Malaysia Tightens AI Data Centre Policy, Favours Large-Scale Investments
Malaysia is sharpening its focus on high-value and capital-intensive artificial intelligence (AI) data centre projects, according to BMI, a unit of Fitch Solutions. In a recent note, BMI said the Malaysian government has formalised a policy to approve only larger AI-focused data centres, following Prime Minister Anwar Ibrahim’s February 2026 announcement that proposals for non-AI-related data centres have been halted since 2024. The move is aimed at prioritising large-scale facilities while accelerating the country’s AI ambitions. BMI noted that Malaysia’s data centre pipeline is now almost entirely AI-driven, with around 4.6GW of planned and under-construction capacity, reinforcing the dominance of major well-funded players as barriers to entry rise, particularly in Johor.
BMI said the policy shift highlights an increasingly bifurcated Southeast Asian data centre market, where countries such as the Philippines and Vietnam continue to focus largely on enterprise demand linked to digital transformation rather than AI workloads. At the same time, Indonesia, Thailand and the Philippines are expected to attract displaced non-AI demand as investors seek alternatives amid saturation and infrastructure bottlenecks in primary markets. BMI also observed that Malaysia’s growth story has evolved beyond being an overflow destination for Singapore’s demand, with expansion now driven by national digital ambitions, hyperscaler investments and local enterprise requirements. On the regulatory front, Malaysia is reportedly rejecting nearly 30 per cent of data centre proposals that fail to meet responsible water and power consumption standards, signalling that future growth will be tied closely to environmental sustainability.
Editor’s Note: Malaysia has formalised a policy to approve only large AI-focused data centres, halting non-AI proposals since 2024 and building a pipeline of 4.6GW capacity led by major players, especially in Johor. The shift underscores Malaysia’s national digital ambitions and sustainability standards, while pushing non-AI demand toward other Southeast Asian markets like Indonesia, Thailand, and the Philippines.
Malaysia Tightens Rules on Imported EVs to Boost Local Assembly
Malaysia’s Ministry of Investment, Trade and Industry (Miti) has introduced stricter regulations for the import of completely-built-up (CBU) electric vehicles (EVs), effective July 1, 2026. Under the revised framework, all imported EVs must meet two key requirements: a minimum cost, insurance and freight (CIF) value of RM200,000 and a motor power output of at least 180 kilowatts (kW). Miti said the move follows the expiry of the special exemption period for EV imports on Dec 31, 2025, after which the policy reverted to existing regulations. The ministry added that the new conditions had already been communicated to franchise-approved permit holders during an engagement session held on April 30, 2026. Remaining EV stocks already in Malaysia, including units at ports or in transit, will still be allowed for sale under the previous exemption rules until inventories are depleted.
Industry observers said the tighter regulations are likely intended to encourage local EV assembly, create jobs, strengthen the domestic vendor ecosystem and promote technology transfer. Locally assembled brands such as Proton, Perodua, TQ Wuling and Volvo Cars are not expected to be affected, while imported models from brands including BYD, Tesla, Chery, iCaur and Zeekr could face declining sales due to reduced eligibility for import. Analysts noted that the RM200,000 CIF threshold and 180kW minimum effectively limit fully imported EVs to premium models, potentially narrowing consumer choice and slowing EV adoption. The government had initially introduced full exemptions on import duties, excise duties and sales tax for CBU EVs in 2022 to support the sector, with the incentives extended twice before ending in late 2025.
https://www.thestar.com.my/business/business-news/2026/05/07/govt-tightens-rule-on-ev-imports
Editor’s Note: Malaysia will enforce stricter rules on imported completely-built-up EVs from July 1, 2026, requiring a minimum CIF value of RM200,000 and motor output of at least 180kW, following the expiry of earlier exemptions. The policy aims to boost local assembly and jobs, limiting imports largely to premium models while encouraging domestic brands like Proton and Perodua, though it may narrow consumer choice and slow adoption.
Equinix to Invest Over $190 Million in New Kuala Lumpur Data Centre
Equinix plans to invest more than US$190 million in a new data centre facility in Kuala Lumpur, marking its fourth such facility in Malaysia. The U.S.-listed company said the new site will be located less than one kilometre from its existing Kuala Lumpur facility and is expected to house more than 2,200 cabinets. A substantial portion of the centre’s total capacity will support advanced liquid cooling technologies designed to meet growing demand from artificial intelligence (AI) and high-performance computing workloads. The company added that the development forms part of its long-term expansion strategy in Malaysia, with additional adjacent land already secured to support future growth.
Equinix said the project reinforces Kuala Lumpur’s position as a major interconnection hub within the ASEAN region, amid rising regional demand for digital infrastructure. However, the expansion comes as Malaysia’s data centre boom shows signs of slowing due to mounting concerns over power grid capacity and water resource constraints. The sector has also faced increasing geopolitical scrutiny, particularly from the United States, which has pressured Southeast Asian nations to prevent Chinese firms from using the region as a route to access U.S.-made AI chips restricted under export control measures.
Editor’s Note: Equinix will invest over US$190 million in a new Kuala Lumpur data centre, its fourth in Malaysia, with capacity for 2,200 cabinets and advanced liquid cooling to support AI and high-performance computing. The project strengthens Kuala Lumpur’s role as a regional interconnection hub, though Malaysia’s data centre boom faces challenges from power and water constraints and growing geopolitical scrutiny over U.S. export controls on AI chips.
Thailand Plans New EV Tax Incentives to Boost Adoption and Taxi Electrification
Thailand is preparing a fresh round of tax incentives aimed at accelerating the adoption of electric vehicles (EVs), including an extension of annual tax reductions and an expanded trade-in programme that could include taxi fleets. The country’s Ministry of Transport is proposing an 80% annual vehicle tax cut for new factory-built EVs, alongside a broader trade-in scheme designed to encourage fleet operators to transition away from conventional vehicles. The proposal is currently awaiting review by the Finance Ministry before being submitted to the cabinet for approval.
The renewed policy push comes as Thailand’s automotive sector begins showing signs of recovery after an extended slowdown. Domestic vehicle sales rose 7.29% year-on-year to 59,865 units in March 2026, supported partly by strong demand at the Bangkok International Motor Show, where bookings surpassed 100,000 vehicles. Vehicle production also increased during the month, with hybrid vehicle output rising 12.69% while production of internal combustion engine (ICE) passenger cars fell 22.08%, highlighting a gradual shift toward electrified models. However, industry representatives said automakers are still seeking clearer guidance on fiscal policy and long-term budget planning before committing to another major investment cycle.
https://www.reccessary.com/en/news/thailand-ev-incentives-2026
Editor’s Note: Thailand is planning new EV tax incentives, including an 80% annual vehicle tax cut and an expanded trade-in programme, to accelerate adoption and fleet transition. The push comes as auto sales and hybrid production rise while ICE car output declines, though automakers seek clearer fiscal guidance before committing to major investments.
Thailand Approves US$12.2 Billion Emergency Borrowing to Ease Living Costs
Thailand’s cabinet has approved an emergency decree authorising the government to borrow 400 billion baht (US$12.2 billion) to help ease rising living costs and support energy-related measures, Prime Minister Anutin Charnvirakul said on Tuesday. Finance Minister Ekniti Nitithanprapas said the borrowing was necessary as higher energy prices were affecting the wider population and placing pressure on household finances.
According to the government, half of the borrowed funds will be directed toward supporting vulnerable groups, while the remaining portion will be allocated to advancing Thailand’s energy transition and promoting cleaner energy use. Ekniti said the government intends to use the measures to reduce living costs while encouraging the adoption of clean energy solutions. He added that the entire borrowing programme would be financed domestically and that the emergency decree is expected to be submitted to parliament next week.
Editor’s Note: Thailand’s cabinet has approved an emergency decree to borrow 400 billion baht (US$12.2 billion) to ease living costs and support energy measures amid rising prices. Half the funds will aid vulnerable groups, while the rest will advance clean energy adoption, with the programme financed domestically and set for parliamentary review next week.
Thailand Approves US$29 Billion Investment Package Including Major TikTok Data Expansion
Thailand’s investment board has approved six major investment projects worth a combined 958 billion baht (US$29 billion), including a large-scale digital infrastructure expansion by a local unit of TikTok valued at 842 billion baht (approximately US$25 billion). According to the board, the project will involve the installation of additional servers and the expansion of data storage and processing infrastructure across Bangkok, Samut Prakan and Chachoengsao provinces to support growing demand for digital services and reinforce Thailand’s position as a regional digital infrastructure hub. TikTok’s parent company, ByteDance, had previously announced plans to invest US$8.8 billion in data centres over five years.
The investment board said the project is expected to contribute beyond infrastructure development, with TikTok also committing to initiatives aimed at improving digital literacy and expanding e-commerce education programmes in Thailand. These efforts are intended to create new business opportunities for local entrepreneurs while strengthening the country’s digital workforce capabilities. The approvals highlight Thailand’s continued push to attract large-scale technology and digital infrastructure investments as Southeast Asia’s demand for cloud, AI and online services continues to grow.
Editor’s Note: Thailand’s investment board has cleared six projects worth 958 billion baht (US$29 billion), led by TikTok’s US$25 billion digital infrastructure expansion across Bangkok, Samut Prakan, and Chachoengsao. The approvals reinforce Thailand’s push to become a regional digital hub, with TikTok also pledging initiatives in digital literacy and e-commerce education to strengthen local entrepreneurship and workforce skills.
Thailand Attracts Over US$30 Billion in Q1 Investments Led by Digital and AI Projects
Thailand attracted more than 1 trillion baht (US$30 billion) in investment applications during the first quarter of 2026, driven mainly by large-scale projects in the digital and electronics sectors, according to the Thailand Board of Investment (BOI). BOI Secretary General Narit Therdsteerasukdi said 624 projects worth a combined 1.02 trillion baht were submitted during the quarter, around 2.4 times higher than the same period last year, reflecting strong investor confidence in Thailand as a high-technology investment base. The digital sector led investment activity with 873.7 billion baht across 48 projects, largely focused on data centres and cloud services by companies including TikTok, Global Switch, Skyline Data Center & Cloud Services and Evolution Data Center. Electronics and electrical appliances followed with 40.5 billion baht in investments tied to advanced components, AI servers and critical data centre equipment, supported by firms such as Western Digital, Fabrinet and Canon.
Other sectors attracting substantial investment included energy and utilities, agriculture and food processing, logistics, automotive components and industrial automation. The BOI said foreign direct investment remained strong, with 427 foreign-led projects valued at 965.9 billion baht, led by investors from Singapore, the United Kingdom, Japan, China and Hong Kong. Thailand also continued to see growing interest in sustainable industrial upgrades, with dozens of applications submitted under the BOI’s Smart and Sustainable Industry programme for projects involving renewable energy, automation, robotics and digital technologies. During the quarter, the BOI approved 649 projects worth 330.1 billion baht, which are expected to generate more than 42,000 jobs and add over 520 billion baht annually in export value. Narit said the surge in applications demonstrated Thailand’s transition from a traditional manufacturing base into a regional hub for digital infrastructure, AI supply chains and future-focused industries.
https://www.nationthailand.com/pr-news/pr-news/40065649
Editor’s Note: Thailand attracted over 1 trillion baht (US$30 billion) in investment applications in Q1 2026, led by massive digital and electronics projects such as data centres and AI infrastructure from firms including TikTok, Global Switch, and Western Digital. The BOI said foreign-led projects accounted for nearly 966 billion baht, with approvals expected to generate 42,000 jobs and reinforce Thailand’s shift toward becoming a regional hub for digital infrastructure and advanced industries.
Thailand’s Digital Growth Faces Rising Threat From Industrial-Scale Cybercrime
Thailand’s rapidly expanding digital economy is increasingly being threatened by sophisticated cross-border scam syndicates, even as the country positions itself as a regional fintech and digital infrastructure hub. With the digital economy projected to grow 4.2% in 2026 — more than double the country’s expected GDP growth — industry leaders at the Money20/20 Asia 2026 warned that Thailand’s advanced digital infrastructure masks growing vulnerabilities in cybersecurity and fraud prevention. Experts said the country’s widespread adoption of digital payment systems such as PromptPay and its “Cloud First” government strategy have made Thailand attractive for foreign investment in fintech and treasury operations. Rahul Bhargava said Thailand has a “ready-state economy” capable of supporting advanced digital finance, while Winnie Chen highlighted Thailand’s growing appeal as a regional treasury centre for multinational corporations.
However, analysts warned that the same digital connectivity has also enabled industrial-scale scam operations that now cost the Thai economy an estimated 60 billion baht annually. Experts described scam syndicates operating near Thailand’s borders as highly organised networks using AI-powered deepfakes and advanced biometric evasion techniques to exploit weaknesses in financial systems. Concerns were also raised about the rise of “agentic finance,” where artificial intelligence systems autonomously conduct payments and compliance functions without clear governance standards. Tin Pei Ling warned of a growing “responsibility gap” in the oversight of AI agents within financial services, calling for stronger lifecycle governance and “Know Your Agent” standards. Industry leaders said Thailand must strengthen regulatory frameworks, improve anti-money laundering coordination and adopt more proactive cybersecurity measures if it hopes to maintain its ambitions of becoming ASEAN’s leading digital economy hub.
https://www.nationthailand.com/business/banking-finance/40065725
Editor’s Note: Thailand’s digital economy, projected to grow 4.2% in 2026, faces rising threats from organised cross-border scam syndicates using AI deepfakes and biometric evasion to exploit financial systems. Industry leaders warn that without stronger regulation, cybersecurity, and governance of AI-driven finance, scams costing 60 billion baht annually could undermine Thailand’s ambitions to be ASEAN’s leading digital hub.
Thailand Launches First Credit-Bearing AI University Curriculum to Address Skills Shortage
True Corporation, Google and Thailand’s Ministry of Higher Education, Science, Research and Innovation (MHESI) have launched “AI for All Thais,” a nationwide initiative aimed at integrating artificial intelligence education directly into Thailand’s university system for the first time. Announced in Bangkok on Tuesday, the programme combines True’s digital infrastructure, Google’s AI expertise and government policy support to address a growing shortage of AI-skilled professionals in the country. At the centre of the initiative is “AI for Future Workforce,” a 45-hour credit-bearing course jointly developed by True and Google that will initially be piloted at more than 20 leading universities before being expanded nationwide. The programme also includes a Train-the-Trainer component designed to help university instructors incorporate AI literacy into regular academic teaching.
Yodchanan Wongsawat described AI workforce development as a national priority, warning that Thailand currently faces a shortfall of up to 80,000 AI professionals. He said the initiative is intended to build a long-term pathway for AI education while strengthening Thailand’s position as an attractive destination for global technology investment and innovation. Meanwhile, Sigve Brekke said the company aims to become an “AI-First organisation” and plans to help 12 million Thais use AI more productively by 2030. Internally, True also expects all of its more than 10,000 employees to gain foundational AI knowledge this year, with half reaching advanced AI user or builder status. The initiative forms part of a broader push by Charoen Pokphand Group to expand Thailand’s AI ecosystem through the CP Centre of Excellence at True Digital Park.
https://www.nationthailand.com/business/tech/40065861
Editor’s Note: True Corporation, Google, and Thailand’s MHESI have launched “AI for All Thais,” the country’s first nationwide initiative to embed AI education into universities, starting with a 45-hour credit-bearing course piloted at 20 institutions. The programme aims to address a shortage of up to 80,000 AI professionals, expand digital literacy, and position Thailand as a global technology investment hub, with True also committing to train its 10,000 employees in AI skills this year.
Thailand’s Actual Investment Rises 18% in Q1 2026 as BOI Reforms Gain Momentum
Thailand’s actual investment rose 18% year-on-year to around 260 billion baht in the first quarter of 2026, indicating that more approved projects are now translating into real capital spending, job creation and supply-chain expansion. Ekniti Nitithanprapas said the increase reflected growing confidence among both domestic and foreign investors, who continue to view Thailand as a stable investment destination amid global economic uncertainty. He attributed part of the improvement to the government’s accelerated investment-promotion efforts, particularly the “BOI Fast Pass” mechanism introduced by the Thailand Board of Investment, which aims to speed up approvals and licensing procedures for investors. Speaking at SUBCON Thailand 2026, Ekniti said the government now hopes to push Thailand’s economic growth toward “3% plus” over the next one to two years by continuing to remove investment and regulatory barriers.
Ekniti noted that investment promoted through the BOI accounts for around 25–30% of Thailand’s total private investment, making the rise in actual investment a key economic driver. He added that the government is targeting 5–6% growth in actual investment this year through stronger conversion of investment applications into operational projects. The finance minister also outlined a “5T” strategy to help Thai businesses adapt to economic transformation, focusing on targeted industries, energy transition, technological transformation, transparency and cooperation between public and private sectors. Priority sectors identified under the strategy include electric vehicles, smart electronics, aviation, robotics and modern agriculture. Ekniti said Thailand’s infrastructure, industrial base and strategic regional position continue to attract investors seeking stability amid geopolitical tensions, inflation and energy market volatility.
https://www.nationthailand.com/business/economy/40066170
Editor’s Note: Thailand’s actual investment rose 18% year-on-year to 260 billion baht in Q1 2026, reflecting stronger conversion of approved projects into real capital spending, jobs, and supply-chain expansion. Finance Minister Ekniti Nitithanprapas credited the BOI’s “Fast Pass” mechanism and outlined a “5T” strategy targeting EVs, smart electronics, aviation, robotics, and modern agriculture to drive 5–6% investment growth this year and push economic growth above 3%.
MFEC and Confluent Say Real-Time Data Will Define Thailand’s AI Competitiveness
MFEC and Confluent said Thailand’s next phase of artificial intelligence development will depend less on access to AI models and more on how effectively organisations can manage, connect and govern their data in real time. Executives from both companies argued that while many Thai businesses have already begun experimenting with AI, relatively few have translated those initiatives into measurable commercial outcomes. Siriwat Vongjarukorn said AI tools alone no longer provide a lasting competitive advantage because technologies such as chips, data centres and large language models are becoming widely accessible. Instead, he said the real differentiator lies in the quality of an organisation’s data and its ability to embed knowledge across systems, operations and people. The companies stressed that real-time data is becoming increasingly critical for industries such as finance, retail, logistics and aviation, where decisions must be made instantly based on changing operational conditions.
Kenny Chin said many organisations in Thailand are actively launching AI initiatives, but their underlying data infrastructure often remains unprepared for production-scale deployment. Both executives argued that AI adoption in Thailand is being slowed not only by technological limitations but also by organisational silos and unclear enterprise-wide strategies. Confluent said data-streaming platforms can help businesses connect fragmented systems and deliver updates in real time while maintaining governance through tools such as role-based access controls, schema registries and data lineage tracking. The growing partnership between MFEC and Confluent is aimed at helping Thai enterprises move beyond AI pilot projects and toward operational AI systems capable of driving revenue growth, reducing risk and strengthening competitiveness. According to the companies, Thailand’s AI future will ultimately be shaped by businesses that can integrate data across their organisations and respond to changing conditions in real time.
https://www.nationthailand.com/business/tech/40064923
Editor’s Note: MFEC and Confluent said Thailand’s AI future will depend less on access to models and more on real-time data management, with quality data integration across systems becoming the key differentiator. They warned that organisational silos and weak infrastructure are slowing adoption, and stressed that data-streaming platforms can help enterprises move beyond pilots to operational AI that drives growth and competitiveness.
Thai Auto Industry Groups Urge Urgent EV Policy Reforms to Protect Local Manufacturing
Ten Thai automotive and parts industry associations have called on the government to introduce urgent policy measures to protect Thailand’s vehicle manufacturing base as the country accelerates its transition toward electric vehicles (EVs). Led by the Electric Vehicle Association of Thailand (EVAT), the coalition warned that increasing imports of fully built electric vehicles from China under zero-tariff privileges are already hurting local manufacturers and suppliers. The associations, which collectively represent more than 1,500 operators, said Thailand faces a critical turning point before the EV 3.5 incentive scheme expires in 2027. Without replacement policies, they warned, automakers could shift further toward importing EVs rather than maintaining domestic production. The group said local EV manufacturing costs remain around 30–40% higher than importing vehicles from China and cautioned that Thailand risks becoming merely a consumer market rather than remaining a global automotive production hub.
The coalition submitted eight emergency proposals aimed at strengthening local production and supply chains, including reforms to excise taxes to create a wider gap between imported and domestically produced EVs, tighter local-content rules, stricter certificate-of-origin checks and stronger requirements for technology transfer. The associations also urged the Thailand Board of Investment to tighten investment incentives and increase scrutiny of projects that fail to deliver genuine local production value. Suroj Sangsnit said the proposals were not intended to block imported EVs or harm consumers, but rather to ensure fairer competition between companies investing in Thailand and firms relying mainly on imports. The industry’s concerns have intensified following cases involving compensation-production obligations under Thailand’s EV subsidy schemes and growing dominance of Chinese EV brands in the domestic market. The associations argued that Thailand still retains the industrial capacity, workforce and supplier ecosystem needed to compete in the EV era, but warned that policy support must move faster to prevent long-term damage to the country’s automotive supply chain.
https://www.nationthailand.com/business/automobile/40066208
Editor’s Note: Ten Thai automotive and parts associations, led by EVAT, have urged the government to introduce urgent measures to protect local EV manufacturing as cheap Chinese imports under zero-tariff rules threaten domestic producers. They submitted eight proposals, including stricter excise taxes, local-content rules, and technology transfer requirements, warning that without faster policy support Thailand risks losing its role as a global automotive hub.