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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

Sarawak has vast resources for green energy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

Malaysia, China in tie-up to develop digital economy

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

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

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

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

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

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

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

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

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

Zafrul says Asean Digital Economy Framework agreement to conclude next year

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

Source: Bernama

Govt To Ensure green Investment Strategy Will Boost National Economy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Is a sustainable data centre hub possible?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

Taking a hard look at data centres

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

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

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

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

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

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

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

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

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

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

Source: The Sun

NanoMalaysia, Fortescue collaborate on green hydrogen R&D

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

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

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

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

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

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

Source: Bernama

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

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