TDM Bhd’s unit KMI Healthcare will develop a new 100-bed hospital in Bertam, Penang with a gross development cost of RM146 million.

KMI Healthcare, through KMI Bertam Medical Centre Sdn Bhd, signed an agreement to build and lease with Bertam Specialist Hospital Sdn Bhd, in line with its greenfield expansion strategy.

KMI Bertam will lease the hospital facility from Bertam Specialist Hospital for 18 years, with an option to extend for another 12 years, ensuring a long-term operational sustainability.

The hospital will be located on a 0.8-hectare site in Seberang Prai Utara that offers easy accessibility through the PLUS highway.

The 100-bed hospital will feature advanced medical and surgical facilities, including several introduction of centre of excellence, diagnostic services, and patient-centric care units.

The development is expected to start this year with completion targeted for 2028.

KMI Healthcare said the new hospital is set to cater to the healthcare needs of a strong population within Seberang Perai Utara, providing essential medical services and specialised care.

The hospital’s location and modern facilities present an opportunity to support Penang’s local needs for modern healthcare facilities and growing medical tourism initiative, attracting international patients seeking high-quality healthcare services.

The project adopts an asset-light business model, allowing KMI Bertam to focus on delivering “exceptional” healthcare services while Bertam Specialist Hospital manages the development and ownership of the hospital facility.

KMI Healthcare chief executive officer Dr Rayney Azmi Ali said the agreement reflects its mission to expand the KMI hospital chain and deliver quality healthcare to more communities.

“The Bertam hospital will not only serve the local population but also contribute to Penang’s medical tourism potential,” he said.

Source: NST

TDM’s unit KMI Healthcare to build RM146mil, 100-bed hospital in Penang

The government can implement a focused industrial strategy to support the energy-intensive data centre sector by expanding large-scale solar (LSS) projects and increasing investments in research and development (R&D) to enhance solar farm efficiency.

This approach would enable companies planning to establish data centres in Malaysia to significantly lower electricity costs by transitioning to renewable energy sources.

Access to affordable and sustainable energy not only reduces operational expenses but also strengthens their corporate social responsibility (CSR) credentials.

Institute for Democracy and Economic Affairs economist and assistant research manager Doris Liew said these efforts would not only help meet the nation’s growing energy demands but also unlock new opportunities for growth in the renewable energy sector.

She added that to fully capitalise on this industry, Malaysia must reinforce its position by developing supporting infrastructure and fostering a conducive business environment.

“Currently, the country faces challenges in data centre design and construction due to a lack of domestic capacity to manufacture and assemble key components such as data centre racks and equipment, forcing companies to rely on imports.

“By investing in local capabilities to design, build, and maintain data centres, Malaysia can reduce reliance on foreign imports and create a new economic growth area,” she told Business Times.

Furthermore, Liew emphasised that ensuring a reliable and resilient power supply is critical for data centre operations.

She explained that this reliability can be enhanced through greater integration of renewable energy sources, improved grid management, and strategic investments in energy storage solutions.

According to Liew, investment incentives at the Johor-Singapore Special Economic Zone (JS-SEZ), combined with the rise of artificial intelligence (AI) and its increasing demand for computational power, have driven a significant data centre boom not only in Malaysia but across Southeast Asia.

She noted that this rapid expansion has led to a corresponding increase in electricity and water consumption, particularly for cooling systems, placing additional pressure on the utilities sector.

Moreover, Liew said that the surge in data centre infrastructure presents a unique opportunity for Malaysia to accelerate renewable energy production.

“As data centres drive up utility consumption, the increased demand could serve as a catalyst for scaling up renewable energy projects,” she noted.

In a recent report, Knight Frank highlighted that data centres are critical to powering the growing digital economy.

However, their operations demand substantial energy and water to ensure the uninterrupted functionality of servers, cooling systems, and other IT equipment.

The report stated that the sudden surge of data centre investments in Malaysia, especially in Johor over the past two years, has raised concerns about the nation’s and 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,” it said.

From a national perspective, the report highlighted that the government is actively shaping the investment landscape for the data centre industry through comprehensive measures.

In 2024, several key milestones were achieved, including the release of updated planning guidelines.

Additionally, sustainable development frameworks and a new incentive system based on a “scorecard” approach are currently under development, reflecting the government’s commitment to fostering a balanced and responsible growth environment.

The Johor state government has also taken a strategic and decisive stance in addressing the resource challenges posed by this resource-intensive sector.

Recognising the potential strain on energy and water resources, the state has implemented stringent guidelines in approving data centre developments.

As a result, the state has rejected nearly 30 per cent of data centre applications (reported in November 2024) after considering factors such as the adoption of renewable energy, water management, resource readiness, and economic benefits.

Moving forward, the report noted that the data centre industry in Malaysia will move into a stabilisation phase.

“With the private sector actively playing its role in utilising technology to reduce carbon footprints through innovation and bringing in best practices to the country, it is anticipated that the government will take an adaptive approach in its approach to the industry, fostering an investor-friendly environment through regulations, guidelines, and policies that balance sustainability and technological growth,” it said.

Source: NST

Expand LSS projects, R&D to support energy-intensive data centre sector

Malaysia’s active participation in BRICS and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), coupled with a surge in foreign direct investment, is poised to drive long-term growth in the country’s real estate market, particularly in the commercial and industrial sectors.

According to Juwai IQI, more than RM57 billion has already been committed to data centre development, with the total investment pipeline projected to reach RM149 billion — a strong testament to sustained investor confidence.

Kashif Ansari, co-founder and group chief executive officer of Juwai IQI, anticipates that the market will maintain its robust momentum into 2025, fueled by advancements in artificial intelligence (AI), rising investments, and the expansion of industrial and commercial segments.

Malaysia recently secured the top position in the Knight Frank SEA-5 Data Centre Opportunity Index (SEA-5 Index), reaffirming its status as a leading data centre hub in Southeast Asia.

The SEA-5 data centre market, comprising Malaysia, Indonesia, Thailand, the Philippines, and Vietnam, boasts a total capacity exceeding 3 gigawatts, including both operational facilities and projects in development. This reflects a significant increase of 1.7 GW compared to 2022.

The data centre market in Malaysia is experiencing rapid growth, driven by rising demand for cloud computing, AI, and digital transformation. With an annual take-up of 429 MW, Malaysia surpasses other regional players like Indonesia (93 MW) and Thailand (31 MW), fuelled by robust growth in Johor and increasing demand in the Klang Valley.

“The data centre industry is one of the hottest sectors we’ve seen in decades. Despite its rapid expansion, industry players remain confident that demand will stay strong. Entering the data centre space isn’t an unusual move, and the sector has yet to overbuild capacity. For many investors, data centres offer stable returns in both boom and downturn periods, much like bonds,” said a market insider.

At a recent seminar hosted by Knight Frank Malaysia, titled “Unlocking Opportunities in Malaysia’s Booming Data Centre Ecosystem,” industry experts explored the country’s growing demand for data infrastructure and its crucial role in meeting global digital needs.

Allan Sim, senior executive director for land and industrial solutions at Knight Frank Malaysia, said, “Malaysia is at the forefront of attracting high-value industrial and logistics investments. With strong fundamentals and investor-friendly policies, we see significant opportunities for businesses to thrive in this market.”

Sigrid Zialcita, chief executive officer of the Asia Pacific Real Estate Association, added, “The rise of Malaysia, particularly Johor, as a prime destination for industrial and digital infrastructure investment underscores its growing importance in the regional economy. With the Johor-Singapore Special Economic Zone creating new avenues for growth, Malaysia is poised to attract more institutional capital, reinforcing its position as a strategic gateway to Southeast Asia.”

Malaysia – a digital investment powerhouse

Malaysia continues to strengthen its position as a digital investment powerhouse, attracting RM141.72 billion in digital investments during the first 10 months of 2024 — nearly triple the approved digital investments for the entire year of 2023 (RM46.2 billion). These investments are projected to create 41,078 job opportunities.

The country has emerged as a preferred destination for global cloud service providers, including Microsoft, Amazon Web Services (AWS), Google, and Oracle. Collectively, these tech giants have committed US$23.3 billion to cloud and infrastructure development across Malaysia.

Among the standout investments is NVIDIA’s US$4.3 billion initiative in Johor to establish advanced AI infrastructure. In May 2024, Microsoft announced a US$2.2 billion investment over the next four years to enhance its cloud and AI capabilities in Malaysia. Google followed suit with a US$2 billion plan to build its first data centre in Elmina, Selangor, and create a dedicated cloud region.

ByteDance is also making a significant move, committing US$2.1 billion to develop an AI hub in Malaysia. AWS has pledged US$6.2 billion through 2038 for the launch of the AWS Asia Pacific Region and local data centre services, while Oracle plans to invest over US$6.5 billion to open a public cloud region in Malaysia by October 2024.

These large-scale investments underscore Malaysia’s growing prominence in the digital economy and its strategic role in global cloud and AI infrastructure development.

As of the end of 2024, the SEA-5 Index reported 54 operational data centres in Malaysia, offering a combined live IT capacity of 504.8 MW. The Klang Valley remains the primary hub with 37 facilities, followed by Johor with 12. Other emerging data centre locations include Penang (3), Sarawak (2), as well as Negeri Sembilan and Kedah.

Malaysia’s data centre capacity is set to expand rapidly, with plans to add up to 1,400 MW over the next five to 10 years.

While most data centres in the Klang Valley currently operate on a smaller scale, with capacities below 20 MW, the region is poised for significant growth. Google and AWS are planning large-scale facilities exceeding 100 MW, while Cyberjaya is set to host a 200 MW campus by EdgeConneX and a 256 MW campus by Vantage Data Centres.

Johor’s data centre market stands out, with 53 per cent of planned facilities expected to have an IT capacity of 100 MW or more. Currently, 78.6 per cent of Malaysia’s operational IT capacity is based in Johor, and the state is on track to cross the 1 GW capacity mark in the coming years as pipeline projects come online.

In October 2024, K2 Strategic — a unit of the Kuok Group led by Kuok Meng Wei, grandson of founder Tan Sri Robert Kuok — opened a 60 MW data centre in the 700-acre Sedenak Tech Park in Johor.

K2 Strategic is now the third-largest data centre operator in Johor, following Bain Capital’s Bridge Data Centres (126 MW) and DayOne, a unit of China’s GDS (115 MW). Other notable players include Warburg Pincus-backed Princeton Digital Group and YTL Corp Bhd, which has partnered with AI chip developer NVIDIA.

Source: NST

Participation in BRICS, CPTPP, and rising FDI set to fuel data centre growth

Malaysia’s data centre market is on a fast track to growth, driven by the surge in cloud computing, artificial intelligence, and digital transformation.

With 78.6 per cent of the country’s operational IT capacity based in Johor, the state is expected to cross the 1 Gigawatt (GW) capacity mark in the coming years as pipeline projects reach completion.

At a recent seminar hosted by Knight Frank Malaysia, the session “Unlocking Opportunities in Malaysia’s Booming Data Centre Ecosystem” explored the country’s rising demand for data infrastructure and its pivotal role in meeting global digital needs.

Johor’s strategic advantages — including abundant land, a stable power supply, and government-backed incentives — position it as an emerging data centre powerhouse.

Sustainability has become a critical focus for Malaysia’s digital infrastructure growth, with increasing investment in green data centres and renewable energy integration to meet global ESG benchmarks. The government’s emphasis on AI-driven data centres also prepares Malaysia to support next-generation high-performance computing, further cementing its role in the region’s digital economy.

Allan Sim, senior executive director of Land & Industrial Solutions at Knight Frank Malaysia, said, “Malaysia is at the forefront of attracting high-value industrial and logistics investments. With strong fundamentals and investor-friendly policies, we see significant opportunities for businesses to thrive in this market.”

The Johor-Singapore Special Economic Zone (JS SEZ) stands out as a key catalyst for investment, offering attractive benefits for businesses setting up operations in Johor. These include tax incentives, grants, and facilitation programmes, alongside streamlined regulatory processes, cross-border trade facilitation, and enhanced business support.

Sigrid Zialcita, chief executive officer of the Asia Pacific Real Estate Association, added, “The rise of Malaysia, particularly Johor, as a prime destination for industrial and digital infrastructure investment underscores its growing importance in the regional economy. With the JS-SEZ creating new avenues for growth, Malaysia is poised to attract more institutional capital, reinforcing its position as a strategic gateway to Southeast Asia.”

Lee Kun Thye, director and head of the Johor branch at Knight Frank Malaysia, presented on the “Emerging Market: Industrial & Data Centre Landscape,” noting Malaysia’s rising appeal for foreign direct investment (FDI) due to infrastructure development, government incentives, and its growing digital economy prominence.

“Johor’s industrial market is evolving rapidly, supported by strong government initiatives and infrastructure growth. The state’s strategic location, coupled with competitive incentives, especially under the JS SEZ, makes it an attractive proposition for investors looking at long-term growth in Southeast Asia,” Lee noted.

Md Eharay Abd Majid from the Invest Malaysia Facilitation Centre Johor (IMFC-J) stressed Johor’s rapid economic development and the strategic importance of the JS SEZ in enhancing cross-border trade and attracting high-value investments.

Heng Wai Mun, chief executive officer of YTL Data Centres, discussed Malaysia’s readiness to meet rising global digital infrastructure demands, while Renee Ho, director at Deloitte Malaysia, provided valuable insights on tax incentives available for businesses investing in data centres and digital infrastructure.

Source: NST

Malaysia’s data centre boom: Johor emerges as a regional powerhouse

Telekom Malaysia Bhd expects the second phase of its data centres in Cyberjaya and Iskandar Puteri, Johor, to achieve commercial operation in the third quarter of 2025 (3Q2025).

“We are optimistic and really anticipating it will be ready by the end of 3Q2025. We are targeting for that,” TM group chief executive officer Amar Huzaimi Md Deris said in a press conference on the group’s fourth quarter financial results.

The expansions under the second phase will add a cumulative 20MW to the Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC).

Meanwhile, Amar said that the data centre to be operated by ST Dynamo DC — TM’s joint venture with Singapore Telecommunications Ltd’s (Singtel) unit Nxera My Pte Ltd — is targeted for completion by mid-2026.

He said this data centre will have an initial capacity of 64MW, with the potential to be the group’s largest data centre with room to scale up to 200MW.

The data centre projects are key in TM’s push to expand the country’s network infrastructure as part of efforts to position Malaysia as a key digital hub for the region, he added.

According to Amar, this also includes scaling its submarine cables, edge computing, and pioneering graphic processing units (GPU)-as-a-Service (GPUaaS).

TM currently has eight data centres — seven in Malaysia and one in Hong Kong. Data centre operations are under the group’s wholesale arm, the carrier-to-carrier (C2C) segment, formerly referred to as TM Global.

The C2C segment saw a 1.6% year-on-year rise in revenue for the fourth quarter ended Dec 31, 2024 (4QFY2024) to RM780.1 million from RM769.3 million.

The C2C segment’s revenue contribution stood at 25.57% of the group’s total quarterly revenue of RM3.05 billion. Its core business-to-consumer (formerly Unifi) segment’s revenue contribution stood at 47.69%, while that of the business-to-business (TM One) segment was 25.63%.

TM’s 4QFY2024 net profit came in at RM730.6 million, up 68.5% from RM433.5 million a year ago, helped by tax credits.

For the full year, TM reported a net profit of RM2.02 billion, up 7.8% from RM1.87 billion in FY2023. Annual revenue was flat at RM11.71 billion.

Up to RM2 bil capex for FY2025

Amar said TM expects a single-digit year-on-year revenue growth for FY2025, with capital expenditure (capex) for the year to range from 14% to 16% of full-year revenue.

This comes out to a projection of around RM1.6 billion to RM2 billion in capex for FY2025, according to TM group chief financial officer Ahmad Fairus Rahim. Capex in FY2024 stood at RM1.59 billion, at 13.6% of full-year revenue.

Amar declined to provide specific capex utilisation figures for FY2025, saying only that a “significant portion” would go towards the group’s fibre cable network, which he noted will be very important for the 5G ecosystem.

“That (the fibre network) will be one of the key areas. Another will be to support the expansion of our Unifi broadband services, and secondly, continuously enhance our international connectivity. We will require continuous investment to cater for our submarine cable system expansion,” he added.

Shares in TM ended 20 sen or 2.9% lower at RM6.70 on Tuesday, valuing the group at RM25.71 billion.

Source: The Edge Malaysia

Second phase of Cyberjaya and Iskandar Puteri data centres to achieve commercial ops in 3Q — TM

ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest-growing data centre providers, has today unveiled the groundbreaking of its maiden data centre facility in the STT Johor data centre campus – STT Johor 1.

The 22-acre STT GDC’s data centre campus which boasts a development potential of 120MW of IT load is located within the Nusa Cemerlang Industrial Park in Iskandar Puteri which is just 15km from Singapore.

The prime location ensures seamless connectivity, including integration with STT Singapore 5 which is STT GDC’s regional interconnection hub.

Currently, STT Johor 1 which is designed with an IT load capacity of 16MW and is expected to be fully operational by end-2026 is the first facility to be built on campus.

The Malaysian Investment Development Authority (MIDA) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid has described the STT Johor 1’s ground-breaking as “a powerful testament of the New Industrial Master Plan (NIMP) 2030 in action”.

“More than just a hyperscale data centre, it is a launchpad for innovation, talent development and sustainable economic growth,” he commented on the STT Johor 1’s roll-out which was graced by Johor Menteri Besar Datuk Onn Hafiz Ghazi.

In addition to STT Singapore 5, STT Johor 1 will also be connected to STT Kuala Lumpur 1 and STT GDC’s other data centre inter-connection hubs in Thailand, Vietnam and the Philippines via a Data Centre Interconnect (DCI) service.

This will provide customers in STT Johor 1 with highly reliable and seamless access to business opportunities in other major economies in the region.

In alignment with Malaysia’s green ambitions, the STT Johor campus will be powered by renewable and low-carbon energy sources.

Towards this end, STT GDC is in discussions with several renewable energy (RE) providers such as Ditrolic Energy to become the renewable electricity supplier for STT Johor 1’s operations.

Meanwhile, STT GDC’s country head (Malaysia) Darryll Sinnappa expects its STT Johor data centre campus to deliver advanced digital infrastructure that can play a role in contributing to Malaysia’s ambitions to grow its digital economy leadership in the region.

“Equally important is our commitment to developing local talent through our partnership with the Johor Talent Development Council (JTDC) which will create a skilled workforce to support this growth,” he enthused.

“Guided by our principles of sustainability, innovation, connectivity and community development, we look forward to STT Johor 1 playing a pivotal role in delivering tangible economic growth to the region sustainably while nurturing the next generation of data centre professionals.”

As it is, Malaysia’s data centre market continues to experience remarkable growth with a development pipeline of 1.4GW or 264% growth planned over the next five years.

This expansion is expected to drive the industry’s revenue to RM3.6 bil by 2025, hence solidifying Malaysia’s position as a key player in the region’s digital infrastructure landscape. 

Source: Focus Malaysia

ST Telemedia Global Data Centres breaks ground for high-performance computing data centre campus in Johor

Sarawak targets to significantly raise power generation capacity to 15 gigawats (GW) in 10 years to expand the state’s electricity exports to more Asean member countries.

According to Sarawak Premier Tan Sri Abang Johari Tun Openg, Sarawak is expected to produce 10GW of power by 2030 and increase it by another 50% to 15GW by 2035.

“The installed capacity of Sarawak is currently 5GW. So, what are we going to do with the balance?

“We will sell them to our neighbouring countries,” he said at Affin Bank Bhd’s Lunar New Year dinner here last week.

State-owned Sarawak Energy Bhd (SEB) currently has available electricity capacity of about 5,745 megawatt (MW) across Sarawak. The bulk of the generation capacity comes from renewable energy from hydroelectric dams – Bakun (2,400MW), Murum (944MW) and Batang Ai (108MW).

The Baleh dam project, currently under construction and scheduled for completion by 2028, would add another 1,285MW to SEB’s generation capacity.

The state’s biggest power consumers include energy-intensive industries such as aluminium and ferroalloy smelting plants in Bintulu’s Samalaju Industrial Park.

Abang Johari had said that SEB would work to achieve generating 10GW of power through a mix of hydroelectric, solar and gas by 2030.

SEB’s first 50MW solar floating farm, spanning 190ha on Batang Ai dam, also Malaysia’s largest, was commissioned months ago.

The utility continues to explore the feasibility of a second phase of the solar project at Batang Ai dam, with a potential capacity of up to 160MW.

To meet the keen interest shown by investors in Middle East and Europe on renewable and green energy projects, the Sarawak government has identified the Bakun and Murum dams, both in the upper Rejang basin in Kapit Division, central Sarawak, for the deployment of floating solar systems.

The solar system projects in Bakun and Murum have the potential to generate 500MW and 600MW, respectively.

In November 2024, SEB, Abu Dhabi Future Energy Bhd (PSJC) and global clean energy firm Gentari inked a trilateral joint study agreement to explore the feasibility of undertaking a floating solar project on Murum dam.

The parties are conducting a year-long joint study on the proposed project, targeting solar power generation of up to 1GW.

If implemented, Abang Johari said this mega project would help Sarawak to achieve its goal of producing 10GW of power by 2030.

Last year, the Sarawak premier revealed that 19 ambassadors from the European Union (EU) were considering establishing the European Investment Bank to fund the development of renewable and green energy projects in Sarawak.

With a potential investment of €1bil, he said Sarawak could receive RM6bil to build more hydroelectric dams, supported by the EU’s commitment to sustainable development. Based on studies in the 1980s, Sarawak has the potential to produce up to 20,000MW of hydroelectric power if more dams are built.

SEB continues to study the concept of cascading dams to generate electricity, similar to those in Sweden.

On exports of electricity, Abang Johari said last week that Sarawak will add southern Philippines to SEB’s export markets following a recent request by Prime Minister Datuk Seri Anwar Ibrahim to sell electricity to the archipelago.

Sarawak will be exporting electricity to neighbouring Sabah by next year and from Sabah, any excess power will be transmitted to the southern Philippines.

Abang Johari said Sarawak will have excess electricity to be exported to Sabah and Brunei once the 500MW combined gas cycle gas turbine power plant in Miri, currently under construction, is ready in two years’ time.

Another three gas plants with a combined generation capacity of 1,500MW will also be built in Bintulu.

He said Sabah has requested SEB to sell 100MW to its utility body initially, doubling the initial 50MW agreed earlier.

SEB, which has been exporting electricity to Pontianak in West Kalimantan, Indonesia, since 2016, also have plans to sell 1,000MW of renewable energy to Singapore via an undersea electricity transmission system to advance the Asean Power Grid.

“We are still in discussions on the construction method for the undersea cable. I anticipate that these discussions will be concluded within the first quarter of this year, followed by the potential signing of an agreement between Malaysia and Singapore,” Abang Johari said this month.

Source: The Star

Sarawak aims to become regional power supplier

Mutiara Perlis, the owner-developer of Perlis Sanglang Port (PSP), has entered into a strategic partnership with Bina Darulaman Bhd (BDB) following the signing of a Memorandum of Understanding (MoU) to develop various maritime facilities in Sanglang, Perlis.

The MoU was signed by BDB Group executive director Raja Shahreen Raja Othman and Mutiara Perlis Group managing director and CEO Wan Ahmad Zaheed Wan Mohamad.

The ceremony, held at MIDA Sentral in Kuala Lumpur, was witnessed by Perlis Menteri Besar Mohd Shukri Ramli, Deputy Investment, Trade and Industry Minister Liew Chin Tong, and BDB chairman Che Had Dhali.

In a joint statement, the companies said that the MoU focused on the development of three key facilities at Perlis Sanglang Port (PSP): Langkawi Supply Base for Ro-Ro vessels, Langkasuka Supply Base for oil and gas (O&G) field services in the region and Bulk Cargo Terminal for dry and liquid goods.

“These facilities are set to improve regional trade by enhancing logistics efficiency while supporting the growth of industrial zones in Kedah and Perlis, including Perlis Chuping Valley Industrial Area, Kedah Rubber City, and Kedah Science and Technology Park,” the statement read.

Strategically located on the Sanglang coastline and sheltered by Langkawi Island, PSP is poised to connect Langkawi with year-round operational capability without the need for dredging.

“This will further bolster Langkawi’s reputation as Malaysia’s premier tourism destination and a regional host for international events, such as the Langkawi International Maritime and Aerospace Exhibition (LIMA). The Bulk Cargo Terminal will play a vital role in the handling and distribution of dry and liquid goods, supporting industries such as mineral-based exports while improving the operational efficiency of both the Langkawi Supply Base for Ro-Ro vessels and the Langkasuka Supply Base for oil and gas field services in the region.”

The companies said that this integrated approach would streamline logistics for bulk commodities across several key maritime facilities.

They said that the shared facility would be promoted as a potential base for Langkasuka and Andaman oil and gas field services, as well as an operational hub for Malaysian security agencies with maritime assets.

Source: NST

Mutiara Perlis and BDB form partnership to develop maritime facilities

DHL Supply Chain, the global leader in contract logistics, recently celebrated the opening of its Penang Logistics Hub 5, located within the Bayan Lepas Free Industrial Zone.

This modern 22,000 sqm facility has been purpose-built to support a leading multinational technology firm.

DHL Supply Chain invested €30 million (RM139 million) to construct the warehouse, with an additional €12 million allocated to implement advanced robotic automation systems. The facility features cutting-edge automated systems seamlessly integrated into warehouse operations.

This includes the first global deployment of Automated Case-handling Mobile Robot (ACR) and Goods-to-Person Robotics (GTPR) in DHL Supply Chain, along with Automated Storage and Retrieval System (ASRS).

Managing director Mario Lorenz said: “We are proud to be the first within DHL Supply Chain globally to deploy such advanced automation, including the ACR for tote retrieval using the mobile robotics technology. The GTPR system sees mobile robots storing and retrieving bins into a rack storage system. We are also introducing Automated Guided Vehicles (AGVs) to further enhance productivity and efficiency, setting a new benchmark for logistics operations. By combining our expertise with these innovations, we can deliver customised, seamless logistics solutions to our customers. This, in turn, will strengthen business resilience, improve operational efficiency, providing a lasting competitive advantage for our customers.”

The Penang Logistics Hub 5 has been designed in accordance with Malaysia’s recognised green rating system, the Green Building Index, incorporating environmentally sustainable solutions such as rooftop solar panels to meet the renewable energy needs of both the warehouse and office spaces. Additionally, the facility includes rainwater harvesting systems and energy-efficient LED lighting equipped with motion detectors. The use of superflat flooring ensures long-term flexibility for warehouse operations while optimising airspace efficiency.

The launch of Penang Logistics Hub 5 reflects DHL’s commitment to growth, supported by a €131 million investment in Malaysia aimed at increasing capacity and nurturing top talent. This ensures the company is well positioned to support customers’ changing needs and growth objectives.

DHL Supply Chain Malaysia, specialising in semiconductor logistics, offers expert solutions across various sectors including automotive, consumer goods, chemicals, energy, engineering and manufacturing, life sciences and healthcare, retail, and technology.

Source: The Sun

DHL Supply Chain opens Penang Logistics Hub 5

The logistics sector should leverage government incentives, including the income tax exemption for smart logistics complexes, to drive growth and accelerate the adoption of Industry 4.0 technologies, Transport Minister Anthony Loke said.

He noted that such initiatives are designed to promote smarter and more efficient operations in warehousing and logistics.

“By integrating automation, data analytics, and Internet of Things (IoT) technologies, we are not only optimising supply chain performance but also positioning Malaysia as a regional leader in smart logistics innovation,” he said at the launch of Ninja Cold by Ninja Van Malaysia here today. 

Furthermore, Loke said that as industries continue to evolve, the logistics sector must adapt to emerging challenges, particularly in critical areas such as pharmaceuticals, food safety, and sustainability.

He noted that Malaysia’s logistics industry holds vast opportunities for growth.

“With increasing digitalisation and the adoption of green technologies, we are on the brink of a new era,” he said.

Commenting on Ninja Cold, Loke said the launch represents a significant milestone in Malaysia’s logistics sector, addressing the growing demand for sustainable, temperature-controlled solutions. 

He added that this initiative aligns with Malaysia’s strategic vision for Asean 2025, where the nation is positioning itself as a central logistics hub in Southeast Asia. 

“Through innovations like Ninja Cold, Ninja Van Malaysia contributes to enhancing regional connectivity, streamlining supply chains, and fostering cross-border trade within Asean. 

“Our ongoing efforts to modernise logistics infrastructure are reflected in Ninja Van Malaysia’s initiatives, which focus on reducing costs, improving efficiency, and prioritising environmental sustainability. 

“These shared objectives highlight the synergy between the ministry’s vision for a robust logistics ecosystem and Ninja Van Malaysia’s commitment to innovative solutions,” he said. 

To mark its 10th anniversary, Ninja Van Malaysia has launched Ninja Cold, a service aimed at improving the transport of temperature-sensitive items.

Ninja Van Malaysia is the first logistics company in Malaysia to receive ISO 23412 certification, a Japanese standard for cold chain handling. 

With the launch of Ninja Cold, it is expanding into the business-to-consumer (B2C) and business-to-business (B2B) cold chain segment, providing end-to-end logistics solutions for industries that require efficient transport of perishable goods.

Ninja Van Malaysia chief executive officer Lin Zheng said the introduction of Ninja Cold is a transformative step in our journey to redefine logistics in Malaysia. 

He added that Ninja Cold underscores the company’s dedication to innovation, sustainability, and excellence, setting a benchmark for the future of logistics in Malaysia and beyond. 

Meanwhile, Ninja Cold deputy head Zhen Wei Yeow said the company is committed to providing end-to-end solutions that not only ensure operational excellence but also support industries such as food, pharmaceuticals, and retail in maintaining quality and confidence throughout their supply chain. 

“Our focus is on delivering reliable and innovative temperature-controlled logistics that meet the specific needs of businesses. 

“With real-time tracking, extensive coverage, and cost-efficient practices, Ninja Cold is well- positioned to help businesses adapt to market demands while prioritising sustainability,” he noted.

With the launch of Ninja Cold, Ninja Van Malaysia expands beyond e-commerce into B2B cold chain logistics. 

The service integrates temperature-controlled solutions with its logistics network, including warehousing, last-mile delivery, and real-time tracking.

Partnering with brands like Secai Marche, Lee’s Frozen, and Sekinchan Seafood, Ninja Cold supports businesses of all sizes, from small-scale deliveries to large B2B operations. 

These collaborations showcase its ability to simplify logistics, expand market reach, and address industry-specific challenges.

Source: NST

Logistics firms must utilise govt incentives for growth – Loke

Meta Bright Group Bhd is expanding its presence in the renewable energy sector through a joint venture (JV) to provide total energy solutions.

Meta Bright partnered with United Success Holding Pte Ltd and Yang Lei to establish Meta Bright Solutions Sdn Bhd.

The latter will develop and operate battery energy storage systems (BESS), EV charging infrastructure and energy efficiency solutions (EE) in Malaysia and potentially across Southeast Asia.

Meta Bright Energy Sdn Bhd, wholly owned by Meta Bright, will hold a 55 per cent controlling stake in the JV, with United Success and Yang Lei owning 10 per cent and 35 per cent respectively.

“This initiative aligns with Malaysia’s National Energy Transition Roadmap, which seeks to increase renewable energy’s gross domestic product contribution to RM220 billion by 2050 while reducing carbon emissions in the energy sector by 32 per cent,” it said today.

With the government’s RM300 million allocations under 2025 Budget for renewable energy, Malaysia is accelerating grid modernisation, energy efficiency initiatives, and renewable energy adoption, it added.

To strengthen its technological capabilities, the JV has signed an exclusive technical support agreement with YTKJ.

YTKJ is backed by Ningbo Urban Construction Investment Holding Co Ltd, one of China’s state-backed urban infrastructure developers.

YTKJ has a partnership with Shanghai Stock Exchange-listed Ningbo Joyson Electronic Co Ltd to produce and manufacture BESS.

Meta Bright executive director Derek Phang Kiew Lim said the JV is expected to help contribute the development for Malaysia’s energy landscape.

Source: NST

Meta Bright in tripartite deal to develop BESS, EV charging infrastructure

Kinergy Advancement Bhd (KAB) has established a strategic collaboration with Perbadanan Kemajuan Negeri Perak (PKNP) for the development of 29 potential renewable energy projects in Perak, targeting power generation of over 1,800 MW capacity power generation.

Under this agreement, KAB’s wholly owned subsidiary, KAB Energy Holdings Sdn Bhd (KEH), will collaborate with PKNP to identify, evaluate, and develop renewable energy projects across Perak.

The group’s technical expertise takes centre stage in this strategic collaboration, driving innovative energy developments with the aim of advancing the national energy transition for the region.

KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said Perak is a region brimming with potential, especially in hydropower and solar energy.

“We are excited to collaborate with PKNP to tap into these resources in a meaningful way.

“KAB is proud to be a key partner, offering expertise to drive sustainable development and collaboratively explore Perak’s energy potential, with 50 megawatt power generation capacity projects currently in the pipeline,“ he said in a statement.

Leveraging a proven track record in managing diverse energy portfolios, KEH is taking the lead in conducting in-depth feasibility studies to evaluate the technical, commercial and legal viability of potential project sites.

These studies span hydropower generation from identified rivers, floating solar installations on lakes and ground-mounted solar projects on state-allocated land.

KEH will also spearhead the subsequent implementation phase, ensuring seamless execution.

Further, KEH and PKNP also establish a partnership aimed at advancing shared goals to drive the energy transition in Perak.

By harnessing the vast potential of hydropower, floating solar, and ground-mounted solar projects in strategic locations—with support from PKNP, which provides access to key resources like rivers, lakes, and state-owned land—the partnership is well-positioned to seize these opportunities.

PKNP CEO Datuk Redza Rafiq Abdul Razak said with its abundant natural resources, Perak is making significant strides in developing renewable energy.

He said this is part of its broader efforts to transition towards a greener, more sustainable future.

“Perak’s potential to become a key player in Malaysia’s renewable energy landscape, tapping into various energy sources like solar power and hydropower, is a reason for optimism and a testament to our unwavering commitment to sustainability.

“This collaboration marks a significant milestone in Perak’s journey towards a sustainable energy future. With KEH’s expertise in renewable energy and PKNP’s strategic role in driving state development, particularly in energy infrastructure and policy, we are confident that this partnership will unlock Perak’s vast hydropower and solar energy potential.

“The successful execution of these projects will not only enhance Perak’s renewable energy capacity but also create new economic opportunities.

“This, along with our commitment to fostering a greener, more resilient economy for future generations, provides inspiration and hope about our strategic direction and the region’s potential for growth,“ he said.

Lai said by partnering with PKNP, KAB can accelerate the development of sustainable energy infrastructure, strengthening Perak’s position as a leader in Malaysia’s renewable and clean energy transition.

“This collaboration will bring transformative benefits at both the state and national levels, paving the way for a more resilient future,” Lai said.

Lai said by partnering with PKNP, KAB can accelerate the development of sustainable energy infrastructure, strengthening Perak’s position as a leader in Malaysia’s renewable and clean energy transition.

Source: The Sun

KAB, PKNP partner to develop over 1,800MW of RE in Perak

Malaysia has 18 data centres with a total electricity demand of at least 800MW, and the number is expected to increase to 81 by 2035, says Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir (pic).

He said the government is making efforts to ensure a sufficient supply of renewable energy (RE) for data centres in Malaysia without disrupting the national energy grid or increasing electricity tariffs.

While acknowledging that the data centre industry is energy-intensive, he said the government had introduced Power Usage Effectiveness (PUE) to ensure that energy efficiency would be a priority in new data centres.

He said that the ministry recognised that access to green electricity supply is a prerequisite for the development of these data centres

“The government has committed to gradually and systematically increasing the renewable energy (RE) capacity mix in the national electricity supply,” he said in Dewan Rakyat on Monday (Feb 17).

He said the gradual increase of the green electricity composition in the country’s power supply is targeted to be 31% by 2025, 40% by 2035, and 70% by 2050.

He added that there would be arrangements where data centres can pay for easier and direct access to green electricity supply from RE generators.

Data centres and other corporate companies can pay for a system to access green electricity from RE generators through the use of utility grid network services, he said,

The payment, he said, will be used to cover part of the costs of strengthening the electricity supply system and grid network.

“This step is crucial to reduce the tariff increase for electricity users because the costs required for strengthening the grid network system to accommodate data centres are very high,” he said in Dewan Rakyat on Monday (Feb 17) in response to Datuk Ali Biju (PN-Saratok).

He asked about what steps are taken to meet renewable energy (RE) needs in data centre development and whether the supply of RE to data centres would disrupt the overall energy supply and cause an increase in electricity tariffs in the future.

Source: The Star

Government commits to renewable energy growth as data centres multiply in Malaysia

Hyperscale data centre specialist AirTrunk plans to make another multi-billion ringgit investment to develop its second cloud and AI-ready data centre in Iskandar Puteri, Johor.

The new data centre, named JHB2, will be capable of exceeding 270 megawatts (MW) to support the growing demand from global public cloud and technology companies in the region.

This announcement follows the launch of AirTrunk’s first Johor data centre, JHB1, in July last year, which has a capacity of 150MW.

The two facilities will provide more than 420MW of IT load and are expected to cost a combined RM9.7 billion (A$3.5 billion).

“Strategically located in a major availability zone, JHB2 offers an end-to-end cross border connectivity strategy for customers and the ability to scale their operations to match demand,” it said today.

The additional capacity will support Malaysia’s fast-growing digital economy and aligns with the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ), AirTrunk added.  

The new data centre will feature AirTrunk’s cutting-edge liquid cooling technology to manage the high-density demands of AI while ensuring significant energy savings.  

JHB2 is designed to meet the highest standards of efficiency and security, with a low design Power Usage Effectiveness (PUE) of 1.25 and offer multiple renewable energy options.

In line with the Johor state government’s efforts to diversify water sources, AirTrunk is exploring the use of treated greywater as a sustainable water supply for its campus operations.

AirTrunk founder and chief executive officer Robin Khuda said Malaysia’s emergence as a digital powerhouse is a privilege the company to contribute to this growth over the long term and deliver shared benefit for the locals.

He said the data centres serve as essential infrastructure that will help boost productivity and enable new products and services that can drive economic growth.  

“We are committed to helping realise the potential of cloud and AI in Malaysia and prioritising circularity for the benefit of society and the environment.

“AirTrunk is supporting local digital literacy and STEM initiatives, driving the energy transition and working to embed a sustainable water supply to make a positive impact,” he said.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said AirTrunk’s efforts in providing high-value employment, training opportunities and digital infrastructure will leave a lasting positive impact on Johor.

“We welcome the announcement from AirTrunk of further investment as well as social and environmental initiatives that demonstrate a commitment to being a responsible and positive contributor in Johor.

“Ensuring high value employment and training opportunities, like those offered by AirTrunk, alongside the economic contribution of digital infrastructure also ensures a positive legacy for Johor,” he added.

JHB2 is AirTrunk’s 12th data centre across five Asia Pacific and Japan markets – Australia, Hong Kong, Japan, Malaysia and Singapore.

It adds to the company’s hyperscale data centre platform which now offers nearly 1.8 gigawatts of total capacity.

Source: NST

AirTrunk to build second data centre in Johor, combined cost of two facilities at RM9.7bil

The Klang Valley has overtaken Penang as Malaysia’s top medical tourism hub by attracting roughly 560,700 international patients and generating the highest regional revenue of about RM886 million, based on data recorded by the Malaysian Healthcare Travel Council (MHTC) from January to November last year.

In 2019, the Klang Valley states of KL and Selangor had reported 490,000 foreign patients.

“The central region leads, contributing 41.6 per cent of total revenue and handling 44.5 per cent of the total healthcare traveller volume,” MHTC said.

The increase in medical tourists was highest in the fields of gastroenterology; obstetrics and gynaecology; orthopaedic surgery; oncology; ear, nose, and throat (ENT); and cardiology.

In 2019, health screenings, gastroenterology, cancer and neoplasm, and obstetrics and gynaecology were the top treatments sought after by medical tourists, as listed in MHTC’s Healthcare Travel Industry Blueprint 2021-2025.

Despite a decline in patients — from 500,000 in 2019 to around 453,600 in 2024 — Penang still saw a significant income hike from RM750 million to around RM866 million, which accounted for 40.7 per cent of the total national revenue.

Last year, the northern region managed 36 per cent of medical tourists in Malaysia.

The southern region comprising Melaka and Johor also grew from RM185 million in 2019 to RM253 million in 2024.

Out of over 99,000 international patients, 90 per cent of medical tourists in Melaka were Indonesians particularly from Batam, Pekan Baru and Bengkalis, Riau. Bernama reported that it was the result of regular promotions to attract Indonesians to cross the strait for medical treatment.

Similarly, the eastern region previously only comprising Sabah and Sarawak in 2019 also saw a rise in income reaching around RM123.5 million (5.8 per cent of national revenue) after including Peninsular Malaysia’s east coast in 2024. This is despite declining patient volume – from 70,000 in 2019 to around 66,700 last year.

Source: Malay Mail

Klang Valley takes medical tourism crown from Penang

Recent RE initiatives present compelling opportunities for players in the sector However, policy clarity and investor confidence are needed to attract long-term capital for RE projects

MALAYSIA is moving in the right direction when it comes to its renewable energy (RE) initiatives but to fully realise its RE potential, it must improve on policy clarity and investor confidence to attract long-term capital for RE projects.

The country also needs to modernise the grid to accommodate decentralised solar and largescale renewables, expand regional energy interconnectivity and enhance local energy storage and digital grid solutions to ensure reliability and efficiency.

Professor Lee Poh Seng, executive director of the Energy Studies Institute at the National University of Singapore (NUS), says Malaysia can become a key player in South-east Asia’s clean energy transition if it addresses all these matters.

The Energy Transition and Water Transformation Ministry announced a slew of initiatives recently, including the Community Renewable Energy Aggregation Mechanism (Cream), large-scale solar six (LSS6), as well as an upcoming Energy

Storage Systems (ESS) bidding round.

These initiatives are in line with the country’s overall aim of achieving 70% RE capacity by 2050.

Datuk Chow Pui Hee, the group managing director of clean energy services and solutions provider Samaiden Group Bhd, says the government’s commitment towards 70% net-zero emissions is evident in the series of initiatives rolled out in recent years.

These include an expanded Net Energy Metering quota, the Cross Border Electricity Supply programme, the Corporate Renewable Energy Supply Scheme, and key LSS programmes such as LSS5, LSS5+, FIT 2.0, and Battery Energy Storage Systems (Bess).

“Together, these initiatives present compelling opportunities for players in the renewable energy sector,” she says.

Chow says the company’s involvement in LSS projects positions it for “solid growth” in the years ahead.

“The upcoming LSS6, with a bidding round set for the second quarter of 2025, is poised to further expand solar capacity, and

Samaiden stands to benefit, given our track record,” she adds.

Challenges aplenty

NUS’ Lee reckons Malaysia is making commendable progress in its RE transition, and these new programmes reflect a well-structured approach.

The Cream initiative, for instance, promotes rooftop solar aggregation, while LSS6 continues to expand Malaysia’s largescale solar capacity, he notes.

Samaiden’s Chow says Cream offers “new opportunities for renewable energy access”.

“We are actively collaborating with property developers to leverage rooftop spaces for solar energy generation, offering both investment and installation opportunities,” she says.

The ESS bidding round is also a vital step in addressing grid intermittency and enhancing energy resilience.

Lee reckons Malaysia’s approach towards RE is slightly different from Singapore’s.

Malaysia benefits from vast land availability and natural resources, allowing it to scale up solar, hydro and biomass energy projects, while Singapore has significant constraints due to land scarcity.

Consequently, Singapore relies on regional RE imports, whereby it is developing cross-border electricity trading with Malaysia, Indonesia and Laos, and floating solar farms where it already has a 60MWP floating solar farm at Tengeh Reservoir.

Singapore also has green data centres and battery storage and smart grids with the Singapore Energy Market Authority heavily investing in energy storage solutions and digital grid management, Lee says.

“In contrast, Malaysia has the potential to become a regional

RE leader, especially with its LSS and hydro resources. However, its ability to scale up RE will depend on grid modernisation, policy stability and investments in energy storage.”

Under the LSS initiatives, for instance, there will be continuous cost reduction through economies of scale.

As seen in LSS5, competitive bidding lowers solar power generation costs.

There is also the scalability, Lee says with LSS6 being able to add substantial capacity to the grid, helping Malaysia reach its RE targets.

Nevertheless, there are pitfalls.

Lee says identifying large tracts of land for solar projects may conflict with agriculture and conservation efforts.

There are also project delays and financing risks in each project as large-scale infrastructure projects often face bureaucratic hurdles, delays and financing challenges.

Likewise, for ESS, he says there is also the high capital cost to consider as such investments require significant funding, which may deter smaller investors.

Additionally, there will likely be technology maturity and lifecycle issues such as battery degradation, recycling concerns and evolving storage technologies that can pose uncertainties.

Cream, he notes, is a novel approach to aggregating residential rooftop solar for corporate and local consumers, but coordinating leasing agreements between homeowners and developers may be challenging.

Another challenge may involve grid integration as managing multiple small-scale distributed solar producers may require enhanced grid infrastructure.

Source: The Star

Stepping up the RE push

Malaysia is positively aligning with the global trend towards digitalisation, which is driving demand for data centres, cloud computing, blockchain and artificial intelligence (AI).

With this shift, Malaysia is focusing on these technologies to strengthen its leading position in the region.

Furthermore, the country is already a leading player in Asean’s data centre industry, supported by a robust ecosystem that fosters growth and investment.

Tenaga Nasional Bhd (TNB) president and CEO Datuk Megat Jalaluddin Megat Hassan said Malaysia’s current infrastructure is well-equipped to meet the power needs of data centres, ensuring stable operations.

“The global demand for AI, e-commerce, the Internet of Things, and cloud computing is driving the growth of data centres. This trend is a key focus for many countries, including Malaysia.

“While demand is expected to rise, the existing power capacity remains sufficient. It will take a few years before data centre power requirements reach their peak, allowing time for further expansion and optimisation,” he told delegates at the Siemens Data Centre Conference today.

Megat Jalaluddin said TNB prioritises power generation, focusing strongly on reserve operations and reserve generation to ensure a stable supply. It has sufficient capacity margins to support the growing power demands of new data centres, reinforcing Malaysia’s position as a key player in the digital economy.

“TNB is also expanding its power generation through renewable energy sources in line with global sustainability efforts. This shift aligns with Malaysia’s commitment to reducing carbon emissions while maintaining a reliable electricity supply for critical industries like data centres.

“Furthermore, TNB is exploring solar energy as a key solution to meet the power needs of data centres. By integrating solar power into its energy mix, the company aims to enhance sustainability while ensuring long-term energy security for the sector,” he added.

Megat Jalaluddin said Malaysia is well-positioned to provide a strong ecosystem for data centres, supported by policies that encourage investment and this is evident from the growing presence of major global players choosing Malaysia as a hub for their data centre operations.

Digital Minister Gobind Singh, who delivered a keynote address at the conference, said the government aims to build Malaysia into a leading data hub.

“We understand that data centres will greatly impact how we decide. We want to shape our digital economy moving ahead. Technology is key to future success, and we must build the right structures to support sustainable growth. This includes infrastructure and strong governance to ensure long-term progress.”

Gobind said the Digital Ministry plays a crucial role in developing the necessary infrastructure to build a sustainable technology ecosystem.

“When it comes to data centres, it is essential to follow established guidelines, including the recently approved Data Centre Planning Guidelines by the Cabinet,” he added.

In addition to ongoing efforts, he said, guidelines on power usage effectiveness and water usage effectiveness are being developed to set minimum sustainability standards for future data centres.

Expected to be implemented in 2025, these guidelines are created under the guidance of Sirim Bhd to ensure facilities meet local demands, address future challenges and align with global standards for managing high power and water consumption.

“I have been informed that around 17 new data centres are expected to come online in Selangor, a figure that highlights the region’s rapid growth. This expansion will drive significant demand for water and energy, making strategic planning and industry collaboration essential to ensuring sustainable infrastructure.

“As we move forward, we must consider this opportunity from multiple perspectives to support long-term development,” Gobind said.

Malaysia Digital Economy Corporation CEO Anuar Fariz reaffirmed the agency’s commitment to positioning Malaysia as a leading data centre hub.

“We offer strong incentives, business-friendly policies and access to more affordable energy. Data centres play a crucial role in data control and innovation, and with the AI boom driving demand, we must position ourselves to attract investment and maximise the benefits for Malaysia,” he said.

Anuar said Prime Minister Datuk Seri Anwar Ibrahim has raised concerns about data centre investments, particularly whether the return on investment justifies the number of jobs created.

“While Malaysia is prepared for this growth, it is crucial to establish clear safeguards to ensure sustainable development. This includes protecting the environment and facilitating the transition from a manufacturing-based economy to one that offers high-quality, high-paying jobs,” he added.

Source: The Sun

Malaysia well-equipped to meet power needs of data centres, says TNB president/CEO

DeepSeek presents new opportunities for financial investors looking to support the next wave of artificial intelligence (AI)-driven businesses in Malaysia that go beyond just technology, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

DeepSeek is a Chinese AI company that has rapidly gained prominence for developing advanced AI language models and enterprise solutions.

“By lowering barriers to AI adoption, DeepSeek empowers small and medium enterprises (SMEs) to integrate AI solutions into their operations, increasing productivity and global competitiveness,” Fadillah said in his keynote address at the Pan-Pacific AI Forum Malaysia — Investment and AI in a Changing World, here on Thursday.

He emphasised that while technology is the engine of progress, capital is the fuel that drives it forward.

“Malaysia has long been a preferred destination for international investors and we are committed to strengthening our position as a global investment hub.

“Our digitalisation agenda has attracted major global tech giants, with Oracle, Microsoft, Google, and Amazon collectively committing US$14.7 billion in investments. These strategic partnerships are a testament to Malaysia’s potential as a leading digital economy in Southeast Asia,” Fadillah said.

The Pan-Pacific AI Forum Malaysia brings together governments, businesses, civil societies and leaders across agencies, businesses, and enterprises in the AI industry.

The forum discusses emerging markets, legal and policy issues, political and economic trends, emerging technologies, ICT user perspectives, and business opportunities in the global marketplace.

This year, it focuses on AI discussions and matters.

Source: Bernama

DeepSeek can drive AI adoption in Malaysia, attracting global investors — Fadillah

NCT Group of Companies has signed a Memorandum of Understanding (MOU) with OM Charge Sdn Bhd to establish electric vehicle (EV) charging infrastructure at NCT Smart Industrial Park (NSIP) in Sepang, Selangor.

Under the MOU, OM Charge will provide customised EV charging solutions tailored to NSIP’s operational and environmental needs. The initiative includes the deployment of a network of chargers to serve tenants, workers and visitors, ensuring seamless access to EV charging facilities.

“Our collaboration with OM Charge marks an important step in advancing our vision of NSIP as a beacon of sustainable industrial innovation. By integrating an advanced EV infrastructure, we are creating an ecosystem where technology, efficiency, and sustainability converge,” said NCT Group founder and group managing director Datuk Seri Yap Ngan Choy in a press statement issued on Wednesday.

Beyond infrastructure development, the partnership also involves expertise-sharing and strategic planning to integrate EV solutions into NSIP’s smart systems. This collaboration aligns with NSIP’s vision of fostering a future-ready, tech-driven industrial ecosystem while supporting Malaysia’s broader sustainability goals.

Meanwhile, OM Charge CEO Moses Ong Leng Keong said the partnership is an opportunity to redefine sustainability and green technology adoption in industrial parks. “Together, we are laying the foundation for an industrial ecosystem that not only meets the demands of today but is also prepared for the challenges of tomorrow, creating lasting value for businesses and communities.”

Located within the Integrated Development Region in South Selangor (IDRISS), NSIP is designed to be a leading industrial hub, integrating smart technologies and green solutions to meet evolving industry needs. The master developer aims to set the standard of NSIP as Malaysia’s first tech-centric industrial park with a zero-emissions target by 2050.

Source: The Edge Malaysia

NCT Group partners OM Charge for EV charging project at NCT Smart Industrial Park

IJM Corp Bhd, through its joint-venture (JV) company Exio Logistics Sdn Bhd, will invest RM460 million in a new logistics hub in Sungai Buloh to support Malaysia’s supply chain and e-commerce.

The business will provide IJM Corp with recurring income once operations commence in the first quarter of 2027, said its chief executive officer Datuk Lee Chun Fai. The recurring income will help IJM Corp balance the cyclical nature of its main businesses in construction and property development, he noted.

“Regardless of the economic environment, or the government’s fiscal position, this business will continue to operate,” said Lee. “Our goal is to generate at least a third of our income from recurring sources.”

Lee was speaking to The Edge on the sidelines of the groundbreaking ceremony for Exio’s logistics hub in the City of Elmina. Exio Logistics is a JV between IJM’s wholly owned subsidiary IJM RE Sdn Bhd and FMM Elmina Sdn Bhd.

Spanning 22 acres, the hub will be fully leased to Storio Sdn Bhd, which will operate the facility as its master tenant.

Storio is owned by the shareholders of FMM Elmina: Tan Sri Teo Chiang Hong of Bandar Utama City Corp Sdn Bhd, Datuk Michael Tang of Mettiz Capital Sdn Bhd, and Choong Kar Weng of Minlon Sdn Bhd.

The facility, comprising two logistics hubs with a combined 500,000 square feet of floor space, features an advanced automated storage and retrieval system that could handle 117,000 pallet positions, with a throughput capacity of 240 pallets per hour.

The investment in the logistics hub is in line with IJM’s long-term strategy to diversify into high-growth sectors and capitalise on the increasing demand for modern, technology-driven logistics services, said Lee.

IJM plans to expand further in the logistics sector, but with varied models to avoid internal competition, he said. “For instance, this facility in Elmina is automated, while our other investment in Shah Alam focuses on a conventional cold room warehouse.”

In addition to Exio Logistics, IJM has also invested in Global Vision Logistics Sdn Bhd, developing the six-million-square-foot Shah Alam International Logistics Hub.

Smooth trade flows

Transport Minister Anthony Loke Siew Fook, who officiated the event, highlighted that facilities like Exio’s hub will be instrumental in streamlining trade flows and alleviating supply chain bottlenecks.

The logistics hub boasts connectivity to Port Klang, Kuala Lumpur International Airport, and major transport networks. Exio’s hub will strengthen Malaysia’s role as a logistics gateway in the region, while supporting the expansion of trade routes with Asean partners, he said.

“With the recent Malaysia-Singapore Johor Special Economic Zone (SEZ) announcement, we are seeing increased opportunities for cross-border logistics and investment,” Loke said. “Exio’s logistics hub is an example of how the private sector plays a crucial role in advancing national logistics capabilities.”

Source: The Edge Malaysia

IJM to invest RM460m in new logistics hub in City of Elmina, eyes boost in recurring income

Hong Leong Investment Bank (HLIB) Research is positively surprised about the country’s large scale solar 6 (LSS6) programme, which is expected to be open for bidding in the second quarter of this year (2Q25).

The research house is expecting to see between RM15bil and RM18bil worth of solar engineering, procurement, construction and commissioning (EPCC) contracts to be formalised over the next 24 months.

This is assuming the LSS6 is of similar size to LSS5 and the recent 2GW LSS5+ announcement by the Energy Transition and Water Transformation Ministry (Petra).

“There are no details on its quota yet, but we think LSS5 (2GW) and LSS5+ (2GW) could be a reasonable indication,” HLIB Research said.

It added that cumulative quotas from just LSS5 and LSS5+ of 4GW is about 28% larger than total quotas awarded from LSS1 to LSS4 programmes and Corporate Green Power Programme.

The research house said the upcoming transmission and distribution upgrades during regulatory period 4 (2025 to 2027) – enabled by record allowable capital expenditure of RM42.8bil – should prepare the grid for new renewable energy (RE) capacity.

Petra announced new RE programmes last Friday to further accelerate developments, including a Community Renewable Energy Aggregation Mechanism which will enable home owners to lease rooftop spaces to third parties (RE developers), creating additional income streams.

“Guidelines are being finalised and we think take-up will rest on potentially critical parameters such as System Access Charge rates and storage requirements, if any. Difficulties on aggregation will also pose a challenge to developers,” HLIB Research added.

It said the second round of bidding for battery energy storage system development is slated for 3Q25, following the first bidding in November last year.

The research house maintained its “overweight” rating on the sector, with “buy” calls for Solarvest Holdings Bhd, target price (TP) of RM2 per share, and Samaiden Group Bhd (TP: RM1.44).

“Both stocks under coverage, Solarvest and Samaiden, are major beneficiaries from an extended upcycle.

“We flag upside risks to our longer dated earnings forecasts from this development,” it said.

Similarly, Phillip Capital Research has maintained its “overweight” stance on the sector, underpinned by ongoing national energy transition initiatives and a strong contract pipeline driving robust activity.

“Government-led green initiatives and growing RE demand is set to benefit companies like BM Greentech Bhd (“buy”; TP: RM2.65), Solarvest (“buy”; TP: RM2), and Pekat Group Bhd (“buy”; TP: RM1.15),” the research house said.

It pointed out that Pekat should see limited upside from the current levels, having surged some 29% over the past three months, driven by optimism on EPE Switchgear (M) Sdn Bhd synergies.

Last August, Pekat announced the acquisition of a 60% stake in the Nilai-based switchgear manufacturer RM96mil.

In addition, Phillip Capital Research expects power utility infrastructure engineering companies such as MN Holdings Bhd and CBH Engineering Holding Bhd, which offer interconnection solutions, to gain from the expansion of RE programmes, which support solar EPCC contractors.

The research house said key risks included government RE policy changes, project execution delays, intense market competition and volatility in solar module prices amidst the ongoing supply chain capacity consolidation.

Source: The Star

Solar sector set for RM18bil boost

The rise of different types of artificial intelligence (AI) technologies such as DeepSeek can reduce Malaysia’s reliance on a single product, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the emergence of diverse AI technologies also enables Malaysia to become a neutral centre for AI companies from the west as well as those from the east, such as China.

“Although this more efficient (type of) AI technology reduces the need for large data centres, its lower cost is expected to drive more widespread use, driving the demand for data centre services,” he said.

Tengku Zafrul was responding to Datuk Seri Wee Jeck Seng’s (BN-Tanjung Piai) question on the impact of the rise of new AI technologies from China on data centre investors in Johor.

Tengku Zafrul said increasing AI efficiency does not reduce demand for data centres. Instead, they may increase AI use, stimulating investment concerning data.

“The semiconductor supply chain will be diversified. If we look at Johor, Penang and Kedah, these strategic locations for AI infrastructure and data centres will not be affected,” he said.

Hence, the next step is to ensure that Malaysia’s data centres have the cutting edge by introducing more enticing green investment incentives.

“We want to further encourage the AI ​​and digital workforce and raise Malaysia’s competitiveness as an AI processing centre by attracting more investment from AI companies, not only from the west but also from other countries.

“We also need to maintain diplomatic relations with the United States (US) and China to ensure our position as a neutral technology investment hub,” he said.

Source: Bernama

Diverse AI technologies like DeepSeek reduces Malaysia’s reliance on a single product – Tengku Zafrul

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