The government will announce guidelines for data centre power usage effectiveness (PUE) and water usage effectiveness (WUE) by the third quarter of the year to boost investments.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the guidelines would ensure data centres built in Malaysia meet the minimum sustainability requirements to achieve net-zero emissions by 2050.

“As data centres consume a lot of power and water, we want to ensure that the data centres built here (in Malaysia) meet the minimum requirements set by global institutions.

“SIRIM and the Department of Standards Malaysia are in the midst of finalising (the guidelines), and we will announce them by the third quarter this year,” he told reporters after the groundbreaking ceremony for Vantage Data Centers’ second campus (KUL2) here today.

Tengku Zafrul said the Ministry of Investment, Trade and Industry Ministry (MITI) will work closely with the Digital Ministry and Malaysia Digital Economy Corporation (MDEC) to incorporate the improvements into the data centre ecosystem.

Meanwhile, Digital Minister Gobind Singh Deo, who was also present at the groundbreaking ceremony, said the two main challenges for data centre investments are power and water.

He said that the guidelines being developed will ensure that the country has a sufficient and sustainable supply of both resources for the next five to ten years to attract more investments.

Gobind said the Digital Ministry and MITI are working together to address concerns about sufficient water and electricity supply due to significant demand from industry players.

“We need to push ahead to ensure we can develop Malaysia as the hub for data centres in this region, particularly as we move towards the country’s ASEAN 2025 chairmanship.

“We want to project Malaysia as a country with clear policies that are attractive not just to data centres but all investments in that ecosystem as well,” he said.

Vantage’s KUL2 is located adjacent to its existing campus in Cyberjaya. It will have 10 facilities across 256,000 square metres.

The US$3 billion KUL2 data centre campus will deliver 256MW of information technology (IT) capacity to meet the growing demand for hyperscale data centre services.

Source: Bernama

Guidelines to help boost data centre investments by 3Q – Tengku Zafrul

Malaysia’s digital investment soared to RM66.22 billion in the first half of this year (1H 2024), demonstrating robust growth and resilience of the digital economy despite global geopolitical tensions.

Digital Minister Gobind Singh Deo said this was a significant achievement, noting that the amount has already surpassed the full-year digital investment for 2023 which stood at RM46.2 billion.

He attributed the strong upward trajectory to stronger investor confidence and the economy’s forecasted growth of 4.0-5.0 per cent this year.

“This investment inflow created 25,498 jobs in 1H 2024, surpassing the 22,258 tally recorded in 2023. The digital sector continues to be a powerhouse for high-skilled, high-income employment,“ he said in a statement today.

As for digital exports, Gobind said the ministry’s efforts via the Malaysia Digital Economy Corporation’s (MDEC) partnerships and business matching programmes generated export opportunities worth over RM1.93 billion.

These involve 228 companies from 11 countries, namely Indonesia, the Philippines, Cambodia, Türkiye, Spain, Saudi Arabia, Japan, Taiwan, Kenya, Tanzania and the United Kingdom.

This represents an increase of over 43 per cent from the export opportunities worth RM1.35 billion generated in 1H 2023, he said.

Gobind said MDEC’s DEX Connex initiatives in the Philippines and Indonesia as well as business missions have significantly contributed to the export opportunities in the first half of 2024.

“It is worth noting that data centres and cloud companies collectively contributed the lion’s share of digital investment value across all sectors.

“Information Technology (Infotech) and Global Business Services (GBS) companies took the lead in digital job creation, as they race to set up their centres of excellence and high-value GBS operations in Malaysia,“ he said.

He added that 451 tech companies have been awarded the Malaysia Digital (MD) Status in 1H 2024 (2023: 256 companies).

“Of these, 39 per cent are foreign companies contributing to foreign direct investments, while 61 per cent are local companies,“ he said.

Gobind said companies with MD Status are entitled to many incentives, rights and privileges from the government, subject to necessary approvals and compliance with applicable conditions.

The benefits include competitive tax incentives and duty import and sales tax exemption on the importation of multimedia equipment, access to local and foreign knowledge workers, exemption from local ownership requirements, and access to funding facilitation.

Source: Bernama

Malaysia’s digital investment soars to RM66.22b in 1H 2024

THE first phase of the new data centre campus, jointly developed by Telekom Malaysia Bhd (TM) and Singapore’s Nxera, is expected to be completed in 2026 to add to the high-quality digital infrastructure in Malaysia, says Gobind Singh Deo.

The Digital Minister said he was glad to see TM and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, joining forces to embark on the data centre venture.

“This win-win and timely partnership brings together the best connectivity providers of Malaysia and Singapore to develop data centres in Malaysia, starting with a sustainable, hyper-connected AI-ready data centre campus in Johor.

“The first phase capacity of 64 megawatts (MW) is expected to be completed in 2026.

“I am confident that with the joint industry expertise, strong track record and extensive network of subsea cables of both telecommunication companies, this collaboration will be a gamechanger for the industry,” he said before the groundbreaking ceremony in EduCity in Iskandar Puteri, Johor.

Beyond digital connectivity, the government intends to leverage AI technology and harness AI for the good of the Malaysian economy, he said.

Gobind said the new AI-ready data centre campus would serve the next-generation AI application providers and enterprises was a welcomed addition to support Malaysia’s ambition as a hub for AI development and innovation.

“While we welcome data centres to set up in Malaysia, we are also cognisant that data centres require power and water.

“As the data centre industry continues to grow and house greater computing power to meet the needs of the digital economy with the rise of AI, the industry must constantly innovate and adopt new, sustainable technologies that drive energy and water efficiencies,” he said.

Gobind said he was also glad that the TM and Nxera development would feature advanced technologies such as liquid cooling to support high-power density AI workloads and operations efficiently.

Singapore’s senior minister of state for trade and industry Low Yen Ling, who was also present at the event, said the joint venture was another example of the shared economic, cultural and bilateral ties enjoyed by both countries for so long.

“The TM-Nxera data centre will power the needs of our digital economy, support AI advancements and foster value creation.

“This joint venture exemplifies the strong collaboration between Singapore and Malaysia in driving digital innovation.

“Our economies are closely linked and initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ) will enhance cross-border trade and business.

“Singapore looks forward to building an attractive investment ecosystem together with Malaysia in the JS-SEZ,” she said, adding that the event marked another significant milestone in both countries’ economic partnership.

Located just 16km from Singapore, the data centre campus will enable customers to seamlessly expand their infrastructure from the city state and the rest of the region.

The data centre can be scaled up to 200MW in response to market demand.

The groundbreaking ceremony came a month after TM and Nxera announced their strategic partnership.

Also present were TM group chief executive officer Amar Huzaimi Md Deris, Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han and Nxera chairman Kai Nargolwala.

Source: The Star

New AI-ready data campus centre in Iskandar Puteri

Malaysia is proactive in addressing sustainability issues in the energy-intensive data centre industry, said Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.

He pointed to measures such as the Large Scale Solar Project (LSS Project) and Corporate Renewable Energy Supply Scheme (CRESS) that should address concerns about the sustainability of data centres in Malaysia.

Akmal said the Ministry of Investment, Trade and Industry is ensuring that all incoming investments, particularly in data centres, adhere to the sustainability commitments.

“Investors entering the country, including data centres, must meet the demands or responsibilities of sustainable development goals or ESG commitments. Still, we must also ensure these commitments are met at the implementation level, not just in policy,” he told reporters after delivering his speech at the Accelerating Sustainable Business Action event today.

Akmal said the government places importance on sustainability, noting the launch of the National Energy Transition Roadmap last year attracted investors.

“The government under the leadership of Prime Minister Datuk Seri Anwar Ibrahim has launched the National Energy Transition Roadmap, which outlines several initiatives towards renewable energy. At the federal level, under Petra (Energy Transition and Water Transformation Ministry), we welcome and follow up on these initiatives by enhancing policies and regulation.”

To facilitate investments, he added, Malaysia needs to make the process of renewable energy agreements easier while ensuring the stability of the existing energy system.

Akmal highlighted the recently completed application process for the fifth LSS project. “The application has closed, and now we are in the process of evaluating which applicants will qualify competitively to open new solar farms.”

At the same time, he said, about two weeks ago, the government announced the establishment of CRESS, which is intended to increase corporate consumers’ access to green electricity by allowing them the opportunity to procure green electricity supply directly from a renewable energy power producer.

“CRESS allows arrangements for companies seeking renewable energy to enter agreements with solar energy providers, where they generate renewable energy and only need to pay a charge to the grid system,” he added.

Source: The Sun

Malaysia proactive on sustainability issues in data centre industry: Deputy minister

Tasco

It seems that Tasco Bhd (KL:TASCO), which is almost 65% controlled by Japanese logistics giant Nippon Yusen Kabushiki Kaisha (commonly known as NYK), is carving quite a comfortable spot in the annals of The Edge Malaysia Centurion Club Corporate Awards, having taken home the honours in 2019, 2022 and again this year.

The cross-border transportation, warehousing and distribution outfit has bagged the Highest Growth in Profit After Tax (PAT) Over Three Years award in the fourth edition of the Centurion awards, based on its impressive compound annual growth rate (CAGR) of 117% from FY2020 to FY2023.

In its FY2020 ended March 30, Tasco raked in a net profit of RM8.9 million, which jumped 364% to RM41.3 million in FY2021. It then rose by about 58% to RM65.2 million in FY2022 and by 39% to RM90.8 million in FY2023.

As its bottom line grew from strength to strength, Tasco’s return on equity (ROE), which was 9.12% in FY2021, jumped to 13.23% in FY2022 and a further 16.3% in FY2023. This gave it an adjusted ROE, based on Centurion awards methodology, of a respectable 14% over the three years.

The logistics company’s share price, which rose 8.6% from 96.7 sen (adjusted) at end-March 2021 to RM1.05 at end-March 2022, shed 22.7% to 81.2 sen at end-March 2023 before inching up 0.37% to 81.5 sen at end-March this year. The movements translate to an adjusted decline of 4.43% over the three-year period.

With its two substantial shareholders NYK and executive chairman Lee Check Poh (owns 9.89%) controlling almost 75% of the company’s stock and are unlikely to sell any shares, it is no wonder Tasco is thinly traded.

To its credit as well, the company has been regularly paying out dividends, which increased from 0.25 sen in FY2020 to 1.5 sen in FY2021, and further to 2.5 sen in FY2022 and 3.5 sen in FY2023.

FY2023 also marked the second consecutive year Tasco has achieved over RM1 billion in revenue, hitting a record RM1.61 billion, up almost 9% from RM1.48 billion in FY2022.

While many local logistics providers tend to offer a single transportation mode or service, Tasco does not appear to be overly reliant on a particular business segment. It has three main revenue generators: contract logistics, which provides warehousing and haulage services, contributed 34% of FY2023’s revenue or RM545.7 million; air freight forwarding, which provided 30% of FY2023 turnover or RM485.8 million; and ocean freight forwarding, which churned out 18% of FY2023 revenue or RM287.4 million.

This ensures that if any one segment falters, it will not overly impact revenue streams and weigh the company down.

Also in its favour is its reach, as the company is part of the global network of 681 locations under the NYK banner, with more than 27 logistics centres domestically.

On the domestic front, Tasco has an asset base of over 500 prime movers, making it among the largest hauliers in the country, with 300,000 sq m of warhehouse space.

In 2017, Tasco ventured into the cold chain logistics segment, which deals with the safe transport of temperature-sensitive goods and has higher margins of low teens compared with other logistics segments’ single-digit numbers. It invested close to RM216 million to acquire Gold Cold Transport Sdn Bhd and MILS Cold Chain Sdn Bhd. Two years later, Tasco hived off a 30% stake in its cold chain logistics segment held under Tasco Yusen Gold Cold Sdn Bhd to Japan Overseas Infrastructure Investment Corp for Transport and Urban Development for RM125 million.

More recently, after several strategic acquisitions, including a 50:50 acquisition of Hypercold Logistics Sdn Bhd in 2021 in Sabah with a local partner as it expanded into East Malaysia, Tasco Yusen Gold Cold has grown to become one of the largest cold chain logistics providers in Malaysia. The acquisition also made Tasco the largest third-party logistics cold chain warehouse facility operator in Sabah.

At the end of March this year, the cut-off date for the Centurion awards, Tasco’s market capitalisation was only RM652 million. Tasco has been largely trading below the RM1 band since mid-March 2021, making it a penny stock.

Considering its strong parentage — NYK is one of the largest transportation companies in the world, a billion-dollar company with a market capitalisation in excess of US$13 billion (RM60.89 billion) — and the strides it has been making on the local and regional front, Tasco should be under the spotlight.

Source: The Edge Malaysia

Cementing its position as a top-notch logistics company

Malaysia is advancing steadily to emerge as a leading global healthcare destination in 2025, with the success of the healthcare tourism sector chalking up a RM2.25 billion revenue in 2023.

In just a year before the completion of the Malaysia Healthcare Travel Industry Blueprint 2021-2025, the aspiration to fulfil the “Best Malaysia Healthcare Travel Experience” by 2025 can be achieved following a growing number of health tourists making their way to Malaysia.

Malaysia Healthcare Travel Council (MHTC), an agency under the Ministry of Health (MOH), told Bernama that the country recorded 584,468 health tourist arrivals for the first half of 2024 (1H2024). 

The agency said, in comparison, Malaysia recorded more than one million health tourist arrivals in 2023, up by a significant 15% from 850,000 in 2022, firmly entrenching the country as a fast-growing medical destination.

MHTC said Indonesia was the highest contributor of health tourists to Malaysia, comprising 70% to 80% of the total number last year.

As a background, the Malaysia Healthcare Travel Industry Blueprint 2021-2025, which, among others, touches on the role of public and private sector stakeholders within the healthcare travel ecosystem, has managed to provide a framework of cohesive end-to-end experience to the health tourists with a high emphasis on the Malaysia healthcare brand. 

Among key touchpoints of the blueprint are medical services, teleconsultation, access to information, insurance, accommodation and immigration, which will drive the industry forward and make Malaysia a focal point to showcase the “Best Malaysia Healthcare Travel Experience” by 2025. 

The agency said the health tourism industry aims to generate RM2.4 billion in revenue for the whole of this year, and thus far, the sector has generated RM954.90 million in revenue for 1H2024.

MHTC said this is expected to contribute to an economic spillover to other industries to the tune of RM9.6 billion. 

The Malaysia External Trade Development Corporation (Matrade) should also be credited as having a role in this journey, based on a recent statement that the agency is actively supporting the international expansion of Malaysia’s healthcare industry via its vast network of global offices, to ensure the industry’s competitiveness and secured future-proof growth.

With 49 offices worldwide, Matrade has connected Malaysian companies, including healthcare firms, with foreign importers through export missions, business match-making programmes, as well as market intelligence reports, all of which have promoted Malaysia’s healthcare tourism industry.

These efforts reflect Malaysia’s commitment to advancing healthcare innovation and excellence, positioning the country as a key hub for global healthcare partnerships and business opportunities, according to Matrade.

Sunway Healthcare Group among key healthcare players 

Sunway Healthcare Group (SHG) is among players in Malaysia’s medical tourism sector, receiving a higher number of international patients seeking high-quality and affordable healthcare solutions.

SHG managing director (hospital and healthcare operations) Dr Khoo Chow Huat said the group attracted a substantial number of international patients, with the highest number coming from Indonesia.

International patients in SHG grew by more than 40% in the first half of this year, from the same period in 2023.

“Cultural similarities, comprehensive range of services, high standard of care and lower costs in comparison to neighbouring countries are among advantages that attracted them to seek medical treatment here.

“Some come for a few days for health screenings or simple outpatient consultations. Others may stay one- to three weeks, or even longer, depending on their medical treatments such as surgery, chemotherapy and rehabilitation,” he told Bernama.

Comprehensive patient support services

Khoo said the adoption of advanced technologies and increased awareness of medical tourism led SHG to receive international patients, especially in its flagship quaternary hospital, Sunway Medical Centre (SMC), Sunway City Kuala Lumpur.

Quaternary care is the extension of tertiary care in reference to advanced levels of medicine, which are highly specialised, not widely accessed and usually only offered in a very limited number of national or international centres.

SHG also expanded its footprint to include tertiary hospitals, namely Sunway Medical Centre Velocity, Cheras; and Sunway Medical Centre, Penang. The three hospitals have a combined capacity of over 1,700 beds and more than 400 specialist consultants.

He said SHG invested in its International Patient Centre, which is a one-stop centre that handles everything from translation and visa processing, to billing and appointments, in addition to setting up 10 representative offices in Indonesia to provide support and assistance for medical treatment in Malaysia.

“We have 10 offices located in different regions to help patients in all matters related to the treatment, such as assisting in admission and discharge for patients, booking hotels, as well as medical transfers to Malaysia,” he said.

International patient experience

Yusof Fuad, 61, from Jakarta, has been undergoing hip replacement treatment at SMC since March 2024, after contracting an infection from a previous hip replacement surgery performed seven years ago.

He underwent two major surgeries from March to June earlier this year, and is expected to return for follow-up treatment in August.

“Looking at the costs of the two major surgeries I underwent, I am grateful that they are still covered by insurance because SMC is one of the hospitals that cooperates with international insurance companies, especially in Indonesia.

“Plus, my wife and children have been able to accompany me for over five months in Malaysia, due to the affordable currency exchange rate and the close location,” he said.

Meanwhile, Cynthia Hamdani, 35, from Bandung, Indonesia, has also decided to send her four-year-old daughter to SMC after her daughter experienced digestive issues.

“In Bandung, SMC is well-known, and I learned about it through a friend who received treatment there. She introduced me to a staff member at SMC and began coordinating with them over the phone to facilitate my daughter’s arrangements to seek treatment.

“I chose Malaysia because there are direct flights available, and the cost of treatment is more affordable,” she said.

Sunway Sanctuary

An added incentive is that Sunway Sanctuary, which is Malaysia’s premier senior living community, also provides accommodation for short-term stays for international patients who receive treatment at SMC.

The facility has welcomed residents not only from Malaysia, but Singapore, South Korea, China and Canada as well within its first year of operation since its launch a year ago.

“Located adjacent to SMC, we encourage international patients to stay here post-treatment, so that they will have a peace of mind that their healthcare needs are well taken care of (given the proximity),” Khoo said.

Meanwhile, Sunway Sanctuary general manager Leonard Theng said Sunway Sanctuary has achieved a 30% to 35% occupancy rate within its first year.

He said Singaporeans were a significant segment of the group’s target market, primarily due to the strong value of their currency.

“The facility has about 70 residents at the moment and the group aims to double its number of residents to between 140 and 150 in the coming year,” he said.

A part of pioneering a new era of aged care, Theng hopes Sunway Sanctuary will balance the healthcare and hospitality segments via its offerings for international patients.

Source: Bernama

Malaysia sets sight on emerging as leading healthcare destination by 2025

Sarawak may expect inflow of US$20bil in investments into potential large-scale solar power projects by multinational companies from China and United Arab Emirates (UAE).

Shanghai Electric and China Three Gorges International Ltd are mulling to invest US$10bil and UAE’s state-owned clean energy provider, Abu Dhabi Future Energy Company, widely known as Masdar, may invest US$10bil to produce solar power from hydroelectric dams in Sarawak, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.

Top executives of these companies expressed their strong interest to make such investments in proposed solar power projects in Sarawak to Abang Johari during their meetings here late last month.

“The combination of the two is expected to produce an estimated three gigawatts (3GW or 3,000MW)) of solar power,” Abang Johari said at the Natural Resources and Environment Board’s 30th anniversary celebration dinner here.

He said Sarawak is capable of producing at least 3,000MW of electricity from floating solar panels’ installation on existing hydroelectric dams, including Bakun and Murum.

The 2,400MW Bakun dam and 944MW Murum dam in the upper Rejang basin in Kapit Divisions have the potential to produce 500MW and 600MW respectively via floating solar farms on their reservoirs.

Another major dam, the 1,285MW Baleh dam project currently under construction is targetted for completion in fourth quarter of 2028, according to developer Sarawak Energy Bhd (SEB).

Abang Johari recently toured the SEB’s floating solar farm project on Batang Ai hydro dam reservoir in Sri Aman Division. The 50MW floating solar farm, Malaysia’s largest and the first major hybrid generation facility combining hydro and solar, is expected to be commissioned in October this year.

The solar farm project is a joint venture between SEB, China Power International Holdings (a wholly-owned subsidiary of State Power Investment Corp) and solar energy firm, Trina Solar.

SEB, according to its group chief executive officer (CEO) Datuk Sharbini Suhaili, is conducting studies on the feasibility of a Phase 2 floating solar facility at Batang Ai with a capacity of up to 160MW. The 108MW Batang Ai dam, the first hydro power plant in Sarawak, was commissioned in 1985.

The 50MW Batang Ai floating solar farm project occupies merely about 3% or 86 ha out of the 8,500 ha of the dam’s reservoir.

Sharbini said SEB is evaluating proposals from potential independent power producers keen to invest in solar energy projects in Sarawak.

Abang Johari said UAE’s Masdar is interested to invest in solar energy development.

Masdar and SEB inked a memorandum of understanding to collaborate on developing clean energy in Sarawak during the 28th Conference of Parties to the United Nations Framework Convention on Climate Change in Dubai in December 2023.

Masdar, with its presence in more than 40 countries, is one of the world’s largest renewable energy companies and a green hydrogen leader that has placed the UAE in the forefront of energy transition,

In a follow-up meeting with SEB’s top officials and Sarawak Premier in Kuching recently, Masdar CEO Mohamed Jameel Al Ramahi said Masdar was committed to working with the Sarawak government and its local partners to invest and develop large-scale renewable energy projects.

According to him, Masdar aims to develop gigawatts of renewable energy capacity in Malaysia and across other Asian countries.

On the other hand, Shanghai Electric Malaysia director Zhang Xiaohui said his company and China Three Gorges’ experience and success in working with companies in Sarawak had given them the confidence to increase their investments.

“We from Shanghai Electric and China Three Gorges want to participate in green energy development and we plan to invest US$10bil in Sarawak.”

Zhang said the two companies would extend their support to Sarawak Premier’s aim to turn Sarawak into a green energy hub.

Three Gorges was the main contractor for the Murum dam, which commenced construction in 2008 and became fully operational in 2015.

Source: The Star

Foreign firms keen on renewable energy business in Sarawak

However, the rapid growth of data centres could result in both positive and negative consequences to local residents and surrounding areas 

THE proliferation of data centres in Malaysia highlights the growing need for improved connectivity and cloud services, which in turn fuels technological advancement and economic growth. 

Equinix Malaysia MD Cheam Tat Inn said the demand for data centre capacity in the country will rise due to the growing daily activities of consumers and businesses, including online shopping, email, video calls and critical medical work. 

“As companies rapidly integrate artificial intelligence (AI) into their operations, it is driving increased demand for data centre capacity. 

“While the emergence of multiple data centres can create a dynamic and competitive landscape, it presents an excellent opportunity for the nation to advance its digital infrastructure,” he told The Malaysian Reserve (TMR). 

He said with thoughtful planning and strategic development, this growth can be harnessed to significantly benefit the country, fostering a more connected and technologically advanced society while contributing to the nation’s economy. 

Nevertheless, the rapid growth of data centres could result in both positive and negative consequences, potentially affecting local residents and surrounding areas. 

Previously, Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said data centres constituted the majority (RM114.7 billion) from RM144.7 billion in approved digital investments between 2021 and 2023. 

Approved investments were RM3.4 billion in 2021, RM80.8 billion in 2022 and RM60.5 billion in 2023, coming from various organisations such as Amazon.com Inc, GDS Holdings Ltd, YTL Corp Bhd and ByteDance Ltd. 

Currently, Malaysia is aiming to develop areas in Johor Bahru (JB), Cyberjaya and Kulim as data centre hubs. 

Cyberview Sdn Bhd, the development agency behind Cyberjaya, is setting the stage for a transformative era in the city’s growth. 

Cyberview head of strategic communications Iza Sofia Kasbi said Cyberjaya is not just a hub for new technologies but also a cornerstone for sustainable development. 

The company has been pivotal in establishing key infrastructure projects, including the platinum-rated Cyberjaya Hospital. 

The Covid-19 pandemic accelerated the digital shift, leading to a surge in data centre investments in Cyberjaya. 

These investments are crucial as the city aims to build an ecosystem of many advanced technologies. 

“We are now in the process of building a processing zone, which will require the development of supercomputers and AI,” she told TMR. 

Recent Data Centre Launches 

Malaysia’s shifting focus towards securing more investments in data centre hubs is becoming increasingly apparent, following several recently signed memoranda of understanding and launches. 

In May, digital infrastructure company Equinix Inc expanded its digital footprint in Malaysia with the opening of two international business exchange (IBX) data centres in Johor (JH1)
and Kuala Lumpur (KL1), reinforcing its goal of becoming a leading regional digital hub. Recently, Equinix invested RM23 million to purchase a land in Cyberjaya to expand its data centre capacity in Malaysia.

This expansion followed the launch of Equinix’s IBX facilities in KL1 and JH1, and is aimed to meet the rising demand for data centre services in Malaysia and South-East Asia. 

The newly acquired 14,300 sq m of land will support Equinix’s growth in the region. Meanwhile, AirTrunk, a Sydney-based 

Asia Pacific and Japan hyperscale data centre specialist, has launched its flagship 150 megawatts (MW) data centre, AirTrunk JHB1, in JB. 

The facility, positioned to enhance connectivity with regional technology hubs, including Singapore, was launched in an event attended by MITI Deputy Minister Liew Chin Tong and Australian government officials. 

Malaysia’s data centre market is growing rapidly due to its strategic location, supportive policies and increasing digital infrastructure needs, with a projected market value of RM18.29 billion by 2029. 

Impact On Local Communities 

Data centres play a crucial role in modern economies, not only as hubs for data storage and processing but also as catalysts for local community development. 

Open DC Sdn Bhd founder and MD Wong Weng Yew said such facilities play a significant role in community development by driving economic growth, creating job opportunities and contributing to local infrastructure investments. 

He said data centres normally require substantial investments, often exceeding RM50 million, which can drive local economic growth. 

“Our data centres have led to upgrades in local power grids and enhancements in water supply systems,” he told TMR. 

This infrastructure development is essential not only for data centre operations but also for the broader community, improving utilities and services that benefit residents. 

For example, Open DC’s investments have included the construction and maintenance of access roads, which improve transportation for local communities. 

Additionally, the company supports public services like local schools and healthcare facilities, contributing to overall quality of life improvements. 

Meanwhile, Equinix’s Cheam said the construction and operation of data centres often lead to the development of supporting infrastructure such as roads and utilities, improved public services and enhanced connectivity, acting as a “good neighbour”. 

“Investment in infrastructure improves efficiency by reducing transportation and logistics costs, connecting small businesses to broader markets and attracting both domestic and foreign investment. “Enhanced infrastructure, such as reliable power, water and Internet services, boosts productivity, enabling small businesses to function effectively and scale operations,” he added. 

He also remarked that data centres attract ancillary businesses and service providers, further stimulating local economies. 

“Higher demand for goods and services directly translates into increased sales and revenue for small businesses, encouraging them to scale up operations, invest in new technologies, and expand their workforce. 

“This demand strengthens local supply chains and fosters market confidence, creating a positive business environment,” he said. 

Among other benefits include the creation of a wide range of job opportunities, mainly roles for IT technicians, cyber security specialists, data analysts as well as support staff, which ultimately contribute to local employment by providing high-quality jobs with competitive salaries and career development prospects. 

Additionally, these roles support the growth of Malaysia’s tech sector, helping to build a skilled workforce and encourage local expertise in digital infrastructure. 

The company recognises these initiatives as catalysts for innovation and job creation, contributing to the development of a digitally skilled workforce. 

The creation of data centres can also impact local housing markets, frequently resulting in higher demand and escalating rental prices as tech workers relocate to the area. 

However, Wong pointed out that this could also stimulate the local economy, enhancing amenities and services for all residents. 

He mentioned that Open DC collaborates with local authorities to balance these effects, ensuring that community development remains equitable. 

Regarding Cyberview, Cyberjaya’s unique designation as “enterprise land” has shielded the local housing market from the impacts typically associated with data centre growth. 

Iza Sofia said this classification ensures the land is reserved for business and technological enterprises, thereby maintaining a clear separation from residential areas. 

Environmental Sustainability Concerns

Wong said there is no doubt that the establishment of a large facility such as a data centre will require significant daily consumption of electricity and water. 

Naturally, such major developments will raise a number of environmental issues, hence it is imperative for all data centres to prioritise sustainability, considering their substantial energy needs. 

He said Open DC has implemented various strategies to mitigate environmental impact such as utilising sustainable energy sources, advanced cooling systems and water treatment technologies. 

The company is committed to reducing its carbon footprint by adopting renewable energy (RE) sources and pursuing green building certifications like Leadership in Energy and Environmental Design, and GreenRE. 

For Equinix, Cheam pointed out that the rising demand for data centres is further fuelled by the need to support AI applications, which require high-density power. 

As digital infrastructure becomes increasingly central to the modern world, he said the growing demand for data centres will inevitably lead to higher power and water consumption. 

Therefore, it is crucial for the industry to prioritise the design, construction and operation of data centres in a sustainable manner. 

Data centres are actively minimising their environmental impact and promoting sustainability through several key measures by enhancing energy efficiency with efficient hardware and power management, while adopting RE sources via green power purchase agreements, on-site generation and RE credits. 

Simultaneously, Equinix is committed to preserving its collective future by addressing pressing environmental challenges to ensure the sustainability and resiliency of its communities, global society and business. 

Cheam said its multi-faceted approach leverages numerous opportunities to advance sustainability within its industry and create long-term value for stakeholders. 

As for AirTrunk, the JHB1 has a low power usage effectiveness of 1.15, making it one of the most energy-efficient data centres in Malaysia. 

JHB1 features advanced cooling technologies, including direct-to-chip liquid cooling and indirect evaporative cooling, which greatly reduce energy consumption. 

In partnership with Tenaga Nasional Bhd (TNB), AirTrunk has connected the facility to the grid, supported by a 30MW RE agreement under Malaysia’s Corporate Green Power Programme. 

To support the influx of data centres, Cyberview is enhancing its infrastructure, including the addition of a new Transmission Main Intake, while also in collaboration with TNB, to meet the growing energy demands. 

Looking ahead, Cyberview is focused on integrating RE solutions and water recycling systems to meet the sustainability needs of these data centres. 

Data Privacy, Security and Bridging Connections

Data privacy and security are becoming increasingly valuable as nearly everyone in the world has a digital footprint somewhere on the web. 

Wong said with data privacy concerns becoming increasingly prominent, Open DC adheres to strict security standards, being ISO27001 and PCI-DSS certified. 

The company has policies for data access, retention and protection ensuring personal data confidentiality and integrity. 

It also invested in continuous system monitoring and regular staff training to uphold high-security standards. 

Data centres like those operated by Open DC are pivotal in enhancing digital infrastructure, thereby improving access to online services in both urban and rural areas. 

Wong said the company is involved in initiatives to provide affordable Internet access and digital literacy programmes, particularly in underserved areas. 

Open DC is also constructing the first Tier-3 Data Centre in northern Malaysia, which will include the DE-CIX Internet Exchange, further boosting regional digital connectivity.

Source: The Malaysian Reserve

Data centre surge boosts M’sia tech and economic growth

The Ministry of Utility and Telecommunication is looking into setting up data centres using green technology and renewable energy, says the minister Dato Sri Julaihi Narawi.

According to him, this is to accommodate the significant increase in applications from investors interested in establishing data centres in Sarawak.

“We receive quite a number of applications from investors to set up data centres in Sarawak. In fact, it’s almost every month that we receive applications from interested investors.

“One of the main attractions is our green technology and renewable energy. So we are working on it,” he told a press conference after attending a satellite technology briefing by Malaysia East Asia Satellite (Measat) at Hilton Hotel here today.

Julaihi was asked whether there are plans to add new data centres in Sarawak.

He noted that they are evaluating applications submitted to the ministry, as well as to its agency, Sarawak Energy Bhd, and potentially other relevant ministries.

“So we are evaluating all the applications submitted to the Sarawak government.

“So this is, I think, in line with the effort to set up data centres using green technology, green renewable energy.

“So we are known for that because at the moment our renewable energy is up to 70 per cent. So that is the attraction that we have right here in Sarawak,” added Julaihi.

Source: Bernama

Sarawak looking at setting up data centres using green tech, renewable energy

Six airlines have resumed jet operations at Sultan Abdul Aziz Shah Airport, also referred to as Subang Airport, which will support Selangor’s ambition to establish itself as a regional hub for aerospace.

State executive councillor for investment, trade, and mobility Ng Sze Han said leading the aerospace industry is a component of the First Selangor Plan and the Selangor Aerospace Action Plan, which will drive the state and national economies.

“The reopening of operations in Subang is timely for the aviation and aerospace industries in Selangor and the Klang Valley.

“It also draws investments in aircraft manufacturing and maintenance, which have been growing in the region post-Covid-19 pandemic.

“According to a report by aircraft manufacturer Boeing last week, air traffic flow is increasing. Air passengers are expected to grow 4.7 per cent annually for the next 20 years,” he said when contacted.

On Wednesday, Transport Minister Anthony Loke said that effective yesterday, six airlines would resume narrow-body aircraft operations at the Subang Airport as part of the interim phase of the Subang Airport Redevelopment Plan, before the project kick-starts its second development phase in the next three years.

The six airlines are AirAsia, Firefly, SKS Airways, Transnusa, Batik Air Malaysia, and Scoot.

He said flight operations will be from 6am to 10pm with no midnight flights, as the airport is in a residential area.

Previously, the airport focused on maintenance, repair, and overhaul activities, and is now evolving to support a wider range of aviation services, including general business aircraft operations.

Source: Selangor Journal

Return of jet ops at Subang Airport to woo investors, boost Selangor as aerospace hub

The government is committed to ensuring the sustainability of new and existing data centres, which includes promoting the efficient use of water and power, and leveraging advanced technology to enhance operational efficiency.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said the initiative aims to create a robust and sustainable data centre industry in Malaysia, supported by local innovation and resources.

He said the National Investment Council discussed the development of data centres in a June meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, Liew added, instructed relevant agencies, including Malaysian Investment Development Authority, to collaborate on assessing power usage effectiveness and water usage effectiveness metrics.

“Additionally, there was an emphasis on localising equipment to support the growth of Malaysian equipment manufacturers and strengthen the country’s technology sector.

“Data centres are crucial for driving the next generation of jobs in key areas in Selangor and other states.

“Our goal is to elevate our economy by creating more jobs across various levels, including design, engineering, and high-end services. We must consider how to frame Malaysia’s role and move forward strategically,” Liew said at Eco World Development Group Bhd (EWDG) launching of Quantum, the company’s new industrial revenue pillar, today.

EWDG unveiled Quantum, the company’s fifth revenue pillar, designed for data centres, and digital and high-tech ventures.

To signify the company’s commitment to growing this pillar, Eco Business Park VI at Kulai, Johor, will be renamed Quantum Business Park, deputy CEO Liew Tian Xiong said.

The site, measuring 403.78 acres, will be the local private developer’s largest digital and high-tech hub, with Microsoft as its first anchor customer.

To recap, EWDG and Microsoft Payments (Malaysia) Sdn Bhd reached an agreement on June 7 for the sale of 123.14 acres of land within the business park for RM402.3 million.

“Given the nature of its clientele, our Quantum Business Park will offer a highly conducive, clean and green environment, with robust infrastructure and connectivity to support the needs of digital and high-tech players.

“These refinements to our established industrial park portfolio and concepts will enable us to attract data centres and operators in the upstream and downstream data centre, digital, and high-tech manufacturing value chain.

“This group of industrialists and service operators will be the key target customers for our first Quantum Business Park at Kulai and our new Quantum projects that EWDG aims to launch in the future,” he said.

Tian Xiong said EWDG landbanking efforts will also focus on acquiring suitable new sites for Quantum developments. These will be in addition to the company’s plans to expand existing revenue pillars – Eco Townships, Eco Rise, Eco Hibs and Eco Business Parks.

With a low net gearing of 0.24 times as of April 30 and substantial cash coming from the recent industrial land sale to Microsoft and other upcoming sales in the pipeline, EWDG is well-positioned to take advantage of any suitable opportunity in the future that may arise to grow the business strongly, he added.

Source: The Sun

Govt committed to supporting development of sustainable data centre industry

Deputy Premier Datuk Amar Awang Tengah Ali Hasan led a Sarawak delegation for a meeting with KH Shinhwa SnC in Seoul, South Korea on Tuesday.

A press release from Awang Tengah’s office said company director Shane Kang expressed KH Shinhwa SnC’s interest to explore collaborative business and investment opportunities with Sarawak Energy Berhad (SEB) in electricity safety enhancement projects, including investment in new technology and solutions for power generation.

It explained KH Shinhwa is currently collaborating with SEB on a hybrid microgrid solar solution project worth US$7 million of investment.

“The outcome of the project is expected to provide alternative sustainable energy solutions and set a new benchmark in renewable energy technology,” said the press release.

Among those present at the meeting were Deputy Minister of International Trade, Industry and Investment Sarawak Datuk Dr Malcolm Mussen Lamoh, Deputy Minister of Youth, Sports and Entrepreneur Development Datuk Dr Ripin Lamat, advisor of Small and Medium Enterprises for the Ministry of International Trade, Industry and Investment Dato Sri Mohd Naroden Majais and other senior government officials.

Source: Borneo Post

South Korea firm expresses interest in collab with Sarawak Energy in electricity safety enhancement projects

The East Coast Rail Link (ECRL) is poised to enhance the connectivity and logistics efficiency of the East Coast Economic Region (ECER).

In a statement dated July 28, ECER chief operating officer Datuk Ragu Sampasivam said the ECRL will significantly enhance ECER’s connectivity and logistics efficiency, making it an ideal destination for businesses looking to expand their reach. ECER also offers cost effective-land options.

Ragu was speaking about the transformative potential of the East Coast Economic Region (ECER) at the Selangor Investment & Industrial Park Expo (SPARK 2024) recently.

SPARK 2024 featured a key discussion on ‘Seamless Connectivity: ECRL’s Role in Optimizing East and West Coast Port Logistics’.

The event brought together key stakeholders from various sectors, including industrial park developers, investment agencies, and service providers.

This provided a unique opportunity for networking, knowledge sharing, and collaboration, enabling participants to forge strategic partnerships that can enhance ECER’s economic growth and attractiveness to investors, particularly through strengthened bilateral ties with Selangor.

Source: The Edge Malaysia

ECRL poised to enhance ECER’s connectivity and logistics efficiency, says COO

Johor is experiencing strong interest from data centre providers, with more companies either considering establishing new facilities in the state or launching projects they have been developing over the past one to two years.

AirTrunk, a specialist in hyperscale data centres for the Asia Pacific & Japan (APJ) region, has launched its operations in Malaysia with the opening of AirTrunk JHB1, a flagship 150-megawatt (MW) hyperscale data centre located in Johor Bahru.

The opening ceremony was attended by Liew Chin Tong, the deputy minister of Investment, Trade and Industry; Lee Ting Han, chairman of the Johor State Investment, Trade, and Consumer Affairs Committee; and Danielle Heinecke, Australia’s High Commissioner to Malaysia.

Spanning over 10.3 hectares, JHB1 provides both domestic and international connections to regional technology hubs, including Singapore, through an end-to-end cross-border connection strategy.

In a statement, AirTrunk noted that the development was completed with over four million work hours without any major safety incidents.

The initial phases of JHB1 will offer over 50 MW of capacity to its large technology customers.

IThe new facility boasts an AI-ready design and includes AirTrunk’s first deployment of direct-to-chip liquid cooling technology alongside traditional indirect evaporative cooling (IEC) and high-density racks.

AirTrunk’s founder and chief executive officer Robin Khuda, said that the swift and safe delivery of JHB1 marks a significant step in advancing AI adoption in Malaysia and reinforces the company’s growth as a trusted partner for customers across the APJ region.

“Through our long-term investment in Malaysia, we are able to support our customers as they grow at speed and implement groundbreaking solutions like liquid cooling, at scale, in order to catalyse sustainable cloud and AI development,” he said.

Meanwhile, reports indicate that 13 companies are either in discussions or already in the planning stages for investing in Johor.

Lee Ting Han, chairman of the Johor State Investment, Trade, and Consumer Affairs Committee, said that the Federal government has approved RM144 billion in data centre investments across the country over the past two years.

Of this amount, Johor has received RM90 billion, he said in May during the opening of the Equinix JH1 facility at Nusajaya Tech Park.

Source: NST

Sydney-based AirTrunk opens data centre in Johor

The government has seized the opportunity presented by the rise of artificial intelligence (AI), working hard to transform Malaysia into a global AI powerhouse, said Deputy Digital Minister Datuk Wilson Ugak Kumbong.

The government is realising this goal by simultaneously focusing on AI talent, AI infrastructure, and global leadership in the AI supply chain.

In his keynote address at a summit themed “Transforming the Global Digital Economy with Generative AI” today, he said Malaysia is in a great position to build nationwide AI talent, both by improving the quality of life for the people and leading the world in generative AI-driven innovation.

“Malaysia’s AI talent is being developed through three types of initiatives supported by the government, namely skills-building, AI research and development, and entrepreneurship,” Wilson said.

As for the AI infrastructure, AI computing is provided in data centres connected to the electricity grid and telecommunication networks; hence, this has become a national resource Malaysia needs to fuel its AI-led economic growth.

The country has had a strong start with the buildout of AI computing data centres with over US$20 billion (RM92.5 billion) in committed investments over the next two to three years.

He stressed that Malaysia needs to build on this momentum and offer developer-friendly access to AI computing to effectively utilise this resource.

On building the AI supply chain, being an early mover in the generative AI-led economic transformation, the country can become a global leader in the segment.

“A global leadership will propel AI-led growth in the Malaysian economy beyond the McKinsey estimates,” Wilson said.

A McKinsey-led study in 2018 indicated that AI could add about 1.2 per cent growth to the Malaysian economy over and above the baseline of 4.5 per cent to five per cent rate.

The summit, organised by the Securities Commission Malaysia and The Hive, supported by Penjana Kapital, the Malaysia Digital Economy Corporation, and the Malaysian Venture Capital and Private Equity Association, aims to foster innovation with generative AI among corporations and establish Malaysia as the AI hub of Southeast Asia.

Among the speakers at the summit are those from local and foreign corporations, including Nvidia, YTL, Sunway, Gamuda, Google, and 500 Global.

Source: Bernama

Malaysia aims to become global AI powerhouse — Deputy minister

BMI, a Fitch Solutions company, said it sees artificial intelligence (AI)-grade data centres supporting a sustainable digital economy in Malaysia.

In a report last Friday (July 26), the firm said that Telekom Malaysia Bhd (KL:TM) and Nxera — the Digital InfraCo unit of SingTel — have begun constructing a sustainable, AI-grade data centre in Johor.

It said that the aim is to accelerate the digitalisation of the economy, positioning Malaysia as a leading digital hub in the region.

“This development underscores our view that Southeast Asian markets, to varying degrees, are becoming increasingly attractive for investments in digital infrastructure, furthering countries’ specific digital transformation goals,” it said.

BMI said its projections for total market supply reveal that while Malaysia’s current live capacity slightly outperforms BMI’s sample average, its planned capacity significantly surpasses this benchmark at 1.1 gigawatt (GW).

The firm explained that the new 64-megawatt AI data centre campus will add to this figure.

“Discounting this latest project, Malaysia’s planned capacity stands at 2.8GW, whereas most other markets exhibit below-average performance.

“AI adoption will, however, be contingent on the ability for AI-powered devices to connect to the internet.

“Although Malaysia is making good progress with regards to fixed high-speed broadband connectivity, it is in the 5G arena that digital readiness will be assessed.

However, BMI said Malaysia demonstrates a relatively low 5G adoption rate compared to its Southeast Asian counterparts.

It said as of 2023, the 5G penetration rate was estimated at 24.12% of the total mobile base; this will increase to 40.82% by the end of 2024 and will eventually reach approximately 86% by the end of 2033.

“This growth trajectory is modest compared to regional peers such as Singapore, which is forecasted to achieve a penetration rate of 141% by 2033, up from 52% in 2024, and Thailand, expected to rise from 45% to 121% within the same period,” it said.

BMI said that coupled with a wave of global tech firms (most notably Google, AWS and Microsoft) presenting a vested interest into Southeast Asian markets, Malaysia’s economy is set to achieve its national ambitions through initiatives such as the Digital Economy BluePrint (MyDigital) and National Digital Network Plan (Jendela).

The firm said this momentum is bolstered by institutional investments from firms such as KKR, which owns a 20% stake in SingTel’s data centre unit and has previously invested US$2.21 billion (RM10.25 billion) in ST Telemedia Global Data Centres.

“Financial backing from alternative investment management firms provides the necessary support to sustain modern digital infrastructure deployments, most notably hyperscale data centres.

“It is worth noting that these investments are targeted with a risk-based approach, where data centre investments are aimed towards infrastructure with tangible value and those with contracted revenue profiles, which are more certain in nature,” it said.

Source: The Edge Malaysia

BMI: AI-grade data centres to support sustainable digital economy in Malaysia

Sarawak is seeking to create an ecosystem that is more conducive in attracting investors, whether domestic or foreign, in the development of the hydrogen sector, said Datuk Amar Awang Tengah Ali Hasan.

The Deputy Premier said at present, the state is already working with companies from Japan and South Korea in hydrogen development.

“And so we want to know from the federal government what are the incentives, and for us to create a better ecosystem, which is more attractive.

“This is a new area and we need to focus on this (sector),” he said at a press conference after a meeting of the Joint Committee on Industrial Coordination between Ministry of Investment, Trade and Industry (Miti) and Sarawak government today.

Meanwhile, federal Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who co-chaired the meeting with Awang Tengah, said the federal government fully supports the initiative by Sarawak in the hydrogen sector.

“The only suggestion from Miti is how can we help and work with our agency, Malaysia Automotive Robotics & IoT Institute (MARii), to look at the mobility aspect.

“And Sarawak agreed for us to work together to find policies to help with mobility of this industry,” he said.

On another matter, he said the federal government will work with Sarawak to further develop the semiconductor hub in line with the National Semiconductor Strategy.

“We have the competitive edge because the country, particularly Sarawak, has available green energy,” he added.

Awang Tengah, who is also Minister of International Trade, Industry and Investment, said Sarawak welcomes this initiative and both sides have discussed on how to increase investment in this sector.

“(This is to) create a better ecosystem for the common good (of both Sarawak and Malaysia),” he said.

Source: Borneo Post

Awg Tengah: Sarawak seeks conducive ecosystem to woo hydrogen investors

US data centre company Equinix Inc announced on Monday, a RM23 million investment to acquire land in Cyberjaya, Selangor, to expand its data centre capacity.

The acquisition will be instrumental in meeting the rising demand for data centre services in Malaysia and the broader Southeast Asia region, Equinix said in a statement. The acquired land, measuring 14,300 square metres, is less than one kilometre from its existing KL1 facility.

Malaysia boasts a substantial Internet user base, with a staggering 96.8% of the population actively engaging in various digital activities such as video streaming, online shopping, online banking and gaming, said Equinix Malaysia managing director Cheam Tat Inn.

“Consequently, businesses operating in Malaysia are increasingly seeking secure and scalable data centre services and access to digital ecosystems to meet the demands of this tech-savvy consumer base,” he said.

The company did not provide further details on the planned capacity expansion.

Equinix already has data centres at two sites in Malaysia: JH1 in Johor, which the company invested US$40 million back in 2022, followed by an over US$100 million investment in KL1 in Cyberjaya in 2023.

JH1 has capacity of up to 500 cabinets and 1,960 square metres of co-location space, while KL1 will have up to 900 cabinets and a co-location space of 2,630 square metres when fully built.

In Asia Pacific, Equinix has 56 data centres located in key metropolitan areas, including in Australia, China, Hong Kong, India, Japan, Korea, and Singapore.

Source: The Edge Malaysia

US data centre firm Equinix invests RM23m to expand capacity in Malaysia

The economic spillover effect from data centre investment on the national economy is both direct and indirect, according to the Ministry of Investment, Trade and Industry (Miti).

The ministry stated that the direct impact involves the creation of highly skilled job opportunities.

Since 2021, data centre investments have generated 3,693 jobs requiring specific expertise, including engineers, data scientists, big data analysts, cyber security engineers, and information technology engineers.

“This situation helps improve local expertise, provide high-value job opportunities to Malaysians, and encourage technology transfer across various digital technology fields,” said Miti in a written response to the Dewan Negara on Monday.

It said the direct impact also includes the digital transformation of local companies. 

Miti noted that these companies will gain access to better digital infrastructure, enabling them to support digitisation and the digital economy, such as the internet of things (IOT) and big data analytics. 

This, in turn, allows them to implement digital solutions and automation to improve operational efficiency, reduce business costs and increase competitiveness.

“Moreover, investment in data centres empowers the development of artificial intelligence (AI) human capital skills in Malaysia, through training programmes and industry collaboration with local universities and technical institutes,” said Miti.

Regarding the indirect economic spillover effects, high-value investments in data centres drive growth in technology-related industries in the country. 

“This trend attracts new investments in sectors such as server production, microchips, cooling systems, power supplies and other hardware components.

“Investment in data centres also contributes to diversifying the economy, increasing economic resilience, and reducing dependence on traditional industries, such as manufacturing and agriculture,” the ministry added.

Source: Bernama

MITI: Data centre investments drive broad economic benefits

KL Metro Group will build its fourth property here – a five-star resort which promises to set a new benchmark in luxury and comfort – which will have an estimated gross development value of Rm1.6bil.

To be known as Lexis Hibiscus 2, the new resort will feature 1,710 units including 910 water homes and 800 sky pool suites in two high-rise blocks.

KL Metro Group chairman Datuk Mat Hassan Esa said the new development, to be situated adjacent to the acclaimed Lexis Hibiscus resort, will span an impressive 80 acres and is set to be a grander and more luxurious extension of its sister properties in Port Dickson.

“We are setting new standards in hospitality and design, further enhancing Malaysia and Port Dickson’s status as a premier destination for tourism, luxury vacations, and meetings, incentives, conventions and exhibitions events, attracting both domestic and international visitors.

“This ambitious project is set to outshine its predecessor in both scale and grandeur, offering each unit a private pool to ensure unparalleled tropical tranquility and luxury,” he said, adding that as its name suggests, the new development will also be designed after the national flower, the Hibiscus.

Mat Hassan said this during the ground breaking ceremony of the Lexis Hibiscus 2 by Mentri Besar Datuk Seri Aminuddin Harun.

Also present were KL Metro group managing director Datuk Low Tak Fatt, executive director Datuk Yap Chuan Thai and Lexis Hotel Group president Datuk Prof Mandy Chew Siok Cheng.

Scheduled for completion by mid-2029, Lexis Hibiscus 2 is a 80:20 strategic joint venture between KL Metro Group and Mentri Besar Incorporated, the investment arm of the state government.

The new resort, Mat Hassan said, is expected to attract 1.1 million tourists annually, with more than half coming from abroad.

The units at Lexis Hibiscus 2 are for sale and available under a leaseback arrangement with buyers offered 6% annual rental return. Additionally, buyers will enjoy 10 complimentary nights per year at the resort. Prices range from the average RM720,000 to RM950,000, inclusive of all fittings and furniture.

Since the soft launch of Phase 1 (288 units) last month, some 60% of the units have been sold with a significant number to overseas buyers.

“The new resort will employ 5,000 workers and with our other three properties in PD combined, we will provide jobs to some 10,000 people here,” said Mat Hassan. Apart from facilities in five-star resorts, Lexis Hibiscus 2 will also have a helipad, jetty and the iconic Hibiscus Walk. Aminuddin congratulated KL Metro Group for building its fourth resort in Port Dickson on land belonging to MBI, adding that it had contributed immensely to tourism in the state. “I am confident the Lexis Hibiscus 2 project would further boost tourist arrivals to PD and contribute positively to the local economy. It is also my hope the group will adhere to all rules to safeguard the environment at all times,” he said. Aminuddin thanked the property developer for agreeing to pay a RM1,000 compensation each a month to 40 fishermen families till the project is completed. KL Metro Group’s other notable projects include Lexis Port Dickson, Grand Lexis Port Dickson, Lexis Hibiscus Port Dickson, Lexis Suites Penang and Imperial Lexis Kuala Lumpur. The properties have collectively attracted 9.6 million tourists from over 186 countries since 2006. The group has also garnered over 60 international awards and accolades over the years, including two highly acclaimed Guinness World Records for Lexis Hibiscus Port Dickson for “The Most Swimming Pools In A Resort” and “The Most Overwater Villas In A Single Resort”.

Source: The Star

KL Metro to build RM1.6bil five-star resort in PD

The green industry will provide new business opportunities for small and medium enterprises (SMEs), as well as jobs and skills development in Selangor, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In his keynote address at the 8th Selangor Asean Business Conference on Thursday, Zafrul reiterated that his ministry known as Miti aims to attract green investments into Malaysia worth about eight times the current value, to help realise the target of Malaysia’s net zero carbon emissions as early as 2050. 

Green investments in the country surged by 326% year-on-year to US$1.03 billion (RM4.81 billion) in 2023, according to a report jointly published by Bain & Company, GenZero, Standard Chartered, and Temasek.

The green investment strategy, coordinated by Miti, will complement existing policies, such as the National Industrial Master Plan 2023, the National Energy Transition Roadmap, and the National Industry ESG Framework.

“Miti aims to attract roughly eight times the current value of green investments into Malaysia and stimulate socio-economic growth. By extension, Selangor, too, will benefit from this in terms of new business opportunities for SMEs, as well as jobs and skills development for Selangorians in the green industry,” said Zafrul. 

The minister, however, did not disclose specific figures for business opportunities and jobs and skills development that the green investment strategy would bring to the state.

According to him, Selangor ranks as the leading state in gross domestic product (GDP) growth at 5.4% in 2023, outpacing the national GDP growth rate of 3.6%. 

For the first quarter of 2024, Selangor secured RM12.4 billion in approved investments, the third highest in the country after Kedah (RM31.3 billion) and Kuala Lumpur (RM21.5 billion), data from the Malaysian Investment Development Authority showed.

Source: The Edge Malaysia

Green investment strategy to provide new business opportunities for SMEs in Selangor, says Zafrul

Selangor still has the capacity to accommodate the requirement needed by data centres to operate in the state.

Invest Selangor Bhd chief executive officer (CEO) Datuk Hasan Azhari Idris said the state has discussed with Tenaga Nasional Bhd (TNB) on the requirement for the operators and the state’s available capacity to meet them.

“We have 24 data centres that chose Selangor as their location and they are in early processes of development such as submission and under construction. “We still have more spaces for data centres and recently we have discussed with TNB and they still can accommodate the requirement by data centre operators. We still welcome any data centres that choose Selangor as a location for their operations,” he said at the CEO Insights panel session during the MIDA Invest Series programme.

Malaysian Investment Development Authority (MIDA) CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said conventional data centres require high usage of electricity and water.

To reduce excessive usage of these utilities, he said the National Investment Council which is chaired by the prime minister has decided to focus on the development of artificial intelligence (AI) data centre.

“The committee decided to focus on AI data centre as to not escalate the issues of having to spare alot of electricity to these kind of projects. For these centres, they need to meet certain standards of power usage effectiveness and water usage effectiveness to ensure these projects meet the requirement of TNB, and overtime they will use these energy efficient equipment, servers or technology that will reduce electricity and usage of water as well,” he added.

Earlier, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the government will announce electricity and water efficiency standards for data centres in September, following the influx of power and water-intensive data centre investments in the country.

The minister said the National Investment Council has suggested for Sirim Bhd and the Standards Department to come up with efficiency standards for data centres, especially for electricity and water.

Source: NST

Selangor has room for more data centres – Invest Selangor CEO

The Ministry of Investment, Trade and Industry (Miti) aims to attract about eight times the current value of green investments into Malaysia and stimulate socio-economic growth.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that in the current global race to net-zero, this aligns with the responsibility of Miti as the main coordinating and implementing Ministry for the Green Investment Strategy (GIS).

“The GIS will complement existing policies such as New Industrial Master Plan 2030, the National Energy Transition Roadmap and National Industry ESG Framework,” he said in his keynote speech at the 8th Selangor Asean Business Conference 2024 (SABC 2024) today.

He added that Selangor will benefit from this in terms of new business opportunities for SMEs, and skills development for Selangorians in the green industry.

In 2023, Tengku Zafrul said, Malaysia recorded a 23% increase in approved investments, to the tune of RM329.5 billion, with Selangor receiving more than RM55 billion. “This growth is partly attributed to Asean’s firm stance on its neutrality and independence, which attracted RM654.1 billion (US$155 billion) of foreign direct investments.”

Tengku Zafrul said Selangor’s first-quarter 2024 approved investments of RM12.4 billion make it one of the biggest investment contributors to Malaysia’s Q1’24 investments, which solidifies Selangor’s rank as Malaysia’s leading hub for innovation and economic growth.

“This paves the way for Selangor to leverage Asean’s position as the world’s current ‘darling destination’ for investments in manufacturing,” he remarked.

For digital transformation, Tengku Zafrul said the creation of data centres in Malaysia would generate economic benefits and have a significant multiplier effect on job creation.

“For instance, Google recently announced an investment of RM9.4 billion, with the economic benefits expected to double to RM15 billion and generate over 20,000 job opportunities. Although the direct job impact might not be extensive, the arrival of major tech companies and the establishment of data centres can be compared to constructing a ‘highway,’ which will facilitate the entry of other businesses into Malaysia.”

On a separate issue, Tengku Zafrul said the Asean Digital Economy Framework (Defa), currently under negotiation, is likely to be completed during the Asean Summit next year.

Intratrade within Asean currently stands at 20%, he added, and Defa is expected to boost trade between member states, particularly for SMEs.

Tengku Zafrul said that a way to increase Asean’s intratrade is through increasing digital e-commerce and this would help SMEs.

Meanwhile, Selangor International Business Summit 2024 officially kicked off yesterday, marking the start of its first series with SABC 2024 and the Selangor Investment and Industrial Park Expo 2024, being held at the Kuala Lumpur Convention Centre until tomorrow.

The launch of SABC 2024 was officiated by Selangor Menteri Besar Datuk Seri Amirudin Shari. The event spans two days and features 20 distinguished speakers from 10 countries, including Singapore, Indonesia, the Philippines, Vietnam, Laos, Cambodia, Brunei, Timor-Leste and Malaysia, and from the European Union, and is hosting 200 international delegates from 23 countries.

Source: The Sun

MITI targets eightfold increase in value of green investments

The Unity government through the Digital Ministry are committed and ready to work with the digital industry players in efforts to strengthen the sector in Malaysia.

Digital Minister Gobind Singh Deo said he has also urged all captains of the industry to be present at his ministry to offer their suggestions and feedback to help draft a digital policy for the future.

Gobind said this was necessary because setting up the ecosystem is important, not just for the government to understand problems in the previous digital sector, but also to face the challenges in the future.

“Therefore, the experience and challenges that they have faced throughout their venture in the past until now, can be used as a guideline for us to move forward.

“I think it’s very important for us to understand that we cannot do this alone… I told them that I will need their help to discuss how we can draw policies so that Malaysia can move ahead in this digital journey with the input from the industry and of course with government giving its support,” he said.

He was speaking to reporters after opening the 24th PC.com Awards ceremony, here today.

In another development, Gobind reiterated his confidence of achieving the targetted contribution from the country’s digital economy to the Gross Domestic Product (GDP) which is set at 25.5 percent by 2025.

He said the target can be achieved if all the stakeholders, including the people can optimise the platform that has been made available by the government to develop and expand their business.

“We need to ensure we give our best to enable every Malaysian to become an expert in optimising the platforms and transform their business approach.

“If more and more join the digital world, I am confident that by 2025, not only can we achieve the 25.5 percent, but even more,“ he said.

Speaking of the award ceremony, Gobind said PC.com provides recognition to individuals and companies for their contributions towards the industry.

“I feel the recipients of the award are the right choice and I know their contributions to the industry is immense. Therefore, I wish to congratulate them and I hope they will continue to offer their contributions to the industry,” he said.

Source: Bernama

Govt ready to work with industry players to strengthen digital industry – Gobind

ALLIANCE Steel (M) Sdn Bhd — a joint venture between China’s Guangxi Beibu Gulf Port International Group and Guangxi Shenglong Metallurgical — is undertaking a US$1.8 billion (RM8.41 billion) expansion, increasing its steel production capacity to 10 million tonnes a year from the existing 3.5 million tonnes.

The company, located in the Malaysia-China Kuantan Industrial Park (MCKIP), produces high-speed wire rod, bars and H-beams. Alliance Steel, which plans to widen its product range to include high-end steel plates, expects to complete its build-up in two years and kick off production at its extended facility in 2026.

IJM Corp Bhd (KL:IJM), which has 60% equity interest in Kuantan Port Consortium Sdn Bhd, is seen to benefit from this upscaling by Alliance Steel. The remaining 40% is held by Beibu Gulf Holding (Hong Kong) Co Ltd, which is part of the Alliance Steel group. To gain from Alliance Steel’s expansion, Kuantan Port will have to be upgraded, which will cost at least RM1 billion, says IJM group CEO and managing director Lee Chun Fai. Nevertheless, he is sanguine about the prospects, citing the “improving” Malaysia-China bilateral ties.

IJM, Sime Darby Bhd (KL:SIME) and the Pahang government hold a 51% stake in MCKIP. China’s Guangxi Beibu and Qinzhou Investment holds the remaining 49%. The 51% Malaysian stake is divided among IJM, with a controlling 40% (effective 20.4%) stake, and Sime Darby and the Pahang government, with 30% each (effective 15.3% each). With these investments, things are looking up for Kuantan Port. 

As it is, the port’s new deep-water terminal, which commenced operations in 2018, has a 16m draught capable of accommodating vessels of up to 180,000 deadweight tonnes — three times larger than the previous facilities. The new terminal can also handle seven million tonnes of cargo — primarily dry bulk cargo — annually.

Now, a second phase of this deep-water terminal is being planned. “We have to look at the big picture, given the expansion of Alliance Steel and also other players. There are a few investors that we are talking to about containerised cargo. My dilemma is about the second phase. Is [it going to be for] a container or is it a bulk port?” Lee muses.

A bulk terminal generally handles cargo such as iron ore, coal, grain and fertiliser while containerised cargo refers to goods packed into containers or technically a 20ft equivalent unit (TEU).

For the first quarter of this year, Kuantan Port’s container throughput was a mere 34,206 TEUs, according to Ministry of Transport (MoT) statistics.

“It’s very low,” Lee concedes, referring to Kuantan Port’s containerised cargo. Dry bulk cargo for the first three months of 2024 amounted to 3.71 million freight weight tonnes, or close to 60% of total throughput, MoT statistics show.

Kuantan Port’s dry bulk cargo and container throughput look set to increase, however, going by Alliance Steel’s expansion and the East Coast Rail Link (ECRL) — the 640km railway connecting Kota Bahru in Kelantan in the east coast to Port Klang in Selangor in the west coast that cuts through Terengganu and Pahang.

According to the Companies Commission of Malaysia’s (SSM) website, Kuantan Port registered an after-tax profit of RM17.19 million on revenue of RM331.79 million in FY2023 ended March 2023. In FY2022, the port operator managed an after-tax profit of RM71.4 million on revenue of RM364.48 million. The steep decline in after-tax profit was a result of China’s borders opening only in December 2022, and many sectors in Shanghai and Shenzhen facing disruptions in manufacturing, trucking and logistics even after the borders were opened.

As at end-March 2023, Kuantan Port had total assets of RM2.08 billion and total liabilities of RM1.33 billion. In FY2023, Kuantan Port had retained earnings of RM625.15 million.

Lee says: “We [Kuantan Port] have signed an MoU (memorandum of understanding) with ECRL. Our view is how to make door-to-door [services] viable for ECRL users. At the end of the day, we are part of a logistics solution. To make it work, you must be able to give a competitive solution. And this is where you need government help, for the early days, because [throughput] volume may not be great until it grows to a certain size [an inflection point].”

MCKIP commenced in 2013 with a land area of only 1,200 acres but it has since expanded to about 3,000 acres. Only 400 acres of the 3,000 remain unused. Over the past 10 years, MCKIP has managed to secure Chinese investments worth about RM20 billion from manufacturers of steel, ceramics, tyres, aluminium and fertiliser, among others. Other notable investors include Hong Kong’s NewOcean Energy, which has invested RM5.1 billion in an oil refinery complex.

“The first 10 years [of MCKIP] seem to have been reasonably successful. What about the next 10 years?” Lee wonders aloud. There are many possibilities, with the MCKIP moving from Gebeng to new areas, multiple zones and even to MCKIP 2.0.

While these issues are being worked out, it seems clear that Kuantan Port and IJM, in turn, stand to reap rewards from the many developments. 

Source: The Edge Malaysia

Kuantan Port to benefit from Malaysia-China bilateral ties