Consumer Adoption
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Malaysia Captures 32% of Southeast Asia’s AI Investment
Malaysia has emerged as a leading AI hub in Southeast Asia, attracting 32% of the region’s AI funding (US$759 million) between late 2024 and mid-2025, driven by significant infrastructure expansion. Data center capacity has dramatically increased, attracting investments from tech giants like Google. While funding is concentrated in digital financial services, investor sentiment remains positive, with high consumer adoption and engagement of AI technologies. Challenges remain in diversifying investments, fostering local AI capabilities, and navigating data privacy concerns and regulatory environments.
