By Reto Sahli, Chief Digital and Information Officer, HAVI Global
When global companies decide where to place their next strategic investment, familiar considerations often dominate the discussion: market size, operating costs and established technology hubs.
However, artificial intelligence (AI), digital transformation and growing geopolitical uncertainty are changing what businesses need from an investment destination. Increasingly, the question is where they can build the capabilities needed to compete in the future.
For Malaysia, this presents an opportunity to strengthen its position as more than a regional market, becoming a destination for strategic technology operations, innovation and long-term business growth.
The Rules of Global Investment Have Changed
For much of the past two decades, investment decisions were driven largely by cost optimisation. Businesses prioritised scale, efficiency and competitive operating costs, measuring success by how much work could be delivered at the lowest possible price.
Today, that equation is changing.
Artificial intelligence, automation, cloud computing and digital platforms have transformed how businesses operate. Supply chains depend on data, manufacturers rely on automation, the food and beverage industry increasingly uses digital systems, and retailers turn to analytics and predictive insights to guide decisions.
Consequently, companies are looking for locations that can support high-value technology functions, digital innovation and business transformation. Capabilities in software development, data analysis, cybersecurity and AI-enabled solutions are becoming just as important as traditional business strengths.
Countries competing for these investments must offer an environment where businesses can develop these capabilities, innovate and grow over the long term.
Malaysia’s Competitive Advantage Is Its People
At the heart of this shift is talent. Although AI is reshaping industries, it has not diminished the importance of people. If anything, it has made human capabilities more valuable.
AI can process information, automate repetitive tasks and generate insights at remarkable speed. However, human judgement, creativity, contextual understanding and leadership remain essential. Organisations still need professionals who can ask the right questions, solve complex problems and balance business needs with technological possibilities.
According to Reto Sahli, Chief Digital and Information Officer at HAVI Global, Malaysia offers a compelling combination of talent, diversity and capabilities that aligns with what global organisations increasingly seek when establishing long-term technology and innovation operations.
Malaysia has developed a reputation for producing capable technology and engineering professionals, supported by strong English proficiency and knowledge of other regional languages. Malaysian professionals are also increasingly accustomed to working across borders, collaborating with international teams and navigating the cultural differences involved in serving diverse markets.
For multinational businesses operating across Asia Pacific, this flexibility matters. Technology teams rarely serve just one country. They work across markets, customers and cultural contexts, making effective communication, adaptability and collaboration increasingly valuable.
Malaysia’s multicultural foundation provides a natural advantage in this environment.
Why Long-Term Value Matters More Than Low Costs
One common misconception about regional investment is that companies continue to prioritise cost above everything else. In reality, investment decisions are often more nuanced.
Malaysia may not be the cheapest country in Asia, Sahli argues, but it does not need to be. Its strength lies in offering a balance of skilled talent, modern infrastructure, regional connectivity, business-friendly policies and a relatively stable operating environment.
Together, these factors can deliver greater long-term value than choosing a location based solely on the lowest operating costs.
For global organisations making investments expected to generate returns over many years, cost efficiency remains important. However, other considerations are increasingly part of the equation, including talent availability, innovation potential, productivity, scalability and opportunities for sustainable growth.
The ability to build and retain capabilities over time can be just as important as the initial cost of establishing operations.
The Malaysian Difference: Collaboration and Connectivity
When assessing a country’s competitiveness, attention often falls on infrastructure, tax structures and economic indicators. Yet some of Malaysia’s strengths are less tangible.
Sahli points to the accessibility and collaborative nature of Malaysian business culture. Conversations can move quickly, relationships can be established efficiently, and stakeholders across industries are often willing to exchange ideas and work together to solve problems.
Compared with environments where communication relies heavily on formal processes and lengthy email exchanges, more direct discussions can help decisions progress faster and make collaboration across organisations and functions easier.
In a business environment shaped by rapid technological change, these qualities can become genuine competitive advantages.
Malaysia’s position in Southeast Asia also allows businesses to connect with major regional markets while drawing on an established ecosystem that continues to evolve alongside the country’s economic and technological ambitions.
A Digital Ecosystem Built for Growth
Talent alone is not enough to attract strategic investment. Companies also need confidence in the wider environment supporting their operations.
Malaysia’s infrastructure, digital ambitions and strategic position in Southeast Asia provide a foundation for businesses seeking to establish regional operations. Support from an ecosystem connecting government agencies, industry, academia and the private sector is also important.
The country’s efforts to strengthen its digital economy, supported by organisations such as the Malaysia Digital Economy Corporation (MDEC) and the Ministry of Digital, have helped create an environment in which global businesses can consider establishing long-term operations.
Relative political stability and ease of doing business further contribute to investor confidence.
For companies seeking to build technology capabilities that serve multiple markets, these factors can help turn a promising location into a strategic base for regional and global operations.
Why HAVI Chose Kuala Lumpur for Its First Asia Pacific TechHUB
HAVI’s decision to establish its first technology hub in Asia Pacific in Kuala Lumpur reflects the qualities Sahli believes make Malaysia an increasingly compelling investment destination.
Scheduled to officially launch at the end of November 2026, the Kuala Lumpur TechHUB will serve as a strategic technology and innovation centre supporting HAVI’s regional and global operations, as well as its growth ambitions.
The hub is not intended to operate in isolation. Instead, it will form part of HAVI’s globally connected TechHUB network, alongside its centres in Chicago, Krakow and Lisbon.
Together, these locations will support a “follow-the-sun” operating model, enabling continuous innovation and collaboration across time zones. The network will also bring together professionals with different experiences and perspectives to develop solutions for HAVI’s customers worldwide.
For Malaysia, the establishment of the hub represents an opportunity to contribute to global technology operations while strengthening its role in regional innovation.
It also reflects a broader shift in how multinational companies assess investment destinations: beyond operating costs, they are looking for the talent, connectivity and capabilities needed to support future growth.
Why Not Malaysia?
For years, investors may have asked, “Why Malaysia?”
As Kuala Lumpur attracts more strategic mandates, innovation centres and technology operations, Sahli believes the question could soon take a different form.
Malaysia’s combination of technology talent, multicultural perspectives, regional connectivity and an evolving digital ecosystem offers global businesses more than a competitive place to operate. It offers a foundation on which to build long-term capabilities and pursue new opportunities.
For companies preparing for an increasingly digital and interconnected future, the question may soon be less about whether Malaysia is a viable option and more about what they stand to gain by choosing it.
As Sahli puts it, perhaps the more interesting question is: “Why not Malaysia?”
