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

Sarawak Energy, in its commitment to advancing hydropower and renewable energy in Malaysia, recently participated in a discussion with Deputy Prime Minister Datuk Seri Fadillah Yusof, the International Hydropower Association (IHA), and the Global Renewables Alliance (GRA) at the Malaysia High Commission in London.

The discussion aimed to progress Malaysia’s sustainable energy goals and expand regional collaboration opportunities with the global hydropower community to accelerate hydropower development towards meeting the nation’s net zero target by 2050, according to a statement.

Representing Sarawak Energy was its group chief executive officer Datuk Sharbini Suhaili, who also serves as a board member of IHA for Asia (East and Pacific). IHA and GRA were represented by their chief executive officers Eddie Rich and Bruce Douglas respectively.

Fadillah, who is Federal Energy Transition and Water Transformation Minister, discussed Malaysia’s efforts to address resource security and environmental impact concerns by pursuing renewable energy alternatives, including solar and hydro, to diversify the energy mix and promote sustainable electricity generation.

He said in 2021, the Malaysia Renewable Energy Roadmap outlined a strategic framework to achieve the ambitious targets for diversifying the nation’s energy mix and the potential of hydroelectric power stands out significantly.

He also highlighted the future of hydropower, including mini and micro-hydro projects, which offer sustainable energy solutions for rural electrification while minimising environmental impact.

Smaller hydro projects require modest infrastructure and integrate well into existing water management systems.

Fadillah also expressed interest for his ministry to collaborate with Sarawak Energy, IHA, and GRA on policy, advocacy, and renewable energy capacity building.

The discussions also covered pumped storage, cascading power sources, and integrating hydropower into Asean energy programmes.

During the discussion, Sharbini emphasised Sarawak Energy’s commitment to accelerate hydropower development towards net zero and shared insights on how renewable hydropower has powered Sarawak’s sustainable growth.

“Renewable hydropower can power sustainable socio-economic growth in Sarawak and serve as one of the key enablers for regional growth,” he said.

He noted that while Southeast Asia’s installed hydropower capacity is expected to continue growing to meet electricity demand, many policymakers in the region have not included hydropower in net zero strategies yet – as reflected in IHA’s published 2024 World Hydropower Outlook.

With increased resources and strengthened partnerships, Sarawak Energy aims to support global energy transition efforts and contribute to the region’s energy transition.

“Malaysia recognises large hydropower as a contributor to renewable energy targets at the national level.

“With this, Malaysia can play a very important role in driving this regional shift towards renewable hydropower – becoming an energy transition leader in Southeast Asia,” said Sharbini.

Rich emphasised hydropower’s role in supporting global climate action and shared IHA’s plans to focus more on regionalisation to meet Southeast Asia’s needs in accelerating sustainable hydropower development.

He also detailed IHA’s recommendations for Malaysia and the role of advocacy going forward.

Meanwhile, Douglas emphasised hydropower’s role in tripling global renewable capacity by 2030, stressing its flexibility and resiliency.

Source: Borneo Post

Sarawak Energy aims to progress M’sia’s sustainable energy goals, expand regional collab

AS an energy industry consultant with over three decades of experience in the Malaysian and Asean utility sector, I’ve witnessed firsthand the myriad challenges and opportunities that come with transitioning to a more sustainable energy future.

While progress has been made, there’s still much work to be done to create a balanced and competitive market environment that can drive innovation, protect consumers, and meet our climate goals.

Here are the key areas we need to focus on to accelerate this transition.

Empowering the market through education and fair competition

One of the most critical steps in our energy transition journey is building capacity across the sector. We must invest in comprehensive training programmes for regulators, utilities, and market participants to enhance their understanding of market dynamics, renewable energy (RE) integration, and advanced grid management techniques.

As Marcus Aurelius wisely noted, “He who knows only his own side of the case knows little of that.”

By fostering a shared understanding, we can create a more collaborative and innovative energy ecosystem.

Together with education comes the need for fair competition. Developing clear and transparent trading rules that apply equally to all market participants, including monopolistic entities, is crucial to prevent anti-competitive practices and ensure a level playing field.

Ideally, state or private monopolies should operate only in the transmission and distribution sector, with a fair rate of return guaranteed through an incentive-based recovery mechanism.

Harnessing the power of market-based instruments

To drive down costs and encourage innovation, we must promote the use of market-based instruments such as virtual power purchase agreements and third-party access for RE procurement.

These tools can foster creativity within the growing renewable energy marketplace, potentially leading to revolutionary new models like “storage as a service.”In developing markets, I would caution against the use of auctions due to high RE development costs and low financial appetite. Instead, we should encourage the use of unbundled, accountable renewable energy certificates (RECs) to exponentially grow the market. Utilities should facilitate third-party use of their billing and settlement infrastructure to bundle these unbundled RECs, rather than directly participating in the market themselves.

The implementation of a renewable portfolio standard in some Asean energy markets is a promising development.

By mandating that a certain percentage of electricity sold or generated by utilities must come from renewable sources, we can hold utilities accountable for incorporating clean energy into their mix while working in parallel with potential RE developers to develop a REC market for the environmental attributes in these voluntary carbon markets to ensure these projects are equally well funded by financial institutions.

Fostering regulatory independence and thought leadership

For our energy transition to succeed, we need regulatory bodies that operate independently from government and industry pressures.

These bodies must be empowered to make unbiased decisions that promote market efficiency and protect consumer interests.

Governments should demonstrate thought leadership and political will, as exemplified by the Deputy Prime Minister, and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof and his team.

Regulators should not fear making unpopular decisions, as these are often the hallmark of successful energy transitions.

As I once heard during a leadership seminar, “If you want to make everybody happy, sell ice cream.”

Reimagining the role of utilities in the energy transition

Utilities have a crucial role to play in the energy transition, but they must evolve from their traditional monopolistic position to become collaborative entities that support innovation and market development.

This involves investing in grid modernisation, facilitating renewable energy integration, supporting distributed generation, and adopting new technologies.For example, utilities should invest in smart grid technologies that enhance the reliability, efficiency, and flexibility of the power grid.

They should also develop and implement standards that streamline the process for connecting renewable energy projects to the grid, including simplifying regulatory procedures and reducing bureaucratic barriers.

Moreover, utilities can support the development of microgrids and distributed energy resources, which include rooftop solar, small-scale wind, and home energy storage systems.

These resources enhance grid resilience and empower consumers to generate their own electricity.

Protecting consumers in a changing energy landscape

As we transform our energy systems, we must not lose sight of the importance of consumer protection.

This includes ensuring affordable access to electricity, implementing transparent billing practices, and providing clear and detailed information about energy usage and costs.

We should also develop educational programmes to enhance consumers’ understanding of energy usage, conservation, and billing.

Informed consumers are better equipped to make decisions that can reduce their energy costs and environmental impact.

Furthermore, we need to establish robust data privacy and security measures to safeguard consumers’ personal and usage information.

This includes regulating how utilities themselves use customer data and ensuring that third-party contractors can also access this information with explicit consumer consent.

Aligning energy policies with sustainable development goals

Finally, we must ensure that our energy policies align with broader sustainable development goals.

This means focusing on reducing carbon emissions, promoting energy efficiency, and ensuring universal access to clean and reliable energy.

Ensuring environmental, social and governance-compliance is more crucial than ever, and stronger regulatory support is required to ensure fair practices.

We need to revisit misclassifications, such as treating waste heat recovery as co-generation instead of an energy efficiency initiative.

The announcement of a potential future carbon tax regime should see collaboration between the ministry and NRE to ensure supportive practices.

A call for collaborative action

The energy transition in Malaysia and Asean presents both challenges and opportunities. By focusing on these key areas – from capacity building and fair competition to consumer protection and sustainable development – we can create a more competitive, efficient, and fair electricity market that encourages innovation, protects consumers, and supports sustainable development.

However, this transition cannot be achieved by any single entity alone.

It requires collaborative effort from governments, regulators, utilities, private sector participants and consumers.

Each has a crucial role to play in shaping our energy future.

As we move forward, let us remember that the decisions we make today will have far-reaching implications for generations to come.

By working together and embracing innovation, we can build an energy system that is not only cleaner and more efficient but also more equitable and resilient.

The time for action is now – let’s seize this opportunity to create a sustainable energy future for Malaysia, Asean and beyond.

Nirinder Singh Johl is the founder and CEO of Asia CarbonX Change Plt. He was formerly the managing director of TNBX, a subsidiary of Tenaga Nasional Bhd. The views expressed here are the writer’s own.

Source: The Star

Accelerating sustainable energy transition

A total of 1,000 job opportunities are expected to be offered by Wiwynn Technology Service Malaysia Sdn Bhd (Wiwynn) by the end of this year, says Datuk Onn Hafiz Ghazi.

The Johor Mentri Besar said that nearly 80% of the employees are going to be local, especially from Johor.

“This was shared by Wiwynn during my visit to their factory in Senai Airport City.

“Wiwynn is a company that provides cloud IT infrastructure and successfully recorded a profit of US$7.8bil (RM36.7bil) in 2023.

“The company premises cover 12ha and have developed over two phases,” he said in a statement on his Facebook page, here, on Tuesday (July 9).

Onn Hafiz added that Phase 1 is a server rack integration factory, and Phase 2, which is currently 81% completed, is a server printed circuit board assembly (PCBA) factory.

“I am also delighted that Senai Airport City continues to excel, having successfully attracted 150 investors, with a total investment value of RM7.5bil, and creating 28,000 job opportunities.

“Several large companies, including Wiwynn, have invested in Senai Airport City, such as Hershey, Mercedes-Benz, DHL, Dyson, FedEx, Haitian, Fiffy, Supermicro, and many more,” he added.

All this proves that Johor is capable of attracting investors, with increased job opportunities and competitive salaries awaiting the people of Johor, he said.

“This will enhance the socioeconomic status of the local community, besides stimulating sustainable economic activities in Johor.

“With the Johor-Singapore Special Economic Zone (JS-SEZ) policy that will further boost the state’s economic sector, I hope that the economic benefits will be felt by all the people of Johor and will be able to improve the standard of living of the people,” said Onn Hafiz.

Source: The Star

Tech company’s expansion in Senai Airport City to generate 1,000 jobs, says Johor MB

The Sarawak government aims to develop a workforce with 30 per cent high-skilled workers by 2030, said Minister of Education, Innovation and Talent Development Dato Sri Roland Sagah Wee Inn.

He said programmes such as the Advanced Sustainable Technology International Conference (Astech) 2024, slated for Aug 5-6 later this year, will help achieve this goal, which is in line with the Post Covid-19 Development Strategy (PCDS) 2030.

“We have approximately six years to reach the nation’s ideal target set in the PCDS 2030, which aims to produce a workforce with 60 per cent high-skilled workers. However, for Sarawak, we realistically aim to achieve 30-40 per cent,” he said during opening ceremony for the Sarawak English Language Education Symposium (Seles) 2024 here today.

Sagah added this includes individuals with Technical and Vocational Education and Training (TVET) as well as those in pure sciences.

“Targetting individuals with complete backgrounds and expertise in pure sciences might be challenging, so we are introducing various programmes to attract these students,” he said.

Regarding Astech 2024, Sagah said it would foster a dynamic environment for research and innovation and encourage participants to explore cutting-edge technologies in engineering, technology, science, TVET and education.

“In line with the principles of Industrial Revolution 4.0, workforce future-proofing and socio-economic sustainability, Astech 2024 Is set to advance in these crucial areas.

“It will be inspiring to see 170 research paper presentations from seven countries — Malaysia (138 research paper presentations) with a breakdown of 46 from Sarawak, 2 from Sabah and 90 from West Malaysia; Indonesia (26), India (1), Nigeria (1), Philippines (1) and Portugal (1).

“The conference will also feature town hall sessions, which will be attended by nearly 600 students and teachers from polytechnics and high schools around Kuching as well as community colleges, vocational colleges and both local and private universities around Sarawak,” he said.

Also present were his deputy ministers Datuk Dr Annuar Rapaee and Datuk Francis Harden Hollis and Polytechnic Kuching Sarawak director Samsudin Mohd Saleh.

Source: Borneo Post

Sagah: S’wak eyes 30 pct high-skilled workforce by 2030

Senai Airport City Sdn Bhd, a wholly owned subsidiary of MMC Corporation Bhd (MMC), attracted RM7.5 billion in investments via 150 investors.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said the investors include Wiwynn Technology Service Malaysia Sdn Bhd, Hershey, Mercedes-Benz, DHL, Dyson, FedEx, Haitian, Fiffy and Supermicro. They are offering 28,000 job opportunities.

“This proves that Johor can attract investors, with increased job opportunities and competitive wages awaiting Bangsa Johor. This will further improve the socio-economy of the local community besides stimulating sustainable economic activities for Johor.

“With the Johor-Singapore Special Economic Zone (JS-SEZ) policy that will boost the state’s economic sector, I hope the results of this economic spillover will be felt by the entire Bangsar Johor and be able to improve the people’s living standards,“ he said on his Facebook page today.

Earlier, Onn Hafiz visited Wiwynn Technology Service’s factory. The cloud information technology (IT) infrastructure company recorded a profit of US$7.8 billion last year.

“Wiwynn Technology Service involves ​30 acres. The server rack integration factory is in the first phase. The second phase, the printed circuit board assembly server factory, is 81 per cent completed.

“Wiwynn Technology Service will offer up to 1,000 job opportunities by the end of this year, with almost 80 per cent of its workers being locals, especially from Johor,“ he said, adding that the company is located in Senai Airport City.

Source: Bernama

Senai Airport City attracts RM7.5 billion investments

As numerous listed companies and their financial advisers try to carve out investment themes of them being a beneficiary of the data centre (DC) boom in Malaysia, caution needs to be taken.

For one thing, DCs have been around for more than 20 years and so any company that is now saying it is able to do something for DCs, the question is, has it been doing it before?

“DCs typically have an established and global supply chain for their equipment and IT components. It doesn’t matter to them where you are based.

“So if you are now saying you can build a component for data centres just because a number of such facilities are being set up in Malaysia, the question is, have you been able to do that before?

“If not, then there is little chance of you being able to do it now, just because we have a DC boom in Malaysia,” explained Gary Goh, the chief executive of DC advisory firm Sprint DC Consulting.

Even so, Goh remains bullish on the prospects of the real beneficiaries of the DC boom in Malaysia.

These include land owners who are able to sell the land to the DC operators, the contractors being given jobs to construct parts of the DC buildings and even energy providers like Tenaga Nasional Bhd (TNB) and their subcontractors.

The local DC market, according to a report, is forecast to grow at a six-year compounded annual growth rate of 13.9% from US$1.8bil in 2023 to US$4bil by 2029.

The cost of constructing a DC in Malaysia ranges between US$6.7mil and US$10mil per megawatt (MW), which is lower as compared to Singapore and Indonesia’s capital Jakarta, but costlier than Thailand and the Philippines.

The big players in the construction sector, such as Gamuda Bhd and Sunway Construction Group Bhd, have secured a total of at least RM2bil worth of DC contracts.

Meanwhile, IJM Corp Bhd clinched its maiden DC job recently when it was awarded a RM332mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre for TM Technology Services.

In the property space, several property developers have sold their land for the development of DCs. These include low-profile Johor-based Crescendo Corp Bhd and government-linked companies like UEM Sunrise Bhd and Sime Darby Property Bhd.

Goh, who assists foreign DC operators looking to set up operations in Malaysia, also noted that there were a number of landowners thinking that their land can be suitable for a DC.

“But it is not so easy. There are many considerations to be looked into, such as the cost of ramping up energy and resource infrastructure there, the surrounding neighbourhood as residential ones could voice out their disapproval to be close to DCs.

“This is why a study needs to be done, and this is what we do,” he told StarBiz.

The DC theme, which has been playing out for the first half 2024, has also seen a spillover effect onto mid and small-cap stocks. Does the rally still have legs?

Research firms like JP Morgan think so but advocate staying selective in the DC space, preferring a pick-and-shovel strategy, which is investing in companies that provide necessary equipment and services for the industry.

CGS International (CGSI) said the DC ecosystem can be divided into four main categories – location or land; basic infrastructure comprising construction, materials, mechanical and electrical (M&E); hardware such as data storage systems and solutions, and lastly the power and connectivity factor.

“In our view, from a retail investor’s/trader’s perspective, these are the four key categories that are most relevant for selecting/screening potential beneficiaries of DC-related contracts and/or services,” the research firm said in its June 30 report.

It said while tech/hardware-related companies will remain as DC beneficiaries over the long run, the construction and property sectors are the earlier or direct beneficiaries of the DC value chain.

According to CGSI, the share prices of technology, M&E solutions, and cooling systems providers have surged about 144% year-to-date (y-t-d) on average, at a trailing price-earnings of 33.4 times.

On the other hand, it noted that valuations of construction/engineering services players with exposure to DC construction are at a more palatable average of 22.4 times price-earnings.

The current DC play is reminiscent of the glove mania following the Covid-19 outbreak.

Investor Ian Yoong Kah Yin reckons that when the DC theme implodes, and it will he believes, share prices of listed companies that profit from DCs will fall too.

He points to one rubber glove company that was profitable for the past five years but saw its share price fall sharply in tandem with loss-making rubber glove manufacturers. Investors, he said, tend to throw out the baby with the bath water.

He thinks many of the share price outperformance of these wanna-be companies jumping on the DC and artificial intelligence or AI bandwagon could fizzle out by 2025.

With DCs requiring tremendous amounts of electricity, Yoong is positive on TNB, Malakoff Corp Bhd and other listed electricity producers.

He said the preferred energy source for DCs is renewable energy and he expects more electricity supply agreements with DC companies to be signed over the next 12 months.

“DCs will drive electricity demand. Domestic demand for electricity recorded a new high of 20,028MW in April 2024 with strong commercial demand due to DCs coming on stream in the first quarter of 2024,” said Yoong, who thinks the share price outperformance of TNB and Telekom Malaysia Bhd, which is one of the largest DC operators in Malaysia, could see the FBM KLCI move up to 2,000 points by 2025.

Source: The Star

Deciphering the data centre thematic play

TVET, which stands for technical and vocational education and training, plays a key role in Malaysia, not only in terms of enhancing the labour market, but also in terms of fostering social integration and mobility for marginalised communities.

TVET provides individuals with the information and skills essential to making the transition from precarious livelihoods and informal employment to formal employment and better paying work. This helps improve lives and also contributes to the expansion of the nation’s economy as a whole.

Disadvantaged groups in Malaysia, such as those living in rural areas, low income families, persons with disabilities, and ethnic minorities sometimes face significant challenges in obtaining an education and finding work. Examples of these hurdles include limited access to quality education, difficulty associated with language, financial limitations, and the absence of infrastructure conducive to learning.

By emphasising the development of skills closely aligned with market requirements, TVET offers such people a realistic and achievable course of action. It promotes employability and encourages self-sufficiency and entrepreneurialism, both of which are vital for reducing poverty and inequality.

The goal is to increase the proportion of highly skilled workers to over 4.5% of the Malaysian workforce by 2030, and initiatives aiming to improve enrolment in TVET and STEM (science, technology, engineering, and mathematics) courses are being prioritised. However, there are a number of challenges that the TVET system in Malaysia must overcome to achieve genuine inclusion. A significant obstacle is the quality and relevance of the training provided.

Many TVET institutes do not have the necessary resources to be able to offer relevant opportunities for further education or secure employment. This issue is exacerbated by the fact that there is a scarcity of knowledgeable

nd trainers with expertise in the field that they can translate for the classroom.

Moreover, there is frequently a lack of strategic links among the formal, non-formal and informal sectors, which inhibits the possibility of students receiving realworld experience and intern placements. This in turn makes it difficult for them to gain employment.

When compared with other nations, the percentage of students enrolling in TVET in Malaysia is very low. Only 6.1% of eligible young people enrolled in TVET institutions in 2022, which is significantly lower than the percentages of 23.8% in Singapore, 14.2% in South Korea, and 12.8% in Indonesia.

The development of an inclusive TVET ecosystem in Malaysia has a number of different but interconnected requirements.

For one, we need novel approaches to delivery that can cater to a wide range of educational requirements, such as those of individuals with disabilities as well as refugees, and migrants. Creating individualised training programmes and using technological tools to improve educational experiences are two ways in which this might be accomplished.

Secondly, it is of the utmost importance to promote gender equality within TVET, allowing women to have the same opportunity as men to acquire skills and gain employment.

It is possible for TVET programmes to equip our young people with the skills necessary for gainful employment and social mobility if barriers to entry are removed and high-quality, relevant training is ensured.

Building a TVET ecosystem that really serves all members of society and creating an inclusive and equitable future for Malaysia requires the joint efforts of diverse stakeholders, guided by initiatives such as those outlined in UNESCO-UNEVOC (United Nations Educational, Scientific and Cultural Organisation’s vocational education agency at unevoc.unesco.org). This is vital if we want to construct a truly inclusive and equitable future for Malaysia.

Source: The Star

Make TVET more inclusive

By Kamarul Azhar / The Edge Malaysia

I am going to be honest with you. Data centres are not environmentally sustainable,” admits an investor, who is setting up a data centre in Selangor. “And the only reason people come to Malaysia to invest is that Singapore doesn’t want data centres anymore.”

Malaysia has seen an influx of data centre investments over the last three years, coinciding with Singapore’s moratorium on the energy-guzzling boxes between 2019 and 2022. The moratorium was lifted last year.

Between 2021 and 2023, data centre investments approved by the Ministry of Investment, Trade and Industry (Miti) totalled RM114.7 billion, making up 79% of total approved digital investments during that period.

The influx is pushing Malaysia into becoming the region’s new data centre hub, catching up with Singapore.

One factor that could throw a spanner in the works, however, is water.

According to Google, in 2021, its average data centre consumed about 450,000 gallons of water per day, or around 1.7 million litres per day (MLD). The company says this is roughly the same amount of water used to irrigate 17 acres of turf lawn grass once, or to grow the cotton for the manufacture of 160 pairs of jeans.

Considering that the entire state of Johor — where billions of ringgit in data centre investments have been committed — used 1,407MLD of water in 2022, 1.7MLD is not much. Still, 1.7MLD is only the average water usage for one data centre.

Over the last two years, Johor has attracted 50 data centre investments, according to its Menteri Besar Datuk Onn Hafiz Ghazi. The Global Data Centre Index 2024 report by DC Byte says Johor is the fastest-growing market in Southeast Asia, with more than 1.6gw of total supply.

For a typical 100mw data centre, water usage is around 1.1 million gallons per day, or 4.2MLD. Each data centre uses a different level of water, however, and has a different level of efficiency.

“When it comes to water usage, it is about using precision cooling,” says the data centre player whom The Edge spoke to. “But even with precision cooling, on average you can make your data centre [only] 30% green.”

Precision cooling uses cooling mediums that are more complex and that require greater attention to maintenance than comfort cooling in order for the data centre to deliver peak performance. These cooling methods include air, chilled water and refrigerants.

Essentially, data centres require a lot of water to cool their servers — and this is posing a problem for Johor, which has seen an influx of data centre investments in recent years.

According to Charles Santiago, chairman of industry regulator Suruhanjaya Perkhidmatan Air Negara (SPAN), normal annual demand growth for water in Johor is 2.5%, or about 50MLD. With the influx of data centres, however, the requests so far have been for an additional average of 26MLD each year until 2036.

“That’s an additional 1.3% per year above the normal organic growth,” Santiago says.

While Johor has no major water supply issues like Kedah and Kelantan, investments in water infrastructure will have to keep up with demand, especially now that the state is receiving huge investments in data centres and other industries.

According to SPAN’s Water and Sewerage Fact Book 2022, Johor’s reserve margin stood at 11.5% in 2022. Non-revenue water (NRW) — water produced by water treatment plants (WTPs) but not billed to customers, as it is lost during transfer and distribution — stood at 26.3%.

Ranhill SAJ Sdn Bhd (RSAJ), the state’s water operator, aims to increase its reserve margin to 25% in 2029. To achieve this, all the water supply infrastructure development projects in the state must be completed by RSAJ as planned.

It is not known how RSAJ intends to raise the water reserve margin to 25% in just five years. According to Santiago, Johor’s current reserve margin is already at 16.9%, an impressive jump of 5.4 percentage points in just three years.

“Development of infrastructure in Johor is carried out according to plan for the period of 2024 to 2030 to meet supply and demand. Feedback by RSAJ on the water supply situation is still manageable,” he says.

The question of whether there is enough water in Johor to cater for the demand by data centres, as well as the organic demand growth in the state, is being asked by not just the public and industry players, but by state officials as well.

On May 30, Johor Bahru City Council mayor Datuk Mohd Noorazam Osman said the supply of water and power continues to be a major challenge in Johor despite the boom in data centre investments. He said there should be greater collaboration between the government and private sector, including in the building of desalination plants to ensure adequate water supply and partnering with developers to build industrial parks equipped with enough power and water infrastructure for high-tech industries.

“People are too hyped up about data centres nowadays, but the issue in Johor is water and power. Areas with potential for power supply are Pasir Gudang and Kulai,” Mohd Noorazam said during a panel discussion at The Johor Conversations 2024 event in May.

“As a local authority, I believe that while promoting investments is important, it should not come at the expense of the local and domestic needs of the people.”

In June, the state’s Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said although the water supply in the state was currently sufficient, early preparations should be made for the long term. These include building new water treatment plants and installing new piping to connect water sources to new areas, as well as exploring new water sources through Johor Special Water, a body owned by Permodalan Darul Takzim.

Data from RSAJ shows that it has received applications for 439.67MLD of water between 2024 and 2035 from data centres. Of this amount, 316.38MLD have been supported, while the remaining 30.51MLD have yet to be supported by the water operator.

“Investors need to refer to RSAJ, which has also been appointed as a SPAN Water Supply Certifying Agency (CA). [A CA’s responsibility] is to check the adequacy of the water supply,” Santiago says.

Meanwhile, Pengurusan Air Selangor Sdn Bhd, the sole water operator in Selangor, Kuala Lumpur and Putrajaya, is aware of the increase in demand for water from data centres, and is planning accordingly to ensure that the water supply infrastructure can support the needs of these facilities without compromising on the overall water supply to consumers or other sectors.

Selangor’s 15.34% water reserve margin could be good enough to support the additional demand coming from the data centres, on top of the organic growth in the state as well as in Kuala Lumpur and Putrajaya.

In addition, Air Selangor is already working on major water resources and treatment projects. It is currently embarking on the second phase of the Langat 2 scheme, as well as the Rasau water supply scheme, in efforts to boost its water reserve margins to 17.7% by 2030.

As for Johor, the government intends to upgrade the functions of the Sembrong dam in Kluang. RSAJ recently awarded Ranhill Utilities Bhd (KL:RANHILL) a RM283.8 million contract to reduce the NRW levels in the state, between January 2024 and December 2026.

RSAJ is a joint venture between Ranhill and Syarikat Air Johor Sdn Bhd, a state-owned company that manages Johor’s water resources. Ranhill, which has 80% interest in RSAJ, is 53.19%-owned by YTL Power International Bhd (KL:YTLP).

YTL Power emerged as the new controlling shareholder of Ranhill after its 70%-owned subsidiary SIPP Power Sdn Bhd acquired the shares held by Tan Sri Hamdan Mohamad for RM405.2 million on May 28. Prior to that, YTL Power was Ranhill’s major shareholder, with a 21.77% stake.

The change in controlling shareholder at Ranhill could mark a new phase for the group. YTL Power is also a big player in data centres, having kicked off the trend in Johor in 2021 with a deal for a 500mw data centre with Sea Ltd.

Regulators playing catch-up with data centre boom

“Currently, there are no specific regulations on data centres in Malaysia, in terms of water and energy usage. However, we the players are taking things into our own hands, as customers are demanding that data centres be green,” says the data centre player whom The Edge spoke to.

An online search shows that the Malaysian Communications and Multimedia Commission is drafting a technical code for the specifications for green data centres. The technical code provides the minimum requirements for green data centres. These include areas such as environmental conditions, energy management, air management, cooling management, IT equipment and lighting, power chain management, space management, information management, governance and guidelines.

At the same time, Johor executive council member Lee said in June that the state government, in collaboration with the Department of Town and Country Planning (PLANMalaysia@Johor) was drawing up the Johor State Data Centre Development Planning Guidelines to coordinate and monitor data centre development planning.

The Johor State Data Centre Development Coordination Committee (JPPDNJ) has been set up, comprising state and federal agencies including the Johor Economic Planning Division, Invest Johor, Malaysia Investment Development Authority (Mida), Malaysia Digital Economy Corp, Iskandar Regional Development Authority, Tenaga Nasional Bhd (KL:TENAGA), RSAJ, the Land and Mines Office, Environment Department and PLANMalaysia.

Lee said the committee had decided that data centres in Johor should focus on the use of renewable technology in addition to saving electricity and water. He added that JPPDNJ would also take into account the efficient use of electricity and water, with reference to industry best practices and other countries’ experiences.

While Malaysian regulators are playing catch-up with the industry’s boom, industry players are already working to ensure that the data centres can attract business from demanding digital companies that require them to be green.

“There’s no way that customers are going to give the business if they don’t pass the audit,” says another data centre industry player.

“Data centres are not regulated; it is a private business. I don’t deal with the government. The government is just my customer. There is no benchmark in the world to regulate data centres. If you don’t sell cars in Europe, you don’t have to comply with their emission standards.”

Source: The Edge Malaysia

Investments in water need to keep pace with influx of data centres

Global technology giants have been actively announcing their investments in the Southeast Asian region, including in Malaysia, and this bodes well for infrastructure developers as well as for other sectors which could benefit from the spillovers from these tech developments.

In a report, the research team at RHB Investment Bank Bhd (RHB Investment) pointed out that Malaysia has benefited substantially from tech giants investing in Southeast Asia, largely due to its strategic location (being next to Singapore), as well as favourable infrastructure development.

Over the past three months, it noted that many developers have respectively announced their land disposals directly or indirectly to data centre (DC) players, as well as investments related to the DC business.

“We think the DC investment cycle is only at the initial stage, and we foresee much more industrial land transactions going forward.

“While some developers, especially those with solid balance sheet, may start to look at the viability of this DCrelated real estate investments, developers such as Sime Darby Property and Mah Sing may further expand their investments going forward,” it said.

It also pointed out that although new job creation is likely to be minimal, it believed that the entrance of these renowned technology companies into Iskandar Malaysia, Elmina Business Park, Southville City, and Cyberjaya will likely spur the re-rating of land prices in the surrounding areas, and more importanly, attract other technology or IT supporting industries into these industrial parks in the future.

“Interestingly, we learnt that residential property prices at City of Elmina are holding up well,” it added.

Of note, according to Prime Minister Datuk Seri Anwar

Ibrahim, Malaysia has approved RM114.7 billion worth of investments in DCs and cloud services between 2021 to 2023.

Malaysia also aims to attract RM500 billion investments in the semiconductor segment.

Meanwhile, the research team noted that recently, SD Guthrie (previously known as Sime Darby Plantation) also announced plans to work with Permodalan Nasional Bhd (PNB) to participate in the proposed Kerian Integrated Green Industrial Park (KIGIP), which is an initiative driven by the Federal Government in collaboration with the Perak State Government.

The development involves 404 ha of land in Kerian, including 267 ha of solar farms. While the project is intended to attract semiconductors and E&E investments, SD Guthrie is also exploring opportunities to develop DCs.

The government has agreed in principle to approve an allocation for a raw water distribution project from Sungai Perak to the Bukit Merah Dam to provide treated water supply to northern Perak and Penang, which is estimated to cost MYR4bn. Prime Minister Datuk Seri Anwar has also mentioned that it should only allow DCs that specialise in Artificial Intelligence.

“In our view, we welcome the upcoming infrastructure developments (utilities and water supply) that will take place in Kerian, as it should spur not only industrial, but also other residential and commercial developments over the longer term.

“However, the plan to develop DCs in KIGIP may take time, as infrastructure building for utiltiies supply typically takes at least one to two years to complete,” RHB Investment said.

Going into the second half of 2024 (2H24), the research team believe positive news flow on the potential incentives and initiatives on the JohorSingapore Special Economic

Zone (JS-SEZ), infrastructure development, as well as foreign and domestic direct investments will continue to buoy investor sentiment on the property sector.

“The incentives for the Special Financial Zone in Forest City are expected to be finalised in August, while the detailed announcement on the JS-SEZ is likely to take place in September/ October, possibly when Budget 2025 is tabled.

“The revival of the KLSingapore High Speed Rail is a wild card, which could spur further re-rating of many property stocks,” it said.

It is also upbeat on the recent official announcement on the new Malaysia My 2nd Home (MM2H) regulations.

“The new programme aims to attract high net worth individuals. The requirement for MM2H participants to own a property also means that the government targets to attract more serious long-term residents and investors.

“We think developers with exposure in the KL city centre, Mont’ Kiara, Penang and Iskandar Malaysia will likely benefit more.

“Iskandar Malaysia should see MM2H participants from Singapore given the ease of travelling with the upcoming completion of the Johor Bahru– Singapore Rapid Transit System (RTS) and cheaper living costs,” it explained.

All in, RHB Investment maintained its ‘overweight’ rating on Malaysia’s property sector as it believed that the current property market upcycle is much healthier as interest rates have reached a normalised level, and the market is adapting to the new norm for inflation.

“More importantly, the influx of foreign direct investments this round is primarily in the technology and semiconductor industries, which should help to drive the country’s GDP growth over the medium term,” it highlighted.

Source: Borneo Post

Multi-billion investments in tech sector to spur industrial development

Communications Minister Fahmi Fadzil said 5G technology is key to developing the digital economy by fostering entrepreneurship and expanding small and medium enterprises (SMEs).

He said the contribution of 5G to the national economy is expected to boost the gross domestic product by sparking new services, industries, and business models, and increasing productivity and efficiency across various touchpoints.

“The development of 5G aligns with the government’s goal of achieving inclusive growth and ensuring digitalisation benefits all segments of society,” he said.

He said this in his speech at a ceremony for the exchange of a memorandum of understanding (MoU) between the Malaysian Communications and Multimedia Commission (MCMC) and the Malaysian Investment Development Authority (Mida) here today.

Fahmi said the MoU aims to enable vertical sectors and SMEs to leverage the use of 5G technology.

He said under the MoU, the MCMC will provide technical support and training in preparation for the integration of 5G, while emphasising the importance of harnessing 5G technological advancements for the industries concerned.

Mida will identify potential companies that can utilise 5G to advance their businesses.

“This approach will ensure more efficient 5G adoption and meet the needs of various sectors. With this collective effort, the government will unlock the full potential of 5G, drive innovation, transform industries, and shape a more connected Malaysia.

“I hope the signing of this MoU will open a new chapter for vertical sectors and SMEs in the country, making them more competitive and enhancing productivity in business management,” he said.

Source: Bernama

5G tech key to developing digital economy — Fahmi

According to the Malaysia Investment Development Authority (MIDA), Malaysia’s renewable energy has contributed to about 5% to 6% of the country’s energy consumption in the past five years, with the government pushing multiple efforts to promote clean and renewable energy, from solar panel adoption to hydrogen energy.

There has been a significant increase in solar energy adoption in Klang Valley, Johor and Penang among homeowners but is renewable energy adoption feasible for refurbishment of existing buildings?

“There’s no point in having renewable energy if it’s not sustainable, not just ecologically or environmentally sustainable but financially sustainable,” Malaysian Institute of Architects (PAM) past president Sarly Adre Sarkum said during the Sustainable Refurbishment of Existing Buildings roundtable.

He pointed out that while renewable energy has been touted in Malaysia for years now, the only renewable energy readily available to the public is solar, due to the lack of wind and yet unproven
alternatives.

Sarly noted that as Malaysia’s largest power supplier, Tenaga Nasional Bhd (TNB) has significant power over the adoption of renewable energy The company has a renewable energy scheme, titled the Green Electricity Tariff (GET), which allows homeowners and businesses to subscribe to a low-carbon energy supply on a first-come, first-served basis. As of July, there have been 1,197 subscriptions.

“The implementation of the Energy Performance Certificate (EPC) in the UK serves as an excellent case study, demonstrating the significant role regulation plays in driving a holistic sustainability agenda. Establishing standards for building and space energy intensity is an effective starting point for managing and improving the performance of buildings and office spaces,” Knight Frank Malaysia ESG associate director Mohd Hafiz Zainuddin said when surveyed by StarProperty.

Knight Frank associate director Shaun Toh agreed that Malaysia should look into integrating advanced energy storage solutions, such as next-generation batteries and thermal storage systems. These technologies can significantly improve the sustainability of refurbished properties, enabling the storage of excess renewable energy generated on-site, such as from solar panels, and its use during peak demand times, reducing reliance on the grid and lowering energy costs.

“Green hydrogen, produced using renewable energy sources, and hydrogen fuel cells can provide a clean energy alternative for heating and powering buildings. Implementing these technologies in refurbished properties can reduce carbon emissions and dependency on fossil fuels. Hydrogen can be particularly effective for properties where electrification alone may not be sufficient or feasible,” he said.

The Malaysian government aims to be a hydrogen economy nation by 2050, as evidenced by the Hydrogen Economy and Technology Roadmap (HETR), however, as with solar, the technology is still in its early stages. Malaysia is not there yet in terms of large-scale production, Sarly said.

“Malaysia can only use solar panels, this is a technical constraint… the technology keeps evolving, who is going to spend now, maybe it’s not relevant five years down the road. And is it sustainable, being something long-term, but this technology keeps evolving,” Malaysian Institute of Architects (PAM) ESG committee chairman Axxu Hoi Jung Wai said.

According to Hoi, another technical issue building owners will face when installing solar panels is the roof only makes up 4% of the gross floor area for buildings over four stories.

“Even if you install the solar panels, it does not bring any impact. The point here is that there is too much greenwashing in projects. Because somehow we want to qualify green tools like the green building index (GBI) or GreenRE, we want to get a point, therefore we just put it there,” Hoi said.

He noted that top-down policies that enforce solar panels without considering the needs on the ground would inevitably fail.

Hoi pointed out that there was always the option to rent a building’s roof area, or any large redundant space, for those who would like to install solar.

“Imagine you can save via energy efficiency 20%, you are already doing better than installing that bit of small solar on your roof, and energy efficiency is usually far, far cheaper to do than installing on the high rise,” Sarly added.

“Nippon Paint has a particular paint that can be used to cool down buildings more significantly, and then you will use less aircon. When it comes to the solar panels on the roof… I think they should turn it into green roofs instead because that would be more beneficial than having solar panels up there,” StarProperty senior content manager and roundtable moderator Joseph Wong said.

It’s a lifestyle

However, with renewable energy a difficulty for most Malaysians, the next alternative moves to energy efficiency. According to a study on energy retrofitting strategies, buildings in Malaysia account for 48% of the country’s total electricity consumption.

“Even though I can give you passive design and nice green buildings, if your lifestyle doesn’t change, you can’t achieve energy efficiency. 60% of energy is consumed by the aircon and water heater. In Malaysia, our lifestyle is when we shower, we go for the heater and when we come out andgo to bed, we use the aircon,” Hoi said.

He noted that the public needed to track their lifestyle, which can involve ordering from Grab, and buying from online platforms like Shopee, culminating in paper wrap, plastic and increased carbon footprint.

“The lifestyle itself actually consumes a lot of energy despite talking about good products or good design, without changing our lifestyle, there is no way for us to do sustainability,” Hoi said.

“Continuous public awareness education is very important because, at the end of the day, it’s demand-driven. If they push and they want it, then the supply will come, and provide the solution. We must continue to highlight the financial and intangible benefits… in terms of green technology innovation, enhanced productivity, digitalising buildings and net zero carbon. Public awareness too will be a long-term way of talking about renewable energy,” Malaysian Institute of Property and Facility Managers (MIPFM) president Ishak Ismail said.

“It is a lot of awareness but it must start at a very young age. So things like that should be introduced into schools, into their programs, into their activities. In a way, it will build into us over a long time, but it must start from the very young,” Royal Institution of Surveyors Malaysia (RISM) past president Datuk Lau Wai Seang agreed.

Source: The Star

Energy efficiency or renewable energy?

Amid the global push to sustainability, the renewable energy (RE) sector will continue to grow rapidly, generating investor interest.

In Malaysia, the RE sector is expected to see further contract rollouts, the launch of a third-party-access model (TPA) and export refinements which could benefit companies operating in this sphere.

This led to Hong Leong Investment Bank (HLIB) Research to retain its “overweight” stance on the country’s RE sector.

“We like the sector riding on strong structural themes as well as positive earnings growth cycle. Key catalysts include contract rollout, TPA, fresh RE quotas and export news flow,” the brokerage wrote in its report yesterday.

Further, it said, the data centre pipeline could accelerate decarbonising goals under the National Energy Transition Roadmap (NETR), adding the sector would continue to benefit from large-scale solar projects, net energy metering and the low-carbon energy generation programme under the new enhanced dispatch agreement post corporate green power (CGPP) programme.

As such, HLIB Research noted that RE stocks under its coverage, namely Solarvest Holdings Bhd and Samaiden Group Bhd, were expected to chart positive earnings growth cycle.

Ascribing “buy” calls to both, HLIB Research puts its target prices at RM2 for Solarvest and RM1.44 for Samaiden.

It noted that both stocks had performed well during the first half of 2024, recording positive year-to-date returns of up to 32.2% for Solarvest and 22.7% for Samaiden.

HLIB Research attributed the share price performance gap to earnings execution, as Samaiden missed the second and third quarters earnings for its financial year ended June 30, 2024.

“This is against a backdrop of stronger replenishment performance in the first half of 2024 (1H24) by Samaiden, while Solarvest’s contract pipeline is 2H24 heavy,” it said. It said the 800MW CGPP programme was expected to produce RM2bil to RM3bil worth of engineering, procurement, construction and commissioning (EPCC) opportunities, though estimates could still vary due to fluctuating costs.

“Barring any extension of time granted, the Energy Commission has stipulated for CGPP projects to meet commercial operation date by end-2025 and we anticipate higher urgency on all parties to close the deal. We expect Solarvest to emerge as the biggest winner with its active involvement in 443.4MW of EPCC quotas, worth an estimated RM1bil,” it said.

It stated that the government would roll out the TPA in 2H24 to cater to the burgeoning data centre emissions offsetting needs.

Source: The Star

RE sector generating investor interest

Princeton Digital Group yesterday announced the delivery of Phase One of its state-of-the-art 150MW JH1 data centre (DC) campus in Sedenak Tech Park (STeP), Johor. 

One of the largest DC campuses in Southeast Asia, JH1 is Princeton Digital’s flagship AI-ready facility in Malaysia serving some of the world’s largest technology companies.

Delivered in just 12 months, Phase One comprising 52MW of the JH1 campus, represents further validation of Princeton Digital’s SG+ strategy that enables customers to seamlessly expand their infrastructure from Singapore to highly scalable DC campuses located in Singapore, Batam and Johor. 

The JH1 campus incorporates cutting edge sustainable technologies and next generation design.

The rooftop of the project will be utilised for generating renewable energy through the installation of solar panels. 

In May this year, the company secured its first RM1.28 billion (US$280 million) green loan for JH1. 

Johor Menteri Besar Datuk Onn Hafiz Ghazi said the campus has been one of the fastest projects to be launched in Johor. 

“It not only signifies a significant investment in our state’s infrastructure but also brings forth immense opportunities for technological advancement and economic growth.

“This initiative will undoubtedly bolster Johor’s position as a hub for innovation and attract further investment, ensuring a prosperous future for our state and its people.”

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the delivery reflects the speed of Malaysia’s investment facilitation. 

“Indeed, Malaysia’s growing stature as a regional leader in Asia’s digital economy, particularly for sustainable data centers, is evident from recent major investment announcements by global tech giants. 

“Through our clear policies and strong execution, RM161.97 billion in digital investments have been approved from 2021 to March 2024, and we are pleased to see many earlier commitments coming to fruition.”

Asher Ling, Princeton Digital chief technology officer and managing director of Singapore, emphasised the company’s commitment to expanding its presence in Malaysia.

“It is a proud moment for PDG, delivering Phase One of JH1 today. However, establishing a state-of-the-art green data center campus like this goes beyond economic growth; it’s also about our commitment to nurturing talent and creating jobs in this rapidly growing industry.”

Source: NST

Princeton Digital delivers Phase One of one of Southeast Asia’s largest DCs in Johor

Johor’s infrastructure and ample power capacity have seen the state attract more than 50 data centres in the past two years, said Menteri Besar Datuk Onn Hafiz Ghazi.

He pointed out that the Sedenak Tech Park (STeP), in Kulai, alone boasts a capacity of over one gigawatt (GW) and provides the necessary power infrastructure to support data centre operations.

“Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 GW. In contrast, Johor has attracted more than 50 data centres in just the past two years,” he said.

Onn Hafiz said the rapid growth in the data centre industry shows Johor’s capability to become a new data centre hub in Asia.

“Johor’s rapid growth in the data centre industry suggests that it is well on its way to becoming a new data centre hub in Asia,” he said in his speech at the launch of Princeton Digital Group JH1 Campus here today.

Also present was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Johor State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han.

Onn Hafiz said Johor is one of the fastest-growing states that is becoming well known for its strong push towards a digital economy with robust government policies, strong connectivity and infrastructure.

“(Therefore) moving forward for data centres, the state government will also be more selective, emphasising the use of green technology and renewable energy,” he said

Meanwhile, Onn Hafiz said the Johor-Singapore Special Economic Zone (JS-SEZ) will offer special economic regulations and incentives, creating an appealing environment for investors.

“While economic and digital growth is vital, community engagement ensures that progress benefits everyone and promotes inclusive development,” he added.

Source: Bernama

Johor attracted 50 data centres in the past two years — Onn Hafiz

Johor has emerged as the largest data centre (DC) hub in Malaysia. 

But recent comments by the Johor Bahru city council on the availability of water called into question the viability of the state for data center build out. 

Investors revently raised similar questions. 

In contrast, JP Morgan’s analysis shows that Malaysia has ample planned water treatment plant additions to accommodate expected DC builds. 

The US investment bank does not see the availability of water as a near-term barrier for continued DC deployment given Malaysia’s natural endowment and low water stress status. 

However, the supply of treated water could prove an issue should capacity additions not materialise, or water supply interruptions exacerbate variability in the system, which could introduce an element of competition with the high domestic water user base in Johor.

JP Morgan noted that from 2018-2022, Johor maintained an average water reserve margin of about 10 per cent, highlighting existing excess capacity. 

Over the next five years, it calculates about 61,000 million litres of annual water treatment capacity (up 33 per cent versus 2023) will be added.

Assuming about 1,500MW of DC capacity additions at a WUE (water usage effectiveness) of 2.0, JP Morgan projects 27,700 million litres of annual associated incremental water demand by 2028 (4.0 per cent of current water consumption in Johor). 

Taking account of general water consumption growth of 3.0 per cent per annum, it expects total annual water demand of 851,000 million litres by 2028, compared to about 1,000,000 million litres of forecast annual water treatment capacity. 

“On our calculations, water is not a limiting factor for data centres in Johor, at the state level, over the next five years. 

“Our analysis shows similar result for Selangor, the other data centre hub in Malaysia.”

Johor could accommodate three times the current planned DC additions out to 2028, it added. 

“On our numbers, the water reserve margin actually expands to 19 per cent by 2028, higher than Malaysia’s 15 per cent target, even taking account of data centre growth, suggesting additional headroom for data centre builds.”

JP Morgan said should water reserve margins remain stable at 10 per cent, Johor could accommodate up to 5,500MW of DC capacity by 2028.

Overall, it said Malaysia is well positioned as a DC host in Asia given low water stress and ample power. 

“Malaysia is one of the least water stressed countries In Asia, with low projected baseline water stress under every climate scenario.”

Source: NST

Water supply in Johor ample for next five years of data centre builds: JP Morgan

Johor has attracted more than 50 data centres within the last two years, putting it on track to become a new data centre hub in South-East Asia, says Mentri Besar Datuk Onn Hafiz Ghazi.

He said this was a very exciting time for Johor thanks to its strong push towards a digital economy, enabled by robust government policies, as well as good connectivity and infrastructure.

“Our vision is to develop Johor… and make it a global destination for the world’s largest technology companies.

“At Invest Johor, we are considering establishing the Johor Data Centre to streamline efforts in talent development, green technology and renewable energy,” he said at the launch of Princeton Digital Group’s (PDG) phase one JH1 campus at Sedenak Tech Park (StEP) here on Wednesday (July 3).

Onn Hafiz, who is also the Machap assemblyman, said Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 gigawatts of power capacity.

Onn Hafiz said in comparison, Johor has attracted more than 50 data centres in just the past two years, with STeP 1 alone boasting a power capacity of over 1 gigawatt.

“Moving forward for data centres, the state government will be more selective, emphasising the use of green technology and renewable energy.

“Johor’s rapid growth in the industry suggests that it is well on its way to becoming a new data centre hub in Asean,” he added.

Source: The Star

Johor poised to become regional data centre hub, says MB

Johor’s infrastructure and ample power capacity have seen the state attract more than 50 data centres in the past two years, said Menteri Besar Datuk Onn Hafiz Ghazi.

He pointed out that Kulai’s Sedenak Tech Park (STeP) alone boasts a capacity of over one gigawatt (GW) and provides the necessary power infrastructure to support data centre operations.

“Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 GW. In contrast, Johor has attracted more than 50 data centres in just the past two years,” he said.

Onn Hafiz said the rapid growth in the data centre industry shows Johor’s capability to become a new data centre hub in Asia.

“Johor’s rapid growth in the data centre industry suggests that it is well on its way to becoming a new data centre hub in Asia,” he said in his speech at the launch of Princeton Digital Group JH1 Campus here on Wednesday.

Also present was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz and Johor State Investment, Trade, Consumer Affairs and Human Resources committee chairman Lee Ting Han.

Onn Hafiz said Johor is one of the fastest-growing states that is becoming known for its push towards a digital economy with robust government policies, strong connectivity and infrastructure.

“(Therefore) moving forward for data centres, the state government will also be more selective, emphasising the use of green technology and renewable energy,” he said.

Meanwhile, Onn Hafiz said the Johor-Singapore Special Economic Zone (JS-SEZ) will offer special economic regulations and incentives, creating an appealing environment for investors.

“While economic and digital growth is vital, community engagement ensures that progress benefits everyone and promotes inclusive development,” he added.

Source: Bernama

Johor MB touts state as Asia’s new data centre hub

Several companies have shown interest in taking part in the development of data centres through the Kerian Integrated Green Industrial Park (KIGIP) project.

Prime Minister Datuk Seri Anwar Ibrahim said the companies had expressed interest when the project was announced by the Investment, Trade and Industry Ministry (Miti) previously.

“Based on Miti’s plans when announcing the project, there were several companies that expressed interest as several (other) companies involved in data centres are limited now.

“We also do not encourage a new data centre industry unless they specialise in Artificial Intelligence as data centres require high energy and water consumption.

“(Hence,) this is why several companies have been identified (for the development of data centres),” he said during prime minister’s question time in the Dewan Rakyat, today (July 2).

Anwar said this in response to Howard Lee Chuan How (PH-Ipoh Timor) who enquired about the government’s strategy to attract major investments in the development of KIGIP.

He also said the government’s only challenge now was to complete proper infrastructure in the green energy and water industry, as well as to ensure a sufficient pool of talent to meet the current needs of the industry to lure more investors.

Anwar had previously announced the KIGIP project which will boost the growth of the semiconductor industry and attract more global players to set up their business in the country.

First introduced during the 2024 Budget, KIGIP aims to draw green Electrical and Electronics (E&E) investments, while addressing water limitations in Penang.

Through the project, Anwar said the government had also agreed in principle to approve an allocation for a raw water distribution project from Sungai Perak to the Bukit Merah Dam to provide treated water supply to northern Perak and Penang, estimated to cost RM4 billion.

Meanwhile, it was announced that Sime Darby Plantation Bhd (SD Plantation) will work with major shareholder Permodalan Nasional Bhd (PNB) to develop 404 hectares of KIGIP land in Perak.

The plan involves the establishment of 267 hectares of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest-growing sectors in the global economy.

Separately, the group is also exploring opportunities with partners to develop data centres, which typically consume large amounts of energy.

Source: NST

Firms keen on data centres in KIGIP, Dewan Rakyat told

After three straight years of growth, domestic consumption for steel is expected to grow further this year, to between 8.3 million tonnes and nine million tonnes this year, according to a forecast by the Malaysian Iron and Steel Industry Federation (Misif).

Misif president Datuk Lim Hong Thye said demand for the commodity will mainly be driven by investment in data centres and the expansion of the semiconductor industry.

“We still see positive growth this year for steel consumption, to grow to 8.3 million tonnes this year, mainly driven by construction of data centres. If infrastructure projects such as the Penang light rail transit kicks in, the demand for steel will go up to near nine million tonnes,” Lim told a press conference after launching the federation’s report on the status and outlook for the local iron and steel industry on Monday.

Tech companies like Google had previously announced plans to invest US$2 billion (RM9.4 billion) to house the first Google data centre and Google Cloud region in Malaysia.

Malaysia’ steel consumption, as measured by apparent steel consumption (ASC), fell 26% to 6.8 million tonnes in 2020, from 9.2 million tonnes in 2019, before climbing to seven million tonnes in 2021, 7.5 million tonnes in 2022 and 7.9 million tonnes in 2023 amid steady recovery in the construction sector.

Domestic crude steel production in 2023 exceeded pre-pandemic levels, hitting 7.5 million tonnes, up 4.5% from 7.2 tonnes in 2022, and 8.7% more than the 6.9 million tonnes produced in 2019.

Imports of iron and steel rose 17.3% to 7.3 million tonnes in 2023, from 6.2 million tonnes in 2022. China is Malaysia’s largest source of imports, accounting for 27.9% of total imports, followed by Taiwan, Vietnam, Japan and South Korea.

Exports of iron and steel grew 14.5% to 8.2 million tonnes in 2023, from 7.2 million tonnes in 2022.

Nevertheless, Lim said the local steel industry is still challenging as it is grappling with overcapacity issues, which led to low capacity utilisation at an average of 39.1% last year — significantly lower than the world’s average of 75.7%.

The overcapacity problem is not only in Malaysia but throughout Asean, due to China exporting its excess production capacity, Lim said.

“We are requesting the government to assist us to fight against these unfair imports. This is not only particular to China as their steel mills are also in other countries. We have had a discussion with the government and are still waiting for a directive from them,” Lim said.

Meanwhile, Lim said Misif is also hoping that the government can provide incentives to encourage steel mills to move up the value chain.

It can do so by attracting foreign steel players to invest in steel products that are not being produced locally, which will also allow knowledge transfer that will benefit the local steel industry.

Steel products produced locally are now mainly used for the construction sector.

Source: The Edge Malaysia

Data centre boom, chip industry expansion expected to boost local steel demand

ViTrox Corp Bhd (KL:VITROX) will begin construction of the first block of its planned five-block ViTrox Institute of Technology (VIT) on July 8 after it had appointed South Island Building Sdn Bhd (SIB) as the contractor for the project in a deal worth RM45.99 million.

The proposed construction is expected to be completed within 18 months, which is by Jan 7, 2026.

In a filing with Bursa Malaysia on Monday, Vitrox said its wholly-owned subsidiary ViTrox Technologies Sdn Bhd had awarded the contract to SIB for the earthwork, piling and main building works for the construction of a five-storey training and industrial research center.

The facility will have a floor area of 166,300 square feet and will be located beside the current ViTrox Campus 3.0 in Batu Kawan Industrial Park (BKIP), Penang, and is on part of the 21-acre piece of land acquired by the company in June 2021.

“It is aligned with ViTrox’s 10-year expansion master plan (2021-2030), centered around the idea of building a local high-technology ecosystem at the BKIP through collaborative efforts between the private sector, the government and institutions of higher learning,” ViTrox said.

ViTrox said the entire ecosystem will include a high-tech automation, robotics, and AI innovation park, ViTrox’s Innovation Park, comprising large local companies with research and development facilities, centers of excellence, advanced manufacturing facilities, tech startups, and an institute of technologies.

“In addition to attending lectures, a pool of 3,000 to 4,000 talents will work alongside engineers to solve real-world engineering problems and address the talent shortage, particularly in engineering and computer sciences, where there is a clear mismatch between the training and skills acquired by graduates and industry requirements,” it said.

Furthermore, ViTrox said the VIT represents a significant step towards addressing the talent shortage in the STEM fields, particularly for the semiconductor industry. “This expansion will increase ViTrox’s current capacity from an annual intake of 200 students to 450 students, significantly enhancing the ability to grow the local talent pool,” it added.

As it stands, ViTrox has already established its own college in 2020, dubbed ViTrox College, which has obtained the Malaysian Qualifications Agency (MQA) accreditation to offer diploma courses in electronics, mechatronics and machine vision engineering.

ViTrox College offers work-based learning diploma and Technical and Vocational Education and Training (TVET) courses.

At Monday’s market close, Vitrox shares were down three sen or 0.73% at RM4.09, giving the group a market capitalisation of RM7.74 billion. Year to date, the counter has risen 14.25%.

Source: The Edge Malaysia

ViTrox to begin construction of training and industrial research center after RM46 mil contract award to SIB

The implementation of investor-friendly policy by the State Government has brought positive development, including gaining attention from of one of the world’s economy leading nations, China.

Chairman of a government-linked company (GLC) in China, Chen Pengyu, said the policy was timely and will have a major impact in the development in the Asian region.

He said the policy had attracted more investors from his home country to engage in various industries in Sabah, particularly in the renewable and green energy sectors.

“Companies from China will be more interested in investing in Sabah and help the state move towards utilising green energy.

“I also hope that more companies from China and from around the world will invest in Sabah in the future … Sabah is a state worth investing in,” he said.

Chen said this after the Memorandum of Understanding (MoU) signing ceremony between the company he represents, Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training, which will see both parties collaborate in the development of green energy in Sabah.

The MoU is part of the ‘business matching’ agenda witnessed at the 11th Sabah Oil, Gas and Energy Exhibition and Conference (SOGCE) 2024, which took place over two days starting Friday at the Sabah International Convention Centre (SICC).

Meanwhile, the managing Director of Bumi Borneo consultant and Training, Mohd Suffry Abdul Rahman, said the opportunity to collaborate with foreign companies was an ideal platform to fulfill the state government’s aspirations as a catalyst for green energy industry in Sabah.

“After the Sabah state government, through the Energy Commission of Sabah (ECoS), took over power in early January, we have been very positive.

“There have been changes in terms of energy procurement. Although it has only been five to six months, we are already seeing results.

“Last May, an open tender for solar was launched for all industry players to participate,” he added.

Earlier at the same event, an MoU was signed between Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training thus establishing cooperation between both parties for the development of green energy in Sabah.

Source: Borneo Post

Investor-friendly policy a catalyst of green energy industry in Sabah

NASDAQ-listed AGAPE ATP Corporation (ATPC) has set its eyes on Sabah’s solar farming industry as its next venture.

Prof Datuk Seri Dr How Kok Choong, the founder and global group chief executive officer of ATPC, incorporated the group back in 2016 with the aim of providing health and wellness solutions for today’s world.

It originally began with a focus on preventing diseases caused by pollution, poor diets, and unhealthy lifestyles through scientific and technological innovations.

“As we grew, we went for a listing on Nasdaq, which was a big milestone for us,” he said in an exclusive interview with The Borneo Post.

“Now, we are continuing our commitment to caring for the environment by venturing into green energy. It is an exciting journey, and we’re dedicated to making a positive impact on both health and the planet.”

How believed the power supply issues in Sabah are quite challenging, especially with the increasing demand from new businesses and investors.

“It is clear that we need to find sustainable solutions to support the region’s growth and ensure reliable energy for everyone,” he said.

When asked why they chose Sabah for their solar farm projects instead of other states, How said it was due to the state’s high potential for solar energy thanks to its sunny climate.

“Additionally, the current energy challenges in Sabah provide us with an opportunity to make a real difference and support the local community.

“The inspiration came from seeing the urgent need for sustainable energy solutions in Sabah. Solar energy is a clean and renewable option that can help address power shortages and support the region’s development in an environmentally friendly way.”

Some of the challenges include logistical issues due to remote locations, regulatory hurdles, and the need for significant upfront investment.

However, How said he and his team are working through these challenges with careful planning and collaboration with local stakeholders.

“We set up ATPC Green Energy as a subsidiary of Agape ATP Corporation for a few reasons. First off, it allows us to really focus on our renewable energy projects in Sabah,” he enthused.

“Having a dedicated company helps us streamline our efforts and bring in specialised talent to push these green energy projects forward.

“But, we are not stopping with just the project in Sabah. This new company is also a big part of our commitment to the UN Sustainable Development Goals.

“We are aiming to build a comprehensive renewable energy ecosystem across the Asean region. This includes everything from energy-saving solutions to solar projects and other renewable technologies.

“Our goal is to develop a diverse portfolio, expand our energy-saving offerings, foster great partnerships, and capture a significant market share in the region.”

ATPC Green Energy’s main plan for helping Sabah reach its renewable energy goals is to build solar farms that will provide a reliable and sustainable energy source, which is exactly what the region needs to meet its growing energy demands.

“We’re really excited about these projects because they have the potential to make a big impact and support Sabah’s target of 80 per cent renewable energy capacity by 2050.

“Where solar farms will also significantly reduce greenhouse gas emissions by replacing fossil fuel-based power generation with clean, renewable energy. This will help mitigate climate change and promote a healthier environment for the people of Sabah.”

Source: Borneo Post

ATPC eyes Sabah’s solar farming

More developers entering the segment

WITH demand for data centres “hotting up” as of late, it’s not surprising to see more property developers getting in on the action.

Earlier this month, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia had approved Rm114.7bil worth of investments in data centres and cloud services between 2021 and 2023.

The past few weeks have seen several real estate players announcing land deals for data centre-related ventures.

Just this month, Mah Sing Group Bhd announced its maiden entry into the data centre sector, launching Mah Sing DC Hub@southville City with Bridge Data Centres Malaysia V Sdn Bhd.

The tie-up will jointly develop data centre facilities and infrastructure on a 17.55acre freehold land within the Southville City township in Bangi, Selangor.

Earlier this month as well, Eco World Development Group Bhd (Ecoworld Malaysia) struck a deal to dispose of 123.14 acres of industrial land in Eco Business Park VI in Kulai, Iskandar Malaysia, to Microsoft Payments (M) Sdn Bhd for Rm402.3mil cash, to expand its data centre hub down south.

This month also saw UEM Sunrise Bhd selling two land parcels in Iskandar Puteri, Johor to an undisclosed global data centre player for Rm144.9mil.

Last month, Sime Darby Property Bhd announced its partnership with Pearl Computing Malaysia Sdn Bhd to develop a hyperscale data centre at Elmina Business Park, Selangor.

The 20-year lease, valued at up to Rm2bil, will see the parties developing the data centre on 49 acres within the 1,500 acres Elmina Business Park.

Zerin Properties chief executive officer Previn Singhe acknowledges that the interest in data centres is growing, adding that it was no surprise that numerous developers are “joining in.”

“Data centres are crucial for storing and managing the increasing amount of digital information.

“Yes, I do see more developers getting involved in this trend. It’s a smart move because data centres are becoming an essential part of our digital world.

“As technology continues to grow, the demand for data centres will also rise, offering great opportunities for developers,” he tells Starbizweek.

With the growing popularity in demand for data centres, KGV International Property Consultants executive director Samuel Tan says it’s no surprise that developers are keen to jump on the bandwagon to ride on the “data centre hype.”

“This is especially so for land owners or developers that have huge landbank or newly developed industrial parks.”

Meanwhile, KGV International Property Consultants research head Tan Wee Tiam says the data centre-related land deals are a good way to monetise land and kickstart a development.

“There are practically new transactions every week involving investors looking towards Malaysia, particularly Johor Baru, as a regional data centre hub.”

Strong appeal

For property developers, Previn says the data centre segment offers revenue diversification and steady income streams.

“Data centres offer stable, long-term revenue through leasing agreements with tech companies and other enterprises.”

The high demand for data centres will help ensure steady income streams, says Previn.

“With the surge in cloud computing, ecommerce and big data, there’s a growing and consistent demand for data centre space.”

As technology advances, Previn says data becomes increasingly central to operations across various industries.

“Developers investing in data centres position themselves at the forefront of this technological shift.”

Going into data centre development is also part of a growing sustainability trend, Previn adds.

“Many companies are focusing on sustainable practices and green data centres are in demand. This aligns well with future-focused investment strategies.”

Noteworthy also is that data centre-related deals will offer collaboration opportunities to developers, Previn says.

“Developers can partner with tech giants, telecommunications companies and cloud service providers, fostering strong business relationships and new growth opportunities.

“Moreover, governments often provide incentives for tech infrastructure development, enhancing business prospects.”

Meanwhile, RHB Investment Bank analyst Loong Kok Wen says developers with sizable landbank will mostly benefit from the rising data centre wave.

“We think players with a vast landbank will likely be able to capture opportunities, especially those with land that comes equipped with ready infrastructure and located not far from major cities,” she says in a recent research note.

Loong believes that UEM Sunrise, Sime Darby Property, S P Setia, Mah Sing, Ecoworld Malaysia and AME Elite Consortium Bhd are potential developers that may benefit from demand for data centres, given the location, amenities and infrastructure of their existing landbank.

“As data centres have to be distant from residential and commercial property areas due to strict security reasons, developers may choose to have them set up in their existing industrial parks.”

Loong says recent land transactions by data centre players have certainly set a new pricing benchmark for industrial land nearby.

“We gather that more are entering the fray. More developers may consider co-investing with data centre users or building and leasing shell and core data centre facilities for recurring income.

“Developers may also form a joint venture with a data centre operator for co-location facilities.”

Loong says a stable of data centre facilities would provide monetisation opportunities in the future, given the long-term nature of data centre operations.

Going forward, Previn says the future of the data centre market in Malaysia looks bright.

“Our strategic location in South-east Asia, combined with our advanced infrastructure and growing digital economy, makes Malaysia an attractive place for data centre investments.

“We can expect to see continued growth, with more local and international companies setting up their data centres here.

“This will also create more job opportunities and boost our economy. So, overall, the outlook is very positive.”

Source: The Star

Data centre appeal