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

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

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

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

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

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

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

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

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

Source: Selangor Journal

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Sun

Govt committed to supporting development of sustainable data centre industry

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

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

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

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

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

Source: Borneo Post

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: NST

Sydney-based AirTrunk opens data centre in Johor

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Malaysia aims to become global AI powerhouse — Deputy minister

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

Awg Tengah: Sarawak seeks conducive ecosystem to woo hydrogen investors

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

MITI: Data centre investments drive broad economic benefits

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

Source: NST

Selangor has room for more data centres – Invest Selangor CEO

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Sun

MITI targets eightfold increase in value of green investments

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

Kuantan Port to benefit from Malaysia-China bilateral ties

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?