Malaysia-based firms Gamuda Berhad (Gamuda) and Dagang NeXchange Berhad (DNeX) have teamed up to provide novel air-gapped Google distributed cloud services (GDC Services) to the public and private sectors in Malaysia.

The duo said in a statement on Tuesday that they have through their wholly-owned subsidiaries, respectively – Gamuda Technologies Sdn Bhd (Gamuda Technologies) and DNeX Solutions Sdn Bhd (DNeX Solutions), have entered a joint venture for the cloud services.

The GDC Services is a sovereign cloud solution that offers customers the highest regulatory requirements access to Google Cloud’s artificial intelligence (AI) and cloud technologies in a secure, fully isolated, on-premise environment.

This partnership succeeds the Google cloud partner advantage commercial partner agreement between Google and DNeX on September 30, 2024.

The joint venture (with an equity ratio of 50:50) is authorized to act as the sole provider of GDC Services targeted at over MYR 11 billion ($2.48 billion) market across government, including federal and state entities, as well as private entities such as financial service institutions and security-sensitive organizations.

As a local entity, the joint venture is committed to cultivating high-level technical expertise within the Malaysian workforce, fostering a robust ecosystem that drives digital sovereignty, promoting economic growth and enhancing Malaysia’s strategic position in the global technology landscape.

Marking a significant milestone in Malaysia’s digital innovation landscape as the first local provider of specialized air-gapped cloud infrastructure, Gamuda-DNeX GDC Services will involve procuring GDC hardware, expert workload sizing, providing customized AI solutions, application development, ongoing client support, data migration, and infra maintenance to clients.

“This (partnership) aligns with the government’s ambition to transform the country into a high-income nation and be competitive in the Southeast Asian region,

“With our diverse businesses and wide client base, especially in the government sector, covering technology (semiconductor), energy and information technology (IT) space, we can establish a foothold and maximize opportunities arising in these areas,” said Syed Zainal Abidin Syed Mohamed Tahir Jamalullail, Executive Chairman of DNeX.

“Through this joint venture, we’re committed to driving meaningful digital transformation that enhances efficiency, security, and service delivery for the public sector,

“This unique solution will unlock possibilities for secure and transformative innovation, namely the use of AI and advanced analytics in delivering integrated, citizen-centric digital government services, advancing treatments for chronic health conditions, and optimizing energy production in hydro or solar power plants,” he added.

Meanwhile, John Lim Ji Xiong, Chief Digital Officer of Gamuda, said partnering with DNeX represents a pivotal strategic alliance, harnessing their solid multifaceted technological prowess to enhance and enable AI and Cloud adoption in their national digital landscape.

“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,” he said.

According to him, Gamuda has a proven record with experience and know-how in the Google Cloud ecosystem and solutions, further strengthened by its investment in Cloud Space, a Google cloud premier partner, and talent development at the Gamuda AI Academy.

“This collaboration goes beyond technology – we’re bringing comprehensive capabilities in project delivery, value engineering and experience in organizational transformation. We aim to implement digital solutions and create a robust ecosystem that empowers the Malaysian government and private sector to stay at the forefront of technological innovation,” he added.

Given the strong push for AI adoption, the statement noted a joint venture between Gamuda and DNeX is poised to leverage both entities’ strengths.

By combining the entity’s technical expertise, strategic partnerships, and commitment to digital solutions, the joint venture is poised to drive meaningful change in how government services are delivered.

As GDC services are new to the market, a comprehensive go-to-market strategy will be implemented to ensure successful entry and growth.

Furthermore, the combined resources and expertise of DNeX (which has a proven track record in delivering eServices to the Government of Malaysia) and Gamuda (a regional engineering and infrastructure group with advanced technological innovations, including AI solutions) will enable the effective delivery of GDC services, a cloud-based service focusing on data sovereignty and further supported with advanced AI capabilities.

These services align with the government’s aspiration to embrace AI as the key driver of technological advancement and spur economic growth.

This is also in line with the objectives of the Malaysia Artificial Intelligence Roadmap (MAIR) and the establishment of the National AI Office, set to be launched in December
2024, said the statement.

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