Malaysia bet on artificial intelligence to restore its magic

After five decades of the electronic industry have gained a fixed location in Malaysia and its leadership for years of strong growth, leaders return their confidence in the field of slides. Artificial intelligence and competition to provide Malaysia as the best investment destination would give the country a strong impetus in need. After previously seen as a model of developing economies, the country is currently suffering from the slowdown of economic growth, split and political conflict. The challenge lies in distinguishing between the noise surrounding the artificial intelligence and the essential side in it, and whether Malaysia can avoid making mistakes. Prime Minister Anwar Ibrahim recently filed his plan and the government promised to award 25 billion Malaysian Ringet ($ 5.3 billion) to support the semiconductor sector. Anwar pointed to a challenge facing the country, which is the need to move from a mere grouping and testing center to more profitable areas such as design. The prime minister is also betting that Malaysia – one of the biggest chips exporting countries to the United States and has a history of friendly relations with China – can be a key player in an era in which the process of organizing supply chains according to national security considerations. He said: “I offer our country as the most neutral sites, and is no prejudice to any party.” The state of obsession is that the obsession with everything related to artificial intelligence and some promises of technology pioneers produces positive propaganda. The availability of a trained workforce in Malaysia and relatively low cost, as well as the country’s proximity to Singapore, all of whom all the benefits of the country praised, in the same way they praised the days of their glory under the leadership of Mahathir Muhammad, the former prime minister who ruled the country with a strong grip, but he rule. Satia Nadella, chairman of “Microsoft”, promised last month to invest $ 2.2 billion to create digital infrastructure. YTL Power International became the market star after announcing a joint venture with ‘Invidia’ to create a $ 4.3 billion dollars data center in the southern state of Johor. The enthusiasm for Malaysia has led me to remember the history of Penang, an island in the north of the country. He was always surprised during my visits that have the great respect that “Intel” and his first leaders like Gordon Moore and Andrew Group have. The two men came to this place when he only had a wonderful harbor and marine food, and nothing else is mentioned. However, there was the government’s administration that wanted to improve development. In 1972, Intel opened the first meeting and test business outside the United States on the island, and the island is still an important center for the company. The chips are now almost the most important thing in Penang, of which residents are called ‘Silicon Island’. There is currently a broad drill and the recycling of land is underway to increase the area of ​​industrial areas. So, the magic of Malaysia, will the artificial intelligence and the new wave of technological investments in Malaysia restore its previous charm? GDP has achieved a growth rate of about 4% over the past decade, which is largely slower compared to the active days during the nineties of the last century and the early first decade of this century. The federal government also provided stability as one party dominated the power of independence until 2018. This was followed by poor alliances and punishment for leaders, until Anwar Ibrahim managed to form a national unity government at the end of 2022. No one can claim whether this government team will withstand a full 5 -year term. Investments that have dumped in Penang have become a model for development and urbanization, as factory workers have moved from rural villages to urban centers. This trend has been repeated in all emerging markets. In order to maintain the flow of funds, countries had to invest strongly in education and infrastructure and develop an organizational structure that supported this trend. The conditions were prepared to achieve growth, and societies turned radically. Malaysia nowadays has the door to become a high income countries, but it is slowly moving to achieve the goal. Another challenge is the concentration of the semiconductor sector in the Southeast Asian region on mounting, testing and packaging activities. Sunny Liu, an economist at the Oxford Economics Foundation, wrote in a report: “Although the rise of artificial intelligence offers great commercial opportunities and growth ability for the semiconductor sector, the benefits are not evenly distributed along the production chain. The economy. Also, the idea of ​​neutrality, as formulated by Anwar Ibrahim, involves exaggeration. Probably more than the other camp than the other. The country has the right to strive to attract artificial intelligence. She can’t allow growth to slow down a lot, and she doesn’t like her neighbors to perform. We must be realistic. Some errors are made, and it will be made again. Malaysia can talk about major goals, but it doesn’t always achieve it. Bad happiness can also play a role. In 1996, Mahathir began to develop plans for the highly developed multimedia passage, a technological area ranging from Kuala Lumpur through the new administrative capital to the airport. Then the country suffered from a large scale of electricity. The former prime minister was very embarrassed about failure. Anwar will hope that another historical metaphor will be reached. In 1975, a few years after the “Intel” business in Penang, a fire destroyed a large part of the facility. The employees were determined to continue with the work and meet the requests. They are printed on the phrase “Intel still makes requests.” If Malaysia is looking for an inspiring slogan, you will not find better than simulating this message.