Telekom Malaysia Bhd (TM) and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, held a groundbreaking ceremony today for their 64MW state-of-the-art, sustainable, hyper-connected, artificial intelligence-ready data centre campus in Iskandar Puteri, Johor

The groundbreaking comes one month after the announcement for a joint venture to develop data centres in Malaysia and uplift Johor’s digital hub status.

Digital Minister Gobind Singh Deo said, “This investment by TM and Nxera reinforces Malaysia’s position as the digital hub in Southeast Asia, further advancing the nation’s economic growth. Based on advance estimates, Malaysia’s economy expanded 5.8% in the second quarter of 2024, and such investments are in line with projections that Malaysia’s digital economy will contribute 25.5% to the nation’s GDP by the end of the year.

“The relationship between TM and Nxera expands to Malaysia and Singapore, with both nations being a good case study of a productive working partnership between two Asean member states.”

Johor Menteri Besar Datuk Onn Hafiz Ghazi said TM-Nxera’s upcoming data centre campus, located in Iskandar Puteri, holds particular significance as one of the Johor Singapore Special Economic Zone’s first investment projects.

This data centre campus, he added, will serve as a catalyst for economic growth and enable businesses to harness the power of cloud computing and AI.

“We hope this will set the stage to shape a vibrant business ecosystem where more high-tech and high-value content companies will be attracted to locate their operations within the special economic zone and give a further boost to Johor’s digital economy, said Onn Hafiz.

TM Group CEO Amar Huzaimi Md Deris said the facility exemplifies their commitment to fostering industry growth, driving innovation, and enhancing socio-economic development. “With support from the Federal Government, and Johor state agencies and authorities, we are confident that this AI-ready data centre will equip businesses with unparalleled computing power, AI capabilities, and other cutting-edge technologies.”

Meanwhile, Nxera and Singtel’s Digital InfraCo unit CEO Bill Chang said that as one of the largest investments in the Johor-Singapore Special Economic Zone, this state-of-the-art data centre campus is an integral part of their mission to empower digital economies and communities in the region while ensuring energy and water resources are deployed responsibly and efficiently.

Scheduled to begin commercial operations in 2026, the cloud-enabled Tier 3 data centre campus will use liquid cooling to handle higher power density AI workloads. The facility will be designed, built and certified to Leadership in Energy and Environmental Design standards, incorporating energy and water-efficient solutions to optimise the use of resources.

Source: The Sun

TM, Singtel’s Nxera break ground for state-of-the-art, AI-ready data centre campus in Johor

Two energy companies from China have expressed their intention to invest more than US$10 billion (RM46.5 billion) in the development of green energy resources in Sarawak.

A Sarawak Public Communications Unit (Ukas) report said Shanghai Electric Malaysia and China Three Gorges International Limited first established their presence in Sarawak 10 years ago.

Shanghai Electric Malaysia director Zhang Xiaohui said the experience and success in working with companies in Sarawak have given them the confidence to increase their investment.

“At this point we believe that under the leadership of the Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak will become a green energy hub one day, so we would like to extend our support.

“Therefore, we from China Three Gorges and Shanghai Electric want to participate in this green energy development and we plan to invest more than RM10 billion in Sarawak,” he told reporters after paying a courtesy call on the Premier here today (July 24).

Also present were Shanghai Electric Power T&D (M) Sdn Bhd president Shao Jian Ming and vice president Yang Xing Hai, as well as Shanghai Electric Malaysia chairman Chen Ping.

Separately, Abang Johari also received a courtesy call from Mubadala Energy Malaysia led by president Khalfan Al Mansoori and head of external relations and communications Varian Ignatius.

Mubadala Energy is an international energy company headquartered in Abu Dhabi.

Also present during both meetings was Utility and Telecommunication Minister Dato Sri Julaihi Narawi.

Source: Borneo Post

China energy companies keen to invest over US$10 bln in Sarawak’s green energy resources

The Johor-Singapore Special Economic Zone (JSSEZ) and the surge in data centre developments will remain key areas of focus for the real estate sector in the second half of 2024 (2H 2024).

According to Maybank Investment Bank (Maybank IB), the JSSEZ will drive demand for residential, commercial, and industrial properties, with the growing population requiring more housing.

It noted that the JSSEZ is expected to encompass the entire Iskandar Malaysia (IM) rather than being limited to a single area within the region. This area is likely to include Johor Bahru, Iskandar Puteri, Pasir Gudang, Kulai (including Sedenak), Pengerang, and Pontian.

While covering a larger area may dilute the positive impact on individual developers, it will promote more balanced growth across the various regions of IM, the investment bank said.

The JSSEZ agreement is anticipated to be signed in September, with investment and tax incentives to be announced during Budget 2025.

“In our view, the biggest beneficiaries of JSSEZ are the unlisted government-owned developers and listed plantation groups like Johor Land Berhad (Jland) and Iskandar Investment Bhd (IIB),” the investment bank said.

JLand is the property arm of Johor Corporation, which in turn is a Johor state principal development institution. Its flagship project includes the 7,290-acre Ibrahim Technopolis (IBTEC) in Sedenak. 

The later stage of IBTEC will include residential and commercial properties, in addition to industrial properties. JLand’s other projects include the 180-acre Arena Larkin urban regeneration project.

IIB, owned by Khazanah Nasional Bhd, the Employees Provident Fund and Kumpulan Prasarana Rakyat Johor, has 5,000 to 6,000 acres of land in Iskandar Puter.

Maybank IB said that from a previous meeting with IIB, it understands that the company is looking to launch its maiden residential project, namely WAWARI, comprising 248 units of townhouses, commercial hubs, and apartments in Iskandar Puteri by 4Q 2024. 

“In the past, IIB and Johor Corporation (via Jland) mostly focused on land sales. However, we expect them to be more involved in property development going forward (instead of outright land sale) amid an improved outlook for Johor’s property market due to the JSSEZ, the Johor-Singapore Rapid Transit (RTS) and Autonomous Rapid Transit (ART) system,” it said.

The investment Bank said that listed plantation groups with sizeable landbanks in IM like SD Guthrie (SDG), KL Kepong (KLK), Johor Plantations, and Genting Plantations (GenP) would also benefit from the JSSEZ due to demand for development land by developers or data centre players. SDG, KLK, Johor Plantations, and GenP are the top four largest landowners in Kulai district.

SDG has recently made known its intention to develop green industrial parks, supported by large-scale solar, on its own or with JV partner(s). 

“Nonetheless, we believe SDG is also not adverse to monetising some of its landbank in Kulai to other township developers at the right price,” it said.

Meanwhile, Maybank IB said that the booming property market in Johor, especially for industrial properties, may pose a challenge to smaller specialist developers like AME Elite to expand on their landbank at a cheaper cost.

“The addition of new property developers in the industrial property segment also makes it challenging for AME to secure primely located land and attract potential buyers/tenants,” it said.

Source: NST

JSSEZ, data centres to drive Johor’s real estate market

Malaysia benefits directly from the increased demand for data centres, as a result of Singapore’s three-year moratorium on building new data centres and expanding capacity due to the limited availability of land, said Moody’s Ratings.

In a research note yesterday, the firm said there has been an increase in investment in data centres in Johor, citing cloud services provider Microsoft’s land purchase last month from Eco World Development Group Bhd for new data centre development.

“GDS Holdings Ltd, a developer and operator of data centres, has invested around US$3.0 billion (US$1=RM4.67) to open two data centres in Johor’s tech park.

“Other cloud services providers such as Google and Amazon have committed to invest US$2.0 billion and US$6.0 billion respectively in Malaysia for data centres and cloud services by 2037,” said the note.

Moody’s Ratings also revealed that Asia Pacific’s (APAC) data centre capacity is expected to more than double by 2028 as geopolitical tensions will disperse growth.

It believes that data centre capacity in APAC and globally will expand rapidly over the next five years as the increasing adoption of artificial intelligence (AI) and cloud technologies, cryptocurrencies, and a rising preference for outsourcing data computing and storage for efficiency and scalability fuel exponential growth in the sector.

“We forecast APAC data centre capacity to grow at a compound annual average rate of almost 20 per cent through 2028, to about 24,800 megawatts, which is more than double the current capacity of over 10,500 megawatts.

“APAC constitutes about 30 per cent of global capacity expansion over the next five years.

“This expansion will involve investment of over US$564 billion through 2028,” it added. 

Source: Bernama

Moodys Ratings: Malaysia to benefit from data centre demand spillover

In 2021, Malaysia introduced its National Artificial Intelligence (AI) Roadmap 2021-2025, which outlined the government’s plan for developing the AI ecosystem. However, the AI landscape has evolved significantly with the advent of generative AI (GenAI), marked by the launch of ChatGPT by OpenAI in 2022. This development has necessitated a refresh of the road map.

Following rapid advancements as countries and players compete for leadership in the AI race, Malaysia has introduced several initiatives such as the Malaysia Digital Economy Blueprint, AI untuk Rakyat and the AI Sandbox 2024. Additionally, the country has established its first AI faculty at Universiti Teknologi Malaysia (UTM).

At present, several ministries and agencies handle different aspects of AI. The Ministry of Science, Technology and Innovation, Ministry of Education and Ministry of Investment, Trade and Industry are responsible for shaping policies such as AI governance and a code of ethics, providing funding and facilitating international partnerships. Other stakeholders include the private sector, institutional investors and regulatory bodies as well as universities and research centres essential for developing AI talent and conducting cutting-edge research.

However, there is a lack of a cohesive strategy, leading to a helter-skelter approach where efforts are fragmented and uncoordinated. This could hamper the overall progress and effectiveness of AI initiatives, say stakeholders.

Malaysia needs a well-aligned approach with a clear general direction that all players can follow, focusing on adopting the technology for economic and social development, says Jun-E Tan, senior research associate at the Khazanah Research Institute.

“There are many initiatives already happening, and the main thing is to ensure they don’t happen in silos. We will need to create an environment that promotes communication and coordination. This is because AI and AI risk touch all sectors,” says Tan.

“The pace of technology is such that we will need a good feedback loop that runs through the system to make sure that vital information on new technology developments and associated risks travels quickly.”

This necessitates bridges to be built across ministries and government agencies, government and non-government actors, AI experts and domain experts, and between local and international experts.

For this, a central AI body, that acts as a focal point for AI development, streamlines communication and provides a clear point of contact for stakeholders needs to be established, says Fabian Bigar, former CEO of MyDigital Corporation. Fabian was appointed secretary-general of the Ministry of Digital last month.

“My opinion is that we need a focal point or institution that is the authority on AI. [This is so] we don’t only [speak] about issuing guidelines and road maps, but you actually have a body to implement and oversee it. It could be an adaptation of what [the country] already has [but] formalised into a structure that everyone recognises as an AI authority,” he elaborates.

“One particular entity can be held responsible for the development of AI.”

The central body would also be responsible for refining and implementing a comprehensive national AI strategy while playing a key role in developing educational programmes for Malaysians to navigate the AI landscape.

This body should be well-connected and built to be the platform that stakeholders can turn to on the latest information on AI across different sectors.

“We will need to form these connections early in the game because the use of AI requires trust, and relationships foster trust. It will also enable us to share resources and cooperate among the different stakeholders, which is more effective than a top-down approach,” says Tan.

“With more information coming from the stakeholders, policymakers will also be able to make more informed policy decisions to make sure that the benefits of AI are distributed and no one is left behind, or left worse off.”

Even so, a more nuanced approach might be necessary as different government agencies have their own leadership and areas of expertise, says Laurence Liew, director for AI innovation at AI Singapore, adding that there is a need for an overarching vision that all the agencies can work towards. 

AI Singapore acts as a technical bridge between various government agencies and offers its expertise to overcome any technical gaps.

“It is not for a central agency or body to dictate what we can and should not be doing. I think it’s important that as long as there’s an overarching vision, and as long as everyone is pulling in the same direction, we should leave them in their domain. They know best how to drive their ecosystem,” he says.

Mission statement

Science, Technology and Innovation Minister Chang Lih Kang says there is a need for a whole-of-government approach where various ministries collaborate to develop the ecosystem and achieve this goal. Areas that require development include digital infrastructure, research and innovation, talent development, ethical and legal frameworks and public awareness.

“In developing the AI ecosystem, we have to rope in all related ministries. It has to be a whole-of-government approach. We need a cross-ministry committee to look into that. In fact, the prime minister himself is very enthusiastic about this. He has been talking about AI and digitalisation, but for that to happen, we need to make sure the entire ecosystem is robust enough,” he says.

While countries like the US and China have vast resources, smaller players such as Malaysia cannot afford large-scale experimentation, notes Liew. Therefore, a well-defined national strategy that encompasses clear goals, investment plans and an ethical framework is paramount.

“Ultimately it has to be driven from the top. Leaders will need to rally all relevant agencies for the common vision and goals,” says Liew.

This is because Malaysia’s current AI road map is set to expire in 2025. “Unfortunately, the [road map] was released at a time when ChatGPT had not [been released]. I think it is time to refresh the [road map] because AI then and now [has had] a lot of advancements. We need to come up with an enhanced and renewed version of our strategies with AI,” says Fabian.

“There needs to be more discussion. In fact, a few ministries are discussing among themselves [about] whether this new road map is needed and what the things to pay attention to are. I hope if there is a [new] road map, [it will] provide direction for not only the industry but also government agencies …  The road map should also include incentives and initiatives that will help boost the ecosystem,” adds Chang.

The AI ethics and governance framework is also being formulated. Chang says the framework will aim to strike a balance between promoting responsible AI development and avoiding stifling innovation with overly rigid regulations.

Prashant Kumar, head of generative AI and growth markets at Accenture Song, identifies three factors for a country to consider when establishing an AI ecosystem. These are the participatory, productivity and national imperatives. The participatory imperative refers to the level of involvement a country wants to have in the AI value chain, while the productivity imperative highlights how AI can be used to enhance the competitiveness of the country in the AI sector.

The national imperative, meanwhile, concerns aspects such as national security and data sovereignty. This is because developing AI is crucial in sectors such as defence and healthcare. These imperatives can be used to then find Malaysia’s seat at the global AI table.

“Let’s say [in the year] 2035, where are we? You probably have a vision of Malaysia. How do you imagine our citizens will live? How do you imagine our workers will work? If we have something like Malaysia AI 2045, we can steer everyone’s attention towards it and work towards [that goal],” says Fabian.

“AI is not only about technology, it’s about how we are going to prepare for it.”

Too soon for an AI champion?

There is a case to be made for the country to develop its very own AI champion. A national AI champion can drive innovation, create high-value jobs and ensure that the country remains competitive in the global AI landscape.

Just as the space race ignited a global revolution that led to the many technological and scientific advances, the AI race will have its own effect on society.

The term AI champion can refer to a leading company that develops its own foundational model, says Prashant of Accenture Song. Foundational models are AI systems that are trained on large datasets that can be used for various tasks.

As other countries develop their own AI and large language models (LLMs), there is a risk of technology monopolies emerging, says Mahadhir Aziz, CEO of the Malaysia Digital Economy Corporation (MDEC), an agency in the Ministry of Digital. Countries without their own AI champions may become dependent on foreign technologies, potentially leading to limited access and higher costs.

Moreover, countries with AI monopolies could exert significant control and influence over the development of AI technologies globally. This can lead to a concentration of power and decision-making in the hands of a small group, which will hinder the technological progress and economic competitiveness of other countries.

“A monopoly could stifle innovation, as dominant players might prioritise their own interests and inhibit competition. This lack of competition can slow down technological advancements and reduce the diversity of AI solutions available in the market,” says Mahadhir.

To mitigate these risks, it is crucial for Malaysia to invest in its own AI capabilities to foster a competitive yet collaborative ecosystem.

Mahadhir says there are a few ways to do this. This is by providing funding, mentorship and resources to small and medium enterprises that focus on AI to allow them to scale and innovate; offering incentives, tax breaks and grants to companies investing in AI research, development and deployment; and focusing on education and training programmes to build a strong pool of AI talent.

“We should identify Malaysia’s niche markets that generate the best return-on-project outcomes and investment amounts. Through a laser-focused investment strategy, Malaysia will be able to see near-term results, which will have a ripple effect on the local economy and job opportunities. Simply put, invest in something where we can have immediate wins and grow from there,” notes David Lim, the founder and CEO of enterprise AI solution firm Wise AI.

Finding Malaysia’s niche in the AI value chain is crucial since competing across the entire spectrum is unrealistic, says Prashant. This can be done by focusing on narrow AI models, prioritising intellectual property, boosting export competitiveness and capitalising on the country’s strengths.

“We need to find out what we want to own. We can choose narrower spaces where we want to be better than most people in the business so that in due course, we are able to actualise the benefits to the economy from this … I think that the government having a proactive master plan is important. But the master plan should have sufficient agility to allow winning horses to run big races,” he adds.

“Aerodyne is one company that has done a phenomenal job in terms of application related to visual AI-based drone photos. Is that a space where we could be among the best in the world?”

Ultimately, developing a foundation model is not essential for participation in the AI economy but it can foster local innovations, through the development of technologies such as LLMs. For instance, foundation models trained on local data will be able to respond to regional nuances and cultural specifics.

However, these technologies come at a high cost. Building and maintaining AI models require millions of graphics processing units and specialised data centres that are very expensive.

This means the feasibility of developing new models in Malaysia is low because of funding limitations, says Chang. Focusing on industry-specific models where AI adoption is high could be the way forward. While Malaysia may not be at the forefront of AI development, the country can still benefit from effectively utilising AI in areas like medicine, agriculture and education. This will allow it to remain competitive in the global AI race.

“We are not looking at developing cutting-edge technology. But we are hoping we can utilise [existing technologies] and that we are not left behind on that. If we want to develop new technologies, it will take time,” he explains.

Collaboration with other Asean nations including Singapore could be a viable strategy as it would allow the countries to combine resources and expertise while sharing the financial burden. The Sea-Lion LLM is an example of how regional cooperation can encourage AI advancements that reflect the region’s unique cultural and ethical considerations.

“AI Singapore led the efforts to build Sea-Lion, which is a Southeast Asian LLM. It wouldn’t have been successful if we didn’t have the cooperation of our Southeast Asian [counterparts]. Given the way LLMs work, if Southeast Asian does not have one, then we are going to be very dependent on either the Americans, the Europeans or the Chinese to have a language model, which may not reflect the Southeast Asian culture, ethics or biasness,” AI Singapore’s Liew points out.

Ready for lift-off

Chang has a different take on an AI champion. He believes that the champion does not need to be a developer of AI technology. Instead, he wants to see industry leaders utilising existing AI technologies to address their needs.

“I think if we encourage one or two corporations as AI champions, and we invest resources into these two [entities], slowly the tech will be monopolised by them. We don’t want that. Everyone should be an AI champion,” says Chang.

“I would say industries that use the most innovative way to adopt AI, they are the AI champions.”

Meanwhile, Fabian sees AI becoming a tool that empowers humans through human-AI collaboration, augmented creativity and upskilling the workforce.

AI has permeated different sectors ranging from healthcare and education, to manufacturing and agriculture. Now, these sectors are all scrambling to implement the technology to get ahead in the AI race. As such, industry participation is key to leveraging the potential of AI across different fields.

“The biggest strength is that we have done it before. Malaysia is now the world’s sixth largest semiconductor producer, seeking RM500 billion in investments for its semiconductor industry and to train 60,000 Malaysian engineers to meet market demands. Although most of it focuses on the lower end of the value chain, Malaysia was able to gain from this niche,” says Lim of Wise AI.

“With its substantial capacity, Malaysia can diversify and move higher in the value chain. The same applies to the AI landscape in Malaysia.”

Chang says there is a need to build skill sets and that the government is working on incorporating AI training into universities and vocational training programmes. For instance, MDEC has implemented talent development programmes such as the Cikgu Juara Digital to train teachers and students in AI, robotics, coding and computational thinking.

MDEC has also onboarded close to 200 local companies that have been identified as AI technology service providers to nurture and scale the AI ecosystem.

In addition, UTM has established the Malaysian AI Consortium consisting of researchers, educators and practitioners. This complements the AI Talent Roadmap for Malaysia 2024-2030, which aims to formulate and develop AI curriculum and research programmes.

“Malaysia must invest in the development of digital skills among its workforce to remain competitive in the digital economy. Such investments will ensure that Malaysia cultivates a skilled workforce capable of meeting the evolving demands of the digital economy,” says Mahadhir.

A strong foundation in maths, science and language is important in nurturing future AI talent, notes Siti Fauziah Toha, professor of AI at the International Islamic University Malaysia. This foundation needs to be developed early to ensure a steady pipeline of AI developers. To do this, there has to be a shift from a use-based approach to a curriculum that encourages innovation and problem-solving skills.

This is to avoid Malaysia becoming a perpetual user of AI technologies developed elsewhere.

“It’s going to forever be a black box, meaning that [the country] will not be the owner of the technology, but dictated by those who own the technology, if we don’t go out from the rat race of [merely] being a user,” says Siti.

“We should nurture our talent to not just understand the knowledge, but to be able to creatively come up with AI technologies.”

Source: The Edge Malaysia

Charting a cohesive national strategy for AI

Investments in Malaysia to continue beyond 2030, says PublicInvest

MALAYSIA is set to emerge as a pivotal Asian hub for data centre, driven by a projected influx of 1,400 megawatts (MW) of “IT load” by 2029, said Public Investment Bank Bhd (PublicInvest).

When it comes to Asian data centre hubs, Singapore, Japan, Taiwan and Hong Kong are the leading Tier 1 markets.

However, with the rising development costs and scarcer resources, PublicInvest said data centre operators, who often looked at business and customer proximity, political stability and infrastructure, began to scout for alternate markets.

“Tier 2 markets, like Malaysia, are showing growth potential due to favourable government support, abundance of resources (land, power and water) and advanced infrastructure.

“Coupled with its proximity to Singapore, a symbiotic relationship between Malaysia and Singapore is likely to turn Malaysia into the next epicentre of data centres in this region,” it said.

PublicInvest said the number of data centre investments in Malaysia could continue to expand beyond 2030.

It said this was because Tenaga

Nasional Bhd (TNB) has received applications for potential energy demand of 2,000MW from 10 data centres.

“Given the country’s position to capture the explosive growth in data centres, we see the key players in the telecommunication, power and construction sectors as the prime beneficiaries.”

Moving forward, PublicInvest expects more infrastructure development, such as power connectivity, Internet exchange points, cable landing stations and fiber-optic cables, to be laid to cater for the expanding information technology workloads.

It said Telekom Malaysia Bhd (TM) was seen as the prime beneficiary in the telecommunications space, and the thirst for energy should lead to a surge in demand for power from TNB.

“For exposure in the construction sector, we favour Gamuda Bhd and IJM Corp Bhd for their track records in securing data centre jobs,” it said, adding that it had “outperform” calls on TM with a RM8.80 target price, TNB (RM16 target price), Gamuda (RM9.20 target price) and IJM (RM4.20 target price).

Source: NST

‘Nation to be key data centre player’

The Investment, Trade and Industry Ministry (Miti), through the efforts of the Digital Investment Office, has recorded approved foreign investments in digital projects worth RM127 billion between 2021 and March this year.

Domestic investments accounted for RM34.9 billion of total approved investments, amounting to RM161.9 billion, in digital projects approved under the National Committee on Investment in that period, the ministry said.

“The investments approved were mainly in the data centre, cloud computing, data hosting, big data analytics and artificial intelligence sectors,” it said in a written reply on the Parliament website yesterday.

The ministry was responding to a query from Syed Ibrahim Syed Noh (PH-Ledang) about benefits to the nation from foreign direct investment in the digital sector.

Miti said investments secured in that sector will bring socio-economic benefits, including the potential creation of 49,108 skilled and high-paying jobs for data engineers, data scientists, big data analysts, cybersecurity engineers and information technology engineers.

It said the government emphasises more inclusive digital infrastructure investments at local and regional levels, the availability of high-speed internet, and technological solutions to generate low latency for data.

On the main economic spillover effect from these strategic digital investments, Miti cited an acceleration of digital transformation for micro, small and medium enterprises, which make up 97 per cent of the country’s business establishments, contributing 48 per cent of jobs and 38 per cent to economic growth.

In addition, it said, the investments facilitate the reorganisation of industrial clusters and value chains powered by digital technology towards the creation of 3,000 smart factories by 2030, as outlined in the New Industrial Master Plan 2030, while providing access to digital technology opportunities and usage and spurring industrial revolution in various sectors.

Source: Bernama

RM127 bln foreign investment in digital projects from 2021 to 2024 — MITI

Artificial intelligence (AI) could be the ideal catalyst for the Malaysian economy, which stands at the cusp of leapfrogging beyond the 5% growth target, says venture capital (VC) fund and co-creation studio The Hive.

In a report entitled “Generative AI: Cusp of a new era for the Malaysian economy”, the VC firm says AI has become a utility like energy or a telco while AI computing is a national resource, key to nation building.

For Malaysia, the Hive said the country has a favourable demography with massive global tech giants investing in R&D, coherent and state-level AI education policies with efficient implementation and a vibrant startup ecosystem focus on AI-driven innovation.

It noted also that Johor Bahru is the fastest-growing data centre market in Southeast Asia. While AI computing is projected to drive data centre energy demand of 5GW by 2035, Malaysia is in the global Top 5 most price-efficient energy markets, The HIve said in its report.

Meanwhile, Malaysia is also very favourably located in the global semiconductor and network bandwidth corridors.

“There is rapid growth in talent and infrastructure ecosystems timed alongside with the ongoing paradigm shift in AI technology.

“Malaysia also has a consistent and neutral foreign policy, making it a fertile ground for international AI innovation partnerships,” it added.

The Hive is organising a Catalyst Series summit in collaboration with the Securities Commission, entitled “Transforming the global digital economy with generative AI”, from 10am to 2.15pm on July 30, 2024 (Tuesday), at the SC building.

It said the summit, which brings together some of the brightest minds, aims to foster innovation with generative AI among corporations and establish Malaysia as the AI hub of Southeast Asia.

Source: The Star

AI to usher in a new era for Malaysian economy

Green hydrogen was previously sidelined as a source of renewable energy compared with solar and wind due to its high production cost. However, as the decarbonisation journey progresses, more alternatives are necessary, especially to tackle emissions from hard-to-abate sectors.

This is also recognised in Malaysia as seen with the National Energy Transition Roadmap (NETR) launched by the Ministry of Economy in July 2023 and the Hydrogen Economy Technology Roadmap (HETR) in October 2023.

“I see hydrogen as the way forward. [In] Malaysia, we have the edge or the advantage in becoming an exporter of green hydrogen, with Sarawak as an example,” Minister of Science, Technology and Innovation Malaysia Chang Lih Kang tells ESG.

The first hydrogen refuelling station in Peninsular Malaysia is in the works, while Sarawak has already introduced hydrogen buses and multiple hydrogen fuel stations, and struck up collaborations to build production facilities.

The real breakthrough lies in exploiting the full potential of green hydrogen to decarbonise supply chains in large-scale applications, the minister says.

Hydrogen is currently produced almost entirely from natural gas reformation and coal gasification, which are highly carbon-intensive processes.

Depending on production methods, hydrogen can be grey, blue or green, which are the most common classifications. There are also pink, yellow and turquoise hydrogen.

Grey hydrogen, produced through steam methane reforming, contributes to carbon emissions as it releases carbon dioxide and uses non-renewable energy (RE) for production. It is currently used in the chemical industry as a feedstock, in the steel industry as a reducing agent and for special applications in various industries.

Green hydrogen is the only type produced in a climate-neutral manner and would play an important role in the global efforts to reduce emissions to net zero by 2050, according to the World Economic Forum.

Blue hydrogen, produced from natural gas with carbon capture and storage, can also be considered “clean” if it meets strict carbon capture standards.

Though theoretically versatile, green hydrogen has not been widely adopted due to its high cost of production compared with fossil fuels and because the technology to produce it is not yet commercially mature, according to the Global Hydrogen Review 2023 by the International Energy Agency.

However, decarbonisation efforts are likely to drive hydrogen use in new applications, especially in sectors where reducing emissions is challenging and alternatives are limited.

Sarawak is aiming to become a frontrunner in green hydrogen energy by leveraging its hydropower resources. Kuching, the state capital, is a beneficiary of the US$3.4 billion (RM16 billion) investment for developing a network of power-to-transport projects, according to reports.

Initiatives in Kuching include a fleet of three free-to-ride, hydrogen-fuelled buses manufactured in China. These buses refuel at multi-fuel stations equipped with dedicated hydrogen bays. Since Sarawak is the only state in Malaysia to have a hydrogen production facility, UMW Toyota gifted five Toyota Mirai to state officials in 2023. The Toyota Mirai is the world’s first mass-produced hydrogen fuel-cell car.

One step at a time

The HETR sets out three phases of development. Phase 1 involves the initiation, foundation and demonstration of hydrogen use cases in the domestic market and for exports. This phase spans the years 2022 to 2030.

This phase focuses on competitive, small and commercial-scale projects to demonstrate feasibility. This includes deploying various carriers of hydrogen to determine which physical state is most suitable for use. Currently, hydrogen is widely used in its gaseous state, which is suitable for transportation and metal or glass manufacturing.

In its liquid state and as ammonia, hydrogen is used for the production of fertilisers and in shipping. In its solid state as sodium borohydride, it can be used for light-duty vehicles  according to the HETR.

“We have different phases, we do pilot projects, we showcase technologies that are already on the market to gain confidence from the public and also [to raise] public awareness. But of course, we cannot commercialise right away. For instance, we cannot import the Toyota Mirai to Malaysia [for public use yet] because we do not have [large-scale hydrogen] production,” says Chang.

“We have pilot production plants [in Sarawak], then slowly, we will scale up [to other levels of production]. So, that is the first phase from now until 2030, the second phase is 2031 to 2040, and we are anticipating that by the second phase we will have production [facilities] and we can start exporting.”

Notably, Petroliam Nasional Bhd (Petronas) and Sarawak Energy have teamed up to commercially generate green hydrogen.

The NETR identifies hydrogen as one of six key energy transition strategies for Malaysia. Under this initiative, the government has planned three catalytic green hydrogen projects including one in Kuching for domestic use set for completion by 2025 and two in Bintulu for export, due by 2027.

Navigating the roadblocks

Malaysia could be a hub for producing green hydrogen, not only for domestic use but also for export to other countries, observes Chang.

This vision is guided by a roadmap focused on commercialising a fuel that, despite being significantly more expensive than natural gas and presenting logistical challenges for bulk transport, is an important lever in Malaysia’s decarbonisation efforts.

According to the IEA, hydrogen plays an important role in sectors where reducing emissions is particularly challenging and where other mitigation methods may not be feasible, such as in heavy industry, long-distance transport, shipping and aviation.

“Now the problem we have is cost. Technology-wise, we are quite okay. Only now, how do we lower the costs? But also, if there is no demand and there is no supply, how to speak of costs?” says Chang.

According to the HETR, grey hydrogen produced with natural gas costs US$2 per kg in the US, while in Europe, Australia and Asia, it costs US$5 to US$6 per kg due to higher natural gas prices. Blue hydrogen produced from natural gas paired with carbon capture and storage costs between US$5 and US$7 per kg in the US and between US$7 and US$11 in Europe and Australia.

Among the many colours of hydrogen, green hydrogen is the most expensive to produce. Green hydrogen is produced through electrolysis and uses renewable power, costing US$10 to US$15 per kg, depending on availability.

With the economy of scale and maturity of the technology across the hydrogen value chain, some countries have developed the infrastructure to reduce the levelised cost of hydrogen (LCOH) to the range of US$1.5 to US$2 per kg.

Chang believes that to lower the cost of hydrogen, it has to be policy-driven. For instance, by subsidising clean energy, especially cost-intensive ones like hydrogen.

“I think this could be one of the ways to encourage more usage of hydrogen or other renewable energy. [Because] it doesn’t make sense if we say that by 2050, we are going to achieve net zero, but at the same time, we are still subsidising fossil fuels. It is contradictory. Slowly, we are going to move towards that direction. Instead of subsidising fossil fuel, we should be subsidising RE and maybe allowing tax rebates for hydrogen car buyers,” he adds.

Source: The Edge Malaysia

Energy: Can Malaysia be a hydrogen hub?

Prime Minister Datuk Seri Anwar Ibrahim hopes that continued investment and collaboration with telecommunications company, Ericsson, can position Malaysia as a leading 5G technology country on the global stage.

Anwar expressed this aspiration during a meeting with an Ericsson delegation led by the group’s president and chief executive officer Börje Ekholm yesterday.

The prime minister said the meeting discussed matters related to the implementation of the 5G network in Malaysia which has already exceeded 80 per cent of the Coverage of Populated Area (CoPA), recording among the best performance and experiences in the world.

“Following the success of 5G implementation in Malaysia, I welcome investment, strategic cooperation and the sharing of expertise in enhancing the capabilities of 5G network expansion which can benefit all sectors.

“I hope that this close cooperation can drive widespread 5G adoption and accelerate the growth of the digital economy in Malaysia,” Anwar said in a post on X today. 

Source: Bernama

PM Anwar hopes continued Ericsson partnership will establish Malaysia as 5G technology leader

Sarawak is committed to growing its clean energy generation sector following the vast opportunities for investors to collaborate with the state, says Sarawak Premier Tan Sri Abang Johari Tun Openg.

“The global economy has shifted towards green energy and in Sarawak, we have the resources to produce it. I believe that Sarawak will contribute towards the new economy that is faced by the world,” he said at the Mida Invest Series entitled “Sarawak: Unfolding its business potential” here, yesterday.

He added that the state would be prioritising several key areas as an effort to address the intermittency of variable renewable energy and more clean energy generation technologies that can be commercially deployed in Sarawak.

Among the key areas are large-scale solar, bio-energy (such as biomass and biogas), waste-to-energy and pump hydrogen storage.

Earlier this year, Abang Johari unveiled Sarawak’s vision of achieving 10 gigawatts of renewable energy by 2030.

Sarawak also planned to export renewable energy, especially hydrogen, by the end of 2027. However, it has no plans to build a nuclear plant as an alternative to generate electricity.

As Sarawak has a variety of resources to generate electricity he said: “Why do we need nuclear? We already have hydropower”.

On the lack of talents, he said many local talents had relocated to the state.

Additionally, he said the state also had plans to provide free education to an estimated 25,000 local students by 2026.

“This is so that they can be trained and be the talent that we need in this new economy”.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who was also at the event, said Sarawak’s ambitious green energy agenda, which aims to decarbonise its transport system and transition towards a low-carbon economy, is complementary to the national-level strategy on green investments, such as the New Industrial Master Plan and the National Energy Transition Roadmap.

“Sarawak’s effort is clearly gaining momentum, with great examples such as the Bintulu Port – a major deep-water port in the country’s maritime industry – that is leading the way in environmental, social and governance,”

In the first quarter of 2024 (1Q24), RM83.7bil worth of investments had been approved, with more than 56% being approved foreign investments.

“Sarawak has been a key part of that growth story, attracting RM4.2bil in approved investments for 1Q24. The total investments approved will create 29,000 new jobs for Malaysians, a 14.6% increase year-on-year,” he added.

Source: The Star

Sarawak has vast resources for green energy

There are a lot of opportunities for Australia and Sarawak to collaborate in, including the energy sector, said Australian High Commissioner to Malaysia Danielle Heinecke.

She said Australia is involved in many of the eight energy sectors Sarawak has been focusing on such as renewable energy, hydrogen, energy efficiency, green mobility, synthetic fuels, bioenergy, oil and gas, and carbon capture, utilisation and storage (CCUS).

“We have really good expertise in batteries and solar, wind and hydro, and we are starting to do a lot more in hydrogen and ethanol.

“Basically, in all of these areas, whether it’s foreign direct investments or whether through sharing technology, there are lots of collaboration opportunities for Australia and Sarawak,” she told The Borneo Post in a special interview here today.

She said there are also manufacturing opportunities particularly through the just-announced Future Made in Australia campaign which targets the green sector and critical minerals.

“We see that there’s opportunities for more manufacturing supply chains from that campaign into the region.

“For example, green metals is something that Australia is looking at producing more of. It will take time and won’t happen tomorrow, but we’re putting a lot of investments into that.

“Malaysia has an opportunity where there’s manufacturing capability to turn those products into green products so there’s definitely a lot in that space,” she added.

On current investments between Australia and Sarawak, Heinecke said at the moment, the country has around AUD1.87 billion trade with the state.

“That’s mostly in the aluminium ores concentrate and in education, namely through Swinburne University of Technology Sarawak Campus (Swinburne Sarawak) and Curtin University Malaysia that have set up campuses in Kuching and Miri respectively.

“We have around 4,000 students at Swinburne Sarawak and Curtin, and we are aiming to grow to 5,000 students within five years,” she said.

She also said that Australia is aiming to bring New Colombo Plan students to Sarawak, not only to Kuala Lumpur.

“We want to do more so Australian students can intern in Malaysian companies and that’s an important part of the New Colombo Plan and it really connects our future generations.

“That’s what we see as really important not just to our people-to-people but also business links into the future,” she pointed out.

According to the Australian government’s Department of Foreign Affairs and Trade, the New Colombo Plan is a signature initiative of the government which aims to uplift knowledge of the Indo-Pacific in Australia by supporting Australian undergraduates to undertake study, language training and internships in the region.

The New Colombo Plan involves a scholarship programme for study of up to one year, language training and internships or mentorships, as well as a flexible mobility programme for both short and longer-term study, language study, internships, practicums and research.

Heinecke is in Kuching on a two-day official visit starting Tuesday to learn more about opportunities for Australian companies to invest in renewable energy in Sarawak.

Source: Borneo Post

Energy sector among many opportunities for Australia-S’wak collab, says High Commissioner

Knight Frank Malaysia said major data centre investments in the Klang Valley has seen demand for high-quality, sustainable logistics spaces grow and help push up rent slightly.

The Real Estate Highlights 1st Half of 2024 (REH) report features insights into the performance of the property markets across Klang Valley, Penang, Johor, Sabah and Sarawak.

According to the report, Malaysia’s industrial property market is witnessing robust demand, particularly for high-quality sustainable developments.

Major investments in data centres, notably by Google in Klang Valley, underscore the sector’s growth.

The manufacturing sector is projected to grow by 3.5 per cent in 2024, supported by the recovery of export-oriented industries and sustained growth in domestic clusters.

It said the region has attracted significant data centre investments, including major projects like Google’s data centers.

Knight Frank Malaysia said the property market continues to show promising growth prospects, bolstered by strategic investments, infrastructure improvements, and evolving market dynamics.

Its group managing director Keith Ooi said this indicates a strengthening investment climate, driven by strategic government initiatives and a supportive regulatory environment.

“Knight Frank Malaysia’s mid-year review highlights a promising trajectory for the property sector, supported by robust economic growth, significant investments, and adaptive market trends,” he said in a statement today.

In terms of the office market, the report said there is growing demand for co-working and flexible office spaces, reflecting changing work patterns and preferences.

The office market continues to draw multinational corporations, buoyed by competitive rental rates, a skilled workforce, and robust government support for the digital economy.

The retail sector trends indicate a surge in digital integration and experiential offerings, with retailers adapting to changing consumer preferences and enhancing in-store technologies to boost engagement and sales.

On hospitality sector, the report said the luxury hotel segment is set for significant growth, with new developments dominated by international brands.

It noted that the average occupancy rates (AOR) and average daily rates (ADR) indicate a robust recovery in the hospitality sector.

Meanwhile, for the high-end high rise residential market, Kuala Lumpur showed strong activity, with a 19 per cent increase in transacted volume and value. The report stated that developer initiatives to promote homeownership through various campaigns and bank collaborations are enhancing the homebuying experience. 

Overall, Knight Frank said the findings from the report underscore the strategic importance of the industrial sector in the country’s economic landscape.

It added that key infrastructure projects such as the East Coast Rail Line (ECRL), Johor Bahru – Singapore Rapid Transit System (RTS), Pan Borneo Sabah, and MyDigital 5G are expected to further enhance connectivity and support the sector’s growth.

Source: NST

Knight Frank Malaysia says data centre investments have pushed up rent for industrial space in Klang Valley

The government will ensure the effective usage of water and electricity in line with the increase in data centre investments into the country.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said the effort was to ensure the security of electricity and water supply was controlled and used effectively.

He said the National Investment Council had in June agreed with the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) that the improvement of data centre investment acceptance policy should be done based on several factors.

“Among them is to provide guidelines for power usage effectiveness (PUE) and water usage effectiveness (WUE) as well as an adequate supply of renewable energy to facilitate the investment of artificial intelligence (AI) data centres in our country.

“MITI and MIDA were also directed to create a local vendor programme to develop the digital ecosystem as a whole,“ he said during a question and answer session at the Dewan Rakyat today.

He was replying to a supplementary question from Datuk Shamshulkahar Mohd Deli (BN-Jempol) about efforts made by MITI and other agencies to oversee investments in data centre.

Liew stressed that there is a positive trend on AI investments in the country with commitments from global technology giants such as Amazon Web Services (AWS), Nvidia, Microsoft and Google.

“Through AI-related investments, MITI and the government aim to develop a comprehensive digital economy ecosystem and promote the use of AI technology in a variety of fields, including in the smart manufacturing industry,“ he added.

Source: Bernama

Govt to ensure effective usage of water, electricity as data centre investment grows – MITI

The implementation of the Green Investment Strategy to attract green investments to Malaysia will be centred on seven key plans under the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).

The Ministry of Investment, Trade, and Industry (MITI) stated that these core areas include Energy Efficiency; Renewable Energy; Hydrogen Bioenergy; Green Mobility (Land, Marine, Aviation); Carbon Capture, Utilisation and Storage (CCUS), and Circular Economy.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, said the implementation of this strategy would lead to a more effective, organised, and systematic energy transition and green investment for Malaysia.

“One of the main targets is to attract nearly eight times the amount of investment to Malaysia to achieve the objectives of NIMP 2030 and NETR, and ensure investments in the seven key low-carbon areas.

“(It also aims) to leverage foreign direct investment in the green technology sector and improve the green investment ecosystem,“ he said in a statement today.

Tengku Zafrul added that these measures could stimulate socio-economic growth in the green industry, as well as create new jobs and skill development in the industry.

“This will enhance Malaysia’s image and attractiveness as a preferred green investment destination and hub, and position Malaysia as a regional leader in the green technology sector,“ he said.

Source: Bernama

Green Investment Strategy centred on 7 key plans under NIMP 2030, NETR – MITI

Malaysia and China have joined hands once again for the development of the China-malaysia Digital and Green Technology Industrial Park.

A memorandum of understanding was signed between Menteri Besar Selangor (Incorporated) (MBI) and the China Association for International Science and Technology Cooperation and China Harbour Engineering Co Ltd.

It was witnessed by China’s Ambassador to Malaysia Ouyang Yujing (pic) and deputy Science and Technology and Innovation Minister Datuk Mohammad Yusof Apdal here at Sunway University.

Ouyang said during his opening address here that this year, both countries have agreed to collaborate on developing the digital economy, green development and artificial intelligence.

This was during the meeting between China’s Premier Li Qiang and Prime Minister Datuk Seri Anwar Ibrahim in June this year.

“Both countries agreed to explore cooperation to advance the manufacturing industry, science and tech innovation (STI),” he said.

He added that there are further collaborations for (STI) people to people exchange programmes.

Mohammad Yusof said that collaborations are important for scientific advancement so that no one is left behind.

“Disparities in access to cutting-edge technology, expertise and resources have become more pronounced, becoming a challenge to progress.

“However, through strategic partnership, we can bridge this gap by combining our resources and complementing each other’s strengths,” he said.

The technological park will be located in Pulau Indah, Selangor and the total area will be 1,000 acres, with the first phase covering 250 acres. The development will be in the Selangor Maritime Gateway Economic Development Zone, which covers 27,960ha.

It is the first economic development corridor in Malaysia that utilises the Klang River as a potential economic generator based on environmental, social and governance principles.

The area will create a conducive development zone to encourage business, attract new investments and increase sustainable development along the 56km stretch of the Klang River.

“This partnership marks a significant step towards a thriving green tech ecosystem in Selangor, fostering shared prosperity and environmental responsibility,” MBI Selangor said in a statement.

The project will upgrade infrastructure facilities and inject significant capital investments into the region. In addition, the collaboration with China unlocks access to cutting-edge technology and a vast market, it added.

Separately, on the same day, there was another memorandum of understanding inked between Sunway University and China Association for International Science and Technology Corp. This signing is for both parties to collaborate on research, innovation, education and talent development.

Source: The Star

Malaysia, China in tie-up to develop digital economy

There is a need for the manufacturing sector to embrace digitalisation to attract young talent, said programme director of the philosophy, politics and economics programme at Taylor’s University Professor Dr Ong Kian Ming.

Automation and artificial intelligence are key drivers for attracting young talent as they go beyond traditional factory jobs and offer exciting opportunities for engineers and specialists, said Ong, who is also a board member of the Malaysian Investment Development Authority (Mida).

“You may not necessarily bring people directly into the manufacturing process by getting them to work for manufacturing companies. You could bring them into other channels, for example, as consultants who specialise in digitalisation and integrating processes within the value metric ecosystem, right?” he said at the Asean Manufacturing Youth Conference 2024 on Tuesday.

“We need more of these kinds of specialists entering the [manufacturing] ecosystem, including system integrator specialists with expertise in different digital processes within the manufacturing supply chain, such as Internet of Things devices, customisable software solutions and digital supply chain optimisation,” he said.

Ong highlighted that there is a lack of startups focusing on solutions within the manufacturing ecosystem and supply chain and this is seen as a missed opportunity as startups can bring innovation and agility.

The manufacturing sector has served as the main catalyst for economic growth, particularly in Malaysia, where the sector contributed over 23% of the country’s gross domestic product in 2023.

In a keynote address earlier, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry is working closely with the Human Resources, Education and Higher Education ministries to ensure a robust talent pool for the country’s manufacturing industry.

He said some of the initiatives undertaken include encouraging youth to pursue Technical and Vocational Education and Training and launching upskilling and reskilling programmes, particularly those that combine workplace training with institutional learning.

“We are also developing innovation hubs and green technology parks to foster R&D (research and development) and entrepreneurial activities, as well as encourage green investments into Malaysia. Last month, Prime Minister Datuk Seri Anwar Ibrahim also launched the Malaysia Madani National Training Programme with the aim of equipping Malaysian youth for today’s evolving challenges, such as digital advancements, new energy and artificial intelligence,” the minister added.

Zafrul says Asean Digital Economy Framework agreement to conclude next year

Meanwhile, the Asean Digital Economy Framework Agreement (Defa), which aims to accelerate Asean’s transformation into a leading digital economy, is expected to be finalised during Malaysia’s chairmanship in 2025, said Tengku Zafrul.

By equipping young people with the necessary skills for a digitised manufacturing landscape, Defa can help unlock the region’s full potential in this sector, he said. 

“With over 213 million youths aged 15-34 in the region, projected to reach a peak of 220 million by 2038, these young demographics provide Asean with an edge to move higher in the global value chain. 

“At its current trajectory, the Asean digital economy is expected to grow three times to reach US$1 trillion by 2030. With Defa, the value can easily be doubled, reaching US$2 trillion. Youths can leverage Defa to foster greater digital cooperation and pave the way for regional digital integration and inclusive growth and development,” he added. 

Source: The Edge Malaysia

Digitalisation can attract young talents to manufacturing sector — Ong Kian Ming

Malaysia is expected to be the third largest market for data centres (DC) behind Japan and India due to significant growth in the market, said Juwai IQI co-founder and group chief executive officer Kashif Ansari.

He said Malaysia is Southeast Asia’s most rapidly growing DC market due to the country’s strategic location, favourable government policies, proximity to Singapore, and attractively priced land, power, and water.

“If all the region’s planned new DC come online, Malaysia will be Asia’s third biggest market, behind only Japan and India. That will create tens of thousands of skilled local jobs,” he said in a report.

In Malaysia, the DC market development pipeline consists of 1.2 gigawatts (GW), which represents 600 per cent growth over the next five years.

Major cloud service providers such as Amazon Web Services (AWS), Microsoft, Nvidia, and Google have recognised Malaysia’s attractiveness as a DC market, with significant investments planned here.

Ansari said Malaysia’s robust economic performance has also helped boost demand in the data centre industry.

Along with the strong economy, he said the Malaysian data centre market also benefits from government policy support.

“Data centres deserve government support because they generate significant employment. There is direct employment in the data centres themselves, as well as a large number of external staff and employees at customers and suppliers,” Ansari said.

“The construction of data centres is also labour-intensive. A single hyperscale data centre can even take more than five years to build and have more than 1,000 employees on-site every day,” he said. Ansari said early stage planned construction of new data centres is almost entirely focused on Greater Kuala Lumpur and Johor.

He said about 55 per cent of new projects are planned for the KL area, and the other 45 per cent will go into Johor.

“The Greater Kuala Lumpur region, which includes Cyberjaya, has a strategic location, robust infrastructure, and government support. Some benefits of Cyberjaya are its competitively priced land and stable power supply, as well as the presence of major cloud providers in theregion,” Ansari said.

“Johor is the fastest growing market in Southeast Asia, driven by spillover demand from Singapore. Besides proximity to the city state, key factors contributing to Johor’s emergence include the ample available land and reliable power supply,” he said.

Moving forward, Ansari said the Malaysian data centre market will continue to grow rapidly throughout the rest of the decade.

With more than 3 GW (3,000 megawatts) under way or in planning, a pipeline of 1.2 GW underway, he said the market is expected to grow by a factor of nine from its current capacity.

“One of the key challenges will be ensuring a reliable and sufficient power supply to support the rapid growth of data centres. Investments in power infrastructure and renewable energy sources will be crucial to address this challenge. Additionally, it would pay to develop more submarine cable networks to improve connectivity between Malaysia and the rest of the world,” he added. 

Source: NST

Malaysia will be Asia’s third largest data centre market, after Japan and India – Juwai IQI

Citaglobal Bhd (KL:CITAGLB) has entered into a joint development framework agreement (JDFA) with Shanghai SUS Environment Co Ltd, a China government-linked entity, to develop waste-to-energy projects in Pahang.

SUS Environment is a wholly owned subsidiary of SUS Holding Ltd, which supplies solid waste incinerators and is a developer of integrated environmental solutions.

In a filing with Bursa Malaysia on Monday, Citaglobal said the collaboration will focus on converting municipal waste into green energy and developing agricultural waste — such as empty fruit bunches (EFB) and palm oil sludge — into biomass energy.

Citaglobal said the JDFA is legally binding and will be used for the incorporation of a joint special purpose vehicle (SPV), with the company holding a 49% stake while the remaining 51% stake will be held by SUS Environment.

The SPV’s initial paid-up share capital is RM1 million, with SUS Environment contributing RM510,000 and Citaglobal contributing RM490,000, subject to the agreed business and development plan. The initial investment will be allocated for working capital.

Citaglobal added that under the JDFA, the company will be sourcing municipal waste in Pahang as well as palm oil EFB and sludge oil waste throughout the country that can be converted into electricity and resold as renewable energy.

SUS Environment, on its part, will provide the required seed investment and financing for the identified projects, for which it will oversee engineering, procurement, construction, and commissioning. It will also manage commercial operations upon completion.

“Our collaboration with SUS Environment will focus on reducing waste generation, promoting waste repurposing, and ensuring compliance with environmental regulations,” Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria said.

“This collaboration with SUS Environment is a significant step towards achieving our shared vision of promoting sustainable waste management practices in Malaysia,” he added.

In September 2023, Citaglobal and SUS Environment signed a memorandum of understanding for this collaboration during the 20th China-Asean Expo and China-Asean Business and Investment Summit.

Citaglobal shares closed four sen or 3.81% lower at RM1.01 on Monday, valuing the company at RM422.19 million.

Source: The Edge Malaysia

Citaglobal to set up SPV with China govt-linked unit for green energy projects in Pahang

Prime Minister Datuk Seri Anwar Ibrahim said the implementation of a more effective, organised, and systematic energy transition and green investment is needed to elevate Malaysia’s image, reputation, and attractiveness as a preferred green investment destination.

Anwar, who chaired the National Investment Council Meeting today, said the council assessed and agreed on a plan to improve the country’s competitive position.

“This effort is expected to enhance Malaysia’s ranking in the World Competitiveness Index published by the Institute for Management Development.

“The Madani government is very optimistic and believes Malaysia is capable of improving its competitive position and achieving sustainable economic growth for the well-being of its people,” he said on X today.

Anwar, also Finance Minister, added that several research findings related to the plan were discussed at today’s meeting, aimed at increasing green investment to make Malaysia a regional green investment hub.

He said this effort is crucial to achieving the net zero carbon emission target as early as 2050, as outlined in the National Energy Transition Roadmap and the New Industrial Master Plan 2030.

Source: Bernama

Anwar sure effective energy transition will make nation preferred green investment destination

The Investment, Trade and Industry Ministry (MITI) supports the implementation of the Green Investment Strategy to attract green investment to Malaysia and catalyse sustainable socio-economic development. 

MITI, as the Secretariat, will focus on efforts to attract green investment to help realise the target of net zero carbon emission as early as 2050, as outlined by the  New Industrialisation Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap  (NETR).

“The implementation of the strategy will result to a more effective, orderly and systematic transition in Malaysia.  

“Among the main targets are to attract almost eight times the amount of investment to Malaysia to achieve the objectives outlined in NIMP 2030 and NETR, ensure investment in seven low-carbon primary core, take advantage of foreign direct investment in green technology sector and improving the green investment ecosystem,” said MITI minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz. 

He said the objectives would be able to stimulate socio-economic growth in green industry; as well as creating new jobs and development skills in the green industry. 

The strategy will be led by deputy prime minister Datuk Seri Fadillah Yusof, who is also the Energy Transition and  Water Transformation minister.

Source: NST

MITI: Green Investment Strategy will help attract investments, transition to net-zero carbon emission

The government will ensure that the green investment strategy will boost the national economy, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“At the same time we will ensure that we ‘meet the targets’ that are in the National Energy Transition Plan and the New Industrial Master Plan 2030 (NIMP 2030),” he told reporters in conjunction with the launch of the Belt and Road Initiative (BRI) cooperation sharing forum here today.

He was replying to media questions regarding matters discussed during the monthly meeting of the National Investment Council (NIC) chaired by Prime Minister Datuk Seri Anwar Ibrahim today.

Tengku Zafrul said the focus of the green investment strategy is to make Malaysia the first green investment destination in the region.

“One of the things discussed during the NIC meeting is that we will continue the green investment strategy for our country.

“We will focus on some sectors which have great potentials,” he added.

Source: Bernama

Govt To Ensure green Investment Strategy Will Boost National Economy

Malaysia is aiming to become a data centre hub in the region, with a slew of investments in such facilities being announced in recent months. In fact, approved investments from data centres amounted to RM114.7 billion from 2021 to 2023. More recent announcements have included Microsoft Corp’s investment of US$2.2 billion (RM10.4 billion) in cloud and artificial intelligence (AI) infrastructure in Malaysia.

Data centres are the backbone of the digital economy, which requires immense computing power to fuel the latest technologies like AI, hence the development of such infrastructure is only expected to increase.

But concerns have been raised on the environmental impact of data centres. Known to be energy guzzlers, these facilities may put a strain on the national grid and water resources. This begs the question of whether Malaysia should impose more stringent environmental impact-related prerequisites on incoming data centres.

Countries such as Ireland, Germany, Singapore and China have introduced restrictions on new data centres in recent years, to comply with stricter environmental requirements. This comes amid fears that the huge energy usage of data centres would place excessive pressure on electricity grids and threaten the achievement of national climate targets.

Johor, the largest recipient of data centre investments in the country, is still drafting the Johor State Data Centre Development Planning Guidelines to coordinate and monitor data centre development planning. In May, the Johor Bahru city council mayor was quoted as saying that water and power supply remains a major challenge in the state.

Currently, the Malaysian Communications and Multimedia Commission (MCMC) Technical Code for Green Data Centres provides the minimum requirements on energy efficiency for green data centres. But the code has a registered date of Dec 18, 2015, making it almost 10 years old.

“[With] today’s technological rate of change, that document is considerably outdated. For example, the MCMC document in 2015 specified that a power usage effectiveness (PUE) below 1.6 is excellent. In 2023 or earlier, Singapore had specified that any new data centre built must have a PUE below 1.3,” says Tang Chee Khoay, chair of the working committee for the development of a data centre tool by the Green Building Index (GBI).

PUE is a standard efficiency metric for power consumption in data centres. The closer the PUE is to 1, the more efficient a data centre is.

“We should ensure that the [citizens’] need for energy and water must be met before they are promised to data centres,” says Tang. “It is also important that subsidies in energy and water are channelled to the people and not to industries such as data centres. If a business requires subsidies from us to be profitable, it is not a viable one to have in Malaysia.”

Tang recommends a detailed national study that will provide a projection over the next 20 years of the country’s ability to support the energy and water demands of data centres. The outcomes can be used to recommend the necessary requirements to minimise electricity consumption and the environmental impact of data centres.

Additionally, stricter regulations must be imposed on data centres, which can be done by ensuring that these projects adhere to green building guidelines, use energy-efficient technologies and incorporate renewable energy (RE) sources, says Arul Hisham, senior partner at AHAR Consultants. The company provides consultancy services in building development.

“Data centres are being treated like any new development. The problem is that [they] are energy guzzlers. The energy requirement they have is huge. The government has to ensure [that guidelines] are followed, so that data centres [can be managed] sustainably,” says Arul.

Saraswathy Shamini Gunasekaran, director of the Institute of Informatics and Computing in Energy (IICE), suggests that data centre operators conduct grid impact assessments to evaluate the strain they may put on the grid, and participate in demand response programmes to adjust their electricity consumption during peak demand. IICE conducts research and consultancy work on the design and development of information and communications technology solutions to address energy challenges.

“It is crucial that the government enforce certain policies and regulations to promote sustainable data centre practices,” says Saraswathy. Otherwise, it would derail Malaysia’s net zero goals.

Is a sustainable data centre hub possible?

Data centre projects are estimated to reach at least 4.7gw over the next 10 years in Malaysia. In 2023, nine data centres with a combined capacity of about 635mw were completed, says a spokesman from the Ministry of Investment, Trade and Industry (Miti).

Data centres consume significant amounts of electricity to operate their servers, cooling systems, networking equipment and other infrastructure. As data centre capacity expands or new facilities are built, it would contribute to increased demand for electricity from the grid, especially in regions with a high concentration of data centres.

According to the Uptime Institute, a few data centre campuses around the world already have capacities of 300mw, and some have planned capacities that exceed 1gw. An average on-site data centre has an energy draw of about 100mw, while a small data centre has an energy draw of 1mw to 5mw. The industry average PUE is 1.58.

Overload or congestion of the grid could cause voltage fluctuations and power outages. The impact could be especially pronounced during periods of high demand, especially as data centres operate throughout the day, observes IICE’s Saraswathy.

Miti is optimistic that Malaysia can manage the demand from the influx of data centres. “Malaysia had a total installed capacity of 26,890mw for the national electricity supply. Malaysia’s Energy Commission reported that in 2021, even at peak demand times, the national grid still had a reserve margin of 42% or 8.3gw,” says the Miti spokesman.

In comparison, Singapore’s Green Data Centre Roadmap aims to reduce energy consumption and improve energy efficiency of data centres in the country. The road map seeks to provide at least 300mw of additional capacity in the near term through green energy deployments.

The city state requires new data centres to have a PUE of 1.3 or below. In contrast, Malaysia has set a minimum requirement of 1.9 PUE, while a rating of 1.6 PUE is deemed excellent.

However, the limited capacity allocated for data centres in Singapore might dampen investor interest, according to a BMI market report. This is as the advent of AI has increased data centre capacity requirements to above 1mw. Imposing stringent environmental regulations may also deter companies from coming to shore.

Malaysia is taking a different strategy. Incentives are being developed to ensure the country becomes the preferred destination for data centres, and more will be introduced to accommodate AI data centres, according to Miti.

How will Malaysia then balance its data centre needs with its net zero ambitions?

Miti says it aims to address these concerns by ensuring that all new investments, including data centres, incorporate environmental, social and governance considerations in their proposals. For instance, Malaysia’s investment criteria will be adjusted to address aspects such as effective cooling technology, obtaining power from RE and maximising energy efficiency, which is in line with the New Industrial Master Plan 2030, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz in a news report.

“Data centres typically have a large environmental footprint, and we have every right to request that they utilise energy-efficient technologies and RE sources. Aligning our data centre growth strategy with Malaysia’s net zero goal makes commercial sense as prioritising sustainability not only improves efficiency but also lowers operational costs,” says Miti.

The adoption of RE and energy efficiency by data centres can reduce their dependence on the grid.

Meanwhile, those that rely on the grid can support more integration of RE. Tenaga Nasional Bhd (KL:TENAGA) is targeting to increase the national RE capacity to 8,300mw by 2025. Malaysia’s current RE capacity is at 25%, and there are 7,700mw of green energy developments in the pipeline.

Tenaga has entered into electricity supply agreements with nine data centre projects with a total potential demand of 2,300mw. In FY2024, nine more data centres with a total potential demand of 700mw are expected to be completed.

The pursuit of RE comes with its own set of challenges, such as limited existing RE capacity, the intermittency of solar energy, and the need for vast parcels of land for solar power plants.

“[Let’s say] producing 1mw of power [of solar energy, requires about] 10 acres of land. Therefore, to power up 2,400mw, we need a land size of 24,000 acres. That is 10% of the state of Perlis,” says Hisham Mustaffa, an independent infrastructure planning engineer and a former chief engineer at Tenaga.

Replacing dispatchable power generation, such as from natural gas or coal, with intermittent RE like solar and wind energy, could cause grid instability.

To circumvent limited RE capacity, data centres are going for RE certificates (RECs) instead.

For instance, 43% of Equinix’s global energy consumption is covered through the purchase of RECs, while in Malaysia, it is 100%, says Jason Plamondon, regional sustainability manager of Asia-Pacific at Equinix.

Equinix owns and operates 260 data centres globally, and has established data centres in Johor and Kuala Lumpur.

“RECs are simply a way to offset your emissions. When you purchase RECs, you’re essentially saying you’re supporting RE development elsewhere, which is now contributing RE to the grid,” says Plamondon. “It would be a perfect world if there were just unlimited supplies of RE that we could tap into and ensure that our operations are as sustainable as possible. That’s not the case in all the areas we operate. We have to work within the systems and capabilities of the countries we are in and within the regulations.”

There are also power purchase agreements (PPAs), which are financial contracts that bring to market RE projects such as wind and solar farms that increase access to clean energy in local energy grids. PPAs are usually contracts wherein electricity consumers purchase from a renewable generator at a fixed price over multiple years. PPAs are preferred to RECs as they provide additional RE capacity to local grids.

Equinix has executed 21 PPAs globally, resulting in three million megawatts of RE.

If it’s going to be here, let’s make it efficient

The mitigation hierarchy, a framework that is used to minimise the environmental impact of projects, guides companies to focus on reducing in-house emissions before using carbon offsetting for the remainder of the emissions. The principles of the mitigation hierarchy are to measure, reduce and, only then, to offset.

Similarly, this is why data centres are encouraged to prioritise energy efficiency before RE is considered. Energy efficiency methods include server visualisation, improved cooling systems and optimised power usage, to reduce the PUE of their operations.

RECs should be the last resort for green energy, asserts Tang. “All businesses have the tendency to go with the easiest path to achieve an objective. The easiest path for a data centre to go green is to buy RECs. However, RECs alone do not address actual reduction of carbon emissions or reduce water consumption.”

Strong government and industry efforts in energy efficiency are necessary to curb energy demand and growth of emissions.

For instance, the air-conditioning system, which accounts for half of the energy consumed by data centres, could utilise thermal energy storage or the district cooling system, says AHAR’s Arul. These technologies, which produce chilled water during off-peak periods, can be used to reduce power consumption and peak demands during the daytime.

Heat from the servers can also be recovered and reused to produce cooling energy using an absorption chiller on-site, instead of being wasted.

Equinix is targeting an average PUE of 1.30 globally, from the current 1.42. It utilises AI for optimised cooling, expanding thermal envelopes and airflow management. By being more energy efficient, the data centre consumes less energy from the grid.

“Data centres must provide proof that they are practising energy efficiency in their premises. This has to be checked and audited on a regular basis,” says Hisham.

For instance, the Efficient Management of Electrical Energy Regulations 2008, which were enacted by the Energy Commission, have to be strictly enforced. The law requires large electricity consumers to disclose energy consumption of more than 3,000mw within six months. A registered electrical energy manager is required to conduct an audit on the consumer.

“The government has to be very strict. It cannot allow data centres to [flout] these guidelines. [It must play its role] in ensuring that data centres do not put a strain on the infrastructure,” says Arul.

To quantify the performance of data centres in terms of energy and water efficiency, as well as embodied carbon, indoor and outdoor environmental quality, GBI is developing a tool for data centres based on a performance benchmark.

Thereafter, a data centre would be labelled as a platinum-, gold- or silver-certified GBI data centre, providing easy reference to the public on how well a data centre is performing in terms of sustainability.

“We are in the process of collecting industry input to develop the various benchmarks for data centres. Upon reaching a collective agreement on the scoring of these benchmarks, the GBI data centre tool will be launched and implemented by the GBI body,” says Tang.

Adherence to a green building standard such as GBI would ensure that data centres are designed to and do operate with minimal environmental impact, says Miti.

While the increasing demand for data centres can provide opportunities for the Malaysian digital economy, the country has to be wary of its implications.

“How are we going to ensure that [data centres] come but in a controlled manner that is good for us that doesn’t harm us in the long run? I think policymakers need to engage people to brainstorm and look at things in a holistic way. For now, I think we should welcome everyone, but there has to be a limit,” says Arul.

Source: The Edge Malaysia

Taking a hard look at data centres

NanoMalaysia Bhd (NMB), a company limited by guarantee under the Ministry of Science, Technology and Innovation (Mosti), has signed a memorandum of understanding (MoU) with Australia’s integrated green technology, energy, and metals company, Fortescue.

Under the MoU, they will work together to determine opportunities for collaboration on research and development in Malaysia’s green hydrogen industry.

Minister Chang Lih Kang witnessed the signing ceremony following a meeting between the two companies while attending the Connecting Green Hydrogen APAC 2024 conference in Melbourne.

The MoU marks a pivotal moment for Malaysia’s journey to be a leading Hydrogen Economy country by 2050, as outlined in the Hydrogen Economy and Technology Roadmap (HETR), launched in October last year.

Mosti is spearheading Malaysia’s science and technology agenda, which includes developing sustainable energy solutions. The HETR is Mosti’s answer to addressing the three energy challenges – reliability, affordability, and sustainability – on the road to carbon neutrality. For technology and capability development, the roadmap focuses on the “Build Some, Buy Some” approach in the short-term plan (2022-2030) and aims to encourage the use of both local and foreign hydrogen technologies in Malaysia.

The “build-some, buy-some” principle is critical to achieving low hydrogen generation costs in the world market. Malaysia aims to achieve this by developing a complete ecosystem that includes the supply and value chain in raw materials, processed materials, advanced materials, component fabrication, system and product integration, large-scale production and market penetration through smart joint ventures and project investment.

It will incorporate expertise from international corporations such as Fortescue while local companies develop local technologies based on the primary technology niches.

The proposed collaboration between NMB and Fortescue also includes potentially working to develop Hydrogen Hubs in Malaysia. Hydrogen Hubs are areas with a concentration of hydrogen stakeholders across the value chain and consist of the facilities and systems required for hydrogen production, storage, distribution, and transportation. NMB also proposes to establish a Centre of Excellence (CoE) in Malaysia known as HEBATT (Hydrogen-Electric Vehicle-Battery) Centre where Fortescue will be able to exchange technological expertise and insight.

NanoMalaysia CEO Dr Rezal Khairi Ahmad said, “Under Mosti, NMB has initiated the development and innovation of local hydrogen technology solutions and ecosystem construction through the Venture Builder (VB) model in collaboration with industry, academia, industries, interministries, public agencies, and foreign entities.

“A pivotal achievement in NanoMalaysia’s hydrogen endeavours is the ‘Hydrogen EcoNanoMY’ programme under the 12th Malaysia Plan.”

Source: The Sun

NanoMalaysia, Fortescue collaborate on green hydrogen R&D

The latest estimates of the effectiveness of the National Energy Transition Roadmap’s (NETR) flagship projects and initiatives show that the investments involved will be worth RM60.7 billion, instead of the initial projection of RM25 billion when the road map was launched on Aug 29 last year.

The Ministry of Economy said this is based on the March 2024 progress report, which also shows that 84,544 job opportunities would be created (development and post-project), compared with the initial forecast of 23,000 jobs.

Furthermore, the reduction in greenhouse gas emissions is now estimated at 24,264 gigagrams of carbon dioxide equivalent (Gg CO2eq) per year, compared with 10,000 Gg CO2eq per year that was initially forecast, the ministry said in a written reply posted on Parliament’s website on Thursday.

This was in response to Datuk Seri Dr Shahidan Kasim’s (Perikatan Nasional-Arau) request for a status report on the NETR and the New Industrial Master Plan 2030.

The ministry added that the government is committed to ensuring the energy transition management is based on the whole-of-nation approach encompassing the federal government, state governments, general public and international community, for a unified policy planning and implementation in balancing the energy trilemma of security, affordability, and sustainability.

“The effectiveness of the NETR implementation is expected to increase its contribution to national gross domestic product, create job opportunities, enhance the people’s socio-economic status, and ensure energy security and environmental sustainability,” the ministry added.

Source: Bernama

NETR expected to attract investments worth RM60.7b — ministry