PETALING JAYA: While early gains from data centre investments are emerging, economists say the real payoff in higher wages and innovation will take time to materialise.
Putra Business School professor Dr Ahmed Razman Abdul Latiff said the impact of such investments, including structural wage gains, may only unfold over five to 10 years.
“Some effects are already visible through construction jobs and increased demand for engineers and technical professionals.
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“As more businesses adopt cloud and artificial intelligence solutions, improvements in productivity and higher-skilled job opportunities should become more apparent,” he said.
He added that the speed at which the country would reap these benefits depends on how quickly it aligns skills development, alongside infrastructure planning and industrial policy.
Ahmed Razman said related policies must focus on quality over quantity, stressing the importance of linking incentives to local talent development.
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“Incentives should encourage research and development, local supply chains and high-value digital activities instead of just physical infrastructure,” he noted.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said data centre investments have translated into higher services exports.
As more data centres become fully operational, he said more service exports would be recorded, contributing to the nation’s trade surplus.
“What is more important is how the government ensures the supporting ecosystem remains resilient, especially in the context of demand for electricity and water.
“This would effectively mean more investments in areas relating to renewable energy and water infrastructure are required,” he said.
According to the Malaysian Investment Development Authority, RM144.4bil worth of data centre and cloud computing investments have been approved.
