Large-scale solar ventures (LSS) will allow palm oil producers to generate up to 54 times more operating profits per hectare compared to oil palm, Maybank Investment Bank flagged.

SD Guthrie Bhd (formerly Sime Darby Plantation Bhd) (KL:SIMEPLT), Kuala Lumpur Kepong Bhd (KL:KLK), and IOI Corp Bhd (KL:IOICORP) are potential beneficiaries given their estate locations, Maybank said in a note to clients. Genting Plantations Bhd (KL:GENP), TH Plantation Bhd (KL:THPLANT) and United Plantations Bhd (KL:UTDPLT) may also benefit, it said.

“Only selected planters with the right estate location may benefit from this solar potential should they choose to capitalise on this opportunity,” Maybank said.

So far, only SD Guthrie has made public its renewable energy ambition with a one-gigawatt (GW) capacity target.

Earlier this month, Sime Darby Plantation and its major shareholder Permodalan Nasional Bhd, revealed plans to collaborate on a 1,000-acre development in the proposed Kerian Integrated Industrial Park to attract green electrical and electronics investments.

The site, located within the group’s Tali Ayer Estate in Perak, will feature solar farms owned and operated by Sime Darby Plantation. Since 2018, Sime Darby Plantation has leased a significant portion of its land for solar farms under the LSS schemes.

However, not all agricultural land may be suited for LSS, Maybank noted. Apart from flat-to-gently undulating land requirement, LSS farms are preferably located near the national grid and its interconnection points.

Maybank’s rough estimates show that 1GW capacity may bring in recurring annual income of RM134 million to RM266 million using 1,500-1,700ha of land compared to the sector’s average oil palm operating profit of RM4,444 per hectare achieved for the past 10 year.

Some planters have been leasing their land for LSS farms at double to triple the average returns of oil palm on a per mature hectare basis, Maybank noted.

“Such moves helped planters gain immediate rental returns as opposed to the typical seven-year gestation period for oil palm to generate maiden profits after replanting,” the house said.

Rather than leasing to other renewable energy companies, “it makes financial sense” for planters to be producers themselves and maximise their land values, while allowing their land to “further accrete in value when the concession ends after 20 years or so,” Maybank added.

Malaysia is pushing for renewable energy to boost economic growth as part of its climate change policy to transition away from coal and natural gas that make up the bulk of its energy mix.

Under the Malaysia Renewable Energy Roadmap, the share of renewable energy in Malaysia will rise to 40% of 18GW in 2035, of which solar will account for 7.28GW, according to the Sustainable Energy Development Authority. 

Source: The Edge Malaysia

Solar power could generate 54X more profits than palm oil — Maybank

Despite external headwinds and challenges, leasing activity for prime logistics warehouses — particularly for the Klang Valley, Johor Bahru and Penang — remained resilient in the second half of last year with expected rent growth in 2024, says Knight Frank Malaysia executive director of land and industrial solutions Allan Sim in a statement accompanying the release of Knight Frank’s Asia-Pacific Logistics Markets report for 2H2023.

He attributes this to tight availability of grade A warehouses and strong leasing demand for specific grade A warehouses as well as price resistance from landlords due to higher construction and financing costs.

“The expected global recovery in the semiconductor industry next year will increase the demand for the space, particularly in Penang, Kulim [Kedah], Melaka and Selangor. There are more high-end grade A warehouses scheduled to be completed in 2024 and landlords are increasingly reluctant to compromise on building specifications for lower rental rates,” says Sim.

“[And] as we witness a measured increase in rents, our emphasis remains on fostering innovation and sustainability in logistics spaces to meet the evolving demands of occupiers.” 

Sim also notes that the local market’s response to global economic fluctuations underscores the adaptability and forward-thinking nature of the country’s logistics industry and expects to see more landlords undertake the redevelopment of older factories and warehouses into modern warehouses with higher specifications.

“However, the performance of the rental [rates] will be subject to the performance of foreign direct investment (FDI) and domestic direct investment (DDI) in the coming year. As we navigate the path ahead, the outlook for logistics in Malaysia remains optimistic, bolstered by our resilience and strategic positioning in the Asia-Pacific landscape,” he says.

As for the larger Asia-Pacific region, the report states that the overall prime logistics rents continued their upward trajectory to grow 6.2% year on year (y-o-y) in 2H2023, powered by an acceleration in rental growth in Manila, the Philippines. It, however, shows a slowdown in short-term momentum, with a 1.5% increase in half-yearly rental growth, compared with 4.6% in 1H2023.

In the report, Knight Frank global head of occupier strategy and solutions Tim Armstrong says, “As logistics occupiers continue to dial back on expansionary ambitions, it is becoming apparent that the supply-demand imbalance that had fuelled the region’s steep rental growth is waning. However, the Red Sea conflict is a reminder that global supply chains remain vulnerable to disruptions.

“The region’s ample development pipeline is an opportunity for occupiers to review their logistics footprint. Leasing activity is expected to turn more selective with take-up from occupiers seeking strategically located prime logistics spaces that are automated and compliant with sustainability standards.”

According to the report, the region’s development pipeline will remain significant in 2024, adding 43.7% to existing stock, which will continue to ease tight supply conditions. “The bulk of new supply will be delivered in Chinese mainland markets, where over 17 million sq m completing in Beijing and Shanghai will continue to weigh on market conditions for most of 2024.”

Knight Frank head of research, Asia-Pacific, Christine Li says the impact of the considerable supply of logistics space due to the ample development pipeline and growing sublease availability will be uneven across the region. “Strong pre-commitments in Pacific markets are keeping vacancies tight while Southeast Asia and India will continue to benefit from supply chain diversification.

“In contrast, Chinese mainland markets will likely require some time to absorb a substantial pipeline given the sluggish economy. While [the] appetite for expansion among logistics occupiers has cooled, demand fundamentals in the region remain robust. Global trade and production converge in the region while the need for supply chain resilience will continue to underpin demand.”

In terms of outlook, the report states that occupiers in the region will remain cautious, impacted by a combination of economic uncertainty, inflationary pressures and higher interest rates. “Rents will remain on an uptrend, but with the structural shortage of quality spaces narrowing, growth will moderate sharply to between 1% and 3% [this year], down from the over 6% rise in 2023.”

Of the 17 Asia-Pacific cities tracked by the index, 13 recorded stable or increased rents in 2H2023 compared with 16 in the prior six months.

Southeast Asia

Average rents across Southeast Asia were mostly on an upward trend in 2H2023. Manila leads the region with 39.3% growth annually and 7.3% from six months ago, fuelled by the rapid expansion of the e-commerce sector. The report, however, notes that the pace of rent growth is anticipated to moderate as conditions normalise.

In Singapore, the recovery in manufacturing output also created conditions for higher rents during the same period. Meanwhile, those in Vietnam’s Ho Chi Minh City increased mainly due to the completion of quality logistics spaces with higher rates.

Rents in Jakarta, Indonesia, reversed a decline due to strong demographics and expanding retail and e-commerce sectors with occupiers choosing to locate closer to the capital city; whereas Bangkok, Jakarta and Kuala Lumpur saw largely stable rental levels as demand and supply remained largely in balance, the report adds.

Australia and New Zealand

Though coming off record highs, leasing activity in Australia’s Eastern Seaboard markets eased during the review period. “As a result, the pace of rental growth slowed with all markets recording increases of less than 4% from six months ago,” the report says.

However, it states that annual growth remains high with Sydney and Brisbane recording double-digit increases as incentives remained at historical lows across all capital cities. “While a strong pipeline of about three million sq m is expected to be delivered in 2024 across the east coast, the majority of this new supply has been pre-committed. Rental growth is expected to be sustainable, albeit at a slower pace, with growth expected to revert to an annual pace in the range of 4% to 8% over the next 12 months.”

In Auckland, New Zealand, the frenetic pace is also tapering off as resistance to higher rents develops in the context of weaker sentiment, which will lead to a moderation in rental growth, it adds.

East Asia

Leasing fundamentals on the Chinese mainland continued to drag against a backdrop of a weak economy and substantial completions in and around Beijing and Shanghai. “Total trade, which slowed significantly in 2023, substantially reduced the demand for logistics warehousing in the Chinese mainland. To expedite the rental process, there has been a considerable reduction in rents,” says the report.

As rents in Beijing and Shanghai softened, pressured by the abundant supply of warehouses and weakening trade, highly favourable rental rates in surrounding cities were also attracting tenants away from Shanghai and Beijing, which further reduced demand. The report says that rents are anticipated to contract in 2024 amid elevated vacancy rates.

Rents for modern logistics spaces in Hong Kong continued to register moderate growth, supported by sizeable leasing deals. “However, with substantial supply from Cainiao Smart Gateway likely to fuel an increase in vacancy rates, rents are likely to come under pressure in 2024.”

In Taiwan, market conditions continue to favour landlords. “The reshoring of technologically critical processes in Taiwan is raising storage demand for raw materials as well as semi-finished products while e-commerce companies are expanding. Robust domestic consumption, which hit a record in 2023, is fuelling demand for logistics spaces from traditional retail and e-commerce players.”

India

According to the report, the Indian warehousing market continued to reflect the strength of the Indian economy as demand remained steady in the volatile global economic environment, with 0.9 million sq m transacted in Bengaluru, NCR and Mumbai from April to September 2023.

It explains that while e-commerce companies remained focused on curbing costs, demand continued to be driven by the manufacturing and 3PL sectors. “India has benefited from the sustained move towards the decentralisation of manufacturing capacity from China.”

The real estate consultancy expects demand for logistics spaces in the country to remain robust for the rest of the fiscal year, boosted by the government’s focus on “Make in India” and the Production Linked Incentive scheme.

Source: The Edge Malaysia

Optimistic outlook for logistics space in Malaysia, says Knight Frank Malaysia

Prime Minister Datuk Seri Anwar Ibrahim has discussed investment and support plans that can be implemented by Fujifilm Healthcare Americas Corporation (Fujifilm) in the health sector in Malaysia.

Anwar, who is also the finance minister, said the session was conducted in conjunction with the courtesy visit of Fujifilm chief executive officer and president Hidetoshi Ilzawa and his delegation this afternoon.

According to him, the discussion also involved healthcare, training and the documentation of medical records.

“Today’s meeting and discussion is in line with the government’s focus on driving technological transformation, especially in the public sector,” he said through a post on X (formerly known as Twitter) today.

Fujifilm is a leading company in innovative diagnostic and imaging solutions to meet healthcare needs that span prevention, diagnosis and treatment.

Source: Bernama

PM Anwar discusses investment plans with Fujifilm

The RM9.4 billion investment made by tech giant Google at Elmina Business Park, Sungai Buloh, shows that investors are optimistic about Selangor’s prospects for future growth, says Ng Sze Han.

The state executive councillor for investment, trade and mobility said that in addition to the growth of the integrated circuit (IC) and semiconductor design park in Puchong, Google’s investment also increases Selangor’s appeal, which includes providing high-value jobs.

“Google’s investment in the data centre and Google Cloud Region, which has a multiplier effect on several industries, including semiconductors, strengthens Selangor’s position as the country’s economic centre.

“The development plan relies on advanced semiconductor technology due to its widespread use, including AI (artificial intelligence),” said Ng Sze Han to Selangorkini.

On Thursday, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz stated that Google’s investment is expected to support 26,500 jobs across various sectors in Malaysia, which include healthcare, education, and finance, with an economic impact valued at RM15.04 billion (US$3.2 billion).

The investment follows discussions between Prime Minister Datuk Seri Anwar Ibrahim and Alphabet Inc.’s president and chief investment officer, who is also Google’s chief financial officer, Ruth Porat.

The Malaysian Investment Development Authority (Mida) and Google also signed a Memorandum of Understanding on November 14, 2023.

Source: Selangor Journal

Google’s investment proves Selangor as economic hub, offers high-value jobs

Japanese companies in the services sector in Malaysia are expected to increase investments here.

Managing director of Japan External Trade Organisation (Jetro) Kuala Lumpur, Koichi Takano, said Japanese restaurants are making forays here while some legal firms are jointly opening branches with Malaysian partners.

“Malaysia continues to be an attractive destination for Japanese companies, with some planning to expand in the manufacturing and non-manufacturing sectors,” he told Bernama recently.

Takano said most of Japan’s manufacturing companies are focused on expanding their existing base rather than putting in new investments but the services sector is seeing new investments.

“Based on a Jetro survey, some Japanese non-manufacturing companies consider Malaysia a regional hub,” he added.

Malaysia’s living environment, fewer natural disasters compared to other countries, the population’s good English proficiency level, political stability and being an Islamic market gateway were considerations among survey respondents.

These factors continue to attract Japanese companies, he said.

A recent Japanese Chamber of Trade & Industry Malaysia and Jetro survey revealed that Japanese companies here anticipate profit levels to notch up in 2024 due to improved business sentiment versus 2023.

The survey also noted that Japanese companies are also committed to decarbonisation efforts.

To support their investments, the survey also revealed that Japanese companies are seeking preferential treatment and flexibility when it comes to policy enforcement, particularly among companies that have been here for a while.

They are seeking tax breaks, green energy-related incentives and enforcement of policies in phases.

Source: The Star

Japan’s services sector to raise investments

Sarawak is eyeing collaborations with investors from South Korea and the United Arab Emirates (UAE) in its bid to become a green energy hub, says Tan Sri Abang Johari Openg.

The Premier said a Korean company is proposing the development of an energy hub in Bintulu that would produce green methanol, green ammonia, sustainable aviation fuel, and hydrogen.

“This will involve an estimated investment of USD460bil (RM2,162bil) to be developed up to 2050,” he told reporters after attending a state Gawai open house on Saturday (June 1).

Abang Johari also said Sarawak would work with Abu Dhabi’s renewable energy company Masdar in hydro and solar energy.

“We have identified an area for them to invest in, which can potentially generate 1GW of green energy through hydro in the Murum area. This will be a significant investment that will add value to our green energy production,” he said.

Abang Johari stated that Sarawak would open an office in Abu Dhabi to engage with Masdar.

He said the state is interested in exploring Masdar’s development of elevated solar generation combined with food production.

“We want to be a green energy hub with various energy sources. Our long-term policy ties in with global issues of climate change and food security,” he said, adding that this policy is expected to last beyond 2030.

“We are doing this for the future to benefit the young generation,” he said.

Source: The Star

Sarawak targets green energy collaborations with South Korea, UAE

Jakel Group is partnering with PiDC Holding Bhd to build a 51MW data centre in Cyberjaya worth RM1.2 billion.

In a statement on Saturday, Jakel said it is taking up a 40% stake in the project, Pi Data Centre Sdn Bhd, while the remaining 60% is held by PiDC.

The data centre will be a state-of-the-art Tier III Data Centre spanning a 7.3-acre site in Cyberjaya.

The project will be built in three phases, with the construction of the first phase starting in the third quarter of this year and being completed in the fourth quarter of 2025.

“A large portion of the phase 1 capacity is already committed, indicating strong demand for data centres,” Jakel said.

Jakel managing director Datuk Seri Mohamed Faroz Mohamed said the investment in the data centre marked a significant milestone in the group’s journey to diversify its portfolio into digital infrastructure from its existing business in textiles, property, plantations, healthcare, and military equipment.

“This investment underscores our dedication to exploring new opportunities and expanding our expertise in dynamic markets. Additionally, the project aligns with broader national agendas, such as MyDIGITAL.

“It will contribute to the development of robust digital infrastructure and facilitate the growth of the digital workforce, enhancing Malaysia’s capabilities in digital innovation,” he said in the statement.

Meanwhile, Jakel Capital Sdn Bhd director Muhammad Ashraf said digital infrastructure is part of the group’s diversification strategy.

“The Jakel family has committed RM1 billion in capital for investment in 2024, with a larger capital commitment expected in 2025.

“In addition to this venture, the Jakel Group’s strategic investments include a significant stake in Cypark Resources Bhd (KL:CYPARK), a renewable energy firm listed on Bursa Malaysia, where Jakel emerged as the largest shareholder in January 2023,” he added.

PiDC Holdings Sdn Bhd is a local data centre operator co-founded by Ong Chin Seong, who brings over two decades of global experience in the design, construction and operation of data centres.

Ong, who also serves as the current chairman of the National Tech Association of Malaysia (Pikom), has successfully designed and developed many data centres, both domestically and internationally.

Source: The Edge Malaysia

Jakel invests in data centre project worth RM1.2 bil

Sarawak has identified areas for Abu Dhabi Future Energy Company (Masdar), the UAE’s clean energy powerhouse, to invest in the state, said Tan Sri Abang Johari Openg.

The Premier said these areas have the potential to generate 1,000 megawatts (MW) of green energy through hydropower that may be developed in Murum.

“Masdar is a large company from the UAE specialising in generating green energy through solar.

“We have identified areas for them to invest in and this is a big investment, which means we have added value in terms of our green energy production,” he told reporters after attending the Gawai Dayak Open House at the Borneo Convention Centre Kuching (BCCK) today.

Abang Johari said he has since met up with Masdar’s chief executive officer and that the state will set up an office in Abu Dhabi, which will be managed by Sarawak Energy Berhad and Petroleum Sarawak Berhad (Petros).

Abang Johari said Sarawak is fortunate to serve as a green energy hub especially when the state has green energy resources including hydrogen.

“I feel that our long-term policy is on the right track with the global issue of climate change as well as food security because solar energy production today need not be only through floating solar but can be generated through elevated solar structure meaning they are on the ground.

“Under this (elevated) solar, they can also develop for the food industry, and I saw that Masdar was very interested in this because they have already carried out this approach in Sharjah, one of the emirates in the UAE where they developed solar and underneath the structure was where they planted crops. As such, the energy is used for food production,” he said.

Abang Johari said Sarawak’s green energy initiatives are part of a long-term policy, which will go beyond 2030.

“We in the Sarawak government are doing this for the future so that it will benefit the younger generation.

“That is also the reason why I came up with the free tertiary education policy on certain disciplines to that they can be educated and will have the qualifications and skills needed to continue our initiatives,” he said.

Among those present at the open house hosted by Dayak leaders led by Deputy Premier Datuk Amar Douglas Uggah Embas were Head of State Tun Pehin Sri Wan Junaidi Tuanku Jaafar and his wife Toh Puan Fauziah Mohd Sanusi, as well asAbang Johari’s wife Datin Patinggi Juma’ani Tuanku Bujang.

Source: Borneo Post

Premier: Sarawak identifies areas for UAE’s Masdar to invest in state

SD Guthrie Bhd (formerly Sime Darby Plantation Bhd) plans to expand its involvement in large-scale solar (LSS) projects via land lease, own investment and equity share.

Group managing director Datuk Mohamad Helmy Othman Basha said the company aspires to own assets that can generate about one gigawatt of power, which would require an investment of RM2.5 billion, in the next three to five years.

The investment can deliver a high single-digit return on investment of eight to nine per cent on a project basis, he told a press conference in conjunction with the release of the company’s first-quarter results here today.

Mohamad Helmy said the company, which first leased its land for a solar photovoltaic (PV) project (with a 20-megawatt capacity) in 2018 under the first LSS programme (LSS1), has leased land for 12 LSS4 projects with a total capacity of 336 MW, or 40 per cent of the total quota awarded for solar farms under LSS4.

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He said the company has also leased 11 sites for projects with a total capacity of 227 MW through the Corporate Green Power Programme (CGPP) that was launched in late 2022.

“We looked for less productive land (for the solar projects) and kept the more productive land for oil palm cultivation,” he said.

SD Guthrie is targeting to bid for an additional three sites under the upcoming LSS5 programme.

“We believe we can play a more active role (in the government’s energy transition plan) as we have a lot of land. Almost everyone that wants to develop a solar project comes to us,” he said.

In the 12th Malaysia Plan, the government is committed to achieve net-zero greenhouse gas emissions by 2050.

Mohamad Helmy said that the government’s target to reduce the carbon footprint presents a good opportunity for the company to be a part of the nation’s net-zero ambition.

“Although this seems unrelated to the plantation business, we have to look at what our assets are, and our assets and business come from the land. Without land, there’s nothing.

“And it would be a missed opportunity if we don’t capitalise on this opportunity. Renewable energy, especially solar energy, is a very big and profitable business, as it provides consistent returns from rental,” he added.

Source: Bernama

SD Guthrie set to invest RM2.5b to grow solar business in next three to five years

The latest significant investment of US$2 billion (RM9.4 billion) by technology giant Google in Malaysia will elevate the country’s appeal as a data centre hub in the region, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government should leverage on this opportunity to attract further investments that can enhance the complexity and diversity of the Malaysian economy.

“Google’s entry is expected to significantly enhance Malaysia’s appeal as a preferred destination for data centres. Malaysia offers extensive land, sustainable energy supply and a skilled workforce, creating an ideal ecosystem for companies looking to establish data centres,“ he told Bernama.

Google has announced its new investment of US$2 billion (RM9.4 billion) in Malaysia, including the development of its first data centre in the country and Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as artificial intelligence (Al) literacy programmes for students and educators.

“This development will positively impact various industries including real estate and generate demand for power cables, substations, mechanical and engineering procurement, ventilation and air conditioning systems,” he added.

Mohd Afzanizam reiterated that the establishment of data centres will have a positive spillover effect on the economy, especially in fostering a stronger technological ecosystem, spur innovation and encourage local startups to collaborate with Google. “Collaboration between the government, educational institutions and industry players will be the key to ensure that the benefits of Google’s investment are fully realised, driving sustainable economic growth and technological advancement in Malaysia,” he said.

Meanwhile, the dean of Universiti Teknologi Malaysia’s (UTM) Faculty of Artificial Intelligence (FAI), associate professor Dr Mohd Naz’ri Mahrin, said Google’s investment in Malaysia is poised to significantly enhance the country’s AI capabilities, driving both innovation and economic growth.

“The establishment of advanced data centres will bolster Malaysia’s cloud computing infrastructure, providing a solid foundation for AI development and deployment. This investment is expected to catalyse the creation of AI-driven services and products, boosting efficiency across various sectors and accelerating Malaysia’s digital transformation,” he added.

The associate professor anticipates a thriving AI ecosystem, with startups and tech companies benefitting from Google’s accelerator and incubator programmes. “This will foster a vibrant entrepreneurial environment, encouraging innovation and growth,” he said.

Mohd Naz’ri said enhanced AI infrastructure and a skilled talent pool will make Malaysia more attractive to global tech giants and investors, potentially improving its position in the Global Innovation Index. “Partnerships with academic institutions like UTM will further promote research and development in AI and machine learning, embedding these advancements into Malaysia’s tech landscape,” he added.

Source: Bernama

Economist: Google’s US$2 billion investment set to elevate Malaysia’s appeal as data centre hub in region

Google’s latest investment of RM9.4 billion for its first data centre and cloud region will significantly advance the digital ambitions outlined in the country’s New Industrial Master Plan (NIMP) 2030.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the establishment of the Google data centre and Google Cloud region in Greater Kuala Lumpur will empower the country’s manufacturing and service-based industries to leverage artificial intelligence (AI) and other advanced technologies to move up the global value chain.

“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses and careers. As this attracts further investments, it will spur innovation and drive growth for organisations of all sizes.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision towards a more prosperous, technologically advanced Malaysia,” he said in a statement issued by the Investment, Trade and Industry Ministry (Miti) today.

The minister said Malaysia’s steadfast commitment to robust digital infrastructure has convinced many multinationals to come to Malaysia’s shores, resulting in RM144.7 billion of digital investments approved from 2021 to 2023.

“As Miti actively nurtures an empowering digital ecosystem that will drive technology-based solutions across various sectors, it will also strengthen our value proposition that Malaysia is the place to be for companies to strengthen their regional and global operating success,” he added.

Google’s new commitment is expected to support 26,500 jobs across various sectors in Malaysia, resulting in a huge total economic impact estimated at RM15.04 billion.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as AI literacy programmes for Malaysian students and educators.

“This latest commitment by yet another global tech giant to Malaysia represents a key milestone in the Madani government’s vision to attract more digital investors into the country, to help build a digitally enabled economy that is both strong and safe,” the ministry said.

It added that the increased capacity of, and reliability on, cloud services will support various sectors, including healthcare, education, and finance, to foster a more connected and resilient world.

This announcement was made after a series of engagements involving Prime Minister Datuk Seri Anwar Ibrahim with Alphabet and Google’s president, chief investment officer and chief financial officer, Ruth Porat.

A memorandum of understanding was also signed between the Malaysian Investment Development Authority (Mida) and Google on November 14, 2023.

Porat, meanwhile, said this investment was built on its partnership with the Malaysian government to advance its ‘Cloud First Policy,’ which includes best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.

“In line with the Madani Economy Framework, which encourages innovation and inclusivity to help propel Malaysia into the top 30 of global economies by 2033, transformative technologies such as machine learning, natural language processing, and predictive analytics powered by cloud and AI services by global tech giants have the potential to empower businesses of all sizes,” she said.

This includes start-ups and micro, small and medium enterprises (MSMEs), whose potential could be unlocked by technology to drive differentiation and market competitiveness, Porat added.

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

When operational, Malaysia will join the 11 countries where Google has built and currently operates data centres to serve users worldwide.

Meanwhile, the Google Cloud region will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations, enabling their access to services such as data residency, and specific data storage requirements, built around security and legal compliance standards.

Source: Bernama

Zafrul: Google’s RM9.4 bln investment to boost Malaysia’s digital future

Google’s US$2 billion investment (RM9.4 billion) is proof that the government’s clear planning, in addition to Malaysia’s economic strength and resources, is attractive to existing and new investors, said Prime Minister Datuk Seri Anwar Ibrahim.

“Undoubtedly, this places Malaysia as one of the leading countries in the provision of support services for digital technology-based services,“ he said in a post on Facebook today.

Google announced today an investment commitment of RM9.4 billion in Malaysia, including the development of Google’s first data centre in Malaysia and the Google Cloud Region to meet the growing demand for cloud services, both locally and globally, as well as an artificial intelligence (AI) literacy programme for students and educators in this country.

Anwar said Google’s investment will support the government’s agenda in accelerating the country’s digital transformation. “This investment is expected to have a multiplier impact on the Malaysian economy of around US$3.2 billion (RM15.04 billion) and the creation of 26,500 jobs by 2030,“ he added.

Anwar also revealed that in a virtual meeting with Google’s senior management on May 6, he emphasised that in addition to support for the use of AI in general, strategic cooperation should be focused in the fields of education, health and agriculture. “This is important to ensure that Malaysia can take advantage of the latest technology-based skills and approaches,“ he said.

Source: Bernama

Google’s RM9.4 bln investment shows clear govt planning attracts investors – PM Anwar

Google’s latest investment of RM9.4 billion for its first data centre and cloud region will significantly advance the digital ambitions outlined in the country’s New Industrial Master Plan 2030 (NIMP 2030).

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the establishment of the Google data centre and Google Cloud region in Greater Kuala Lumpur will empower the country’s manufacturing and service-based industries to leverage artificial intelligence (AI) and other advanced technologies to move up the global value chain.

“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses, and careers. As this attracts further investments, it will spur innovation and drive growth for organisations of all sizes.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the MADANI vision towards a more prosperous, technologically advanced Malaysia,” he said in a statement issued by the Ministry of Investment, Trade and Industry (MITI) here today.

The minister said Malaysia’s steadfast commitment to robust digital infrastructure has convinced many multinationals to come to Malaysia’s shores, resulting in RM144.7 billion of digital investments approved from 2021 to 2023.

“As MITI actively nurtures an empowering digital ecosystem that will drive technology-based solutions across various sectors, it will also strengthen our value proposition that Malaysia is where global starts, the place to be for companies to strengthen their regional and global operating success,” he added.

Google’s new commitment is expected to support 26,500 jobs across various sectors in Malaysia, resulting in a huge total economic impact estimated at RM15.04 billion.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as artificial intelligence (Al) literacy programmes for Malaysian students and educators.

“This latest commitment by yet another global tech giant to Malaysia represents a key milestone in the MADANI Government’s vision to attract more digital investors into the country, to help build a digitally enabled economy that is both strong and safe,” the ministry said.

It added that the increased capacity of, and reliability on, cloud services will support various sectors, including healthcare, education, and finance, to foster a more connected and resilient world.

This announcement was made after a series of engagements involving Prime Minister Datuk Seri Anwar Ibrahim with Alphabet and Google’s president, chief investment officer and chief financial officer, Ruth Porat.

A memorandum of understanding was also signed between the Malaysian Investment Development Authority (MIDA) with Google on Nov 14, 2023.

Porat, meanwhile, said this investment was built on its partnership with the Malaysian government to advance its ‘Cloud First Policy,’ which includes best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.

“In line with the MADANI Economy Framework, which encourages innovation and inclusivity to help propel Malaysia into the top 30 of global economies by 2033, transformative technologies such as machine learning, natural language processing, and predictive analytics powered by cloud and AI services by global tech giants have the potential to empower businesses of all sizes,” she said.

This includes start-ups and micro, small and medium enterprises (MSMEs), whose potential could be unlocked by technology to drive differentiation and market competitiveness, Porat added.

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

When operational, Malaysia will join the 11 countries where Google has built and currently operates data centres to serve users worldwide.

Meanwhile, the Google Cloud region will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations, enabling their access to services such as data residency, and specific data storage requirements, built around security and legal compliance standards.

Source: Bernama

Google’s RM9.4 bln investment to advance digital ambitions outlined in NIMP 2030

Technology giant Google is set to invest US$2 billion (RM9.4 billion) in Malaysia, including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, and artificial intelligence (Al) literacy programmes for students and educators.

Alphabet Inc (Alphabet) president and chief investment officer, who is also Google’s chief financial officer, Ruth Porat, said Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia – a place Google has been proud to call home for 13 years.

“This investment builds on our partnership with the Malaysian government to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” she said in a statement today.

Alphabet is the holding company of Google.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

It said the data centre will power its popular digital services, such as Search, Maps, and Workspace, that billions of people and organisations worldwide use every day, including those in Malaysia.

“It (the data centre) will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country.

“When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world,” it said.

Concerning the Google Cloud region, Google said it will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations.

It said Google Cloud customers will benefit from key controls that allow them to maintain the highest security, data residency, and compliance standards, including specific data storage requirements.

“The cloud region will be complemented by Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur, which provide direct connections between an organisation’s on-premises network and Google Cloud’s global network.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world,” it said.

Commenting on the announcement, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Google’s US$2 billion investment will significantly advance the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030 (NIMP 2030).

He said the Google data centre and Google Cloud region in Greater Kuala Lumpur, in particular, will empower the country’s manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the MADANI vision toward a more prosperous, technologically advanced Malaysia,” he said.

In November 2023, the government and Google entered into a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies using AI and cloud technologies.

Source: Bernama

Google to invest RM9.4 bln in Malaysia, support over RM15.04 bln in positive economic impact

Google’s US$2 billion (RM9.4 billion) investment will provide added value to efforts to improve the artificial intelligence (AI) literacy programme for the benefit of students and teachers, said the Ministry of Education (MoE).

The MoE, which welcomed Google’s announcement, said the investment would also meet the growing needs of cloud computing.

“Initiatives like the ongoing Gemini Academy and Experience AI are in line with the Digital Education Policy (DPD), which aims to produce a digitally fluent and competitive generation.

“This is implemented through the improvement of knowledge, skills and values of students, educators and education leaders; the provision of quality digital infrastructure, infostructure and content; and the active participation of strategic partners in an integrated and comprehensive manner from pre-school to high school,” it said in a statement today.

In this context, the MoE said cooperation with technology leaders like Google is crucial to enhance the implementation of the DPD and ensure the success of national education reform efforts.

Google announced today an investment commitment of RM9.4 billion in Malaysia, including the development of Google’s first data centre in Malaysia and the Google Cloud Region to meet the growing demand for cloud services, both locally and globally, as well as an artificial intelligence (AI) literacy programme for students and educators in this country.

Source: Bernama

Google’s RM9.4 billion investment gives added value to teachers, students – MoE

Google’s investment of US$2 billion (RM9.4 billion) in Malaysia is a positive indicator that investors have strong confidence in the administration of the Madani Government, said Communications Minister Fahmi Fadzil.

Hence, he said this should also serve as a motivation for Malaysia to increase work productivity while also moving smarter to lure more investments into the country.

“I was informed that several destination countries were also under their (Google’s) consideration.

“I believe that after several meetings (with Google), including with me, what we conveyed and our performance were evaluated positively, leading to the announcement of this investment from Google,” he told reporters after attending the Ministry of Communications’ monthly assembly here today.

Fahmi, who is also the Unity Government spokesman, said the rapid realisation of this investment also demonstrates the Madani Government’s commitment to having a clear direction as desired by investors.

Google announced today an investment commitment of RM9.4 billion in Malaysia, including the development of Google’s first data centre in Malaysia and the Google Cloud Region to meet the growing demand for cloud services, both locally and globally, as well as an artificial intelligence (AI) literacy programme for students and educators in this country.

Meanwhile, the Ministry of Education (MoE) said Google’s investment will provide added value to efforts to improve the AI literacy programme for the benefit of students and teachers.

The MoE, which welcomed Google’s announcement, said the investment would also meet the growing needs of cloud computing.

“Initiatives like the ongoing Gemini Academy and Experience AI are in line with the Digital Education Policy (DPD), which aims to produce a digitally fluent and competitive generation.

“This is implemented through the improvement of knowledge, skills and values of students, educators and education leaders; the provision of quality digital infrastructure, infostructure and content; and the active participation of strategic partners in an integrated and comprehensive manner from pre-school to high school,” it said in a statement.

In this context, the MoE said cooperation with technology leaders like Google is crucial to enhance the implementation of the DPD and ensure the success of national education reform efforts. 

Source: Bernama

Google’s US$2b investment reflects investors’ strong confidence in govt: Fahmi

Technology giant Google is set to invest US$2 billion (RM9.4 billion) in Malaysia, including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as artificial intelligence (Al) literacy programmes for students and educators.

Ruth Porat, president and chief investment officer, and chief financial officer of Alphabet and Google, said Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia — a place Google has been proud to call home for 13 years.

The site will be located at Sime Darby Property Bhd’s Elmina Business Park.

“This investment builds on our partnership with the Malaysian government to advance its ‘Cloud First Policy’, including best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” she said in a statement today.

Alphabet is the holding company of Google.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

It said the data centre will power its popular digital services, such as Search, Maps and Workspace, that billions of people and organisations worldwide use every day, including those in Malaysia.

“It (the data centre) will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country.

“When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world,” it said.

Concerning the Google Cloud region, Google said it will deliver high-performance and low-latency services to large enterprises, startups and public sector organisations.

It said Google Cloud customers will benefit from key controls that allow them to maintain the highest security, data residency and compliance standards, including specific data storage requirements.

“The cloud region will be complemented by Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur, which provide direct connections between an organisation’s on-premises network and Google Cloud’s global network.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world,” it said.

Commenting on the announcement, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Google’s US$2 billion investment will significantly advance the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030.

He said the Google data centre and Google Cloud region in Greater Kuala Lumpur, in particular, will empower the country’s manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision toward a more prosperous, technologically advanced Malaysia,” he said.

In November 2023, the government and Google entered into a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies using AI and cloud technologies.

Meanwhile, Malaysian Investment Development Authority (Mida) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Google’s decision to establish its first data centre in Malaysia demonstrates its confidence in Malaysia’s robust infrastructure, skilled workforce and favourable business climate.

“This data centre will not only bring Google’s advanced cloud, data analytics and AI services closer to local businesses, educational institutions and the rakyat, it will also solidify Malaysia’s position as a regional innovation hub, empowering users and ecosystem players alike to harness cutting-edge technology for their growth and development,” he said.

Sikh Shamsul Ibrahim added that Mida remains committed to facilitating further investments and supporting Google’s continued growth in Malaysia.

Source: Bernama

Google to invest RM9.4 bln in Malaysia, develop data centre, cloud region

Mah Sing Group Bhd makes its maiden entry into the data centre sector with the launch of Mah Sing DC Hub@Southville City, in partnership with Bridge Data Centres (BDC).

Following the data centre establishment, both companies have signed a landmark collaboration agreement, witnessed by Deputy Prime Minister cum Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof.

Mah Sing has earmarked 60.70 hectares (ha) of landbank at Southville City for further expansion into a leading Data Centre Hub with a planned capacity of up to 500 megawatts (MW).

“While this is Mah Sing’s initial venture into the data centre sector, the collaboration with BDC on the initial 7.10ha land for a data centre with a planned capacity of up to 100MW is just the beginning.

“We envision Mah Sing DC Hub@ Southville City to be a holistic digital infrastructure ecosystem, meticulously designed to accommodate the demands of artificial intelligence (AI), hyperscale, retail, and enterprise service providers,” the property developer said in a joint statement today.

It said this state-of-the-art facility is specifically engineered to support cutting-edge applications like AI computation and large-scale data storage.

“Consequently, Mah Sing DC Hub is poised to attract a diverse clientele, including leading technology corporations, telecommunication giants, and prominent financial institutions.

“This strategic move underscores Mah Sing’s commitment to enhancing Malaysia’s digital infrastructure, further driving technological innovation and economic growth in the region,” it said.

Strategically located just 19 kilometres from Kuala Lumpur City Centre, Southville City is a mature township equipped with the essential infrastructure to support this major development, it added.

“Within the proximity of Telekom Malaysia’s ™ upcoming new cable landing station in Morib, Selangor, Mah Sing DC Hub@Southville City will be able to provide a dark fibre network for the data centre hub.

“Expected to be completed in the first quarter of 2025, TM’s Morib landing station will be a key landing site for Malaysia,” it said.

Meanwhile, Fadillah said this joint-venture initiative between Mah Sing and BDC aligned with Malaysia’s digital transformation agenda and economic growth, reinforcing the nation’s position as a prime location for data centre investment in the Asia-Pacific region.

“It also reflects the strong confidence and trust that investors have in our strategic and supportive environment. The establishment of a cutting-edge data centre in Southville City will meet the growing demand for digital infrastructure, positioning Malaysia as the digital hub of Asean,” he said.

Source: Bernama

Mah Sing partners bridge data centres to launch Mah Sing DC Hub@Southville City

The medical tourism industry contributed more than RM140mil to Johor last year, says state health and environment committee chairman Ling Tian Soon.

Ling said the state government has been working closely with health industry players here to further boost the state’s medical tourism sector, including increasing its capacity to meet growing demand.

“The medical tourism sector contributed some RM143mil to Johor last year, and we are working towards increasing the figure this year and for years to come,” he said.

“We have also set up a special committee and have met with health industry players to work on ways to increase our capacity so that we could accommodate more health tourists in Johor,” added Ling.

He then said that several private hospitals have also been expanding, including adding more wards and beds, so that they could receive more tourists to get health services here.

Ling said this in a press conference after attending the state level Nurses’ Day celebration at Hospital Permai here.

Earlier in his speech, Johor Mentri Besar Datuk Onn Hafiz Ghazi said the there was a high demand for the tourism sector in the state, especially from Indonesia’s Riau Islands.

“I have recently paid a visit to the Riau Islands and received very good feedback about our health industry. They have very high regard for the industry here.

“They asked for a collaboration between Johor and the Riau Islands so that they could improve their health tourism industry,” he said.

During the event, Johor Mentri Besar Datuk Onn Hafiz Ghazi also announced an RM300,000 allocation for nurses in Johor.

He also handed out allocations of between RM50,000 to RM390,000 each to all 12 government hospitals in Johor to upgrade their pantries.

The Mentri Besar also announced that the state government will also be channelling allocations to health clinics to upgrade their pantries.

Source: The Star

Medical tourism contributed over RM140mil to Johor in 2023, says exco

Prime Minister Datuk Seri Anwar Ibrahim hosted two company delegations, Amazon Web Services (AWS) and Abu Dhabi Future Energy Company PJSC (Masdar), today at his office in Putrajaya.

He noted on social media platform X that the meetings centred on the investment plans of these firms in Malaysia.

Anwar disclosed that the AWS delegation, led by AWS global public policy vice-president Michael Punke, briefed him on the progress of AWS’s RM25.5 billion investment announced last year.

“This investment, spanning 15 years from 2023 onwards, involves the establishment of data centres in Negri Sembilan, Selangor and Kuala Lumpur, progressing as scheduled,” he said.

Anwar expressed Malaysia’s appreciation for AWS’s investment and strategic collaboration in advancing the digital transformation ecosystem, encompassing cloud computing, Internet of Things, 5G, and artificial intelligence.

He stressed the significance of staying abreast with technological advancements to remain competitive globally.

Subsequently, the prime minister welcomed Masdar chief executive officer Mohamed Jameel Al Ramahi and a delegation, accompanied by UAE ambassador to Malaysia Dr Mubarak Saeed Ahmed Burshaid Al Dhaheri.

Masdar, a UAE-based clean energy company, discussed progress on investment proposals in partnership with local businesses across several Malaysian states over the next decade.

Anwar highlighted the importance of such strategic partnerships and investments in aligning with Malaysia’s National Energy Transition Roadmap (NETR) objectives, aiming for a progressive shift in the country’s energy infrastructure.

He expressed optimism that these meetings would foster additional investment opportunities, job creation, and economic growth, benefiting all parties involved.

Source: Bernama

Anwar hosts investment talks with Amazon, Masdar in Putrajaya

Johor is set to emerge as one of the key players in the digital economy in the region with investments by data centre providers in the state, says a state exco member.

The presence of these providers will create new job opportunities not only for Johoreans but also for Malaysians from other states, said Johor Investment, Trade and Consumer Affairs committee chairman Lee Ting Han.

“This will spearhead our economic growth and propel Johor towards a prosperous future,’’ he told reporters during the opening of the Equinix JH1 International Business Exchange Data Centre at Nusajaya Tech Park (NTP) near here.

Lee said the company’s world-class facility would enhance the state’s technological capabilities, attract global businesses, and foster innovation.

He said Johor has the right ecosystem to attract more investments in the data centres, with eight already operating and 10 more in development stages.

Lee said with two clusters of data centres – the Sedenak Tech Park developed by Johor Corporation and NTP – Johor is in a good position to emerge as one of the leading data centre hubs in the region.

“Thirteen companies are either in discussions or at the planning stages to invest in the state,’’ he said.

He added the Federal Government had approved RM144bil in data centre investments for the country, of which Johor had received RM90bil.

The two-storey JH1 facility is strategically located 15km from Singapore. The data centre will address heightened demand from both local enterprises and organisations based in neighbouring regions.

With an initial investment of US$40mil (RM187mil), JH1 provides up to 500 cabinets and 1,800sq m of collocation space to bolster the nation’s digital growth.

Equinix Asia-Pacific president Jeremy Deutsch said Malaysia is a cornerstone market and a top destination that is highly sought after by its customers.

He added the company’s entry into Malaysia is also aligned with the MyDigital initiative introduced by the government, which strives to outline a strategy for a nation to expedite the development of digital products and services.

Equinix Malaysia managing director Cheam Tat Inn said that the opening of JH1 and KL1 data centres signalled a new era of digital connectivity and innovation in the country.

“These IBX data centres serve as the cornerstone for driving business agility, fostering collaboration, and fuelling economic prosperity,’’ he said.

The KL1 facility is located in Cyberjaya, a key part of the Multimedia Super Corridor, and is expected to provide a total of 2,630sq metres of space once fully built.

Also present at the opening of the JH1 event were Investment, Trade and Industry deputy secretary-general Datuk Hanafi Sakri, Malaysia Digital Economy Corporation head of Digital Industry Wan Murdani Wan Mohamed, and Malaysia Investment Development Authority, Business Services and Regional Operations Division director Noorzita Mohamad Noor.

Source: The Star

Johor poised to become digital economy hub

Equinix Inc, a global digital infrastructure company, has opened two International Business Exchange (IBX) data centres in Johor and Kuala Lumpur respectively.

In a statement on Monday, Equinix said these carrier-neutral facilities establish a robust digital infrastructure in Malaysia to support its digital economy ambition, particularly as a regional digital hub.

Malaysian-based businesses will gain access to a global ecosystem of over 10,000 enterprises, networks and cloud service providers, while global businesses can seize the digital opportunities presented by the nation, it said.

“As businesses continue to embrace digital transformation and cutting-edge technology like artificial intelligence, their need for a network-dense, cloud adjacent, and on-demand digital infrastructure becomes paramount.”  

Equinix president of Asia-Pacific Jeremy Deutsch said Malaysia is a cornerstone market and top destination that is highly sought after by the company’s valuable customers. 

“We are dedicated to delivering exceptional digital infrastructure solutions that empower businesses to thrive in this dynamic landscape, fuelling innovation, economic growth and societal advancement,” he said.

Equinix’s entry in Malaysia aligns with the government’s MyDigital initiative that strives to outline a strategy for the nation to expedite the development of digital products and services.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Equinix’s decision to expand its presence in Malaysia reflects its continued confidence in the country’s industrial landscape, which is undergoing key transformative initiatives as outlined in the New Industrial Master Plan 2030.

“These data centres will provide businesses, particularly domestic small and medium enterprises, with seamless connectivity and access to a vast global network, while driving innovation across diverse sectors in Malaysia,” he said.

Tengku Zafrul added that the company’s investment will pave the way for the creation of high-value job opportunities and propel economic growth, empowering the Malaysian people and businesses to excel in the digital age.

Meanwhile, Malaysian Investment Development Authority (Mida) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Equinix’s advanced data centres will create significant opportunities for businesses, especially for local enterprises to innovate and grow, as they integrate with the global ecosystem.

“We welcome Equinix’s expansion in Malaysia, a move that reinforces the country’s standing as a digital hub in the region. This venture further underscores our commitment to fostering an investor-friendly business environment. 

“Mida is dedicated to facilitating investments like Equinix’s, which not only drive economic growth, but also foster innovation and create sustainable employment opportunities in Malaysia,” he said. 

Source: Bernama

Equinix opens IBX data centres in Johor and KL

Tenaga Nasional Bhd (TNB) expects to set aside more capital expenditure (capex) under its fourth incentive-based regulation framework from next year due to rising energy demand including from data centres.

President and chief executive officer Datuk Ir. Megat Jalaluddin Megat Hassan said TNB’s capex requirements are determined by the Energy Commission and decisions on its utilisation are made every three years through the IBR.

Megat Jalaluddin said its third IBR started in 2022, marking it as the final one for the year. TNB’s capital investment for the third IBR amounts to RM21 billion or RM7 billion a year.

“Over the past two years, we have indeed utilised 100 per cent of the capex, and in this third year, we will fully utilise the remaining RM7 billion as well.

“When forecasting capex, the focus typically revolves around two main aspects – frstly, providing electricity to new users, and secondly, ensuring that aging assets are replaced with new ones.

“Discussions regarding the fourth IBR have commenced, and we aim to finalise it by the end of this year as 2025 is expected to mark the beginning of a new IBR period,” he said at a press conference following the signing ceremony of a report on the “Enhancement Coordination and Management of Malaysia’s Electricity Assets” here today.

In terms of electricity demand, Megat Jalaluddin said TNB has observed a strong increase in usage across the country post-Covid-19. Therefore, the increase in capex will accommodate this demand.

He also noted that TNB is committed to providing the best value and being proactive in improving practices for managing the assets entrusted to it.

He said through the advisory service provided by the Malaysian Anti-Corruption Commission (MACC), in collaboration with the EC as the regulatory authority, TNB is able to take more precise steps in managing electricity assets.

Meanwhile, analysts said Malaysia will need to invest further in the power infrastructure to meet rising electricity demand.

This should improve TNB’s long-term profitability via higher capex under the IBR framework, they added.

Analysts at Affin Hwang Capital said TNB is a direct beneficiary of Malaysia’s energy transition initiatives and indirect beneficiary of rising data centre (DC) and artificial intelligence (AI) demand.

The rising data centre (DC) projects should benefit TNB’s non-regulated business unis such as Allo (fibre connectivity) and GSpark (rooftop solar), they said in a recent report.

“TNB expects maximum electricity demand from DC to exceed 5,000 megawatts (MW) by 2035.

In Malaysia, TNB has received 74 supply applications from DC customers with total maximum demand in excess of 11,000MW (about 40.6 per cent of Peninsular Malaysia’s installed capacity).”

While not all the projects are expected to be implemented, Affin Hwang said TNB had noted that it delivered electricity for nine DC projects with total energy demand of up to 635MW in 2023.

“For 2024, TNB expects to connect to nine DC projects with 700MW of total energy demand and in the long run, it sees potential maximum demand from DC in excess of 5,000MW by 2035 (about 18.5 per cent of Peninsular Malaysia’s installed capacity),” the firm added.

The International Energy Agency (IEA) has estimated that DCs, cryptocurrencies and AI consumed about 460 TWh of electricity worldwide in 2022, almost two per cent of total global electricity demand.

Looking forward, IEA forecasts global electricity consumption of DC, crypto and AI to range between 620TWh to 1,050TWh in 2026 (up 35 per cent to 128 per cent), with a base case of 800TWh, up 74 per cent from 2022.

Source: NST

Surge in energy demand to be driven by increase in data centre projects, among others

Johor continues to attract strong interest from data centre providers with more companies now considering setting up their facilities in the state, says Lee Ting Han.

The state Investment, Trade and Consumer Affairs committee chairman said as many as 13 companies are either in discussions or already at the planning stages when it comes to investing in Johor.

“The discussions involve the Federal and Johor governments, including giving incentives for them to set up their operations in the state,’’ he said.

Lee told reporters this at the opening of the two-storey Equinix JH1 facility situated at Nusajaya Tech Park (NTP) here located about 15km from Singapore via the Second Link Crossing in Tanjung Kupang, Gelang Patah.

He said the Federal government had approved RM144bil in data centre investments for the past two years for the whole country, of which Johor received RM90bil.

Lee said with two clusters of data centres – the Sedenak Tech Park developed by Johor Corporation and NTP, Johor is in a good position to emerge as one of the leading data centre hubs in the region.

“We have the right ecosystem to attract more investments in the data centres,’’ he said, adding eight data centres already operating in Johor with 10 more in development stages.

Lee said that the presence of these investors has created thousands of new job opportunities not only for Johoreans but also Malaysians from other states.

He said it was important for Johor to produce more skilled workers by encouraging the workforce to go reskilling and upskilling for them to enter the data-related industries.

“Going forward, we want to develop and transform the data centre industries in Johor by going into design, research and development and using the latest state-of-art technology,’’ said Lee.

Source: The Star

Johor still attracting strong interest from data centre companies, says exco man

An estimated US$460 billion in investment and spending is expected to be injected into Sarawak’s economy until 2050 to realise the proposed Sarawak New Energy Hub (SNEH) project here, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

In a post on his official Facebook page Sarawakku, the Premier said the amount would include investment by both the government and private sector through equity participation, following a briefing on the proposal by Samsung E & A Corporation in Seoul yesterday.

The Premier and members of his delegation arrived in Seoul on Monday night for a two-day working visit.

“The park to be chiefly driven by hydropower from its dams would produce renewable energy sources primarily hydrogen and ammonia that would be exported to other countries in the region, particularly Korea,” he said.

The briefing included the review of the H2biscus hydrogen project, of which the stakeholders are Samsung E & A, LOTTE Chemical Corporation, Korean National Oil Corporation (KNOC), and Sarawak through SEDC Energy, a subsidiary of the Sarawak Economic Development Corporation (SEDC).

Abang Johari said three and a half years since the signing of the memorandum of understanding (MoU) between the parties, the H2biscus hydrogen project in Bintulu that would become a part of the SNEH project, was progressing well despite a few issues that needed to be ironed out by the investors and Sarawak government.

Earlier, SEDC Energy chief executive officer Robert Hardin signed a Joint Development Agreement (JDA) for the H2biscus project.

Samsung Engineering will execute the FEED (Front End Engineering Design) for the green hydrogen plant with an annual capacity of 150,000 tons and a green ammonia conversion plant with a capacity of 850,000 tonnes.

Samsung E&A executive vice-president Park Cheon Hong then briefed the Premier and other attendees on the SNEH project proposal.

In his address after the briefings, Abang Johari reiterated that Sarawak would expand its power generation to 10GW by 2030 to meet the accelerated demand, especially for renewable power.

“The huge demand for green power in Sarawak is amplified by the power needs of up to 1.3GW for the SNEH project,” he added.

He pointed out that European Union (EU) countries had also expressed their desire to collaborate with Sarawak in the renewable energy space during the recent visit of EU ambassadors to Kuching.

“The EU countries had indicated that they would consider setting up the EU bank in Sarawak to provide a source of funding for green investments in the state,” he said.

Among those accompanying the Premier were the Minister of Utility and Telecommunication Dato Sri Julaihi Narawi, Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni, and SEDC chairman Tan Sri Datuk Amar Abdul Aziz Husain.

Source: Borneo Post

Premier: Sarawak New Energy Hub in Bintulu to attract US$460 bln investments, spending in state’s economy