Malaysia’s state-owned utility firm Petroliam Nasional Berhad (Petronas) and Microsoft have signed a memorandum of understanding (MoU), further extending their strategic collaboration in multiple areas across innovation and sustainability to support the development of an artificial intelligence (AI)-enabled economy and ecosystem in Malaysia, while advancing efforts toward energy transition in Asia.

Petronas said in a statement on last Thursday that the collaboration will focus on fostering an ecosystem in Malaysia that enables organizations to harness AI’s potential for economic advancement and societal benefit.

With nation building at heart, the companies will support Malaysia’s efforts to build regional leadership in AI capabilities and develop a strong local AI ecosystem through joint programs.

Under the collaboration, Petronas and Microsoft will explore further initiatives to intensify AI and energy innovation leveraging Microsoft’s newly launched Malaysia West cloud region.

They will look into entrenching Agentic AI, Microsoft Copilot, data analytics, cloud computing and cybersecurity among other technologies, to unlock new levels of operational efficiency and sustainability performance across its value chain.

The parties will also explore a holistic collaboration across industries to promote sustainable energy and policy alignment.

“At Petronas, innovation goes beyond technology – it is about shaping a future where energy is smarter, cleaner, and sustainable for not only the organizations involved, but also the nation and its people,” Petronas’ Senior Vice President of Projects, Technology & Health, Safety, Security & Environment (PT&HSSE) Ir Ts Mohd Yusri Mohamed Yusof said.

“Our collaboration with Microsoft is driven by a shared commitment to meaningful innovation and sustainable progress,

“By harnessing our joint expertise in innovation and sustainability, we are steadfast in advancing adoption of AI and cloud capabilities in a manner that promotes sustainable energy practices, in support of Malaysia’s aspirations of building an AI economy with a robust ecosystem in which everyone thrives,” he added.

Meanwhile, Microsoft Malaysia Managing Director, Laurence Si said that as a trusted technology partner to Petronas, they are thrilled to strengthen their collaboration to help advance their digital and AI transformation.

“With Microsoft’s new cloud region in Malaysia, we are committed to supporting Petronas with secure, scalable, and sustainable cloud solutions that will drive growth and innovation in Malaysia’s energy sector,” he added.

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