contextually relevant, culturally inclusive and ethically grounded.

Bina AI Malaysia, together with the AIForMYFuture skilling initiative, forms a dual approach that addresses both the human and infrastructure needs of a digital economy — ensuring that every Malaysian has the opportunity to contribute to and benefit from an AI-enabled future.
Guthrie calls the Malaysia West cloud region a strategic move to empower Malaysian businesses with AI beyond just infrastructure



Copilot Studio: No-Code AI Agent Creation

One of the most forward-looking developments presented at the AI Tour was Copilot Studio — a platform that allows organisations to build their own AI agents using natural language instructions instead of programming languages.

Microsoft ASEAN Power Platform technical specialist Le Shin Lim demonstrated how Copilot Studio allows even non-technical staff to create intelligent bots that integrate with internal systems.

“Let’s say you want an agent that handles refund requests based on your own company’s rules. You don’t need to code it. You just need to tell it what to do,” she explained during the live demo.

Using Copilot Studio, a refund bot was built to scan emails, reference an internal policy document and generate an appropriate response — all within minutes. The agent even cited sources and explained its reasoning.

The platform includes over 1,400 data connectors that allow integration with systems like SharePoint, SQL, Salesforce and ServiceNow.

It also supports multi-turn conversations and autonomous workflows that trigger based on events like email receipts or form submissions.

“AI agents can now work behind the scenes, not just in chat windows,” Lim said.

The tool is already in use by more than 230,000 organisations, including 90% of Fortune 500 companies, for use cases ranging from human resource (HR) and finance to customer support.

As Malaysia races to achieve high-income nation status, the strategic deployment of AI across its industrial base will be critical.

With Malaysia West now operational, a nationwide training pipeline in place and industry partnerships such as Bina AI taking root, Microsoft appears to be betting big on the country’s AI trajectory.

While challenges such as AI regulation, digital literacy gaps and infrastructure inequality remain, Malaysia’s push — enabled by private-sector partners — signals a serious intent to lead in responsible AI adoption in the

ASEAN region. “We’re not here just to sell software. We’re here to help Malaysia build what’s next,” Guthrie said.
Source: The Malaysian Reserve 

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