Malaysia, as the Asean chair this year, will continue its strategic efforts to ensure member states are prepared to finalise the Digital Economy Framework Agreement (DEFA).

Deputy Investment, Trade and Industry Minister Liew Chin Tong said these efforts are crucial to keeping Asean, including Malaysia, globally competitive while securing sustainable economic and socioeconomic benefits.

He noted that under Malaysia’s Asean 2025 chairmanship, DEFA is one of the key economic achievements identified by the ministry, with negotiations targeted for completion by the end of this year.

“As Asean chair, Malaysia plays a key role in advancing regional economic integration under the Asean Community Vision 2025, which prioritises equitable development and narrowing the development gap.

“To achieve this, Malaysia is focusing on two main approaches to facilitate the DEFA negotiation,” he said during the question-and-answer session in the Dewan Rakyat today.

Liew was responding to a question from Syerleena Abdul Rashid (PH-Bukit Bendera) on the government’s plans to ensure DEFA negotiations concluded by 2026, given the varying levels of digital readiness across Asean.

He shared that the first approach involves basic capacity-building programs among Asean member states.

“In 2024, over ten technical workshops, training sessions, and dialogues were conducted for the DEFA Advisory Committee in collaboration with experts in the digital economy and international organisations such as the United Nations Conference on Trade and Development, World Economic Forum, and Organisation for Economic Co-operation and Development.

“This year, the program will expand to more advanced areas of digitalisation, focusing on digital technology adoption, data management, and cybersecurity in trade,” he said.

Liew added that the second approach is the phased implementation of DEFA, similar to Asean’s Economic Community and Free Trade Agreements.

According to him, this approach includes grace periods or flexible timelines to allow certain member states to develop relevant legislation or policies before full implementation.

He also emphasised that DEFA aligns with Malaysia’s national agenda to position the country as a regional leader in the digital economy.

“It supports key national policies such as the Malaysia Digital Economy Action Plan as well as sectoral policies managed by the ministry, namely the National Trade Action Plan and the New Industrial Master Plan 2030,” he said.

Source: Bernama

Malaysia drives efforts to finalise Digital Economy Framework Agreement under Asean chairmanship

Malaysia continues to attract data centre investments due to its cost advantages in land, labour, electricity, and proximity to Singapore, said analysts at RHB Investment Bank Bhd (RHB Research).

In a note, the research house said the demand for data centre infrastructure is expected to grow alongside the increasing adoption of artificial intelligence (AI)-enabled services, driven by improved affordability and efficiency.

“Hence, data centre investments may continue coming on the assumption that Jevons paradox materialises in light of potential AI democratisation,” it said.

Jevons paradox suggests that as technological advancements improve efficiency, overall consumption of a resource tends to increase. In this case, if demand for AI is elastic, falling costs due to efficiency gains may drive higher AI adoption.

RHB Research added that the outlook for data centre developers is expected to remain intact.

“With tech giants staying put on AI investments, we think Gamuda and Sunway Construction’s DC orderbook and tenderbook will not face substantial scale-downs, as most of their clients are multinational corporations from Tier-1 countries (the US, the UK, Netherlands) that are eligible for the universal validated end-user status,” it said.

The research firm also highlighted that the continued expansion of AI adoption through democratisation could benefit contractors involved in data centre construction, as more data centre providers may enter Malaysia, creating additional job opportunities for contractors.

“Notwithstanding the above, we acknowledge the risks stemming from the lingering uncertainty with US President Donald Trump having a 120-day window to comment on the AI chip restrictions,” it said.

Source: The Borneo Post

Analysis: Malaysia still attractive for data centre investments

The surging property and data centre sectors in Malaysia, along with a strong housing pipeline in Singapore, are set to drive the earnings growth of AWC Bhd’s environment segment, according to Hong Leong Investment Bank (HLIB Research).

HLIB Research noted that AWC is entering an earnings upcycle, supported by its four core business pillars, with the environment segment emerging as a key growth driver.

The strategic move to increase its stake in Stream Group to 100 per cent is expected to be earnings-accretive, positioning AWC to capitalise on the rising demand for modern waste collection solutions, the investment bank said.

Stream, which holds roughly 90 per cent market share in Malaysia, stands to benefit from the country’s strengthening property market and the anticipated increase in new project launches. Additionally, Singapore’s robust pipeline of residential, office, and HDB developments further enhances Stream’s growth prospects.

AWC’s engineering segment is also set to benefit from the positive outlook for Malaysia and Singapore’s property markets, with data centre projects acting as a potential catalyst, HLIB Research said.

“Separately, with its plumbing segment recently securing a prestigious MNC data centre project, AWC is well positioned to ride the DC wave in Malaysia. Based on our estimates, the 4.7GW DC pipeline translates into an opportunity worth RM1.6 billion to RM2.9 billion for the plumbing sector. Notably, DC projects are fast-tracked, offering higher margins vs. property-related jobs. Also, the rapid project turnover further enhances the performance and profitability of this segment.”

Meanwhile, the integrated facility management  and rail segments are expected to experience strong earnings growth by FY27, driven by the renewal of existing contracts and the upcoming Penang LRT project.

Overall, HLIB Research projects AWC’s core net profit to grow at a robust compounded annual growth rate (CAGR) of 44 per cent from FY24 to FY27.

The investment bank has initiated coverage on AWC with a BUY rating and a target price of 41 sen.

Looking beyond Malaysia and Singapore, HLIB Research highlighted that the Middle East’s booming infrastructure sector offers significant opportunities for AWC to secure high-value contracts.

“Notably, the value of projects in the Middle East is typically much higher than those in Malaysia and Singapore due to their large-scale nature,” it added.

Additionally, AWC’s rail segment is well-positioned to secure a portion of the upcoming systems contract for the Penang LRT, which management estimates to be worth approximately RM400 million.

Looking ahead, HLIB Research noted that potential rollouts of the MRT3 and Kuala Lumpur-Singapore High-Speed Rail (HSR) projects present further opportunities for AWC to expand its footprint in the infrastructure sector.

Source: NST

AWC set for robust earnings growth amid surging property, data centre markets

Instead of disruption or distraction, the arrival of “cheaper” Chinese artificial intelligence (AI) model DeepSeek may drive demand for data centres in Malaysia, industry experts said.

The country, they added, remains in a strong position to capitalise on sustained regional data processing due to its geographic location that is deemed as attractive.

BMI Research head of technology and telecoms research Andrew Kitson said Malaysia already recorded above-average mobile and wireline data traffic volumes at 13.21 exabytes (EB) and 13.25 EB respectively in 2023.

The data for the first nine months of 2024 showed further robust increases in data traffic over these channels and BMI forecasts robust annual increases in the traffic over the next 10 years.

“Malaysia remains in a particularly strong position to capitalise on sustained regional data processing, storage and transfer demands,” Kitson told Business Times.

“This is given its attractive geographic location as a hub for submarine cable connectivity, its strong relationships with key US allies, its proximity to Singapore as a leading financial services hub, and its remarkable progress with regards to digital transformation that cannot be matched by neighbours such as Indonesia and Vietnam.”

He, however, said DeepSeek’s ability to match or outperform existing AIs built on larger and costlier computing stacks will give investors and developers of digital infrastructure pause for thought.

“We believe that countries currently positioning themselves as regional data processing hubs including Malaysia will want to take stock with regards to current and planned data centre developments.

“This may include downsizing compute capacity at data centre sites still at the planning stage or even deferring making firm commitments to data centre projects that have only been mooted so far,” said Kitson.

Despite that, he said there will not be one single AI used in every country.

There will be considerable demand for high-performance computing in all countries that exceed current and planned capacity as AI applications and use cases become broadly embedded across all layers of the digital economy.

“Basically, the more that people and companies use AI, the more computing power is going to be needed,” added Kitson.

Juwai IQI co-founder and group chief executive officer Kashif Ansari said the firm foresees continued and increased demand for data centres in Malaysia and the Asia Pacific region instead of disruption from DeepSeek.

“Any efficiencies DeepSeek can deliver compared to other large language models will drive growth in the use of AI services that will far outpace efficiency gains. When you make something cheaper, people consume more of it.

“The tech industry even has a term for this, the ‘Jevons paradox,’ which states that increasing the efficiency of a resource usually leads to its greater consumption.”

Kashif added that the local companies should be happy that DeepSeek offers a more affordable large language model as expensive AI models will not be accessible to all Malaysian companies.

A more affordable AI enables local companies to compete with global players.

“All the factors that have made Malaysia into Southeast Asia’s fastest growing data centre market still apply. There is still growing demand for data centres, and Malaysia is still one of the best locations in the Asia Pacific for those data centres.

“We have relatively inexpensive land, skilled labour, water and energy. We have a supportive government. We have a large domestic market and another important one next door, in Singapore. And we have a strategic location with excellent connectivity to the rest of Asia,” he added.

Meanwhile, RHB Investment Bank Bhd (RHB Research) said although DeepSeek’s large language model claimed to have been trained at just US$5.6 million, it does not necessarily translate into a significant reduction in the need for data centres.

“Instead, it means that the AI model gets 30 per cent more power. Certain companies have lamented that AI is not able to deliver targeted return on investments and, hence, a more efficient AI model could enable such aimed returns to be met,” it said in a note.

The firm said Jevons paradox could come into play, where technological progress makes using a resource more efficient, and overall consumption of that resource tends to increase.

“Assuming demand for AI is relatively elastic, falling prices due to efficiency improvements create higher AI adoption. We understand that one factor that slowed AI adoption within big organisations so far has been how expensive the AI models are to run,” it added.

Additionally, it said Meta Platforms Inc and Microsoft Corporation have not changed their plans to invest heavily in AI hardware in data centres for this year.

It added that the tech companies have defended their AI-related investments for the current fiscal year, saying it is crucial to remain strategically competitive in AI over time.

DeepSeek recently took centre stage in the tech world as it claims to operate on a fraction of the resources used by its competitors.

Its performance against industry leaders such as Google and OpenAI has unsettled big technology stocks, particularly in the semiconductor sector.

Digital Minister Gobind Singh Deo recently said the  government was studying the impact of the platform on Malaysia.

He said the government was giving serious consideration to DeepSeek and its model before it can be adapted for local use to keep pace with the rapid development of the AI landscape.

Source: NST

DeepSeek may fuel data centre growth in Malaysia

The Capricorn Investment Group from the United States is the latest international investor exploring opportunities in Sarawak, especially in the renewable energy and technology sectors.

According to a Sarawak Public Communications Unit report, Capricorn officials were here yesterday to pay a courtesy call on Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at Wisma Bapa Malaysia.

InvestSarawak chief executive officer Timothy Ong, who accompanied the group, told the media after the meeting that both parties discussed how Capricorn could support the state’s development in the new energy, battery, and space industries.

The delegation was led by Capricorn partner and strategic advisor Jérome de Bontin.

“Capricorn is not an unknown name in the world of technology investment. They were previously among the early investors in giant companies such as Tesla and SpaceX.

“With extensive experience in the field of innovation, they see Sarawak as a strategic destination for investments related to green energy and digital technology,” said Ong in the report.

Adding that Abang Johari welcomed the ideas brought by the delegation, Ong said among the main agenda discussed were the development of a prosperity action plan, new energy, as well as potential collaboration in the semiconductor sector and digital parks in Sarawak.

He said Abang Johari also ordered a follow-up meeting to be held to detail the form of collaboration that could be established with Capricorn.

Source: The Borneo Post

US investment group eyes renewable energy, tech opportunities

The Penang Silicon Design @5km+ initiative launched by Prime Minister Datuk Seri Anwar Ibrahim in December can further strengthen Penang’s position as a regional technology hub and drive economic growth by developing the IC design industry in the state.

Collaborative Microelectronic Design Excellence Center (Cedec), Universiti Sains Malaysia director associate professor Dr Asrulnizam Abd Manaf said the initiative is a strategic step to enhance the commercial and research ecosystem in integrated circuit (IC) design.

He said the initiative also supports the aspirations of the National Semiconductor Strategy (NSS) in driving Malaysia as a global research and development (R&D) hub while strengthening collaboration between universities and industries as well as developing talent in the field of intellectual property (IP).

“The three components in Penang Silicon Design @5km+ – the IC and Digital Design Park, Penang Chip Design Academy, and Silicon Research and Incubation Center – will be able to form a complete ecosystem that provides infrastructure, talent support, and subsidy incentives to attract domestic and foreign investments in the IC design sector,” he said.

According to Asrulnizam, development in the semiconductor industry, particularly in IC design leading to IP development, requires significant investment, such as servers, electronic design automation (EDA) software tools like Cadence, Synopsys, and Mentor, as well as access to process design kits (PDK) from chip fabrication companies, in addition to facilities for post-silicon verification of chips after fabrication.

He said Cedec will support Penang Silicon Design @5km+ as a technology collaborator by providing access and consultancy for the multi-project wafer (MPW) project with Silterra Malaysia Sdn Bhd, enabling startups to develop IP prototypes using Silterra’s PDK.

“The collaboration between Cedec and Silterra in MPW has been ongoing for 18 years, involving 18 universities with access to PDK for teaching and research purposes.

“Therefore, Penang Silicon Design @5km+ will become a one-stop centre platform where startups and multinational companies (MNCs) can access shared facilities within a radius of 5km+,” he added.

Meanwhile, Asrulnizam said that Penang Silicon Design @5km+ indirectly supports the aspiration of NSS to enhance the competitiveness of Malaysia’s semiconductor industry.

He said that the provision of shared facilities such as office space, servers, EDA software (Cadence, Synopsys, and Mentor), as well as fabrication and post-silicon verification facilities, can attract investors from both domestic and international markets to invest in IC design, especially in Penang.

“Additionally, initiatives through subsidy schemes can reduce the cost for startups to be active in the development of IPs and prototyping facilities. This, in turn, drives the capability of startups to compete globally in developing high-impact IPs,” he said.

Asrulnizam said that this complete ecosystem would also indirectly attract the interest of involvement from multinational companies such as Intel and AMD, as well as startups and R&D centres like Cedec to collaborate more closely in an academia-industry consortium towards completing the development of IC design up to advanced packaging technology.

He said this could further unlock the potential of Penang Silicon Design @5km+ to become a regional research hub that attracts industry players from Southeast Asia in line with the globalisation aspirations of NSS.

“Additionally, Cedec is also involved in the Structured Industrial Apprenticeship Programme (SIAP), which provides industrial training modules such as analogue IC design, digital front-end, and back-end design to 1,500 to 1,600 students each year, involving universities such as USM, Universiti Teknologi Mara, Universiti Malaysia Perlis, Universiti Teknologi Petronas, and Universiti Tunku Abdul Rahman.”

In addition to nurturing new talents, Asrulnizam said this initiative also provides opportunities for engineers to upskill or reskill their areas of expertise to meet the increasingly challenging demands of the industry.

He added that Penang Silicon Design @5km+ is a strategic move that not only develops the country’s high-tech economy but also strengthens Malaysia’s position as a key player in the global semiconductor industry.

On Dec 7, Anwar, who is also the Finance Minister, launched and announced an RM50 million allocation for the Penang Silicon Design @5km+ initiative.

Penang Silicon Design @5km+ is spearheaded by the Penang government through its agency, InvestPenang, to revolutionise Malaysia’s semiconductor industry in line with the NSS.

Source: Bernama

Penang Silicon Design @5km+ to boost its position as tech hub

Malaysia remains a key data centre hub due to its strategic location, abundant resources, cost advantages, and established infrastructure, with industry feedback suggesting no major disruptions to upcoming projects, according to MIDF Amanah Investment Bank Bhd.

In a research note, the bank said this is despite recent volatility in Malaysia’s construction sector, particularly in stocks like Gamuda Bhd and Sunway Construction Group Bhd that stemmed from concerns over the artificial intelligence (AI) chip restriction implemented by the Biden administration.

“This policy restricts United States (US) data operators from deploying more than seven per cent of their processing power in Tier 2 countries like Malaysia and caps the usage of graphics processing units (GPUs) to 50,000 per facility. This has sparked fears that large-scale data centre investments in Malaysia could slow,” it said.

The bank noted that these concerns were compounded by Donald Trump’s Stargate initiative, a US$500 billion plan backed by Microsoft and Meta to expand data centres in the US, which further shook market confidence in Malaysia’s role as a global data centre hub.

However, MIDF believes that these fears may be overstated, and argues that Malaysia remains a prime location for data centres, especially considering that the feasibility of consolidating all data centres in the US is highly questionable, given the massive energy and cooling requirements.

Moreover, the rise of DeepSeek — a Chinese AI model reportedly achieving ChatGPT-level performance using only 2,000 H-800 Nvidia chips (compared to ChatGPT’s approximate 11,000 H-100 chips, which are more advanced) — could nullify the impact of the AI chip ban.

If DeepSeek’s efficiency claims hold, US firms would achieve the same processing power using far fewer GPUs, meaning the 50,000 GPU limit would allow for multiple data centres in Malaysia or an expansion of current data centres.

“Overall, we opine that the sharp selloff in Malaysian construction stocks may be overdone. If DeepSeek’s efficiency claims are valid, the AI chip restriction will be moderated, reaffirming Malaysia’s role as a cost-effective, strategically located DC hub,” it said.

As clarity emerges, the bank expects confidence in construction stocks to rebound in the coming months, reinforcing the sector’s long-term strength.

MIDF also noted that if efficiency increases, Malaysia may see a shift towards lower-value yet higher-frequency data centre projects, potentially impacting revenue projections for major contractors.

The bank added that as clarity emerges, it anticipates a recovery in construction stocks, supported by strong job flows, mega infrastructure projects, and sustained private sector investments in data centres and other government-related infrastructure projects.

Source: Bernama

Malaysia remains key data centre hub despite global concerns — MIDF

Forest City has garnered significant interest from both domestic and international investors following Prime Minister Datuk Seri Anwar Ibrahim’s announcement on August 25, 2023, designating the area as a Special Financial Zone (SFZ).

With the official signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement, Forest City, as Flagship G, has been formally incorporated into the JS-SEZ. This milestone is expected to further bolster international investment.

Deputy President of Country Garden Pacificview Sdn Bhd, Syarul Izam Sarifudin, said that the project has attracted attention from 11 companies expressing interest in establishing operations within the Forest City SFZ.

“We have observed growing interest in Forest City from investors both locally and globally. As the project developer, we are committed to ensuring the successful implementation of this initiative,” he said in a statement on Wednesday (Jan 29).

Syarul Izam is also optimistic that 2025 will bring further economic and developmental impact to Forest City, which was designated a Tax-Free Zone on Nov 15 last year.

He added that the announcements regarding Forest City’s SFZ, its duty-free status, and the JS-SEZ are expected to position the area as a key driver of economic growth, not only for Johor but for Malaysia as a whole.

“We will work closely with both state and federal governments to ensure smooth planning and mutual benefits,” he said.

To address investor concerns and provide insights, Forest City has planned a series of seminars. On Jan 18, a seminar was held focusing on Malaysia’s only 0% tax single-family office, providing investors with an understanding of policies and available incentives.

On the same day, Forest City launched pre-bookings for the first phase of commercial units in the new year. The flexible office and shopfront small office flexible office (SOFO) commercial spaces, located in Cerulean Bay, will soon be introduced to the market.

Meanwhile, Syarul Izam highlighted that Forest City’s development and its designation as an SFZ have drawn international interest, particularly from financial institutions. This was evident during a recent visit by a Johor delegation, led by Johor Mentri Besar Datuk Onn Hafiz Ghazi, to the Dubai International Financial Centre (DIFC).

“The visit to Dubai’s international financial centre was a valuable learning and expertise-sharing session, especially for Forest City. Our goal is not to compete with them but to identify key insights that can be applied here.

“These initiatives will not only benefit industry players investing in Forest City but also create job opportunities and economic spillover effects for other downstream sectors,” he said.

As a result of the visit, several parties have expressed interest in investing and establishing businesses in Forest City SFZ, particularly in the field of Artificial Intelligence (AI).

Syarul Izam also reaffirmed Forest City’s commitment to supporting economic growth and infrastructure development in the surrounding area, further increasing its long-term appeal.

“In the future, Gelang Patah will be a preferred destination due to the various facilities available, including ports, access to Singapore, industrial areas, and recreational amenities,” he said.

To enhance transportation connectivity, Forest City, following the successful launch of its bus service to and from the Malaysia-Singapore Second Link, is set to collaborate with Causeway Link once again. The partnership will introduce weekend and holiday bus services between Forest City and Kuala Lumpur.

Additionally, plans are underway to upgrade the island’s cycle lanes and transportation links, integrating them with Johor Baru’s public transit system. This initiative aims to provide residents and visitors with a more efficient and convenient travel experience.

With its combination of incentive policies and global vision, Forest City is emerging as a benchmark project in the Asean region. The establishment of the Special Financial Zone, Duty-Free Island, and Special Economic Zone positions it as a key hub for attracting investments, creating employment opportunities, and driving economic growth.

Source: The Star

Forest City draws increased investment interest following special financial zone status

The demand for both low-powered and high-powered chips in the development of artificial intelligence (AI) systems will lead to a significant increase in advanced data centre infrastructure, says Mah Sing Group Bhd.

Commenting on DeepSeek’s recent launch of its AI model using lower-powered chips, the group said this reflects growing demand for high-performance computing and AI adoption.

“This is a promising development for Mah Sing’s data centre venture,” it said in a statement issued on Tuesday.

Mah Sing said land near energy hubs will become increasingly valuable.

Its Southville City development, with its strategic suitability as an AI hub, is ideally positioned to leverage this trend, it said.

It added that the Southville Data Centre, with its immediate access to reliable and higher capacity energy, offers a competitive edge in accelerating market deployment for its data centre partners.

“This, coupled with DeepSeek’s innovative approach, positions AI-driven data centres as the future backbone of the digital economy, ensuring they can meet the ever-growing demand for computing power and energy reliability in this transformative era.”

Source: The Star

DeepSeek’s AI breakthrough to spur AI adoption, data centre infrastructure – Mah Sing

The Communications Ministry has identified 67 industrial areas nationwide to be equipped with 5G internet services, said its minister Fahmi Fadzil.

He said the locations of these industrial areas were identified through cooperation with the Investment, Trade, and Industry Ministry (MITI).

“Our aim is to prioritise these areas because the benefits of 5G for micro, small, and medium enterprises (MSMEs) are significant.

“We want to ensure that factories can take advantage of fast connectivity through 5G,” he told Bernama after attending the ministry’s Strategic Working Direction Meeting 2025 here today.

Also present were the ministry’s secretary-general Datuk Mohamad Fauzi Md Isa, Malaysian National News Agency (Bernama) Chief Executive Officer Datin Paduka Nur-ul Afida Kamaludin, and Bernama Editor-in-Chief Arul Rajoo Durar Raj.

Meanwhile, Fahmi said the penetration rate of 5G usage among the public is also increasing by two to three percent each month and is nearing 53.3 percent nationwide.

He stressed that the Communications Ministry is also committed to ensuring that communities in rural areas receive at least 4G coverage before being upgraded to 5G.

“Previously, we had the National Digital Network (Jendela) Phase One initiative, which should see the completion of 1,661 towers by June this year, marking the first step.

“Second, I expect that between the two 5G networks, they may see strategic collaboration to ensure that the towers in rural areas can be utilised for 5G purposes,” he said.

He added that Jendela Phase Two will involve between 2,500 and 3,000 locations in rural areas that lack internet access.

Source: Bernama

67 industrial areas identified for 5G connectivity, says Fahmi

Australia’s global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the agreement was reached through a meeting with the company’s leadership team led by executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Investment, Trade and Industry Ministry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Anwar said through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the Federal Government.

“Sabah will have a relatively large port in the region when DP World comes in. The Federal Government has informed Chief Minister Datuk Seri Hajiji Noor and the state government to provide full support and cooperation,” he said.

In addition, the Prime Minister said Google would continue implementing major programmes in Malaysia, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

He said issues related to artificial intelligence, including in the fields of medicine and education were also discussed in the meetings with global companies.

On another matter, Anwar said Asean region’s great potential was his main message at the WEF, adding that as the regional grouping’s chair for the year, Malaysia has highlighted the region’s special features including in the field of economy and trade.

“It trades intra (Asean) and is also a trading force with the United States, China, Europe and BRICS.

“With nearly 700 million people, the fastest economic growth and a peaceful region, Asean has great potential,” he said at the closing press conference in conjunction with his working visit to WEF 2025, Bernama reported.

He said apart from trade and economic potential, Asean also wants to focus on energy transition issues, education, food technology, connectivity and digital.

Anwar attended the summit at the invitation of WEF founder and chairman of the board of trustees, Prof Klaus Schwab – his first since assuming office in 2022.

“We are grateful that as it is the first time I attended as Prime Minister, I think the treatment and recognition of (WEF) for the country is very good.”

Among the leaders Anwar met on the sidelines of the WEF were Dutch Prime Minister Dick Schoof and Somalia President Hassan Sheikh Mohamud.

Source: The Star

Green hydrogen hub coming to Bintulu

The declaration of the Port of Sipitang Oil and Gas Industrial Park (SOGIP Port) marks a strategic milestone with significant potential to drive Sabah’s economic growth, Deputy Chief Minister III Datuk Shahelmey Yahya said. 

Shahelmey, who serves as the state’s works minister, said the new port, located in Sipitang approximately 140 kilometres from Kota Kinabalu, will provide a major boost to local economic sectors such as transport, shipping, and logistics. 

“The economic potential of this area is undeniable. Its strategic location on the west coast of Sabah, facing the South China Sea, positions Sipitang as a new gateway for maritime trade in the region. 

“This port will create job opportunities for local residents, enhance household income, and promote sustainable economic growth,” he said during the official declaration ceremony of the SOGIP Port here today. 

He emphasised that the initiative aligns with the Sabah Maju Jaya (SMJ) roadmap spearheaded by Chief Minister Datuk Seri Hajiji Noor to strengthen the state’s economic and infrastructure development. 

“As a new port area, Sipitang not only enhances Sabah’s capacity to handle international cargo but also broadens access for businesses to the global market. 

“This development represents a key step towards bolstering trade ties between Malaysia and its neighbours, as well as the wider region. We are confident this will significantly boost both bilateral and multilateral trade growth,” he said. 

At the event, Shahelmey also represented the Chief Minister to witness the signing of the port concession agreement between the Sabah Port Authority, Sabah Oil and Gas Development Corporation Sdn Bhd, and SOGIP Port Sdn Bhd. 

He added that with the infrastructure in place, Sipitang is set to become a vital logistics hub for the region, further supporting trade and industrial activities. 

“Through the provision of modern facilities, we are confident this project will enhance Sabah’s standing as a key player in international trade and logistics, while accelerating integration with the global economy. 

“I believe the SOGIP Port project will not only benefit the immediate area but will also serve as a catalyst for more sustainable and balanced economic development across Sabah,” he added. 

Source: Bernama

SOGIP port launch boosts Sabah’s economic prospects

AUSTRALIA’S global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said the agreement was reached through a meeting with the company’s leadership team led by Fortescue executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle, and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Ministry of Investment, Trade and Industry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Commenting further, the prime minister explained that through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the federal government.

“As for Sabah, which will have a relatively large port in the region when Dubai Ports comes in, the federal government has informed Chief Minister Datuk Seri Hajiji Noor and the Sabah government to provide full support and cooperation,” he added.

In addition, the prime minister said Google would continue implementing major programmes such as the one established in Selangor, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

Furthermore, he said that issues related to artificial intelligence, including in the fields of medicine and education, were also discussed in the meetings with global companies.

Anwar attended the WEF 2025 for the first time as prime minister since taking office in 2022 at the invitation of WEF founder and chairman of the board of trustees Klaus Schwab from Jan 20-22.

Throughout the three-day visit, Anwar was accompanied by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir and Digital Minister Gobind Singh Deo.

Source: Bernama

Australian metal mining firm to invest in Sarawak’s green energy sector

Malaysia’s political stability and clear policy prescriptions in the MADANI Economy framework have encouraged big players in the artificial intelligence (AI) industry, including semiconductor companies, to invest in the country.

Prime Minister Datuk Seri Anwar Ibrahim said the government has provided enough incentives to attract big players from the United States, Europe and China to make huge investments in Malaysia.

Along with the progress of AI, he called for a comprehensive approach to integrating AI into Malaysia’s national framework, emphasising the urgency of establishing robust AI legislation, a national AI office, and data protection measures.

“We have to navigate — (through) the National AI Office, legislation, data protection, and whatever it takes to make sure that we are fully equipped,” he said during a special one-on-one exclusive dialogue entitled “A Conversation with Anwar Ibrahim’’ moderated by WEF founder and executive chairman of the board of trustees Prof Klaus Schwab here today.

“AI means changing the education system, health services, blockchain. It will have to come about, and we are pushing it at a faster pace, partly because of my age. I don’t have time to wait,” the 77-year-old leader added.

Source: Bernama

Malaysia secures AI industry investments with clear MADANI economy policies – PM Anwar

Penang is expected to strengthen its position as a top medical tourism hub in South-east Asia with an upcoming multibillion-ringgit Penang Medi-City project in Batu Kawan.

The mega-project, spread out over 235.8 acres, will take about 15 years to complete and is expected to feature mixed development of at least four hospitals, various health and wellness facilities, technology parks, commercial centres, serviced apartments, schools and residential areas.

“This is one of the largest private investments we are receiving in Penang, at RM2 billion for phase one and a few more billions in the other phases, in a sector outside of the manufacturing sector,” said Penang chief minister Chow Kon Yeow at a press conference after the official signing ceremony of a master sale and purchase and development agreement between Penang Development Corporation (PDC) and Fajarbaru Builder Group (FBG).

He said PDC has been working on the idea for a medical city for more than five years and have discussed it with various companies.

“We have also called for Request for Proposal for this,” he said.

He added that the project will be a catalyst project for Batu Kawan as it is expected to feature more than 1,000 hospital beds and become a one-stop medical hub for Penang, the northern region and Asean.

“Penang is now dominating the medical tourism industry in the country, with a 45 per cent market share,” he said.

He said the medical tourism industry in the state has continued to expand in recent years that the state is one of the main destinations for medical tourists seeking high quality medical services at affordable rates.

He said the Penang Medi-City development in Batu Kawan will strengthen the state’s position as a main medical tourism hub in South-east Asia.

He also said the project is expected to create thousands of job opportunities during construction and upon completion, it could create even more high-value jobs in the medical and services industry.

“This project proves that Seberang Perai and Batu Kawan is set to be the future of Penang,” he said.

FBG group executive chairman Tan Sri Chan Kong Choy said Phase One of the project, which covers about 51 acres, will have a gross development value of RM2 billion.

“There will be one hospital first but we are also in discussions with several other medical operators, local and international,” he said.

He said the overall project, which is in four phases, will have not less than four hospitals of various disciplines.

“There will also be related healthcare and wellness service operators,” he said.

He said they will also consider traditional Chinese medicine and alternative medicines operators as these are also huge growing markets.

Phase one of the project is expected to launch in the fourth quarter of next year and will take about eight years to complete.

Source: Malay Mail

Penang cements position as medical tourism hub with RM2b Penang Medi-City project

Malaysian companies, especially those in the logistics sector, should go regional with a whole-of-government approach to create Malaysian global champions in services, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said transport services continue to be a significant contributor to Malaysia’s trade deficit, reflecting reliance on foreign shipping and logistics providers to support Malaysia’s export-driven economy.

Liew said this is a cause for concern and calls for more effort to transform the situation.

“We should build a Malaysian brand image of trustworthiness and friendliness for Malaysian global service providers to thrive in the export of services,” he said in his opening speech at the Service Conference 2025 (SERV25) here on Monday.

Liew also suggested that Malaysia should do more to make itself a hub for regional headquarters, tourism, higher education, research and development (R&D) activities, legal and arbitration services, and finances, especially Islamic finance.

He said emerging sectors such as digital trade, and sustainable and green services are areas Malaysia can make a global difference.

“The linkage between services, manufacturing and technology should be firmly established,” he said, a sign that Malaysia is seeing an upsurge in manufacturing activities, thanks in part to supply chain relocation, with manufacturing-related services being core to the development of a robust services sector.

“We must do more to link the two sectors together, and more importantly, connect manufacturing and services with Malaysian technology,” he said.

He said the service sector linkage to supplement “Made in Malaysia” with “Made by Malaysians” is crucial.

SERV25 brought together speakers and thought leaders to explore cutting-edge digital transformation strategies to reshape Malaysia’s economic landscape.

Source: Bernama

Chin Tong urges Malaysian logistics companies to go regional

The logistics sector in Johor remains poised for growth, bolstered by the productivity of Johor Port and the Port of Tanjung Pelepas (PTP), both of which continue to maintain low vessel dwell times. 

Industry experts believe planned developments, such as the Johor-Singapore Special Economic Zone (JS-SEZ), are expected to further solidify Johor’s position as a key logistics hub in Southeast Asia.

MMC group managing director Tan Sri Che Khalib Mohamad Noh Johor continues to be a major logistics hub due to its strategic location, comprehensive land, sea, and air transport infrastructure, deep connectivity and green lanes to Singapore, ample land availability, as well as a strong labour supply.

Che Khalib said the proposed initiatives under the JS-SEZ will foster greater cross-border movement of people, integration, and connectivity between Johor and Singapore, which will in turn intensify cross-border trade and logistics. 

“The JS-SEZ will also promote renewable energy, green industrial parks, and one-stop investment centres, which would attract high-value investors that prioritise ESG and reduced carbon emissions,” he told Business Times. 

Meanwhile, transport consultant Wan Agyl Wan Hassan said with larger warehousing capacities compared to Singapore and access to well-established ports such as PTP and Johor Port. 

“Johor’s proximity to Singapore gives it a golden opportunity to shine as a logistics hub. 

“Singapore’s reputation as a global logistics leader is unmatched, but rising costs and limited space there mean Johor can step up as the affordable and scalable alternative,” he said. 

Meanwhile, Wan Agyl said the global logistics industry’s current turbulence—driven by the Red Sea crisis and the rising trend of regionalisation—has further highlighted Johor’s potential. 

He noted that companies are now seeking alternative routes and warehousing solutions closer to their production and consumption hubs.

“Yes, the Red Sea crisis is a challenge, but it’s also a wake-up call. Global logistics is shifting towards regionalisation, sustainability, and resilience. Johor must seize this moment to position itself not just as a backup to Singapore but as a vital player in the global trade network.

“By focusing on these strategies, Johor might have the chance to thrive in the face of global disruptions,” he said. 

Kenanga Investment Bank Bhd has maintained its “neutral” stance on the seaport and logistics sector as the shipping diversion from the Red Sea continues to weigh down on global trade.

However, the firm expects the domestic logistics sector to play a key role in connecting economies that benefitted from the trade diversion due to the United States (US)-China trade tensions.

“Nevertheless, we continue to see a bright spot in the domestic logistics sector, benefiting from the booming e-commerce, the global tech upcycle driven by demand for artificial intelligence, and a resilient US economy,” it added.

Source: NST

Johor’s logistics sector set for growth, driven by Johor Port and PTP productivity

Sime Darby Property Bhd is joining hands with Singapore-based YCH Group, a supply chain solutions outfit, to develop logistics hubs in Malaysia, Vietnam and other Asean markets.

The two companies inked a memorandum of understanding (MOU) for the proposed partnership at the sidelines of the 102nd Asean Business Advisory Council (Asean-BAC) Meeting on Thursday.

According to Asean-BAC, the first major milestone will be the development of a landmark logistics facility in Sime Darby Property’s port-centric township of Bandar Bukit Raja in Klang, Selangor. The facility is expected to cost at least RM300 million and will be modeled after YCH’s flagship Supply Chain City in Singapore.

“The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects,” said Asean-BAC in a statement.

The MOU was one of three announced during a press conference by the Asean-BAC on Thursday, including one signed by Malaysia’s Bornion Green Sdn Bhd and the Philippines’ Yovel East Research and Development Inc to establish a Musang King durian plantation in the Philippines.

“The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects,” said Asean-BAC.

The third MOU was one entered into between the Canada-Asean Business Council and Asean-BAC to boost trade and investment between Asean and Canada, particularly via the Asean-Canada Free Trade Agreement (ACAFTA).

Sime Darby Property’s shares closed unchanged at RM1.47 on Thursday, giving the group a market capitalisation of RM10 billion.

Source: The Edge Malaysia

Sime Darby Property to partner Singapore’s YCH Group to develop logistics hubs in SEA

A significant simplification of the nation’s research and development (R&D) tax incentives, alongside reformation of the grant system, will be included in the 13th Malaysia Plan (13MP), according to Economy Minister Datuk Seri Rafizi Ramli.

He said the changes aim to address long-standing concerns about the complexity and accessibility of existing mechanisms supporting innovation and business growth.

“The new R&D tax incentive framework will streamline processes, removing unnecessary bureaucratic hurdles that have deterred businesses, particularly small and medium enterprises, from fully benefiting from such schemes.

“The focus is on making the system user-friendly, ensuring that businesses can easily understand and claim these incentives,” Rafizi said at a 13MP engagement session with industry players today.

In addition to the tax incentive reforms, a comprehensive overhaul of the grant system will be included in the plan, Rafizi disclosed.

“This initiative seeks to reduce the layers of complexity that currently hinder businesses from accessing critical funding. By simplifying application processes and eligibility criteria, the government aims to foster a more inclusive and efficient allocation of resources.”

Rafizi said the reforms are part of a broader strategy to enhance the nation’s competitiveness in the global market while ensuring that public resources are effectively utilised.

“The new measures will include clearer guidelines and improved communication with stakeholders, ensuring businesses understand how to navigate the updated systems. The goal is to build trust and confidence among businesses that these incentives and grants can deliver meaningful support,” he explained.

Rafizi said businesses and industry groups have long advocated for such reforms, pointing to the barriers posed by overly complicated processes. “These updates are expected to alleviate frustrations and encourage broader participation across sectors.”

The government will release further details on the implementation timelines and specific changes to the R&D tax incentives and grants soon.

Despite allocating more than RM1 billion annually for R&D, Rafizi noted, there remain significant gaps in translating research into market-ready innovations.

He shared that his ministry, alongside the Ministry of Investment, Trade and Industry, is working on a comprehensive plan to also enhance R&D commercialisation, and foster collaboration among academia, public institutions and the private sector.

“This initiative, expected to be presented to the Cabinet within the next few months, will play a crucial role in positioning Malaysia as a leader in high-value industries and global competitiveness,” he added.

Furthermore, Rafizi said, the 13MP will not only focus on reforming R&D tax incentives and the grants system but also address broader systemic challenges to strengthen the country’s economic structure.

“We are taking a sector-specific approach to economic reform, including energy transition plans under the National Energy Policy. These reforms aim to create a robust foundation for Malaysia’s economic growth and its ability to adapt to global changes.”

The minister said one key focus is optimising Malaysia’s supply chain and logistics system, pointing out that inefficiencies in the supply chain, such as the high logistical costs of moving goods across regions unnecessarily, have hindered economic efficiency.

“By investing in infrastructure, data systems, and regulatory frameworks, the government plans to enable regional distribution systems that minimise costs and improve transparency in pricing. These efforts are part of a broader strategy to streamline the movement of goods and ensure consistency in the supply chain,” he added.

Rafizi also said SMEs face challenges in scaling up and integrating into larger value chains.

“Efforts to strengthen the SME sector will focus on addressing structural barriers and creating opportunities for growth, ensuring that SMEs continue to drive innovation and economic resilience,” he added.

Source: The Sun

Rafizi: R&D tax incentive, grant frameworks will be simplified, overhauled under 13MP

The potential implementation of export limitations by the US government on artificial intelligence (AI) chips is not expected to impact the operations of existing data centres in Malaysia, according to deputy minister of investment, trade and industry (Miti) Liew Chin Tong.

After his keynote speech at the CEO Series: Economy & Business Forum on Thursday, Liew said the Malaysian government will take a cautious, evaluative stance to better understand how these proposed restrictions might influence future developments and partnerships.  

“We will engage in internal discussions, collaborate with key stakeholders, and also reach out to the incoming US administration to gain a clearer understanding of the extent of the regulatory changes,” he said.

Liew added that Malaysia, along with other countries classified under Tier 2, has prepared strategies to manage the potential challenges.

Under these proposed restrictions, the American companies would be permitted to request blanket approval for shipping chips to data centres globally, with stipulations that no more than 25% of their total computational capacity is located outside of Tier 1 nations, and no more than 7% is situated in any single Tier 2 country.  

Meanwhile, Liew highlighted the importance of Malaysia fortifying its internal economic infrastructure to foster mutual benefits for both local and foreign investors, noting that many of Malaysia’s industrial parks have become overly concentrated on real estate development, which fails to advance the nation’s broader economic objectives.

“As the global supply chain has shifted over recent years, it is clear that investors are drawn to Malaysia not simply because of our numerous industrial parks, but because of the strength and depth of our ecosystem,” Liew explained.

He added that while factories may be interconnected on a global scale, they often lack sufficient domestic linkages.

Source: The Edge Malaysia

Malaysia’s data centres unaffected by US AI chip export restrictions, says deputy Miti minister

The Bandar Teknologi Maju Perlis project planned for development in Chuping, Padang Besar is poised to become a key driver of the digital economy in the northern state, positioning Perlis as a strategic destination for international investment.

A collaboration between the Perlis State Secretary Incorporation (PSSI) and Sirage Skyvast Holdings Sdn Bhd, the project aims to establish an off-grid technology hub with sustainable energy infrastructure.

Perlis state secretary and PSSI chairman Datuk Rahimi Ismail said the project would cover an area of 600 acres and is designed to feature artificial intelligence (AI) data centre, large-scale data facilities and high-performance computing (HPC) applications.

“The project will utilise a dedicated energy system that includes a 1.6 Gigawatts (GW) solar plant, a 4.875 GW battery energy storage system (BESS) and a 1 GW combined cycle gas turbine (CCGT) plant.

“This infrastructure will ensure a stable, sustainable and reliable electricity supply without relying on the national grid,” he said during the memorandum of understanding (MoU) exchange ceremony for the project at the Perlis State Legislative Assembly Complex today.

The Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail witnessed the MoU exchange along with Perlis Menteri Besar Mohd Shukri Ramli.

Rahimi stated that the high-impact project is expected to generate 9,000 jobs during the construction phase and 2,000 jobs once fully operational, as well as attract an estimated RM49 billion in investments, in line with the Chuping Valley Industrial Area (CVIA) development and Perlis Digital Plan 2021-2025.

He added that the project would also benefit real estate, tourism and retail sectors, enhancing market value and encouraging new developments.

Rahimi also mentioned that the project has garnered attention from Communications Minister Fahmi Fadzil, who sees it as a catalyst for data centre investments in Malaysia, with benefits extending beyond Perlis.

“This data centre will provide a complete infrastructure for operators like Microsoft and Google. Previously, many data centres were concentrated in Singapore, but they are now shifting to Malaysia. With available land in Perlis, we can attract more investments here,” he said. 

Source: Bernama

Bandar Teknologi Maju Perlis set to drive digital economy growth

DATA centres (DCs), which have grown in importance in the age of digitalisation, took centre stage in 2024 owing to the massive foreign direct investments (FDI) into the sector and Putrajaya’s recent approval of a total DC capacity of 4gw, making Malaysia a “DC powerhouse” in the region and a prominent player on the global stage. Still, questions remain over the full benefits to be gained from such resource-hungry investments.

A whopping RM90.2 billion in FDI for 12 DCs were committed between 2021 and June 30, 2024, according to the Malaysian Investment Development Authority (Mida). These were primarily by major tech companies like Nvidia, ByteDance, Microsoft, Google and Singapore Telecommunications, which are major data users and processors.

Google, for instance, announced in October a US$2 billion (RM8.9 billion) investment to build its first DC in Malaysia. The global tech giant is also investing US$1 billion in DCs in Thailand. Meanwhile, Singapore substantially bumped up its DC investments to US$5 billion in 2024 from US$850 million in 2022.

Increasing data usage, cloud computing and artificial intelligence (AI) have accelerated the need for DCs, which provide the facilities to store and process data. In other words, they are essential infrastructure to support the digital economy. However, the AI boom has necessitated a new type of DC that supports real-time processing and data storage, often requiring proximity to end-users.

The DC boom is not unique to Malaysia. According to a report by global consulting firm McKinsey & Co, the global demand for DC capacity could rise at an annual rate of between 19% and 22% from 2023 to 2030 to reach annual demand of 171gw to 219gw globally.

“This contrasts with the current demand of 60gw, raising the potential for a significant supply deficit. To avoid a deficit, at least twice the DC capacity built since 2000 would have to be built in less than a quarter of the time,” it said in an Oct 29 report.

In Asia-Pacific, current DC capacity exceeds 10,500mw and is expected to more than double to 24,800mw by 2028, spurred by increasing adoption of cloud computing and AI, which in turn will benefit several industries across the value chain.

According to reports, Singapore currently has more than 70 DCs with a total capacity of 1.4gw. But Malaysia will soon eclipse its southern neighbour, as utility giant Tenaga Nasional Bhd (KL:TENAGA) has signed 31 electricity supply agreements (ESA) with DC operators in the country, for a total energy demand of 4,700mw.

The acceleration in DC capacity is mind-boggling in that Malaysia’s DC market in 2023 only had 40DCs with 100mw to 150mw — a development that took almost 20 years to achieve.

There are two kinds of DC operations — DC colocation and hyperscale DC. In the past, most DCs were built to focus mainly on DC colocation, which is a service provided by DC operators to companies that would rent space, power and connectivity in the DC to host their own servers and IT equipment. As a result, the growth in DC capacity has been in stages, depending on the digitalisation efforts of these companies.

On the other hand, hyperscale DCs are typically massive and purpose-built facilities designed to support the tremendous computing and storage demands of cloud computing, big data and other data-intensive applications. Major investors in hyperscale DCs are usually large technology players such as Apple, Google, Microsoft, Amazon Web Services, Facebook, Alibaba, Tencent and ByteDance.

Debate over benefits of DC investments

However, beneath the fanfare of major investments made by global companies, there are questions about the real economic benefits of the DC boom to Malaysia. Will it translate into the economic multipliers promised?

Industry observers and experts say the DC boom in the country is a positive development as it supports the digital economy and will create new jobs, among other benefits.

But a big drawback of DCs is their voracious appetite for land, electricity and water. They also require a consistent and steady supply of electricity at all hours of the day for data processing and cooling systems.

Malaysia currently has a peak electricity demand of close to 20gw. Putrajaya’s recent approval of a total DC capacity of 4gw makes the country Asean’s top DC hub. But will this put a tremendous strain on its resources?

Can the increase in electricity usage lead to higher GDP growth?

Sunway University Business School professor of economics Yeah Kim Leng says Malaysia is benefiting from the initial stage of DC development, which is attracting FDI and construction projects. The multiplier effect that comes from being a DC hub will come after the completion, he tells The Edge.

“Malaysia can specialise in data services, particularly those related to generative AI, which have applications across various sectors like healthcare and services, leading to improved service quality and innovative solutions. This will enable Malaysia to progress beyond semiconductors and acquire the technology transfer from having big tech companies in the country,” he adds.

According to Knight Frank’s SEA-5 Data Centre Opportunity Index report, Malaysia attracted RM141.72 billion in digital investments in the first 10 months of 2024 — three times the approved digital investments for the whole of 2023 (RM46.2 billion). These investments are expected to create 41,078 job opportunities.

The report also highlights that DCs are a critical component in powering the growing digital economy and that their operations demand substantial energy and water to ensure uninterrupted functionality of servers, cooling systems and other IT equipment.

“The sudden surge in data centre investments in Malaysia, especially in Johor over the past two years, has raised concerns about the nation’s and the state’s ability to handle the increased demand for electricity and water resources. Stakeholders are questioning whether the existing infrastructure can sustainably support this rapid growth without compromising environmental commitments and local communities,” Knight Frank says in a December 2024 report.

In this regard, it was reported that the Johor government has taken a strategic and decisive stance to reject nearly 30% of DC applications.

At the federal level, Prime Minister Datuk Seri Anwar Ibrahim cautioned against rushing to build DCs, especially if they do not add value to Malaysians in terms of high-income jobs and knowledge-sharing. “The traditional approach of providing support and incentives to investors without taking into account the economic spillover achieved is no longer sustainable,” he said in his Budget 2025 speech, noting high quality investments were preferred.

Following the announcement, Treasury secretary-general Datuk Johan Mahmood Merican said Putrajaya was working on restructuring its incentive packages for DC investments to ensure broader economic benefits, and that it would be announced in mid-2025.

“We are rethinking this enthusiasm with data centres. They are large in terms of capex, but sometimes they don’t necessarily create many high-skilled jobs. And sometimes, they consume a lot of electricity and water,” he added. 

Source: The Edge Malaysia

Can Malaysia capitalise on its data centre ambitions?

Sarawak will potentially supply power to Sabah and Brunei once a 500MW combined cycle gas turbine (CCGT) facility is completed in Miri by 2027, says Tan Sri Abang Johari Openg.

The Premier said Sarawak already had an agreement with Sabah to supply 50MW of power, but the neighbouring state had requested an increase to 100MW.

“We are looking at our capacity in terms of energy production.

“By 2027, the CCGT facility in Miri will be ready with 500MW capacity, so we will be able to supply to our neighbours,” he told reporters after giving a special address in conjunction with his eighth anniversary of taking office as Premier here on Monday (Jan 13).

Abang Johari said Sarawak was also planning three more combined cycle plants in Bintulu with 500MW capacity each by 2027.

With this additional capacity, he said Sarawak would be able to meet Sabah’s request for 100MW.

He also said the state was in discussions with Brunei on power supply.

In his special address, Abang Johari said the RM2bil CCGT facility in Miri would enhance the power supply in northern Sarawak besides potentially serving Sabah and Brunei.

He also said the plant would use a mixture of methane and hydrogen to reduce emissions and boost energy efficiency.

“During my visit to Mitsubishi Heavy Industries’ Takasago Hydrogen Park (in Japan), I witnessed the world’s first large-frame hydrogen-powered gas turbine.

“This breakthrough technology will be integrated into Sarawak’s CCGT facility, reinforcing our leadership in low-carbon energy transition,” he said.

Source: The Star

Miri gas turbine plant can power Sabah, Brunei once ready, says Abang Johari

Malaysia is exploring how financial technology (FinTech) can serve as a key instrument in all the agreements signed between the country and Asean, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Currently, there are 16 multilateral and bilateral agreements between Malaysia and Asean, with the 17th to be inked next week.

While he did not elaborate further on these agreements, he emphasised that FinTech was a foundational tool for operationalising them.

“We are looking at how FinTech can be a major instrument, enabler, or foundation in all the trade agreements we have signed, such as the Asean Single Window (ASW) agreement and the Regional Comprehensive Economic Partnership (RCEP),” he said.

Tengku Zafrul was speaking at the Forum Ilmuwan Malaysia Madani Series Four: Using Technology in Financial Services to Drive Prosperity and Inclusivity on Friday evening.

The event, moderated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, was streamed live on Communications Minister Fahmi Fadzil’s Facebook.

Tengku Zafrul spoke alongside Malayan Banking Bhd president and group chief executive officer Datuk Khairussaleh Ramli, and Funding Societies Malaysia Group chief operating officer and CEO Wong Kah Meng.

Meanwhile, Tengku Zafrul highlighted the crucial role of FinTech in integrating Asean trade and expressed hope that it would bring greater inclusivity.

“Currently, intra-Asean trade accounts for only 22 to 23 per cent of total Asean trade, largely dominated by large companies.

“But as you know, Asean is driven by small and medium-sized enterprises. Hopefully, FinTech will bring more inclusivity to the game,” he said.

While FinTech holds immense potential, Tengku Zafrul acknowledged challenges, including technological accessibility gaps.

“When we talk about FinTech in Asean, or even in Malaysia, not everyone has access to the technology, which is another issue we need to address,” he said.

He also expressed hope that technology and its inclusivity could benefit as many Malaysians as possible, especially as many have questioned whether they have felt the impact of GDP growth.

Tengku Zafrul urged a whole-of-government and whole-of-nation approach, calling for collaboration among stakeholders, including investors, academia, and policymakers, to build an inclusive and sustainable future.

Source: Bernama

Tengku Zafrul: Malaysia to leverage FinTech in Asean trade agreements

Engineering and project management consultant HSS Engineers Bhd (HEB) is set to expand its recurring income stream with its second venture in the renewable energy sector by developing a 95MW alternating current large-scale solar photovoltaic plant (LSS plant) in Teluk Intan, Perak.

HEB’s wholly owned subsidiary, HEB Energy Sdn Bhd, and its consortium partner Unique Fire Holdings Bhd have accepted a letter of notification from the Energy Commission to undertake the development of the plant.

HEB Energy and Unique Fire will set up a special purpose vehicle to undertake the project, which encompasses financing, design, construction, installation, testing, commissioning, completion, operation, and maintenance of the LSS plant. HEB Energy will own a 40% equity stake in a special purpose vehicle and Unique Fire the majority 60%. The estimated commercial operation date of the plant is Oct 11, 2027.

The LSS plant is part of the government’s fifth LSS bidding exercise, known as LSS-Peralihan Tenaga SuRia. The initiative is aimed at supporting Malaysia’s goal of achieving 70% renewable energy capacity by 2050, as outlined in the National Energy Transition Roadmap.

HEB executive vice-chairman Tan Sri Kuna Sittampalam said: “With this second and larger solar power project, we are in a pivotal position to advance as a key player in Malaysia’s ambitious renewable energy goals under NETR, building on our expertise in project management and engineering design. This initiative aligns with the government’s commitment to global climate action under the Paris Agreement.”

He added that they are on the cusp of profound growth in their participation in the renewable energy sector, fuelled by progressive government initiatives, including a RM1 billion allocation for the Green Technology Financing Scheme and RM300 million for the National Energy Transition Fund under Budget 2025.

“Expanding our vertical of recurring and long-term income-based contracts also underscores our commitment to diversifying sector coverage and revenue streams, catapulting us to substantial growth in the years to come,” Kuna said.

The development of the LSS plant, is contingent upon the consortium executing a solar power purchase agreement with a corporate consumer to commit to purchasing solar energy generated by the plant for 21 years.

The project, to be funded via internally generated funds and/or external borrowings, will contribute positively to HEB Group’s financial performance from 2027 onwards. It is the second project under HEB Group’s recurring and long-term income-based contracts vertical, after the 29.99MW solar photovoltaic plant project in Kuala Muda, Kedah. The vertical provides HEB Group with long-term income and complements its core expertise in engineering and project management consulting.

Source: The Sun

HSS Engineers expands further into renewable energy with solar plant project in Perak