Gamuda Technologies, a significant player in Malaysia's engineering and infrastructure sector, has announced its intention to acquire a 20% equity interest in Cloud Space for RM18 million (approximately $4.06 million). This strategic investment is designed to enhance Gamuda’s digital capabilities within the rapidly growing landscape of cloud and artificial intelligence (AI) technologies. The company aims to tap into a burgeoning market that holds an estimated value of RM36 billion.
Cloud Space is distinguished as a specialist in cloud computing, AI, data automation, and cybersecurity. As a Google Cloud Premier Partner, Cloud Space provides a range of solutions including Google Cloud services, Google Workspace, Chrome Enterprise, and educational tools for both governmental and private sectors within Malaysia. The platforms they offer extend to Software-as-a-Service (SaaS) and various AI and cybersecurity solutions.
Gamuda indicated that the integration of Cloud Space’s expertise in cloud engineering aligns with its current technological resources and digital initiatives. "In combination, Gamuda and Cloud Space will have strong technical and financial resources to jointly access the emerging and fast-growing cloud adoption opportunities in Malaysia," the company stated. This acquisition is part of Gamuda's broader vision to support home-grown talents in the cloud and AI sectors, continuing momentum from the launch of the Gamuda AI Academy in partnership with Google in October 2024.
Established in 1976, Gamuda has an extensive operational footprint, with activities across Malaysia, the UK, India, Taiwan, Singapore, Australia, Vietnam, Bahrain, and Qatar. In parallel to this acquisition, Gamuda has also entered into a strategic partnership with Dagang NeXchange Berhad (DNeX) to develop a joint venture focused on delivering innovative air-gapped Google Distributed Cloud (GDC) services. This venture is particularly notable, marking Malaysia's entry into the realm of sovereign cloud solutions.
The newly formed joint venture, involving Gamuda Technologies and DNeX Solutions, aims to cater to both public and private sectors. The GDC services will comply with the highest regulatory standards, allowing clients to utilise Google Cloud’s AI and cloud technologies within a secure, on-premise environment. This initiative comes on the heels of a commercial partner agreement between Google and DNeX established on September 30, 2024.
Targeting a market estimated at over MYR 11 billion (approximately $2.48 billion), the collaboration underlines a commitment to developing local capabilities and fostering a robust digital ecosystem in Malaysia. Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, Executive Chairman of DNeX, articulated the partnership as aligning with the government's vision of transforming Malaysia into a high-income nation. He added, “With our diverse businesses and wide client base, especially in the government sector, covering technology, energy and IT space, we can establish a foothold and maximise opportunities arising in these areas.”
John Lim Ji Xiong, Chief Digital Officer of Gamuda, underscored that the partnership with DNeX represents a strategic alliance, leveraging each party’s expertise to expedite cloud and AI adoption in Malaysia’s national framework. He elaborated that, “By leveraging our deep expertise in cloud and AI technologies and our established partnership with Google Cloud, we’re uniquely positioned to accelerate transformation across the regulated sectors.”
This joint venture also aims to enhance the delivery of government services through the implementation of advanced digital solutions, focusing on innovation within the sectors of public service, healthcare, and energy production. The GDC services are expected to unlock new opportunities for secure and transformative innovations, particularly in integrating AI and analytics across various functions.
In conjunction with the implementation of these initiatives, the partnership aligns with the broader objectives set forth by the Malaysia Artificial Intelligence Roadmap (MAIR) and the establishment of the National AI Office, which is set for launch in December 2024. The collaboration signifies an important step towards fostering a competitive position for Malaysia in the Southeast Asian technology landscape as the country increasingly embraces AI as a catalyst for economic growth.
Source: Noah Wire Services