In May, tech behemoth Google made a significant move in Malaysia by investing a substantial US$2.2 billion (RM9.5 billion) to expand its Google Cloud region to deliver high-performance, low-latency cloud infrastructure, analytics and artificial intelligence (AI) services.

The investment is also poised to reshape industries, create jobs and position Malaysia as a Southeast Asian tech leader. The Malaysia cloud region will make it easier and faster for public sector organisations, small and medium enterprises (SMEs), start-ups and traditional businesses alike to leverage Google Cloud’s on-demand network and compute resources.

“It is faster and more reliable with economics that are better than what they could build themselves — without having to build it themselves. It will also deliver more choices for customers to store their data locally, enabling them to meet digital sovereignty requirements,” says Patrick Wee, country manager of Google Cloud in Malaysia.

For instance, regulated industries like the financial services and healthcare industries will be able to store sensitive data in compliance with local regulations. In financial services, even lower latency enables real-time fraud detection and risk management systems.

Moreover, the manufacturing industry can further advance Industry 4.0 initiatives, resulting in smarter factories and optimised supply chains. Retail and e-commerce businesses will benefit from rapid scalability and real-time data management.

“Google’s first data centre and Google Cloud region is our largest planned investment so far in Malaysia. It will enable easier and faster access to Google’s extensive suite of AI and machine learning tools and services, and accelerate digital transformation for Malaysian businesses in a rapidly evolving digital economy,” says Wee.

Closing the skills gap

Google’s new data centre and cloud region in Malaysia hold the promise of driving economic growth. However, the rapid pace of technological advancements is outstripping the development of workforce skills, creating a significant skills gap that presents a challenge for the country.

According to the World Economic Forum’s “Future of Jobs 2023” report, 48% of companies identify improving talent progression and promotion processes as a key business practice that can increase the availability of talent to their organisation.

To support the development of a skilled cloud workforce locally, Google has been working with the government, customers and partners to deliver tailored solution-based cloud skilling to upskill people via targeted workshops, online courses, hands-on labs and certification programmes.

“Our focus is on building competencies in critical areas such as AI, machine learning, cybersecurity and data analytics — all focused on solving real-world business challenges, with courses on how to build large-scale cloud projects, manage employees who are new to the Cloud, optimise Google Cloud costs and more,” explains Wee.

Earlier this year, Google announced a partnership with the Ministry of Higher Education (MoHE) to offer up to 500 Google Career Certificate scholarships to students from 161 public universities, polytechnics and community colleges across the country, available until the end of 2024.

These nine Google Career Certificates, designed by in-house experts, cover fields such as cybersecurity, data analytics and IT support. The programmes can be completed within three to six months through flexible, self-paced online training, requiring no prior experience.

“This strategic initiative with MoHE marks a significant expansion of Gemilang, the digital training programme launched by Google in 2022 to help more Malaysians acquire digital skills — at no cost — for jobs in high-demand technology fields,” says Wee.

Google Gemilang is Google’s digital training initiative aimed at helping the nation’s workforce develop current digital skills, unlock new opportunities and gain access to high-demand jobs.

Since its launch, Gemilang has already provided 31,000 career certificate scholarships, with 80% of certificate graduates reporting a positive career outcome, such as a new job, promotion or salary raise within six months of completion.

In addition, Google has also made data management, cybersecurity and AI skills development training options accessible to working professionals through the Google Cloud Skills Boost programme.

This includes courses such as the “cloud digital leader learning path”, the “introduction to generative AI learning path”, the “preparing for your professional cloud security engineer journey” course, and the “preparing for your professional data engineer journey” course, along with gamified learning experiences via the arcade.

“Regardless of whether they are executive-level, an IT decision-maker, in a non-technical role or a technical practitioner, learners can seize the opportunity to build and demonstrate their proficiency in in-demand cloud computing and AI skills to their employers,” says Wee.

These efforts are part of Google’s broader commitment to fostering a robust digital economy in Malaysia, ensuring that businesses have access to the talent they need to drive innovation and maintain a competitive edge in the global market.

The data centre will power Google’s popular digital services, such as Search, Maps and Workspace. It will also play an essential role in enabling the company to deliver the benefits of Al to users and customers across the country.

Companies like telecommunications provider Maxis use Google Cloud’s enterprise-grade generative AI capabilities to unlock their data’s full potential. Similarly, construction giant Gamuda Bhd uses generative AI across its different verticals. Bank Muamalat too leverages Google Cloud’s capabilities in security, data analytics and generative AI to help the bank drive new operational efficiencies.

“This investment also supports our partnership with the government of Malaysia and its goal of advancing a ‘cloud-first policy’, and unlocks the potential of digital transformation across the public sector as well,” says Ken Siah, head of data centre public affairs at Google Apac.

Future-proofing operations

To ensure that the Malaysian data centre has the necessary infrastructure to accommodate future growth and increasing customer demand, Google is focusing on scalability as one of its top features in its technical infrastructure.

“Google’s data centre in Malaysia is a long-term US$2 billion investment designed to meet the growing demand from customers locally and around the world. Ensuring robust business continuity and disaster recovery is critical for any Google data centre across our planet-scale network, and this will also be a top feature and priority for our infrastructure in Malaysia,” says Siah.

With more than 20 years in the cloud, Google offers security solutions and built-in protections to help customers modernise security in the cloud or wherever their applications or data live.

To highlight a few security features of its solutions and network, Google Cloud encrypts data-at-rest and data-in-transit by default and cannot be turned off. It also provides options for customers to use their own encryption keys for greater control.

“We also provide AI-powered tools such as data loss prevention application programming interface (API) to help customers quickly detect, classify, redact, mask and tokenise their sensitive data,” says Wee.

Google employs a multi-layered security approach, combining hardware and software innovations, 24/7 monitoring and advanced threat intelligence. It identifies and addresses vulnerabilities, utilises AI to detect anomalies and fosters a culture of security through initiatives like bug bounty programmes. This defence-in-depth strategy helps safeguard its infrastructure and user data from evolving cyber threats.

Through its security command centre, it provides customers with centralised visibility and control with built-in cyber risk management, improves their vulnerability management, reports on and maintains compliance and detects threats.

Source: The Edge Malaysia

Google’s data alchemy for Malaysia

The development of tech hubs and data centres is closely interconnected; both sectors drive and benefit from each other’s growth and advancements.

Hubs such as Cyberjaya offer dark fibre connectivity, enabling companies to effectively manage their network infrastructure. This set-up ensures uninterrupted bandwidth and consistent, reliable data transmission speeds, which are crucial for the efficient operation of data centres, says Kamarul Ariffin Abdul Samad, CEO of Cyberview Sdn Bhd.

Dark fibre connectivity refers to unused optical fibre infrastructure for networks.

“Tech hubs like Cyberjaya play a critical role in today’s digital landscape, ensuring that companies across all sectors are connected and supported, creating an environment where innovation can flourish,” he says.

Thus, it is crucial that data centre companies connect to a robust innovation and tech ecosystem by fostering collaboration with local start-ups, small and medium enterprises, research institutions and industry leaders, says Kamarul.

“Embracing emerging technologies, investing in research and development, and nurturing a culture of continuous improvement will enable tech hubs and data centres to thrive in today’s digital era.”

Furthermore, tech hubs are able to align local talent and skills with the growing digital economy in Malaysia because they serve as innovation ecosystems that bring together educational institutions, industry leaders and government initiatives.

In need of land

The influx of data centres also necessitates tech parks that provide well-planned environments for businesses to operate in by providing amenities such as power, connectivity and security.

Tech parks also provide data centre investors with the flexibility to choose environments that precisely match their business objectives. For example, Sedenak Tech Park is designed specifically for the data centre ecosystem with its prime location, ample space and eco-friendly power sources.

Tech parks play a vital role in stimulating local industries and supply chains, says Datuk Akmal Ahmad, deputy chairman of JLand Group Sdn Bhd. This is by encouraging the clustering of related industries, which fosters collaboration and skill development within the local workforce.

“Tech parks are vital catalysts for stimulating local economies and driving infrastructure development. By attracting businesses, start-ups and multinational corporations, they generate demand for a wide range of local services, fostering economic diversification and boosting local spending,” says Akmal.

As tech parks are established, they require reliable and advanced infrastructure to upgrade existing facilities or to develop new ones, he says. This demand prompts local governments or private investors to upgrade existing facilities or develop new ones, which creates a ripple effect that benefits the surrounding communities.

That is not all. The development of tech parks significantly boosts residential property values in nearby areas, says Akmal. As tech parks attract businesses and skilled professionals, the increased demand for housing leads to the development of various residential properties. This also prompts the creation of essential amenities to accommodate the growing population.

Furthermore, tech parks create demand for skilled workers in different sectors by bringing different groups of companies together, says Akmal. The clustering of businesses stimulates growth in local services like retail and housing.

Within the context of a tech hub, ripple effects in the creation of higher-income job opportunities such as in cybersecurity, network infrastructure management and data analytics can be expected as data centre investment emerges, says Cyberview’s Kamarul.

Cyberjaya, for example, is home to eight institutes of higher learning that supply talent to the tech sector. This is as industry-academia collaboration and dialogue allow two-way communication that improves the employability of graduates, says Kamarul. Cyberjaya is home to over 28,000 students.

As a tech hub developer, Cyberview has incorporated collaborative spaces, innovation labs and incubators as part of the tech hub’s urban planning components, which supports the growth of local start-ups and creative enterprises.

“This demand can drive up residential property values as more people, including highly skilled tech professionals, seek to live close to their workplaces, benefitting from reduced commute times and enhanced local amenities,” he says.

“It also gives rise to the development of modern amenities such as restaurants, retail stores and parks that enhance quality of life by providing convenient options for workers and residents [of the tech hub].”

Ironing out the details

However, the development of tech parks or hubs comes with its own challenges, notes Benjamin Ong, CEO of Mah Sing Group Bhd (KL:MAHSING). For instance, land acquisition can be a hurdle, as demand for suitable land can drive up prices. Additionally, there needs to be adequate infrastructure, power and water supply to meet the demands of these data centre developments.

This is why government and strategic policies are essential to maximise the benefits of tech hubs and data centres. The government plays a vital role in creating a conducive business environment, making investments in infrastructure and promoting local talent.

“Government policies and planning are very important. They have to increase spending on power and water infrastructure so that there is evenly distributed development across the segments. If that is planned properly, Malaysia stands to gain because we all move up the value chain,” says Ong.

There needs to be adequate infrastructure, power and water supply to meet the demands of these data centre develop.ments. This means that Malaysia must keep investing in its electrical grid and telecommunications infrastructure, says Kamarul.

This increased demand also necessitates the development of renewable energy sources and the enhancement of energy efficiency measures to support data centre growth whilst minimising environmental impact.

In response to this, Cyberview has implemented an action plan that includes establishing an environmental, social and governance framework and a five-year road map focused on enhancing sustainability.

“We are actively exploring further opportunities with potential partners to enhance our use of solar and renewable energy for data centres in Cyberjaya. This includes evaluating the feasibility of renewable power options through the Corporate Green Power Programme and Third-Party Access,” says Kamarul.

He acknowledges that as the demands of the tech industry continue to evolve, there is a need to work via a collaborative framework with key partners and government agencies, in order to offer solutions to scale infrastructure and manage resources.

“We also conduct a thorough cost-benefit analysis to understand the financial implications and potential returns of infrastructure in Cyberjaya. By doing so, we ensure that the infrastructure not only meets current needs but also positions the city as a forward-looking hub that can sustain tech and economic advancement,” says Kamarul.

Source: The Edge Malaysia

Building the digital backbone

The location of a data centre is a critical factor that influences its efficiency and operational success. Power reliability, protection from natural disasters and security are top priorities for any data centre operator.

SPD Tech Valley, Malaysia’s premier managed industrial park, can be the solution to these concerns, as it offers cutting-edge connectivity solutions that are crucial for data centre operations, along with a robust, secure and future-ready environment tailored to the needs of data centres.

With its fibre-optic infrastructure paired with 5G technology, the park ensures ultra-fast data transmission, minimal latency and optimal network performance. This advanced connectivity infrastructure is ready to support high-bandwidth applications and future technological advancements, making it an ideal environment for cloud computing, big data analytics and other data-intensive operations.

Part of the Malaysia Vision Valley (MVV) 2.0 development plan, SPD Tech Valley places data centres at the heart of a rapidly growing industrial region, providing a strategic edge in accessing both domestic and international opportunities.

Scaleability and flexibility are among the key advantages of SPD Tech Valley. The park offers 523 acres of managed space, providing ample room for expansion and the ability to custom-build facilities tailored to specific data centre needs.

This scaleable infrastructure allows businesses to expand and adapt to changing demands seamlessly, ensuring that operations can evolve with the industry’s ever-changing landscape.

Innovative environment

In a world in which data is one of the most valuable assets, security is paramount. As such, SPD Tech Valley is equipped with a multi-tiered security system designed to protect data centres from physical threats.

The park features 24/7 surveillance, artificial intelligence (AI)-enhanced security systems, including face and licence plate recognition, and secure perimeter fencing.

Furthermore, its commitment to security extends beyond physical measures. The park’s design and operational protocols are aligned with the highest standards of data protection, ensuring compliance with both local and international regulations. This comprehensive approach to security means that data centres are not only protected from physical threats but also from potential regulatory risks.

SPD Tech Valley is not just about infrastructure but also about creating a supportive business environment. The park enjoys strong backing from Malaysian government agencies such as the Malaysian Investment Development Authority and Invest NS to ensure a smooth set-up process and access to various incentives for data centre investments.

SPD Tech Valley is committed to reducing operational burdens, providing a comprehensive and managed environment that allows businesses to focus on their core activities without being bogged down by day-to-day management issues.

Designed with Industry 5.0 in mind, SPD Tech Valley integrates the latest technologies and infrastructure to support the future of data centres. The park continually invests in infrastructure upgrades to ensure it remains at the forefront of technological innovation.

Power supply is the lifeblood of any data centre, and SPD Tech Valley ensures operations are powered with precision and reliability. Strategically positioned next to Malaysia’s national grid with direct access to a 275 kilovolt-ampere (kVA) power line, SPD Tech Valley offers robust and stable energy supply.

The park is designed with 150MW of planned electricity capacity, with no restrictions on tapping additional supply from the national grid. With 50MW of ready power available from nearby PMU facilities and the flexibility to expand further, SPD Tech Valley is fully equipped to meet the energy-intensive demands of modern data centres.

SPD Tech Valley also embraces a sustainable approach, integrating renewable energy options such as solar power. This not only enhances sustainability credentials but also ensures energy efficiency and cost savings, making operations more resilient against future energy price fluctuations.

Whether it is implementing new cooling technologies, expanding connectivity options or enhancing energy efficiency, SPD Tech Valley is committed to providing future-ready facilities that meet the evolving needs of the data centre industry.

Embracing renewables

Sustainability is at the core of SPD Tech Valley’s development philosophy. The park is LEED Gold-pre-certified and GreenRE-certified, reinforcing its strong commitment to environmental responsibility.

SPD Tech Valley integrates green initiatives such as solar energy, rainwater harvesting and energy-efficient cooling solutions, aligning perfectly with the sustainability goals of modern data centres.

Solar energy drives a significant portion of the park’s daily activities, reducing reliance on fossil fuels and minimising carbon emissions.

In addition, the park takes a renewables-based approach to water usage by treating water from the nearby river, making it suitable for cooling systems. This not only conserves resources but also enhances the overall efficiency and sustainability of operations.

Such initiatives not only reduce the environmental footprint but also contribute to lower operational costs, making data centre operations more sustainable and economically viable.

Being sustainable also means ensuring that operations are protected from adverse weather conditions and physical impact. Natural disasters are an ever-present risk that can disrupt operations and cause significant damage to data centres.

SPD Tech Valley’s strategic location in Senawang, Negeri Sembilan, offers significant advantages for data centre operations. Located 70m above sea level, the park offers natural protection against flooding, ensuring that data centres remain operational even in adverse weather conditions. This elevation advantage, combined with state-of-the-art infrastructure, provides a secure and stable environment, safeguarding critical operations for peace of mind.

Situated in a region with no history of natural disasters, SPD Tech Valley ensures minimal risk of operational disruptions. The moderate climate in this area reduces the cooling load, leading to energy savings and enhanced equipment longevity.

For data centre investors seeking a location that offers robust power supply, natural disaster protection and advanced security, SPD Tech Valley stands out as the smart choice. With its state-of-the-art infrastructure, coupled with a secure, stable and sustainable environment, SPD Tech Valley is designed to meet the demands of the most critical operations.

Source: The Edge Malaysia

Powering up data centre operations at SPD Tech Valley

Logistics players are working hard to reduce their environmental impact from various angles 

In today’s dynamic business environment, the significance of environmental, social and governance (ESG) principles is gaining recognition, signifying a profound move towards embedding sustainability into the core of business operations. This shift highlights a broader perspective on a company’s societal responsibilities, blending profitability with positive global impacts. 

In this context, the logistics industry emerges as a pivotal player, adopting sustainable practices and leveraging technology to streamline supply chains in an environmentally conscious manner. 

Players in the logistics sector are investing their efforts into minimising their environmental impact from multiple angles, including pick-up and delivery route optimisation, vehicle efficiency and modernisation, and a shift towards renewable energy (RE). These efforts highlight the sector’s commitment to science-based carbon emission reduction targets. 

This initiative is crucial for the transportation sector to fulfil global warming limits set by the Paris Agreement and address its significant contribution to global CO2 emissions. Globally, industries have committed to reducing emissions to limit global warming to a 1.5°C increase, as per the Paris Agreement, to mitigate climate change risks. However, with the transport sector responsible for a substantial portion of CO2 emissions in 2020, it is clear that more aggressive action is required to meet these targets. 

In Malaysia, these global sustainability trends find a strong echo, with targeted initiatives aimed at bolstering the logistics sector’s efforts. The country’s commitment to curbing greenhouse gas emissions in proportion to its GDP by 2030 exemplifies the logistics sector’s critical role in Malaysia’s sustainability journey. This solidifies the country’s position as a leader in sustainable logistics practices in the region and highlights the sector’s significant contribution to achieving broader environmental objectives. 

Data Powers Sustainable Logistics

The pivotal role of data in bolstering sustainability initiatives is evident, serving as a cornerstone for strategic decision-making and operational enhancements. Specifically, within logistics, data-driven analysis in various parts of operations reduces carbon emissions and supports the transition towards RE. This strategic application of data not only aligns with the Paris Agreement’s objectives but also positions companies like FedEx to set a precedent. 

Data supports sustainable initiatives within companies in several critical aspects:

• Measurement and Monitoring: Data enables companies to measure their environmental impact, essential for setting goals and tracking progress. 

• Identifying Opportunities: Analysis helps pinpoint areas for sustainability improvements, such as energy usage and waste reduction. 

• Optimising Resource Use: Data allows for better resource management, reducing costs and environmental footprint. 

• Decision-Making Support: Provides insights for informed decisions on suppliers, investments and product designs aligned with sustainability. 

• Compliance and Reporting: Ensures accurate sustainability reporting and regulatory compliance, avoiding fines and reputational damage. 

• Innovation and Continuous Improvement: Fosters development of sustainable products and processes, enabling continuous strategy enhancement. 

Leveraging data-driven insights, businesses can track carbon output, identify improvement areas and set precise sustainability goals. This visibility helps meet carbon neutrality targets effectively. Throughout the project lifecycle — from assessment to outcome and evaluation — this strategic use of technology ensures continuous advancement toward a greener future. 

The strategic sustainability approach at FedEx, supported by concrete data-driven goals and targets in various segments, is founded on three core principles: Reduce, Replace, Revolutionise. This methodical framework facilitates precise tracking and measurement of environmental impacts, guiding the implementation of initiatives aimed at reducing emissions and waste, enhancing the efficiency of technologies and vehicles and pioneering innovations in fleets and facilities to achieve responsible resource use. 

Through emission and waste reduction, upgrading to more efficient technologies and vehicles, and innovating fleets and facilities, FedEx aims at using resources in a more responsible manner. Collective efforts have led to a 48% decrease in CO2 emissions intensity between financial year 2009 (FY09) and FY23, despite a 121% growth in average daily package volumes. 

Initiatives like fuel reduction in the fleet, increasing facility energy efficiency and optimising the recyclability of packaging are key to lessening environmental impact. An essential objective is converting the entire pickup and delivery fleet to electric vehicles (EVs) by 2040, aspirating for 100% of FedEx Express Pickup and Delivery (PUD) vehicle purchases to be zero-tailpipe emission EVs by 2030. Innovative solutions are necessary for achieving carbon-neutral operations and for carbon capture and storage. Modernising facilities and aircraft and adopting 100% recyclable packaging further FedEx sustainability commitments. 

Malaysia-Singapore First Cross-border EV Delivery Trial

The first cross-border delivery EV trial from Malaysia to Singapore by FedEx represents a significant advancement in sustainable logistics, aligning with Malaysia’s environmental goals. 

This 406km trial, which focused on data collection and operational insights, signifies FedEx’s move toward reducing its carbon footprint through environmentally responsible operations, demonstrating a reduction in tailpipe CO2 emissions of approximately 100kg compared to diesel-powered vehicles. 

The insights gained are vital for improving FedEx operational efficiency and customer experience, contributing to the broader goal of transitioning FedEx fleet to zero-emission vehicles by 2040 and underscoring its commitment to global sustainable logistics. 

During the trial, we closely monitored the time and efficiencies associated with EV charging. For instance, it took 40 minutes on a 90kWh charger to achieve a 48% battery gain. Additionally, similar to our mobile phones, the EV charging rate decreases once the battery reaches 80% capacity — charging at approximately 82kWh below 80% and dropping to about 25kWh above this threshold. 

This data is vital as it enables us to evaluate the efficiency of EVs in our fleet operations involving hundreds of PUD vehicles. Understanding these dynamics helps us prepare future plans to deploy EVs more effectively, including ensuring adequate access to charging stations. Ultimately, it paves the way for us to minimise our environmental footprint as we transition to more sustainable vehicle solutions. 

Vehicle range analysis is equally crucial for selecting the most suitable EV model for our operations. We observed that EVs are more efficient at lower speeds, consuming less energy per km. Specifically, at speeds estimated below 70kph with ECO mode activated, the drop in EV On-Board Telematics matched actual distance travelled kilometre-for-kilometre. 

Additionally, it is important to note that the range tested during the cross-border delivery EV trial represents the maximum distance achievable on a single charge when the vehicle is not carrying any cargo. We understand that the volume of packages loaded on the truck will impact the range, indicating that real-world operational conditions could lead to variations in these results. This insight is critical for FedEx as we plan for the future, enabling us to choose vehicles that align with the specific demands and operational realities of our fleet, ensuring efficiency and sustainability in our logistics network. 

These efforts to integrate advanced digital solutions like FedEx Sustainability Insights (FSI) and practical data into our business are mirrored in our wider sustainability responsibilities. FSI is designed to support our customers’ sustainability goals by providing them with detailed environmental data on their shipments moving through the FedEx network, enabling businesses, such as major global manufacturers in South-East Asia, to measure impact and implement data-driven environmental initiatives. 

The commitment to achieve vehicle electrification, fuel conversation, investing in energy efficiency initiatives and RE, and offering end-to-end sustainability for customer supply chains through data and packaging solutions are all in harmony with Malaysia’s 2050 sustainability ambitions, aiming to transform the country into a green and tech-centric economy. 

This highlights the logistics sector’s integral role in national and global environmental stewardship. Through shared commitment to green practices and responsible business operations, the logistics industry is setting new standards in driving a sustainable transformation for Malaysia and beyond. 

• Woon Tien Long is the MD of FedEx Malaysia. 

Source: The Malaysian Reserve

How data drives green logistics

The Penang STEM (Science, Technology, Engineering and Mathematics) Talent Blueprint which was launched today, will be incorporated into the National Semiconductor Strategy (NSS), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz

He said the blueprint also will be supported by a portion of the RM25 billion allocated to operationalise the semiconductor strategies while the integration underscores both parties’ commitment to making Malaysia a regional manufacturing and services hub.

“The Penang STEM Talent Blueprint is an excellent example of the whole-of-nation approach to address the challenges and seize the opportunities in our rapidly evolving industrial landscape.

“This (blueprint) aligns perfectly with the objectives of our New Industrial Master Plan 2030 (NIMP 2030), NSS and the Green Investment Strategy (GIS),” he said at the launch of the blueprint in Tech Dome Penang, Komtar here tonight.

Tengku Zafrul noted that the Penang STEM Talent Blueprint also supports one of the targets of the NSS, which is to train and nurture 60,000 highly-skilled Malaysian engineers by 2030.

He pointed out that the ministry has made STEM education as one of the key enablers for Malaysia’s reindustrialisation strategy because no country can position itself as a global leader in high-tech industries without a sufficient supply of STEM talent.

He said industries like semiconductors, electronics and green technologies are fast becoming critical drivers of global economic growth, with Malaysia already the sixth largest semiconductor exporter globally.

“However, the semiconductor industry and many other sectors we want to develop such as aerospace, medical devices, pharmaceutical and the digital economy, face a significant global challenge that is the talent crunch.

“Hence, the need to develop a sustainable skilled talent pipeline,” he added.

The minister also said Penang continues to attract high-value investments in semiconductors and related industries including being a major contributor to the national economy.

The blueprint was launched by Penang Chief Minister Chow Kon Yeow and handed over to Tengku Zafrul.

The key measurable targets for the STEM Talent Blueprint include doubling the number of STEM enrolment in secondary schools, university output for STEM, STEM-related Technical and Vocational Education and Training (TVET) output and girls in STEM education, alongside with doubling the number of high-value jobs.

In order to achieve this, the blueprint adopts a holistic framework model to build a robust STEM talent pipeline from primary to post-tertiary education.

Source: Bernama

Penang STEM talent blueprint will be incorporated into NSS – Tengku Zafrul

In a significant move to enhance regional energy cooperation, Malaysia and Indonesia have agreed to form a joint task force to boost renewable energy initiatives and advance the Asean Power Grid, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

The task force will explore the feasibility of a joint green industry between Malaysia’s Sarawak and Indonesia’s Kalimantan.

“The task force has been established to advance these initiatives. The group will begin its work on Monday (September 9) and is expected to finalise its findings within two weeks,” he told the Malaysian [ress.

The decision to establish a task force follows two bilateral meetings yesterday with Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, and Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia.

The task force will include representatives from the Energy Commission, Sarawak, and Tenaga Nasional Bhd, while Indonesia’s delegation will be led by a senior official at the Coordinating Ministry for Maritime Affairs and Investment.

It will deliver a comprehensive report to Fadillah and Luhut, addressing energy supply issues between the two countries with a particular focus on renewable energy.

Fadillah will consult with both the Malaysian government and the Sarawak state government on any proposals and the outcomes of their discussions related to the joint task force.

Currently, Sarawak supplies energy to West Kalimantan, and with ongoing hydropower developments in other parts of Kalimantan, the establishment of the task force is of significant importance for enhancing regional energy cooperation.

Meanwhile, Fadillah said his meetings with Luhut and Bahlil were highly productive, focusing on the collaborative development of the renewable energy sector and setting priorities.

“We aim to not only advance these initiatives at the bilateral level but also within Asean, ensuring the benefits extend beyond individual countries. The goal is to foster cooperation and mutual support among all Asean countries,” he said.

Regarding Malaysia’s energy transition, Fadillah highlighted the need for substantial investment to move from fossil fuels and coal to cleaner energy sources.

He also emphasised the importance of maintaining a stable energy supply and managing electricity costs while balancing environmental and economic impacts to prevent disrupting national progress.

“Fortunately, local banks are willing to fund these investments, reducing reliance on external aid and demonstrating a positive outlook for the transition,” Fadillah said.

Fadillah, accompanied by a delegation and Malaysia’s Ambassador to Indonesia Syed Md Hasrin Tengku Hussin, attended the 2024 Indonesia Sustainability Forum from September 5 to September 6.

Source: Bernama

Malaysia-Indonesia form task force to advance renewable energy, Asean Power Grid

Systech Bhd’s subsidiary SysAIU Sdn Bhd has inked a collaboration agreement with Pinetop Technology Venture Sdn Bhd to develop and operate AI-driven data centres.

The agreement spans an initial two-year term with the possibility of annual renewals. 

Pinetop is a Malaysian company specialising in the development and operation of AI data centres and IT software solutions.

SysAIU will oversee sourcing, installing, and maintaining the necessary infrastructure, while Pinetop will manage the daily operations of high-performance graphics processing units (GPUs) infrastructure.

Systech managing director Datuk Derrick Hooi said that the collaboration is a significant step forward in the strategic plan to expand into AI and data centre sectors. 

“We are poised to deliver provisioning state-of-the-art data centres that will meet the evolving needs of businesses in Malaysia and beyond. 

“This partnership not only reinforces our commitment to innovation but also positions us to capitalise on emerging opportunities in the digital economy,” he said.

Pinetop chief executive officer Eizaz Azhar said that the partnership with SysAIU marks a significant milestone in the journey to advance AI and data centre technologies in Malaysia. 

“By combining our deep expertise in AI-driven operation with SysAIU’s cutting-edge solutions and servicing of high-performance GPUs, we are confident that this collaboration will lead to the development of world-class data centres capable of meeting the evolving needs of the digital landscape,” he said.

Source: NST

Systech unit inks deal to to develop, operate AI-driven data centres

Malaysia expressed its commitment to empowering artificial intelligence (AI) technology through the National Artificial Intelligence Roadmap 2021-2025 and the implementation of the Digital Education Policy (DPD) at the 2024 Digital Learning Week held in Paris.

Education Minister Fadhlina Sidek, who is also the president of the Malaysian National Commission for the United Nations Educational, Scientific and Cultural Organisation (Unesco) (MNCU), said the potential of AI technology needs to be further explored to support educational goals without marginalising human values.

In a statement today, she shared Malaysian initiatives in actively implementing the Education Reforms, the 2027 School Curriculum and the new education development plan.

Fadhlina, who is leading the Malaysian delegation at the 2024 Digital Learning Week, held from September 2 to September 4, also participated in a round table discussion with other international education leaders.

She met with Unesco deputy director-general Xing Qu and discussed the agenda on education for all, the empowerment of Science and Technology and ethics in AI technology.

Fadhlina also expressed Malaysia’s desire to be on Unesco’s Executive Board for the term 2025 to 2029.

This is in line with Malaysia’s experience, commitment, image and good reputation as a member country that plays an active role in leading programmes implemented at the regional and global levels.

Xing also expressed his appreciation to Malaysia for the country’s continuous commitment to strengthening Unesco’s agenda.

Source: Bernama

Malaysia committed to empowering AI, digital learning

Malaysia’s rise as Southeast Asia’s fastest-growing data centre hub is poised to not only accelerate the digital economy but also play a crucial role in the country’s transition to renewable energy (RE).

According to Dr. Jasrul Jamani Jamian, an associate professor at Universiti Teknologi Malaysia’s Faculty of Electrical Engineering, the increasing presence of data centre operators in Malaysia is helping the government optimise the country’s existing electricity generation capacity. 

He added that this trend is expected to significantly contribute to the government’s goal of achieving 70 per cent RE generation capacity, or 56 gigawatts, by 2050.

From 2021 to 2023, Malaysia approved RM114.7 billion in investments for data centres and cloud services. Moody’s Ratings recently projected that the power demand for data centres in Malaysia will double to about 500 megawatts within the next two years.

“It’s high time for power generation using natural resources such as coal and gas, especially those that have been operational for 25 to 30 years, to be replaced with RE, which is more efficient and environmentally friendly,” Jasrul Jamani told Bernama.

He emphasised the importance of transitioning to RE as the country expands its electricity generation capacity, moving away from low-efficiency operations.

Dr. Jasrul noted that the government is already advancing in this direction, as demonstrated by initiatives like the ongoing Fifth Large-Scale Solar (LSS5) programme and the upcoming LSS6. 

Under the National Energy Transition Roadmap (NETR), the high penetration of RE will require significant energy storage capabilities to ensure stable RE dispatch.

He pointed out that developing a large-scale battery energy storage system (BESS) with cutting-edge technology is essential to support the increasing RE capacity. 

BESS will ensure an uninterrupted energy supply for data centre operations and help operators reduce electricity costs by storing energy during off-peak hours and using it during peak periods.

Thus, the expansion of data centres in Malaysia aligns with the nation’s efforts to transition from conventional to RE power generation, Dr. Jasrul said. 

He also said that the growing number of data centres in Malaysia will generate additional revenue for Tenaga Nasional Bhd (TNB), as the industry demands a high and continuous supply of electricity.

Dr. Jasrul assured that TNB’s system is highly stable and capable of meeting the needs of all consumers, including data centres, with a projected power reserve margin of 28 per cent to 36 per cent in Peninsular Malaysia from 2024 to 2030.

He said the misconception that TNB needs to build new power plants to accommodate the high electricity usage of data centres, clarifying that this is not the case. 

With surplus capacity and a high power reserve margin, the presence of data centres, in actual fact, represents a positive business opportunity for TNB, he said.

Source: NST

Malaysia’s rise as SEA’s fastest-growing data centre hub vital for shift to RE

The Kerian district is expected to emerge as a leading high-tech green technology hub in South-East Asia with the Kerian Integrated Green Technology Park (Kigip) project, says Datuk Seri Anwar Ibrahim.

The Prime Minister said Kigip is also one of the largest industrial projects in the country managed by bumiputra companies.

He said he is proud of the fact that both Permodalan Nasional Bhd (PNB) and SD Guthrie have shown their capabilities in implementing the mega project.

“The two main considerations that the government would prioritise in the implementation of the people-centric project would be the ecosystem and supply chain.

“With Kerian becoming the nation’s green technology hub, we do not want the people, especially those in Kerian, to be left out.

“Kigip is different in the sense that the funds are managed by the private sector to oversee investment and provide training to locals, especially those from the northern region,” he said in his speech at the groundbreaking ceremony of Kigip at Ladang Tali Ayer here yesterday.

Anwar maintained that priority must be given to the people of Kerian so that they are not marginalised from the country’s development.

He said the government played a role in providing basic facilities to help develop the ecosystem for the project, including highway access and water supply.

Source: The Star

From green fields to green tech hub

Malaysia appears to be taking pole position in securing investments in Asean’s semiconductor-chip race due to its established supply chain, talent pool, abundant land and energy, as well as affordable business costs, said Maybank Investment Bank Bhd (Maybank IB). 

It noted that approved investment commitments into Malaysia’s electrical and electronics (E&E) cluster nearly tripled in 2023 from the previous year.

“The momentum continued in the first quarter of 2024 (1Q2024), with investments soaring nearly 20-fold year-over-year to US$7.3 billion,” it said in a research note on Monday. 

According to the investment bank, both Malaysia and Vietnam have seen notable increases in their semiconductor export shares between 2015 and 2022, demonstrating the countries’ success in attracting chip-making investments. 

Maybank IB highlighted that Asean is the world’s largest semiconductor exporter, accounting for 23% of global chip exports in 2022, with Singapore (10.8%) and Malaysia (7.0%) being leaders in the region.

Malaysia’s edge lies in downstream assembly, testing and packaging (ATP), accounting for 7.0% of global ATP capacity, the largest in Asean.

Maybank IB noted that several trade-sensitive Asean economies, including Malaysia, are benefitting from an upturn in the global semiconductor and broader electronic cycle in 2024.

“Asean is benefitting from the diversification of global chipmakers’ supply chain beyond North Asia, amid intensifying United States tech sanctions on China, and rising tensions between China and Taiwan,” it said. 

The investment bank said the influx of semiconductor foreign direct investments would help drive manufacturing and export growth in Asean over the longer term.

Moving forward, Maybank IB expects Asean’s electronics sector’s recovery to strengthen and broaden over the second half of 2024 (2H2024) and in 2025.

The research bank said the rise in final electronics goods sales should fuel semiconductor demand, supporting Singapore and Malaysia’s exports. 

“Demand will broaden beyond advanced-node chips, given that smartphones depend on a wide range of memory chips and legacy chips for global positioning system (GPS), wi-fi, battery life and camera controls,” it said. 

It noted that Malaysia unveiled a National Semiconductor Strategy (NSS) in May 2024, backed by US$5.3 billion (RM25 billion) in fiscal support and targeted incentives.

The NSS will be implemented in three phases, with the aim to court RM500 billion of domestic direct investment and foreign direct investment in phase 1; establish at least 10 homegrown companies in design and advanced packaging with at least RM1 billion of revenues in phase 2; and develop a global research and development hub for semiconductors in phase 3.

Source: Bernama

Malaysia taking the lead in Asean’s semiconductor chip race investments — Maybank IB

Open DC Sdn Bhd’s data centre in the Delapan Special Border Economic Zone (Delapan SBEZ), Kedah, is set to be operational by early 2025, said founder and managing director Weng Yew Wong.

He said the next-generation facility is designed to meet the increasing demands of artificial intelligence (AI) and power-intensive workloads while maintaining a strong commitment to sustainability.

“Data centres will continue to support AI-technology development by improving computing power, optimising energy consumption, and enhancing security and data management capabilities,” Weng said in an exclusive interview with SunBiz.

He said that although specific AI integration plans are yet to be publicly detailed, the company anticipates leveraging AI to optimise cooling, enhance power usage effectiveness and better integrate renewable energy. “We anticipate AI integration will lead to smart cooling systems, energy-efficient optimisation, resource management, and automated energy management.”

In scaling sustainability, he highlighted that the growing demand for AI data centres requires high power and water consumption.

“To address this, the company is scaling its infrastructure with sustainability as a guiding principle. Data centres are actively minimising their environmental impact and promoting sustainability through energy efficiency, renewable energy sources, and advanced cooling systems,” Weng said.

He added that these efforts are aimed at balancing the need for increased capacity with a commitment to environmental responsibility.

Weng said addressing power and cooling issues is critical to successfully operating graphics processing units.

“To manage the increased power consumption from AI workloads, the company is implementing advanced cooling technologies, including direct-to-chip liquid cooling and indirect evaporative cooling. Innovative technologies like liquid cooling are transforming how data centres operate, significantly lowering energy usage,” he noted.

In reducing carbon footprints, he said, Open DC is committed to sustainability and has implemented several measures to minimise impact on the environment.

“By sourcing at least 80% of our energy requirements from renewable sources, the company aims to significantly reduce its carbon footprint. Our carbon emission reduction plan will be realised through the implementation of cutting-edge energy-efficient technologies,” Weng said, underscoring the importance of smart cooling systems and efficient infrastructure in achieving these goals.

He said the development of Open DC’s data centre in Delapan SBEZ will have a significant impact on the economy, as it will attract a large amount of national and international investment.

Open DC aims to leverage Malaysia’s position as a strategic hub in Southeast Asia and connectivity to solidify the company’s role as a key player in the regional digital infrastructure landscape.

“We see the role of the company in attracting regional players to put their workload and content in Malaysia to fulfil their regional traffic distribution objectives,” Weng said.

The partnership with DE-CIX Malaysia, an operator of carrier and data centre-neutral internet exchanges, underlines Open DC’s commitment to enhancing connectivity and developing robust digital infrastructure, he said. “Our ambition is to become the market leader in the creation of digital ecosystems centering on our strategically located data centres.”

Open DC, a wholly owned subsidiary of Extreme Broadband Sdn Bhd, currently operates four data centres – one each in Cyberjaya and Penang, and two in Johor.

Source: The Sun

AI and sustainability at core of Open DC’s next-gen data centre in Delapan SBEZ

MALAYSIA’S status as South-East Asia’s fastest-growing data centre hub will not only spur the growth of the digital economy but also be a catalyst in the nation’s transition towards renewable energy (RE). 

Universiti Teknologi Malaysia (UTM) Electrical Engineering Faculty Assoc Prof Dr Jasrul Jamani Jamian said the inflow of data centre players to Malaysia helps the government in optimising the country’s existing electricity generation capacity. 

At the same time, he said, it will be a driver in realising the government’s efforts towards an RE generation capacity target of 70% or 56 gigawatts in the energy sector by 2050. 

From 2021 to 2023, Malaysia approved investments worth RM114.7 billion in data centres and cloud services. 

It was also reported recently that Moody’s Ratings projected the power requirement for data centres in Malaysia to double to about 500 megawatts in the next two years. 

“It is high time for power generation using hydrocarbon such as coal and gas, especially those that have been operational for 25 to 30 years, to be replaced with RE, which is more efficient and environmentally friendly,” Jasrul Jamani told Bernama. 

He said in expanding electricity generation, there is a significant need to transition towards RE from low-efficiency operations. 

“The government is actually already moving in that direction, such as through the implementation of the Fifth Large-Scale Solar (LSS5) programme currently and the upcoming LSS6,” he said.

He noted that under the National Energy Transition Roadmap, with the high RE penetration, the country will require a large energy storage capability to ensure a stable RE dispatch.The development of a large-scale battery energy storage system (BESS) using state-of-the-art technology is in line with the rise in RE capacity.

BESS, he said, will ensure that there will be no energy supply disruption affecting data centre operations. 

Jasrul Jamani said BESS will also help data centre operators in reducing electricity bill cost by storing energy outside peak hours and using it during peak hours. 

“Therefore, the development of data centres in Malaysia is in tandem with national efforts to transition from conventional power generation to RE generation,” he said. 

He added that the setting up of more data centres in Malaysia will bring revenue gains for Tenaga Nasional Bhd (TNB) as the data centre industry requires a high and continuous supply of electricity. 

TNB’s system has an excellent stability and capability level for meeting the needs of all consumers, including data centres, based on its projected power reserve margin of 28% to 36% in Peninsular Malaysia from 2024 to 2030. 

“Some people may have the notion that TNB should build a new power plant given that there will be a lot of data centres using a high amount of electricity. That is not the case. 

“As we have surplus capacity and a high-power reserve margin, the presence of data centres actually translates into good business for TNB,” he said. 

Jasrul Jamani added that there is no issue about reliability or grid stability being affected due to the data centre development, as the utility firm has the capacity to support the high demand from data centres.

Source: Bernama

Data centre growth supports Malaysia’s transition to RE

India’s Eros Investment Group will invest US$1 billion via Immerso AI-IP to build an artificial intelligence (AI) film city in Malaysia, said Digital Minister Gobind Singh Deo.

In a statement today, the minister said both ventures will potentially create 5,000 jobs over the next five years.

Gobind’s recent trip to New Delhi included a meeting with Immerso AI-IP chief executive officer Ali Hussein.

Immerso AI-IP is a part of Eros Investments Group.

“I was informed that the Immerso AI Park will encompass an AI university and an AI data centre. It will drive global collaborations to support startups.”The AI movie studio and film city hub will enhance talent skills in transmedia and digital productions in Malaysia,” he added.

Gobind said the ventures will also identify opportunities to incorporate Malaysian content into the companies’ existing and new intellectual properties (IPs).

Additionally, under a memorandum of understanding (MoU) between Malaysia Digital Economy Corporation (MDEC) and Nasscom, local talents will receive training in crucial digital fields such as Generative Artificial Intelligence (AI), cybersecurity, software development, and Next Gen technologies.

Investments in Malaysia’s digital content sector rose significantly to RM1.6 billion last year, up from RM550 million in 2022, via MDEC’s Malaysia Digital initiative.

Source: NST

Eros Investments to build Malaysia’s first AI film city with US$1b

Sarawak aspires to achieve a 10-gigawatt renewable energy mix by 2030 amid its shift to a green economy that heavily depends on sustainable energy, said the Premier.

Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak is actively exploring innovative methods to harness energy through hydropower potential, solar, biomass, sustainable fuels, and hydrogen.

“These efforts create a dynamic landscape for investors interested in sustainable and renewable energy solutions,” he said in his keynote address at the Asean Business Forum 2024 in Sydney, Australia today.

“Moreover, renewable energy has emerged as a significant draw for investors who are committed to reducing their carbon footprint and contributing to a greener future.”

Abang Johari pointed out that Sarawak is leading the way in the hydrogen economy within Asean alongside the state’s goals for renewable energy.

“Our efforts in hydrogen show how dedicated we are to innovation and our dream of being a global leader in clean energy. Sarawak is a key player to Malaysia’s National Energy Transition Roadmap, developing a green hydrogen hub.

“This is possible due to our vast hydropower potential. This new and exciting economy opens up numerous opportunities for investment, from developing new technology like electrolysers and fuel cells to building energy storage systems and integrating use in the transport sectors,” he said.

He shared that during his recent address at the H2Poland Forum in Poznan, he had emphasised the critical importance of global collaboration, effective policies, and relentless innovation in building a sustainable future.

The Premier said he had also highlighted how green bonds and international financing were essential for speeding up the adoption of advanced climate technologies, showing that these financial tools were key to making Sarawak’s sustainable ambitions a reality.

Sarawak is not just pursuing sustainable energy and a green economy but also committed to achieving net zero emissions, he said.

“We are making strong efforts to decarbonise high-emitting sectors, ensuring that our economic growth aligns with our responsibility to the environment.

“By investing in green hydrogen and clean energy, we are moving beyond traditional industries like oil, gas, and timber. My goal is clear – to boost economic productivity while reducing emissions,” he said.

By embracing innovation and clean energy, he said Sarawak is working to build a future that grows responsibly and serves as a model for others to follow.

He added that Sarawak is making significant strides in Southeast Asia when it comes to Carbon Capture, Utilisation, and Storage (CCUS) technology.

“We were also the first in Malaysia to pass laws that support CCUS and other carbon-related activities. This demonstrates our strong commitment to achieving our net zero emissions goal and sets a benchmark for others to follow,” he said.

In addition, Abang Johari said Sarawak aims to have solar energy make up 12 per cent of its total capacity mix by 2030.

He said this will not only help the state reduce its carbon footprint but also contribute to a more sustainable and environmentally friendly energy sector.

“Our hydropower provides clean, reliable energy, supporting local industries and enabling us to export surplus power. Since 2010, we’ve reduced our grid emissions by 73 per cent, showcasing our dedication to achieving net zero and advancing green economy,” he added.

He said he is committed to reshaping Sarawak’s energy sector and driving economic growth, and this progress had earned Sarawak recognition as a high-income state by the World Bank.

“I am thrilled to share that the World Bank has officially classified Sarawak as a high-income economy, with a Gross National Income (GNI) per capita approximately US$18,000 (RM77,742),” he said.

From groundbreaking advances in CCUS to ambitious goals for renewable energy and major reductions in emissions, Abang Johari said Sarawak is at the forefront of the regional green transition.

He said the transition is essential for Sarawak to achieve its net zero goal.

“As we move ahead, we need to decouple our economic growth from environmental impacts, while ensuring that the growth is inclusive and distributed.

“We cannot do this alone. I invite all of you to strengthen the Australia-Asean partnership with us in innovation and economic collaboration. Let us continue to innovate, collaborate, and strive towards a more sustainable and prosperous future for Sarawak, Asean, and beyond,” he added.

Source: Borneo Post

Abg Jo: Sarawak wants 10-gigawatt renewable energy mix by 2030

The shift to green energy is supercharging the demand for critical minerals and Malaysians stand to benefit from it, according to an analysis released today by global real estate technology group Juwai IQI.

Its co-founder and group CEO Kashif Ansari said the green transition is an opportunity to build a stronger Malaysian economy as the country has rich reserves of critical minerals.

Combined with its strategic location, industrial strength and position, it can take advantage of this demand, Kashif said in a statement today.

“Malaysia’s reserves of ‘rare earth elements’ can create more highpaying jobs and export income. Companies around the world are eager to find new suppliers,” he said.

Kashif said Malaysia has RM4.1 trillion of mineral resources, including RM745 billion worth of rare earths; Malaysia’s estimated metallic minerals alone is RM1 trillion.

“By expanding its role in processing and manufacturing these minerals, Malaysia can create new jobs, drive economic growth, and ensure the country remains competitive globally. Government initiatives like the New Industrial Master Plan 2030 are helping to turn this into reality,” he added.

Nevertheless, Kashif noted that becoming a larger exporter of critical minerals also has risks. This includes environmental damage if the industry is not managed sustainability.

With smart investments and a focus on sustainability, Juwai IQI said Malaysia has the potential to help lead the global green energy revolution to create a brighter, wealthier future for its people.

Kashif said the critical minerals boom will have a significant impact on Malaysia’s real estate market, increasing demand for industrial space and land where mineral reserves are present, driving new residential and commercial development, and helping push up property demand and house values.

The increased need for industrial space is the most direct real estate impact, he said.

“The new mining and processing investment will also spur residential and commercial real estate development in key regions. We especially expect this in Pahang, Perak, and Kedah, because
they have rich deposits of critical minerals,” said Kashif.

Source: Bernama

Malaysia To Benefit From Green Energy Shift — Juwai IQI

The Ministry of Investment, Trade, and Industry (Miti) is collaborating with the Ministry of Higher Education (MOHE) to ensure a ready skilled workforce to support the nation’s adoption of artificial intelligence (AI).

Minister Tengku Datuk Seri Zafrul Abdul Aziz said that both ministries have presented a talent development proposal to the Ministry of Finance (MOF) for inclusion in the upcoming Budget 2025.

“I have discussed with the Minister of Higher Education on the importance of preparing the industry with AI-ready talent. This will ensure that when the industry adopts AI, the necessary workforce is available to join these companies,” Tengku Zafrul told the media after officiating the AI Conference 2024 here on Tuesday.

Earlier in his speech, Tengku Zafrul emphasised that the government’s goals under the New Industrial Master Plan 2030 are to leverage digitalisation to create high-value jobs, enhance productivity, and foster sustainable growth.

“By aiming to create 3,000 smart factories, we will ensure manufacturers are well-equipped to adopt and integrate AI and digital technology into their operations,” he noted.

Under the National Artificial Intelligence Roadmap launched in May this year, Malaysia aims to become a global AI leader by 2030 by advancing AI research and innovation, nurturing a vibrant AI ecosystem, and promoting responsible AI usage, Tengku Zafrul said.

As AI presents both unprecedented opportunities and unexpected challenges, Tengku Zafrul highlighted that Miti, alongside the Malaysia Productivity Corporation (MPC) and other key ministries, agencies and stakeholders, must play an active role in positioning Malaysia at the forefront of the global AI revolution.

Tengku Zafrul also noted that Malaysia’s AI ambitions are closely tied to the success of the electrical and electronics (E&E) industry, which in 2023 produced 13% of global back-end semiconductors, driving 40% of exports and contributing 5.8% to the country’s gross domestic product.

As of July 2024, 40% of Malaysia’s exports, worth RM51.78 billion, were E&E products, with semiconductors being a major part. As a result, Malaysia is now the sixth-largest semiconductor exporter globally.

Source: The Edge Malaysia

Zafrul: MITI partners MOHE on AI talent development, presents proposal to MOF for Budget 2025

Artificial intelligence-ready talent is crucial for industries and Malaysia’s economic future, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz

He said the ministry (Miti) has already discussed this issue with the Ministry of Higher Education.

“We are collaborating to ensure that the talent pipeline, starting from universities, is well-trained in AI. This will ensure that as industries adopt AI, they will have skilled professionals ready to join their companies,” he told reporters at the AI Conference 2024 today.

Tengku Zafrul said Miti is actively working on this initiative and plans to present its ideas to the finance minister, particularly for the upcoming budget, to support AI development and adoption in the country.

“The AI incentives mentioned are crucial for fostering talent. Under the National Industrial Master Plan (NIMP 2030), there are initiatives aimed at enhancing tech adoption, with a target of reaching 3,000 companies.

“These companies need to be AI-ready, and support is essential, especially for local small and medium enterprises, to adopt the latest technologies, including AI. This forms part of the broader plan.”

Separately, Tengku Zafrul highlighted the pivotal role of semiconductors in supporting Malaysia’s reindustrialisation under NIMP 2030 and the digital economy.

He noted that, as of July 2024, almost 40% of Malaysia’s exports, amounting to RM51.78 billion, were from the electrical and electronics (E&E) sector, largely due to semiconductors.

“Malaysia’s E&E industry produces 13% of the world’s back-end semiconductors, driving 40% of the country’s export output and contributing approximately 5.8% to the GDP in 2023,” he said in his speech.

AI Conference 2024, themed ‘AI Driving the National Economy: Opportunities & Challenges’, was held at Brickfields Asia College. The event brought together industry leaders, government officials and AI experts to discuss the transformative impact of artificial intelligence on Malaysia’s economy and productivity.

Malaysia Productivity Corporation director-general Zahid Ismail highlighted the significant productivity gains driven by AI, noting a 2.05% year-on-year increase in productivity as of March.

“Sectors more exposed to AI are experiencing nearly five times greater labour productivity growth. Despite Malaysia slipping in the World Competitiveness Ranking to 34th place, recent improvements in trade, with a 10% increase as of May 2024, demonstrate the country’s resilience and potential for recovery,” he said.

Zahid stressed that AI-driven growth is key to enhancing national productivity and economic strength.

Source: The Sun

AI-ready workforce crucial for Malaysia’s economic future, says Tengku Zafrul

Sarawak is making significant strides in sustainable forest management and renewable energy, positioning itself as a leader in environmental stewardship, says Deputy Premier Datuk Awang Tengah Ali Hassan.

Speaking at the Asia-Pacific Regional Conference on Forest Landscape Restoration, Awang Tengah said that Sarawak’s titles of “Asean Battery” and “Green Energy Hub” were not just rhetoric. 

“Sarawak has the necessary resources and is actively working towards realising these visions.

“Our unwavering commitment to sustainability is clearly reflected in our comprehensive green economy initiatives,” he said.

Sarawak is at the forefront of Malaysia’s transition to a low-carbon economy, pioneering efforts in Sustainable Aviation Fuel (SAF) production and exploring advanced carbon capture, utilisation, and storage (CCUS) technologies. 

“By embracing these innovative solutions, Sarawak is not only mitigating climate change impacts but also creating new industries and high-quality jobs,” he added.

Awang Tengah, who is also Sarawak’s Second Minister for Natural Resources and Urban Development, said the state had shown its dedication on sustainable development, prioritising environmental, social, and governance (ESG) principles. 

This commitment is central to Sarawak’s goal of becoming a developed region by 2030.

Regarding forest conservation, Awang Tengah stressed on Sarawak’s dedication in protecting its 130-million-year-old rainforest which is rich in biodiversity. 

Under the Sarawak Land Use Policy, 7 million hectares of forest are allocated for sustainable forestry and conservation purposes.

Despite the challenges posed by climate change and deforestation, Sarawak is committed to sustainable forest management (SFM) and has implemented best practices in this area. 

“SFM is crucial for balancing economic, social, and environmental well-being, enhancing local livelihoods, creating employment, and safeguarding the environment,” he said.

To ensure adherence to international sustainability standards, Sarawak has mandated that all long-term forest timber licences obtain Forest Management Certification (FMC). 

To date, 26 Forest Management Units (FMUs) and eight Forest Plantation Management Units (FPMUs), covering 2.38 million hectares and 122,800 hectares respectively, have been certified.

Awang Tengah also highlighted Sarawak’s leadership in the Greening Malaysia Campaign, a national initiative aiming to plant 100 million trees by 2025. 

Sarawak set a goal to plant 35 million trees by 2025 and achieved this target a year ahead of schedule. 

“This achievement is a testament to Sarawak’s commitment to environmental stewardship,” he said.

Source: NST

Sarawak leads green revolution with bold environmental initiatives

Sarawak’s pumped hydro energy storage (PHES) potential is high and could potentially contribute to the focus on renewables and green solutions for the state, said Dato Sri Julaihi Narawi.

The Minister for Utility and Telecommunication said two potential sites have been identified for proof-of-concept studies, and a successful first model will assist in identifying more sites.

“One of the facilities is envisioned to be developed between our Bakun and Murum hydroelectric plants. The other facility will be built in the Padawan area of Kuching,” he said in a statement yesterday.

Julaihi, who is currently leading a Sarawak delegation to Australia, believes the potential application of PHES in the state, once proven to be feasible, ‘is large’.

The delegation is in Australia to study the country’s energy transition and sustainable development journey, specifically its experience with PHES.

“Even beyond PHES, Sarawak and Australia can learn from one another with potential areas of collaboration and partnership driving the energy transition in the respective regions.

“Sarawak will potentially apply these relevant aspects to the state’s own energy transition policy and plan with the support ofP4I,” he said, following a meeting with Australia’s Department of Foreign Affairs and Trade and Partnerships for Infrastructure (P4I) in Australia.

With the support of Sarawak Energy Berhad (SEB) as the implementing agency, the Ministry of Utility and Telecommunication has been driving the shift to renewables with an emphasis on renewable hydropower development, he added.

Julaihi informed the delegation host that Sarawak had first embarked on its energy transition programme with the launch of the Sarawak Corridor of Renewable Energy (SCORE) in 2008, harnessing the state’s hydropower potential to power Sarawak’s growth and development.

“In 2021, Sarawak also launched the Post Covid-19 Development Strategy (PCDS) 2030, which has identified renewable energy as a key enabler for Sarawak’s transformation into a high-income society by 2030. Under PCDS, Sarawak is also exploring various renewable energy resources or technologies available.

“To progress, we have been tasked with achieving 10 gigawatts by 2030, from 5,745 megawatts of energy as of December 2023,” he said.

The Sarawak government is confident that it will achieve the goal by continuing to advance sustainability and renewable strategies, including leveraging resources such as solar, biomass, and hydropower, with the latter being the foundation of the state’s energy transition.

Among those present were SEB chief operating officer James Ung and Australian National University Prof Andrew Blakers.

Source: Borneo Post

S’wak’s PHES potential high, could boost renewable focus, says Julaihi

Based on projected advancements in energy transition technology, Malaysia needs 62,000 skilled workers to achieve the goal of generating up to 70% or 56 gigawatts of renewable energy by 2050, said Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof.

He said that this is a continuous process and new competent workers for the energy sector will be produced each year.

“The deputy minister will be tasked with focusing on these training programmes. They will go to every corner, especially in the peninsula, to attract more young people to get involved in these fields (gas and energy),” Fadillah told reporters at after the launch of TVET Competent EC – Energy Transition Catalyst today.

He said that achieving the goals of the Net Energy Transition Roadmap requires not only investors but also skilled workers to implement the energy transition goal effectively.

“If we don’t have knowledgeable and skilled workers in these technical fields, we will not be able to achieve this, including the wireman installing solar panels on rooftops, the chargeman for installing cables, and so on. We need skilled workers,” he said.

Fadillah said that unlike the construction sector, where he was previously involved in, specialised fields such as energy and gas offer higher salaries due to the need for specific expertise.

“TVET, especially in the energy and gas fields, is specialised, and because it is specialised, their salaries are better than in other sectors. They can’t get a job if they are not competent. This is different from a general plumber.

He added, “The demand in the market is quite high.”

A memorandum of understanding between the Energy Commission and the Energy Commission of Sabah (ECoS) was signed during the event, aiming to harmonise governance and regulation concerning competencies, electrical equipment and gas between the federal and state governments.

“In Malaysia, we have three energy authorities: the Energy Commission in Peninsular Malaysia, ECoS and Sarawak Energy Sdn Bhd.

“We want to ensure there is cooperation between the federal level in Peninsular Malaysia and Sabah and Sarawak so that it can be harmonised. It’s not just about standardisation, but the whole competency process should be unified; it shouldn’t be different in Sarawak, Sabah and Peninsular Malaysia,” he said.

The Energy Commission organised the TVET Competent ST event as part of its initiative to strengthen technical and vocational education and training programmes in the country, particularly activities related to electrical and gas pipeline competencies.

As of August, a total of 140 institutions across Malaysia have been accredited to conduct electrical and gas pipeline competency courses.

The event also aims to build professional relationships between regulatory agencies and institutions, and to reinforce the platform for continuous education in line with green technology advancements and government directions.

Source: The Sun

Fadillah: 62,000 skilled workers needed to achieve renewable energy generation goal

Seventeen more data centres will be operational in Selangor by next year, with a development cost of RM52 billion, said state executive councillor for Islam and innovation Dr Fahmi Ngah.

He said many firms are looking to invest in the industry as nearly the whole state is covered by the 5G network, improving ease of business.

“This figure (17 data centres) is a new application and we will complete it. This will not include the data centre developed by Google at Elmina Business Park, worth over RM9 billion.

“We have an extensive 5G network, which increases investor confidence. Many businesses deal in the digital world and we must utilise it,” he said during the Sembang Santai programme organised by the Malaysian Digital Economy Corporation (MDEC) here today.

He said he expects 100 per cent 5G network coverage in the state next year, in line with Selangor’s status as the nation’s largest economic contributor.

“This is essential infrastructure. We must provide various facilities to contribute to and drive the economy,” he added.

Last year, the Selangor State Development Corporation signed a memorandum of understanding with Singapore firm RDA Ventures Pte Ltd to build three data centres in Cyberjaya.

With stakeholders including MDEC and the Malaysian Investment Development Authority, the data centres will create jobs in the fields of electronics, computer science, statistics and administration.

Previously, state executive councillor for investment, trade and mobility Ng Sze Han said various parties are interested in Selangor, which hosts 18 data centres, but the state must look into aspects such as energy supply.

Source: Selangor Journal

Backed by extensive 5G network, Selangor to build 17 more data centres

The collaboration between Nvidia Corporation and YTL Power International can strengthen the artificial intelligence (AI) infrastructure and ensure that AI technology in Malaysia is in line with the needs and cultural values ​​of the country, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said through a post on social media platform X that this collaboration could open up opportunities to develop a large language model in Bahasa Melayu and bring the fastest supercomputer to Malaysia, which will be located at the YTL Green Data Center Park, Johor, which is generated by solar energy.

“With its hi-tech AI infrastructure, Malaysia is on the right track to become a regional AI hub,” he said.

This effort is in line with the country’s aspirations under the New Industrial Master Plan 2030 (NIMP 2030) to become a ‘cloud-first’ country, strengthening the local AI ecosystem.

Initiatives like this will harness innovation, create opportunities for local talents in the technology sector, as well as attract more international investments and expertise, thus strengthening Malaysia’s position on the global stage in the field of AI.

Source: Bernama

Nvidia-YTL tie-up to boost Malaysia’s AI infrastructure – Tengku Zafrul

The latest investments by Amazon Web Services (AWS) underscore that Malaysia has much to offer to foreign businesses that go beyond tax incentives, said an economist.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said its strategic location, infrastructure, talent pool, and pro-business policies are among its key attractions.

This has resulted in the government not having to rely too much on tax incentives to attract foreign investors and businesses.

“Having said that, the type of the incoming investments have to be well diversified. In the best possible way, the government has to avoid over-concentration in sectors because this leaves the country vulnerable to a sudden change in the investment waves,” he told Bernama.

Yesterday, AWS announced a US$6.2 billion (RM29.2 billion) investment in Malaysia as part of its long-term commitment through to 2038.

This investment accompanies the launch of its AWS Asia Pacific (Malaysia) Region, providing developers, start-ups, entrepreneurs, and enterprises in Malaysia with greater options to run applications and serve end users from local AWS data centres.

The construction and operation of the new AWS Region is estimated to add approximately US$12.1 billion (RM57.3 billion) to Malaysia’s gross domestic product and will support an annual average of more than 3,500 full-time jobs through to 2038.

Today, Prime Minister Datuk Seri Anwar Ibrahim said that as part of this new relationship, AWS has signed a cloud framework agreement with the government to boost cloud adoption within the public sector.

Afzanizam added that the proliferation of data centres suggested that Malaysia could create a niche technology space and the country has already established its footprint in the semiconductor industries.

“There has been a move to uplift skillsets by promoting integrated circuit design. On that note, Malaysia has the potential to be Asia’s data centre hub, given its land mass and infrastructures,” he said.

Meanwhile, Malaysian University of Science and Technology’s economics professor Geoffrey Williams said Malaysia has the space to host more data centres; the real issue is to ensure there were spillovers to the local economy.

“Data centres are largely automated and will not create many long-term jobs. The profits will be repatriated by the foreign owners so the benefits may not stay here,” he said.

On concerns about data centres’ high usage of water and electricity, which are cheaply available in Malaysia, Afzanizam said this should be viewed from a holistic approach with the country’s green economy transition.

“This means rationalising electricity subsidies and promoting renewable energy. Perhaps, carbon trading and carbon tax are policy options that can be leveraged to have a win-win solution.

“I am sure data centre operators are well aware of this development,” he said, adding that there is common ground between the government and data centre operators.

Similarly, Williams said recent the foreign direct investment inflows have been mainly in the technology sector and these require specific resources.

The National Energy Transition Roadmap will raise renewable energy generation and because renewable energy is cheaper, this will help foreign companies to use low-carbon electricity which they cannot get at home.

“So they may be environmentally sustainable if they use renewable energy but this will put pressure on local resources which could raise costs for local communities. In that sense, they may not be socially sustainable,” he said.

Source: Bernama

Amazon Web Services investment underscores Malaysia’s many attractive offerings

The long-term investment made by Amazon Web Services (AWS), a subsidiary of Amazon.com Inc, shows investors’ confidence in the stability and policy of the MADANI Economy, said Prime Minister Datuk Seri Anwar Ibrahim

Anwar, via his X social media account, welcomed AWS to Malaysia and said “we are excited about the potential of this new investment and the potential for innovation resulting from tech transfer and learnings.”

Yesterday, AWS announced that it has launched the AWS Asia Pacific (Malaysia) Region with plans to invest about US$6.2 billion (about RM29.2 billion) in Malaysia through 2038.

The company said developers, startups, entrepreneurs and enterprises, as well as government, education, and non-profit organisations, will have greater choices for running their applications and serving end users from AWS data centres located in Malaysia.

Anwar, who is also the finance minister, said AWS’s investment is among the largest investments made by global technology companies in Malaysia.

“This follows a number of other recent investments announced since December 2023 by global technology leaders such as NVIDIA, Google, Microsoft, Infineon and many more. These investments recognise the achievements made by the MADANI government to create and curate an attractive, open and transparent investment environment,“ he added.

Furthermore, Anwar said as part of this new relationship, AWS has signed a Cloud Framework Agreement with the government to boost cloud adoption within the public sector.

Through the announcement by AWS, he said the global cloud technology company would invest to build physical data centres in Malaysia as the country becomes one of Amazon’s trusted 34 launched regions across its global infrastructure map.

“Over 3,500 Malaysian jobs will be directly created from these new data centres. These jobs, including construction, facility, maintenance, engineering, telecommunications and others within our broader economy, will be part of the high value AWS supply chain,“ he added.

Source: Bernama

AWS investment in Malaysia shows confidence in MADANI Economy – PM Anwar