WEBVTT 00:00:04.500 --> 00:00:09.797 Good afternoon, and if your drive home takes you past Puchong, this one is for you. 00:00:09.797 --> 00:00:14.775 In one building there, more than four hundred engineers design computer chips. 00:00:14.775 --> 00:00:18.923 Selangor says ninety-five in every hundred of them are Malaysian. 00:00:18.923 --> 00:00:24.220 Yesterday we promised to find out what they're designing, and who is paying for it. 00:00:25.320 --> 00:00:33.795 It's Thursday the fifth of November. I'm Aiman, and I'm the one with the calculator already open. 00:00:33.795 --> 00:00:40.560 I'm Raj. I run a small business, and I ask what everyone else is too polite to ask. 00:00:41.010 --> 00:00:45.359 And I'm Mei Ling. If there's a footnote, I've read it twice. 00:00:45.359 --> 00:00:48.159 The three of us are the AI-YA team's agents. 00:00:48.159 --> 00:00:55.606 Every weekday, we cover what's new in artificial intelligence, or AI, and what it changes for daily life in Malaysia. 00:00:55.606 --> 00:01:01.970 This show is researched and voiced with AI, and edited by the AI-YA team. We practise what we teach. 00:01:02.420 --> 00:01:09.300 Three stories, one Malaysia, and a building full of chip designers. Let's get rolling. 00:01:10.400 --> 00:01:17.494 First, water. On Monday, Google pledged US$160 million for water works in Negeri Sembilan. 00:01:17.494 --> 00:01:22.223 At about RM4.07 to the dollar, that's roughly RM651 million. 00:01:22.223 --> 00:01:30.128 Water? I thought Google only shopped for electricity and chips. What is it actually building? 00:01:30.128 --> 00:01:33.953 A reservoir and a treatment plant on the Linggi River. 00:01:33.953 --> 00:01:38.842 SoyaCincau reports sixty-five million litres of drinking water a day. 00:01:38.842 --> 00:01:43.447 Gamuda builds it, and the state's investment company will own it. 00:01:43.447 --> 00:01:51.949 And yes, Google's new data centre sits in Port Dickson, where it says it will run Gemini, Search, YouTube and Workspace. 00:01:51.949 --> 00:01:57.489 So Google brings its own water, its own power, its own… 00:01:57.489 --> 00:02:01.762 Its own electricity bill, it says, plus the grid connection. 00:02:01.762 --> 00:02:06.462 There are also two solar power deals in Kedah, at Gurun and Kulim. 00:02:06.462 --> 00:02:15.933 And it lands just after yesterday's story, when the Deputy Prime Minister said Malaysia no longer really encourages new data centres. 00:02:15.933 --> 00:02:21.000 So what does an ordinary business in Seremban do with this, ah? 00:02:21.000 --> 00:02:25.109 Nothing urgent. The plant has no published opening date. 00:02:25.109 --> 00:02:32.080 But if you supply builders, electricians or maintenance crews, Negeri Sembilan just got busier. 00:02:32.530 --> 00:02:39.970 One footnote. The report doesn't say how much of that water the data centre itself will use. 00:02:41.070 --> 00:02:43.470 Second, the chip rules tighten again. 00:02:43.470 --> 00:02:49.955 On Tuesday, the Financial Times reported a new instruction from Nvidia to its data centre customers. 00:02:49.955 --> 00:02:55.662 At least fifty-one per cent of their services must now be sold to non-Chinese companies. 00:02:55.662 --> 00:03:01.369 The paper cited five people familiar with the matter, and Malay Mail carried the report. 00:03:01.369 --> 00:03:03.898 Nvidia neither confirmed nor denied it. 00:03:03.898 --> 00:03:08.488 So why does a rule from California matter in Johor? 00:03:08.488 --> 00:03:11.465 Because data centres here run on those chips. 00:03:11.465 --> 00:03:18.345 In July, the same paper reported Nvidia had tightened checks on buyers in Malaysia, Singapore and Japan. 00:03:18.345 --> 00:03:22.446 More than half of its Asian customers failed the first review. 00:03:22.446 --> 00:03:29.702 And on Tuesday we covered customs seizing thirty AI chip servers at Kuala Lumpur International Airport. 00:03:29.702 --> 00:03:32.309 They were worth about RM49.5 million. 00:03:32.309 --> 00:03:37.130 Hmm. That was the fifth case this year linked to one suspected syndicate. 00:03:37.130 --> 00:03:40.431 The new rule reportedly covers new contracts only. 00:03:40.431 --> 00:03:46.639 And nobody has said whether fifty-one per cent means revenue, capacity or number of customers. 00:03:46.639 --> 00:03:50.818 So if you work at a bank, the question is who the tenants are. 00:03:50.818 --> 00:03:56.750 A Johor data centre that leans on Chinese clients may find new contracts harder to sign. 00:03:57.200 --> 00:04:04.440 So now the landlord checks the tenant's passport. My landlord only checks whether the rent cleared. 00:04:05.540 --> 00:04:08.326 Third, the one that touches my wallet. 00:04:08.326 --> 00:04:14.483 Google is putting adverts inside its AI search answers, and Malaysia is on the list. 00:04:14.483 --> 00:04:19.866 Last Friday, Google added Malaysia to ten new countries for ads in AI Mode. 00:04:19.866 --> 00:04:25.679 SoyaCincau reported it from Google's own blog. The ads carry a "Sponsored" label. 00:04:25.679 --> 00:04:30.648 Hang on, say that again. Do I have to sign up for anything new? 00:04:30.648 --> 00:04:32.795 No, and that's the fine print. 00:04:32.795 --> 00:04:39.738 Existing Search, Shopping and Performance Max campaigns join automatically when they're relevant. 00:04:39.738 --> 00:04:43.102 There's no new campaign and no separate budget. 00:04:43.102 --> 00:04:50.893 So my sister's tuition centre could be advertising inside a chatbot answer, and she wouldn't know. 00:04:50.893 --> 00:04:53.834 She still thinks Google is a library. 00:04:53.834 --> 00:05:01.451 Possibly, once it reaches users here. Google gave no Malaysian start date, and it's English only for now. 00:05:01.451 --> 00:05:03.772 No prices were published either. 00:05:03.772 --> 00:05:10.064 On the twenty-sixth of October, we voted on ChatGPT ads at the RM35-a-day minimum. 00:05:10.064 --> 00:05:12.980 I said Free cukup, and I'm keeping it. 00:05:13.430 --> 00:05:21.482 I said Bayar for a capped test, and Google's version is easier to try, because you're already in the auction. 00:05:21.482 --> 00:05:28.969 My Hype stands, for the record. And I'm not convinced, Aiman. Easier to start, harder to measure. 00:05:28.969 --> 00:05:34.990 Google says results appear in your reports in aggregate, not answer by answer. 00:05:35.440 --> 00:05:40.120 Then my sister needs a spreadsheet lah, and a niece who can read it. 00:05:41.220 --> 00:05:47.100 Sixty seconds for our sponsor now, and then the chip designers of Puchong get their turn. 00:05:47.100 --> 00:05:54.981 If your team keeps asking what AI actually means for their job, someone should give them a straight answer. 00:05:54.981 --> 00:06:00.211 AI-YA speaks at companies and events across Malaysia. Not a tools demo. 00:06:00.211 --> 00:06:08.977 A clear session on what's changing in your industry, what's hype, and what your people should do differently on Monday. 00:06:08.977 --> 00:06:16.048 Boardrooms, town halls, conferences, or a half-day workshop for the team who'll actually use it. 00:06:16.048 --> 00:06:17.300 Book at ai-ya.my. 00:06:18.400 --> 00:06:21.129 Welcome back, and to yesterday's promise. 00:06:21.129 --> 00:06:26.253 On Tuesday, theSun reported on Selangor's push for AI and data centre talent. 00:06:26.253 --> 00:06:33.507 One line said Malaysians make up ninety-five per cent of engineers at the Malaysia IC Design Park in Puchong. 00:06:33.507 --> 00:06:38.898 IC meaning integrated circuit, so chips. Ninety-five per cent of how many? 00:06:38.898 --> 00:06:40.707 theSun didn't give a total. 00:06:40.707 --> 00:06:49.016 In September, Selangor's digital economy agency said more than four hundred engineers work there, across eighteen companies. 00:06:49.016 --> 00:06:52.500 Its target for this year is five hundred and twenty. 00:06:52.500 --> 00:06:55.572 And what are they actually designing? 00:06:55.572 --> 00:07:03.136 On the sixteenth of October, six chips from park companies were launched at Selangor's AI and semiconductor summit. 00:07:03.136 --> 00:07:10.371 We previewed that summit the day before. SkyeChip has an AI processor for cameras, robots and factory systems. 00:07:10.371 --> 00:07:14.251 MaiStorage has a storage chip for AI computers and servers. 00:07:14.251 --> 00:07:17.950 Wait, are these on sale already? 00:07:17.950 --> 00:07:20.260 Okay, but let me finish my thought. 00:07:20.260 --> 00:07:26.334 SiliconX has a programmable chip for factories and cars, and Infinecs a car power regulator. 00:07:26.334 --> 00:07:32.869 Weeroc has a satellite power controller, and Alphaswift a drone flight controller. And no, not yet. 00:07:32.869 --> 00:07:38.480 The Economy Minister said the next challenge is customers, qualification and scaling. 00:07:38.480 --> 00:07:45.280 The state government puts their combined estimated sales potential at RM300 million, with no timeframe. 00:07:45.730 --> 00:07:51.403 Then the second half of the promise. Who is paying for all of this? 00:07:51.403 --> 00:07:52.960 I count four payers. 00:07:52.960 --> 00:08:00.357 The Selangor government developed the park, and The Star reports federal money partly funds it. 00:08:00.357 --> 00:08:09.856 A state semiconductor fund with Artem Venture Fund also aims to raise more than RM100 million for at least seven startups. 00:08:09.856 --> 00:08:12.010 That's two. Go on. 00:08:12.010 --> 00:08:17.335 Third, Putrajaya's ten-year deal with Arm, the British chip designer. 00:08:17.335 --> 00:08:24.203 It's US$250 million, about RM1 billion at today's rate, for chip blueprints and licences. 00:08:24.203 --> 00:08:29.991 The anti-corruption commission opened an investigation into it in February. 00:08:29.991 --> 00:08:37.554 The Economy Minister has said the government will cooperate fully, and wants the deal to continue. 00:08:37.554 --> 00:08:45.040 Fourth, private investors. SkyeChip raised RM352 million when it listed on Bursa Malaysia in May. 00:08:45.040 --> 00:08:48.487 And what do the engineers take home? 00:08:48.487 --> 00:08:55.324 A year ago, The Star reported RM5,000 to RM6,000 a month for new graduates. 00:08:55.324 --> 00:08:58.970 With a master's, it starts from RM7,000. 00:08:59.420 --> 00:09:06.059 At that salary, my son has suddenly discovered a deep love of circuits. 00:09:06.059 --> 00:09:13.010 Here's my take. Ninety-five per cent local, at those salaries, is already the win. 00:09:13.010 --> 00:09:16.740 Even if no chip sells, the skills stay here. 00:09:17.190 --> 00:09:24.974 I'd push back on that. Skills stay if the jobs stay, and RM300 million is a potential, not an order book. 00:09:24.974 --> 00:09:31.498 One industry player told The Star a chip takes three to four years from idea to product. 00:09:31.498 --> 00:09:37.168 Fair, I hadn't put the timeline next to the money. So where do you land? 00:09:37.168 --> 00:09:44.796 The talent is real and countable. The commercial side is still at announcement, nowhere near disbursement. 00:09:44.796 --> 00:09:51.273 My test is simple. By the end of 2027, how many of these six chips have a paying customer? 00:09:51.273 --> 00:09:55.868 I'll take that test. And I'll add one more question for 2027. 00:09:55.868 --> 00:09:59.710 How many of those engineers are still working here? 00:10:00.810 --> 00:10:08.469 Here's what I keep turning over. Nvidia wants data centres to sell mostly to non-Chinese customers. 00:10:08.469 --> 00:10:12.647 Google is building in Port Dickson to run Gemini here. 00:10:12.647 --> 00:10:19.145 And some cheaper Malaysian models, like ILMU's, are built on a Chinese lab's engine. 00:10:19.145 --> 00:10:22.704 So which one does a business like mine choose? 00:10:22.704 --> 00:10:24.092 Let me sharpen it. 00:10:24.092 --> 00:10:31.801 One path is the cheapest capable model, whatever its origin, and you manage the data rules yourself. 00:10:31.801 --> 00:10:36.967 The other is paying more for a tool whose data sits closer to home. 00:10:36.967 --> 00:10:43.211 Today, closer to home might mean an American giant's building in Negeri Sembilan. 00:10:43.211 --> 00:10:50.582 I hear what you're saying, but neither path takes me out of the fight between the giants. 00:10:50.582 --> 00:10:56.069 No, it doesn't. Chip rules now reach into who a data centre may serve. 00:10:56.069 --> 00:11:02.262 The cheap path may face new limits, and the local path follows American policy. 00:11:02.262 --> 00:11:05.397 So which risk should a small firm carry? 00:11:05.397 --> 00:11:12.695 I don't have that answer yet. I'm just not sure price alone should decide it. 00:11:12.695 --> 00:11:16.490 Friday, the AI-YA team takes a position. 00:11:17.590 --> 00:11:23.666 Today's Verdict is Google AI Pro, at RM97.99 a month, for one office worker. 00:11:23.666 --> 00:11:28.382 It brings Google's Pro model and five terabytes of storage. 00:11:28.382 --> 00:11:33.578 My vote is Bayar, if you already live in Gmail and Drive all day. 00:11:33.578 --> 00:11:42.590 Hype for work use, because it's a personal plan, so your employer gets no admin controls over what staff put in. 00:11:43.040 --> 00:11:52.880 Free cukup, because the free Gemini writes my emails well enough, and that monthly fee is a lot of teh tarik. 00:11:53.980 --> 00:12:00.624 If your business runs Google Ads, give it thirty minutes today. Check your daily budget caps first. 00:12:00.624 --> 00:12:09.079 Then review your negative keywords and last month's search terms report, because ads in AI answers run on those same settings. 00:12:09.079 --> 00:12:16.260 If you don't advertise, search for your own business on Google and note what any AI summary says about you. 00:12:17.360 --> 00:12:24.545 AI-YA runs AI lectures, workshops and implementation training for Malaysian companies. 00:12:24.545 --> 00:12:26.884 Details at ai-ya.my/podcast. 00:12:26.884 --> 00:12:30.875 Tomorrow is our Friday special, when AI acts for us. 00:12:30.875 --> 00:12:36.247 Agents now send emails, move money and book things on people's behalf. 00:12:36.247 --> 00:12:44.382 On Tuesday, the Digital Minister said the AI Governance Bill covers those who develop, provide and use AI. 00:12:44.382 --> 00:12:51.519 So tomorrow we ask who answers when an agent gets it wrong, and how much we should let it do. 00:12:51.519 --> 00:13:00.575 If your company already lets software act for it, tell us how in the comments on the episode page at podcast.ai-ya.my. 00:13:00.575 --> 00:13:06.676 Ring someone you've been meaning to call, before the weekend swallows the week. 00:13:06.676 --> 00:13:12.160 From the three of us, bye, and drive gently into your Thursday evening.