Sime Darby Property Bhd (SD Property) has entered into a build and lease agreement with Pearl Computing Malaysia Sdn Bhd, a wholly-owned subsidiary of a multinational technology company, to develop and lease a hyperscale data centre valued at RM2 billion in Elmina Business Park.

According to SD Property, the data centre will be located on about 19.8 hectares of land within Elmina Business Park.

The project is set to break ground in the second quarter of 2024 (2Q24), with construction completion targeted for the financial year ending Dec 31, 2026.

“Following completion of construction, the parties will enter into a 20-year lease valued at up to RM2 billion, with options to renew for two additional five-year terms,” it said.

SD Property group managing director Datuk Azmir Merican expressed enthusiasm about entering the data centre market for the first time, noting that it is quickly becoming a significant asset class in real estate, and highlighting that they are well-positioned for this expansion.

“This project allows us to broaden our Investment & Asset Management portfolio, aligning with our SHIFT25 strategy to grow recurring income,” he said in a statement.

Azmir also said that the facility will enhance Elmina Business Park’s reputation as a top industrial hub for technology companies, both locally and internationally.

“This achievement reflects the effort invested in its realisation. We would also like to acknowledge local municipal authorities, government agencies, and utility providers who have supported us, as their contributions have been instrumental in advancing this project, which is of national significance,” he added.

SD Property’s share price closed at RM1.16, marking an 8.41 percent increase or a rise of 9 sen from its previous closing price of RM1.07. This gives it a market capitalisation of RM7.89 billion.

Source: NST

Sime Darby Property to build and lease hyperscale data centre in Elmina Business Park in RM2b deal

Nordic countries Sweden, Finland and Norway are seeking to enhance their cooperation in Malaysia’s green transition.

Speaking to reporters at the Nordic Day event, here, Swedish ambassador to Malaysia Dr Joachim Bergstrom said that sustainability and green transition are areas where the Nordic countries have made enormous headway and progress over the last decade.

“These are the areas that all our countries care deeply about and we have made considerable advancements in green transition efforts, often leading global indices in these areas,” he said.

He added that approximately 100 Swedish companies operate in Malaysia, and many of these companies have implemented sustainability efforts, programmes, and benchmarks that go beyond what is legislated or required by formal policy.

“I think that is one example of how the Nordic countries have been committed to green transition as you’ve seen sustainability come from different points and directions.

“Here in Malaysia, we try to maintain continuity by bringing together actors from the government sector, society, and private industry for dialogues on how to take the next steps within their respective industries.

“This will take awareness, knowledge, political will, and some early investments that will play out economically viable over a long time,” he added.

As such, by remaining active in the areas of sustainability and continuing to speak and raise awareness around these issues, the Nordic countries have a lot to offer when it comes to Malaysia’s green transition as a whole.

Norwegian ambassador to Malaysia, Morten Paulsen, believes that the Nordic countries can assist and promote green transition projects in Malaysia.

Paulsen said Malaysia has the potential to become a hub for green hydrogen production, as it has a vast surplus of renewable energy, especially in Sarawak.

“Malaysia has the potential to become a hub, for green hydrogen production in the region, and we think we can have some assistance to that.

“As such, next month, we are doing a joint activity where we will host a business congregation of Nordic companies to the Green Hydrogen Conference in Kuching, Sarawak,” he said.

Meanwhile, the Finnish ambassador to Malaysia and Brunei, Sami Leino said Finland could also assist the country in green transition and sustainability through its recent investments.

“When we talk about green transition and sustainability, I think the last two investments from Finland in Malaysia have been in sustainable construction materials, with one factory built in Johor, and in environmentally friendly paints.

“So there are so many aspects that this sustainability covers where our companies are working in so many areas with its Malaysian partners,” said Leino.

Source: NST

Nordic countries aim to enhance cooperation in Malaysia’s green transition

From this year until 2050, an estimated US$460 billion (RM2.158 trillion) is expected to be injected into the proposed Sarawak new energy hub project in Bintulu, Sarawak Premier Tan Sri Abang Johari Tun Openg told journalists after attending a briefing at Samsung E&A Corporation in Seoul today.

“The amount includes both government spending and private sector investments,” he said.

The visit and briefing at Samsung E&A concluded his two-day working visit to South Korea, where he met with officials of the Korean Ministry of Trade, Industry and Energy, as well as captains of the country’s energy industry.

Abang Johari and members of his delegation arrived in Seoul on Monday night.

Samsung E&A, a world-leading engineering solutions and project management company, has been awarded the front-end engineering design (FEED) of the H2biscus green hydrogen & ammonia project in Bintulu.

The H2biscus plant, with an annual capacity of 150,000 tonnes, a green ammonia conversion plant with a capacity of 850,000 tonnes, and another hydrogen plant, the H2ornbill by a Japanese consortium, are expected to be the anchor plants in the park. Both plants are projected to be operational by 2027.

The executive vice-president of Samsung E&A, Park Cheon Hong, provided a briefing that generally reviewed the H2biscus project. Samsung’s partners in this venture include Lotte Chemical, the Korean National Oil Corporation (KNOC), and SEDC Energy, a subsidiary of the Sarawak Economic Development Corporation (SEDC).

Abang Johari said that while the energy hub project is generally progressing well, there are still a few issues that need to be resolved between the investors and the Sarawak government.

The visit also featured the signing of the H2biscus joint development agreement between SEDC Energy and Samsung. SEDC Energy was represented by its chief executive officer, Robert Hardin.

Abang Johari said that the significant demand for green power is driving Sarawak’s ambition to generate up to 1.3 gigawatts of electricity. Electricity generated by hydropower is key to producing green hydrogen.

The premier also pointed out that European Union countries have expressed interest in collaborating with Sarawak in renewable energy.

Accompanying Abang Johari in his delegation were the Minister of Utilities and Communications, Datuk Seri Julaihi Narawi, Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, and the chairman of SEDC, Tan Sri Abdul Aziz Hussain.

Source: NST

Sarawak’s new energy hub to receive RM2.16 trillion investment by 2050, says Abang Johari

SINCE the introduction of the National Energy Transition Roadmap (NETR) last August, attention has been focused on the renewable energy (RE) market.For one, RE installation projects are worth billions of ringgit. For another, the development of the entire RE value chain is set to create a new growth engine for the country.

Under the NETR, the government has set an ambitious target of 70% RE capacity by 2050, which requires at least RM637 billion in investments to upgrade the grid, install RE capacity and enhance energy storage, among others.

At present, Malaysia’s RE installed capacity of 25% accounts for only 6% of the country’s total electricity generation.

Nonetheless, solar has been the most talked-about when it comes to RE, as it reaches record-breaking capacity installation in the country.

Solar capacity is set to grow, with the recently announced fifth round of the large-scale solar programme (LSS5) to offer a total electricity generation capacity of 2GW (2,000mw) — the largest capacity under the LSS programme so far.

The discussion on RE should not focus solely on solar, says Datuk Hamzah Hussin, CEO of the Sustainable Energy Development Authority (Seda), the agency leading Malaysia’s green energy diversification efforts. If Malaysia is serious about achieving its net zero target by 2050, other RE sources must be nurtured, he tells The Edge in an exclusive interview.

“I can see that when everyone is talking about RE, they probably are looking at solar. They don’t see hydro, bioenergy and other resources.

“The other resources are very hard and costly to develop … [but] this is similar to the situation 10 years ago, when people weren’t interested in RE because solar panels were expensive. When we talk about RE, we cannot talk about solar alone,” he stresses.

Seda, which was set up in 2011, is akin to an incubator that supports an RE industry until it reaches maturity.

The agency had a critical role in developing Malaysia’s solar industry into what it is today. In the last decade, when the solar energy ecosystem and technology were still developing, Seda contributed to the tremendous growth in the industry by awarding projects through its Feed-in Tariff (FiT) programme, which subsidises commercially challenging RE projects.

Since the FiT mechanism was introduced, a total of 1,429.94mw in RE capacity has been approved across 10,464 projects nationwide. Of that, 97.7%, or 10,220 projects, were for solar, which highlights how significant the programme was for the energy source that is now so commonly available.

The same programme is now driving other non-conventional RE sources such as biomass, biogas and small hydro. Seda is still exploring other potential sources of RE such as geothermal and wind, Hamzah says.

The agency has so far awarded 154 projects, or 272.56mw, for the development of biogas plants; 21 projects, or 159.07MW, for biomass; and 69 projects, or 676.88mw, for mini-hydro.

Biogas, biomass gaining traction

Attention is now increasingly focused on biogas and biomass, two types of bioenergy sources deemed renewable.

Last year, the Ministry of Plantation and Commodities launched its National Biomass Action Plan 2023-2030.

At present, the Federal Land Development Authority (Felda), together with its listed plantation arm FGV Holdings Bhd (KL:FGV), is taking on a massive exercise to deploy biogas from its mills. FGV has seven Seda-approved biogas projects under the FiT.

FGV, which has 67 mills, is also in the midst of developing its bioenergy segment. It has a biomass power plant in Lahad Datu, Sabah, and another in Jengka, Pahang, with a total capacity of 12mw. The group estimates that it can achieve up to 200mw in power-generation capacity from bioenergy.

Interestingly, even though solar energy is growing at the fastest pace globally, bioenergy is currently the largest source of RE, accounting for 55% of RE and more than 6% of global energy supply, according to the International Energy Agency (IEA).

As the world’s second-largest palm oil producer, Malaysia is well placed to develop the bioenergy sector.

In a nutshell, biomass comprises organic waste such as empty fruit bunches (EFB) from oil palm cultivation. Biogas is produced when biomass such as EFB, farm animal manure and landfill gas decomposes. As biogas such as methane is more harmful to the environment when released, it is burnt off to generate electricity.

Hamzah says: “The next [source of RE after biomass] is biogas. The ecosystem is starting to mature; that’s my reading. The sector is seeing a higher take-up rate and our quota awards are oversubscribed … This is possibly because there is no other use for methane gas.”

Conversely, EFB from oil palms — used for biomass — fetch higher prices when they are exported to Japan, South Korea and the US to produce items such as paper and pellets. Competition for biomass puts the consistency of feedstock supply at risk.

Successful biomass power plants are usually owned by the plantation that owns the palm oil mills, Hamzah explains. Those that do not own the mills often face a challenge, as millers usually give short- to mid-term supply contracts.

To establish a better ecosystem, Seda is leading a pilot project under the NETR: biomass clustering.

“The more than 100 mills all over Peninsular Malaysia can be clustered into eight to 10 mills. We are looking at the potential of producing 444mw from bioenergy,” Hamzah says, adding that each cluster will have a one-stop power plant to take on the feedstock.

“Based on studies, you can have a biomass power plant with 20mw to 30mw capacity [in each cluster].” He says the concentration of resources could help reduce tariffs for such biomass projects.

To ensure consistent supply of feedstock, Seda is considering offering mill owners equity in the biomass plant.

“We are in the process of finalising the terms of reference, and will start the study in 2H2024. It will take about a year to finish. Once we are done, we will start the pilot for another year. After that, we will overcome any shortcomings and implement the same model across the states,” Hamzah says.

WTE in vogue but more to iron out

Another highly anticipated segment of RE on Seda’s radar is waste-to-energy (WTE), which is categorised under biomass. For example, Cypark Resources Bhd’s WTE plant in Ladang Tanah Merah, Port Dickson, reached commercial operations in December 2022.

WTE covers multiple aspects. In some cases, rubbish is incinerated to create energy, and some dumping sites have facilities to collect the biogas produced from the waste.

Across the segment, however, issues concerning WTE projects have been flagged — from the quality of waste collected as feedstock to the availability of feedstock supply and the jurisdictions involved. As a result, a few projects were tendered, cancelled and retendered.

“When I say the WTE plant has to shut down because there is not enough waste, people laugh. But it depends on the quality of waste. Some incinerators are not working because of this problem,” Hamzah explains.

There are also situations in which the rights for gas and waste from one landfill are given out to two parties, owing to overlapping jurisdictions.

“In one case, the local government awarded the landfill contract [to operate the landfill] to one company. At the same time, it awarded the gas produced from the landfill to another company. This gas owner applied for the quota from Seda,” Hamzah says.

“The owner of the landfill found out and applied as well; now, the landfill owner is questioning why it owns the waste but cannot own the gas.

“Interesting. A small incident shows the competition for the gas produced by the landfill waste.”

In Cypark’s case, it has Seda-approved rights to manage both the solid waste and the biogas produced.

There are different types of WTE plants in Malaysia — depending on the feedstock — such as Khazanah Nasional Bhd’s unit Cenviro, which has a power plant that takes in scheduled (controlled) waste as feedstock; and Berjaya Energies Sdn Bhd’s 12.46mw power plant that takes in landfill gas from its Bukit Tagar landfill. Companies such as YTL Power International Bhd and Malakoff Corp Bhd are also taking on WTE projects in Selangor and Melaka respectively.

In the market, talk of WTE projects was fuelled by the Ministry of Housing and Local Government (KPKT). The ministry has identified 18 WTE sites nationwide, its minister Nga Kor Ming was quoted as saying on May 6.

In total, KPKT has been given a WTE quota of more than 300mw by the energy ministry (currently the Ministry of Energy Transition and Water Transformation, or Petra) to be awarded, with projects expected to commence operations across two batches (by 2025 and 2030). This quota is different from the ones that Seda awards under the FiT, Hamzah explains.

Nonetheless, Seda is working closely with the National Solid Waste Management Department (JPSPN), part of KPKT, to chart the way forward. It is also considering separating WTE from biomass FiT awards in the future.

Indeed, the rollout of the WTE will require a more hands-on approach. JPSPN, for example, already has its own National Solid Waste Management Policy published in 2016, which seeks to minimise waste generation.

WTE development — part of efforts to address landfill availability — should be carefully planned. “Perhaps we don’t want waste to become a commodity in the future, to the point where we import waste into the country to fire WTE plants,” says Hamzah.

Need for concerted effort

While green energy is considered costly, there are a multitude of reasons to increase adoption, including to utilise existing resources (in the case of biomass), reduce emissions (biogas), and diversify electricity supply for energy security purposes.

Earlier this month, Minister of Economy Rafizi Ramli flagged rising gas imports by Malaysia, a net gas exporter, to sustain electricity demand in the country. Efforts to achieve the early decommissioning of thermal power plants are hindered by rising electricity demand and slow development of alternative supply such as the RE championed by Seda.

“We need to diversify,” Hamzah stresses. “We cannot depend on solar, as solar power is intermittent. Its capacity factor is less than 30%, while that of biogas and hydro is around 70%. It’s good to have multiple sources of RE.”

The urgency emphasises a need for a more coordinated approach to RE adoption efforts, which are currently segregated between ministries and agencies.

While Petra recently launched the 2,000mw LSS5 awards, some are still awaiting clarity on other flagship projects such as Tenaga Nasional Bhd’s 500mw solar park announced in the NETR, which is spearheaded by the Ministry of Economy. In between, companies have also announced potential collaborations with outside parties such as Abu Dhabi-based Masdar.

It is unclear how these proposed projects fit into the government’s capacity planning, led by the Planning and Implementation Committee for Electricity Supply and Tariff (JPPPET), as well as policy documents such as the Malaysia Renewable Energy Roadmap (2021), National Energy Policy (NEP) (2022) and, most recently, the NETR.

Hamzah explains that the different policy papers have differing targets and scope. The NETR focuses on energy transition that includes coal, hydrogen and electric vehicles, and not just green energy. While the Malaysia Renewable Energy Roadmap (MyRER) has a 2025 RE adoption target of 31% in 2025 and 40% in 2035, the NETR’s goal is more long term, at 70% by 2050, he adds.

Some have also raised the question as to the difference between the roles of Seda and the Energy Commission (EC), which distributes the quota for the LSS and Corporate Green Power Programme (CGPP), on top of conventional gas, coal and hydro power plant projects.

“Seda and EC have distinct roles,” Hamzah says. “Seda uses the FiT programme to catalyse the development of the RE sector. Once a technology matures, EC, as custodian of the Electricity Supply Act, takes over, overseeing the broader picture of electricity supply, including RE.

“On the one hand, it is good also to absorb Seda under EC as a department and [instil] the DNA of RE into EC — because, except for LSS, the biggest electricity supply comes from fossil fuel.

“But some say it’s better for Seda to stand alone so that it can focus 100% on RE … Even so, we need a single agency to facilitate RE growth more efficiently.

“For now, small hydro, biogas, biomass, maybe geothermal, wind, which are still very expensive, still need to be done under the FiT. Without it, no one will take up these projects.

“Developing the entire RE industry — not just solar — is still very challenging in this country because of many factors. Combined effort between the federal and state governments, their multiple agencies and the private sector is crucial.” 

Source: The Edge Malaysia

Diversifying Malaysia’s green energy beyond solar

China, which has been Malaysia’s largest trading partner for 15 years, is a vital partner in the development of the telecommunications and digital economy in Malaysia.

Deputy Communications Minister Teo Nie Ching said Malaysia and China have complementary strengths in the telecommunications and digital economy, allowing both sides to collaborate and create new opportunities for businesses and consumers.

“The CSITE (China Smart Industry Trade and Culture Exhibition) 2024 stands testament to robust relations between Malaysia and China… Our countries share a long history of cooperation in technology, and this exhibition provides a valuable opportunity to further strengthen our ties.

“I would like to thank PUCM (China Entrepreneurs Association in Malaysia) for organising such a wonderful exhibition, bringing participants from the AI (artificial intelligence) and AI-related industries to Malaysia to strengthen bilateral cooperation across various sectors,” she said.

Teo said this in her speech before officiating CSITE 2024 here today. It was also attended by China’s Ambassador to Malaysia Ouyang Yujing and PUCM president Datuk Keith Li.

The two-day exhibition gathers nearly 100 companies from Malaysia, China and Singapore covering fields such as smart technology, industry, culture and education.

Teo said China has accounted for 17.1 per cent of Malaysia’s total trade for the past 15 years, and, based on the data from the Malaysia External Trade Development Corporation, total trade between Malaysia and China grew by 3.3 per cent year-on-year as of March this year, reaching RM112 billion.

She expressed hope the exhibition will be a milestone, strengthening the friendship and cooperation between Malaysia and China.

“Together, let us move forward hand in hand to create a brighter future,” she said.

Source: Bernama

Malaysia needs China’s partnership to develop digital economy — Nie Ching

As corporate Malaysia jumps on to the green economy bandwagon to bolster its economy going forward, there are areas that need to be fine-tuned to boost growth and minimise “greenwashing”.To minimise “greenwashing” and fuel sustainability practices, experts are urging, among others, to further forge close cooperation between the government and the private sector to ensure only clear and consistent policies are implemented.

Greater awareness on the importance of sustainability should also be embedded through education and upskilling the workforce, and providing incentives for the adoption of green technologies and practices, they said.

The green economy, at the same time, they said would create new jobs and attract new investments, a boon to the country’s growing economy.

According to HSBC global head of environmental, social and governance research and head of the climate change centre of excellence Wai-Shin Chan, there is a lot of policy under discussion in Malaysia on the green economy.

However, it is the implementation of this policy that would drive low carbon and sustainable development, he said.

Wai told StarBiz that “more awareness of sustainability in the country through education, in tandem with upskilling the workforce, would be a boon to overall economic growth, in our view.

“Although Malaysia is quite advanced in its green thinking relative to other Asean members, cooperation and integration with members would also be beneficial as the region moves towards a low-carbon future together.

“The green economy, broadly considered as the goods and services that can help a country transition towards a lower carbon and sustainable economy, is making a good impact in Malaysia, but there is still more work to do.

“The country has been visibly working towards changing all parts of the economy to be more sustainable, and this positions it well to take advantage of the growing global and regional green economy.”

As the global green supply chain grows, Chan said Malaysia’s strong record of higher-tech manufacturing, and the increasing use of lower carbon sources of energy in the electricity mix, should lend itself well to take advantage of future demand for greener goods as more products can be made lower carbon, including goods right across the value chain from finished goods to raw materials.

OCBC Bank (M) Bhd managing director and head of wholesale banking Jeffrey Teoh Nee Teik, meanwhile, said there is room for Malaysia to expand its green economy further.

In terms of policy support and initiatives, he said the government is headed in the right direction and can be expected to continue its good work of providing policy support and incentives to encourage the adoption of green technologies and practices.

This includes tax incentives, grants, and subsidies for businesses and individuals investing in renewable energy, energy efficiency, and sustainable practices.

Clear and consistent policies can provide a stable and conducive environment for the growth of the green economy, he stressed.

“Access to sustainable financing is vital for the growth of the green economy. Malaysia can establish dedicated funds and financial mechanisms to support green projects and businesses. Bank Negara has been instrumental in encouraging financial institutions to prioritise green investments and providing incentives and guidelines for sustainable financing.

“The green economy presents a unique opportunity for countries to address environmental challenges while promoting economic growth and social well-being,” Teoh noted.

He said the green economy is steadily gaining traction in the country, adding that supportive government policies such as the Green Technology Master Plan and national strategies like the National Energy Transition Roadmap (NETR) and New Industrial Master Plan 2030 are spurring wider-scale development of renewable energy (RE) have contributed to this growth.

Along with this, Teoh said consumer demand and growing awareness among Malaysians on environmental issues and sustainable practices are paving the way for more eco-friendly products and services. “We are confident that early adopters of green practices will thrive further in a green economy, “ he said.

However, veteran economist Prof Geoffrey Williams said Malaysia is benefiting from the green economy but not in the way it is often presented.

“The push for electric vehicles and solar panels, for example, makes very little difference in Malaysia but the demand overseas benefits Malaysia because of the rare earth resources here used in these technologies, for batteries for example. Malaysia benefits from the natural resources it has which can be extracted and sold generating huge potential income,” he said.

He said the NETR would raise the production of green energy but this exceeds the energy requirements of Malaysia, so this excess would be sold in other markets such as Singapore. So again Malaysia makes money from the green demand overseas.

Williams said the extra money generated from green technology sales in rare earth metals and RE offers a similar money source as oil and gas and palm oil. This can be used for investment and development to boost economic growth, he noted.

Furthermore, Williams said the adoption of green economy products and services is largely irrelevant to Malaysia, especially to low-income groups. This is why adoption rates are low, he said, adding that conventional products, services and technologies are better, cheaper and economically more viable.

He felt that the economic case for green technologies, products and services has not been made which is why adoption rates are low everywhere. Malaysia is not so different in this respect, he said.

Concurring with Teoh, UCSI University Malaysia associate professor of finance Liew Chee Yoong said to enhance the effectiveness of the green economy, Malaysia can increase the demand for green products or services and ensure more robust governmental policies and incentives to support green businesses, he said.

“The progress towards the green economy in Malaysia is a promising step towards achieving greater economic sustainability.

“Continuous support and commitment from both the government and the private sector are crucial to maintain momentum and achieve long-term environmental and economic benefits.

“However, the government needs to control the issue of “greenwashing” whereby firms may not practise what they communicate to the public about their green commitments. The government itself also should not engage in greenwashing as well,” Liew, who is also a research fellow at the Centre for Market Education, said.

Deloitte Malaysia governance, regulatory and sustainability services leader Kasturi Nathan said the initiatives to support the green economy are currently more accessible to large companies as they are not constrained by limited financial resources as well as organisational and human capital barriers.

As the country progresses towards its carbon neutrality goals, she said it is important to upskill and uplift industry players in the small and medium enterprise market segment so that they can also benefit from the outcomes of the green economy.

“With active participation from all industry players, we will be able to unlock the social and economic potential in the green economy while managing our carbon impact simultaneously.

“Integrated efforts from both government and corporate leaders towards achieving a common goal is essential to enable the growth of the green economy. Navigating the changing market and regulatory landscape requires a just transition, and stakeholders need to strategically prioritise current and future opportunities to ensure sustainable growth is attainable,” she noted.

In comparison with its Asean counterparts in the green economy space, Kasturi said in terms of the economic size and top emissions emitters across the six Asean countries, Singapore is certainly leading the development of the green economy.

With the introduction of industry specific low-carbon regulatory policies, more stringent compliance requirements, as well as strong corporate commitments, she said Malaysia is on track to achieve its interim targets and is making encouraging progress in the green economy compared to its Asean counterparts.

“Like other Asean members, we are still heavily reliant on fossil-fuel based energy as our main source of energy production.

“However, more investments are being channeled towards the development of renewable and environmentally friendly alternatives such as solar, green hydrogen, and bioenergy. Malaysia’s green economy development is supported by key enablers from both regulators and industry players, she said.

In comparison with its Asean neighbours, Liew said Malaysia is progressing towards the green economy but may still be catching up with some of its regional counterparts. The focus of the government should be on sustainable development to match regional developments, he said.

Source: The Star

Green economy push

Investor demand for data centres in Asia-Pacific remains strong, with a wide range of buyers seeking stabilised assets. There has also been increased activity by hyperscalers and more corporates moving towards a co-location approach as well as a surge in artificial intelligence (AI)-related demand since late 2023. Overall, the Asia-Pacific data centre market continues to grow this year.

This was presented in CBRE Research’s Asia-Pacific Data Centre Trends 1Q2024 report, which explores key investment trends and the outlook for the data centre sector in the region and offers insights into six markets: Australia, Hong Kong, Japan, Singapore, India and South Korea.

Outlook for Malaysian market

CBRE | WTW group managing director Tan Ka Leong tells City & Country in an email interview: “The outlook for data centres in Malaysia is positive, as the country has seen significant growth in recent years and is well positioned to become a major player in the data centre industry in 

Southeast Asia.”

Tan says there are more than 30 data centre companies and about 60 operational and upcoming facilities in the country. They are spread across two large clusters in Greater Kuala Lumpur and Johor as well as smaller developments in Sarawak and Bukit Kayu Hitam, Kedah. He adds that CBRE projects the market will grow at a compound annual growth rate of 9% by 2030.

“As at 2024, most of the data centre facilities were concentrated in the Greater Kuala Lumpur and Johor regions. Beyond these two large clusters, we noticed other alternative locations such as Sarawak and northern Malaysia.

“In addition, there is increasing interest in emerging areas such as Cyberjaya, which has become a hub for the business process outsourcing industry and is starting to attract interest from data centre companies looking to take advantage of the area’s reliable power supply and modern telecommunications network.

“Each of the facilities takes up between 10,000 and 150,000 sq m, with the growing trend to build larger spaces in the future. In terms of power capacity, the total operational capacity in Malaysia is more than 150mw, with an additional 1.3gw plus at various development phases.”

On what drives the demand for data centres in Malaysia, Tan says the shortage of available space and moratorium of IT power in Singapore and the continued strong consumption of data storage and compute resources in the region have pushed the new development of regional data centres in Southeast Asia to Malaysia and Indonesia as the next preferred destinations.

Tan adds that AI and content consumption are also primary drivers of data centre consumption in Malaysia. “The country’s internet economy has continued to rise. According to the IDC Asia-Pacific Cloud Survey 2021, 86% of organisations in Malaysia had higher-than-regional-average increases in cloud usage.

“The government is also promoting the digitalisation of public services to create a highly skilled and digitally enabled nation with a competitive digital economy, under the MyDIGITAL blueprint. Our country offers an attractive proposition as a key base for data centre companies and their [customers] targeting regional consumers in Southeast Asia.”

On top of its strategic location and use of AI, Tan says Malaysia also offers a stable political and economic environment; a well-developed telecommunications infrastructure; an abundant supply of educated and skilled workers; and competitive operating costs compared to other countries in the region.

“The combination of domestic traits and international factors makes Malaysia one of the most popular destinations for attracting data centre investment in Southeast Asia,” he says.

Notable trends in neighbouring markets

According to the report, small pockets of space could emerge in Singapore for enterprise data centres this year. There will be no available options for hyperscale data centres, however, because of the limited space and constraints on power supply that Singapore is facing. As a result, the demand for data centres has been spilling over into Batam in Indonesia and Johor Bahru in Malaysia instead, although these locations lack skilled data centre technicians.

In Hong Kong, investment interest remains firm but deal flow has been slow. Furthermore, many investors are looking at older buildings and assessing how these properties can be retrofitted to serve as data centres. For example, Goodman has confirmed plans to retrofit the Goodman Texaco Centre in Tsuen Wan into a 50mw data centre.

The report also says foreign companies that already have a presence in Hong Kong are now willing to expand and relocate with increased size. AirTrunk’s second data centre in Hong Kong, with a total capacity of 15mw, is scheduled to be completed by end-2024.

Meanwhile, Japan emerged as the top country with direct data centre investment volume last year. The report says the first half of last year saw demand focused on Osaka, with cloud providers aggressively seeking sites for new setups. This was followed in the second half of the year by a surge in AI-related demand for space in the Tokyo CBD.

The report predicts that Japan’s new data supply will peak in 2025 and 2026, with several developments providing about 1,300mw. The demand for data centres in Japan is driven primarily by investors and developers who are responding to growing AI demand by lodging bids for sites in the Tokyo CBD.

Hokkaido and Kyushu are also emerging as frontiers in the Japanese data centre market as the government looks to support decentralised data centre developments, the report says.

In Australia, many service sector and telecommunications companies operate large legacy data centres but are now shifting away from this model, owing to the high costs incurred in running such facilities, many of which are now out of date and inefficient compared to newer products.

The report also points out that Australian corporates are following the trend in the US and Europe, moving away from an in-house model towards a co-location and cloud approach, as there is huge demand for land from data centre operators in Sydney and Melbourne. For the overall Australian market, renewable power will continue to be a key focus for data centre operators.

Among data centre operators in other countries in Asia-Pacific, environmental, social and governance remains on their agenda but poses a challenge when it comes to execution. The report says markets such as Singapore and Hong Kong lack renewable energy.

With the lack of data centres for sale, investors are more focused on pricing and underwriting. Nevertheless, data centre owners are exploring ways to improve the sustainability of their facilities in the medium to long term, the report says.

Source: The Edge Malaysia

Asia-Pacific data centre market continues to grow, says CBRE

UEM Group Bhd said today that its subsidiary UEM Sunrise Berhad has entered a strategic partnership with Itramas Corporation Sdn Bhd and China Machinery Engineering Corporation (CMEC) to develop a 40-acre Renewable Energy (RE) Industrial Park in Gerbang Nusajaya, Iskandar Puteri, Johor.

This RE Industrial Park is a part of the one-gigawatt hybrid solar power plant project, a key initiative under Malaysia’s National Energy Transition Roadmap (NETR) announced by the government in July 2023.

This follows the signing of Memorandums of Understanding (MoUs) between UEM Group, Itramas, CMEC’s subsidiary China Machinery Engineering Wuxi Co Ltd, Blueleaf Energy, and Hexa Renewables, to collaborate on project development, financing and commercialisation of green electricity.

The MoU was signed by UEM Sunrise’s Chief Executive Officer Sufian Abdullah, Itramas Managing Director Lee Choo Boo and CMEC General Manager Assistant Li Mingqiang. Witnesses included Harman Faiz Habib Muhamad, Acting CEO of UEM Lestra Berhad; Royd Lee, Project Development Director from Itramas; and Fang Yangshui, President of CMEC.

“This signing is another milestone as we inch closer to realise our venture under NETR,” UEM Group’s managing director Datuk Mohd Izani Ghani said in a joint statement.

“As we forge ahead with the RE Industrial Park, the strategic importance of attracting manufacturers, suppliers and industry players from across the RE and EV value chains from China cannot be overstated.”

“Securing partnership interest from China not only enhances the viability and impact of this national strategic project, but also underscores the importance of cross-border collaboration in driving sustainable development,” he added.

This announcement marks the second major initiative related to NETR by UEM Group and Itramas. Earlier this year, UEM Lestra, a green investment arm of UEM Group, partnered with Itramas and HEXA Renewables Malaysia Sdn Bhd to develop a 500-megawatt hybrid solar power plant in Segamat, Johor.

The RE Industrial Park in Gerbang Nusajaya aims to attract manufacturers and suppliers from China involved in the RE and electric vehicle (EV) sectors, along with high-tech companies to establish operations and R&D centres.

The park will include a RE Hub with a state-of-the-art solar module factory and advanced research facilities, boosting Malaysia’s energy transition and EV ecosystems.

“The prime location of Gerbang Nusajaya in proximity with Singapore, complemented by access to major air and seaports significantly enhances our industrial appeal to the international investors. This RE Industrial Park will not only act as a crucial driver in the Iskandar Puteri’s economic growth and transformation but enable the ecosystem surrounding RE and EV value chains in supporting the nation’s energy transformation agenda,” said Sufian Abdullah, chief executive officer of UEM Sunrise.

“Building on the legacy of our other landmark projects such as Nusajaya Tech Park and Southern Industrial & Logistic Cluster in Johor, we are confident of developing a sustainable RE industrial park on a 40-acre lot with 730,000 square feet of Gross Floor Area of factories,” he added.

Meanwhile, managing director of Itramas, Lee Choo Boo said the partnership will reinforce their commitment to advancing Malaysia’s energy sector.

“We are particularly excited about the RE Hub within the park, which will feature state-of-the-art facilities, including a cutting-edge solar module factory and advanced research centres. These facilities will not only enhance our production capabilities but also propel us to the forefront of innovation in renewable energy,” said Lee.

Together, we look forward to setting new standards in the industry and contributing to Johor’s growth as a dynamic hub for renewable energy.”

Source: Malay Mail

UEM Sunrise announces development of 40-acre renewable energy industrial park in Iskandar Puteri

The adoption of artificial intelligence (AI) in education, training, and research is expected to cultivate a skilled workforce and stimulate job creation in high-tech sectors, as well as support economic diversification.

Securemetric Bhd chief technology officer Sea Chong Seak foresees the government initiatives to hasten the pace in building an AI nexus would create a skilled workforce capable of developing, implementing and managing AI technologies in the future.

“The future of AI is not about replacing humans but augmenting human capabilities and human-AI collaboration. AI will increasingly work with humans in collaborative settings, enhancing decision-making, problem-solving, creativity, and innovation across various domains,” he told Bernama.

He noted that AI technologies could improve the delivery of public services in areas such as healthcare, transportation, and education by leveraging AI-driven solutions for smart cities, healthcare analytics and personalised education.

This would enhance the quality and accessibility of public services, contributing to societal well-being and economic development in Malaysia, said the chief technology officer of the computer security service company.

Sea said AI technologies have the potential to automate routine tasks, streamline processes and improve efficiency across various industries.

It provides employees with access to AI-powered tools and platforms that enhance their productivity which could lead to economic growth by allowing businesses to produce more with fewer resources, ultimately boosting output and profitability, he said.

As AI becomes more extensive, there will be increasing emphasis on ethical AI development and deployment, including addressing issues such as bias, fairness, transparency, accountability, privacy and security to ensure that AI technologies benefit society as a whole.

“Collaborating with international partners in AI research and development can provide access to expertise, resources and markets. Malaysia can participate in global AI initiatives, partnerships and knowledge-sharing networks to stay in touch with the latest advancements and leverage international opportunities for economic growth.

“Initiatives that support AI startups, research collaborations and technology transfer can drive innovation across industries, attracting investment and talent to the country,” he said.

AI In education

The government allocated RM20 million for the establishment of the Faculty of Artificial Intelligence at Universiti Teknologi Malaysia (UTM), in line with the developments of technology including AI.

Malaysia is coming up with a set of AI governance and code of ethics on the back of increased interest in the AI businesses, expanding their reach and accessing new markets.

An announcement was made about the collaboration between YTL Power International Bhd and US-based Nvidia Corp to develop AI infrastructure and introduce the fastest supercomputers to Malaysia by mid-2024.

“AI will transform education by personalising learning experiences, adapting to individual student needs, providing real-time feedback and enhancing teacher productivity.

“AI-powered tutoring systems, adaptive learning platforms and virtual classrooms will democratise access to quality education worldwide,” he said.

However, he said students may face several challenges in learning AI such as access to necessary resources such as computers, software and datasets, as well as Internet connectivity may be limited in some schools or households.

Other challenges are a lack of specialised skills in mathematics, programming, machine learning, database modelling, statistics and domain-specific knowledge as AI requires this combination of skills.

“Access to high-quality AI education may be limited, especially in rural areas or schools with fewer resources, lack of awareness and exposure of the opportunities and applications of AI or may have misconceptions about the field.

“Aligning AI education with industry needs and trends can be challenging as the field evolves rapidly. Ensuring that students learn relevant skills and technologies that are in demand by employers requires close collaboration between academia and industry,” he said. 

Source: Bernama

AI in training and research to spur skilled workforce, job creation, says expert

Despite a weak first quarter (1Q24) performance, analysts remain largely positive on Swift Haulage Bhd on the hope the logistics service provider’s businesses will pick up in the second half of the year (2H24) and drive earnings.

MIDF Research stated while Swift’s 1Q24 core earnings of RM7.7mil was at 19% of its estimates, it foresees Swift’s margins rising in 2H24, driven by an anticipated increase in the company’s warehouse utilisation rates.

“The newly operational Westport 269,000sq ft warehouse, since April, has been occupied, with Sharp Electronics Malaysia utilising 70% of the space and a new fast moving consumer goods (FMCG) customer is expected to occupy the remaining space this month.

“The Tebrau warehouse, currently at around 50% utilisation, is anticipating a new FMCG customer to occupy the remaining space by the end of 3Q24 at the earliest.

“Following this, we anticipate margin improvement as the overall warehouse utilisation rate is expected to increase to 80% this year, compared with 74% in 2023,” the research house said.

With these developments in mind, MIDF Research has kept its “neutral” call on Swift without making any changes to its earnings estimates for the logistics group. It however raised its target price for Swift to 54 sen a share from 50 sen, due to the rolling over of its base year to financial year 2025.

According to Maybank Investment Bank Research (Maybank IB Research), while Swift enjoyed a 6% rise in revenue in 1Q24, its core net profit fell 11% year-on-year (y-o-y) due to a lower operating profit margin (attributed to higher overheads, including depreciation) and increased finance costs.

Revenue growth for the period was mainly driven by its land-transport business (up 7% y-o-y) and warehousing and container depot (22% y-o-y) segments due to new capacity additions.

The land-transport segment’s growth was driven by improved demand for express services and car carriers. Swift’s container haulage division saw higher revenue per twenty-foot equivalent units or TEUs from volume recovery among certain long-haul customers, despite an overall volume decline.

Its freight forwarding margins suffered from handling fewer project cargoes even with better rates per job.

It has a “hold” call on Swift with a target price of 51 sen, based on seven times FY24 enterprise value to its earnings before interest, taxes, depreciation and amortisation and in line with its peers’ five-year mean.

Source: The Star

Swift Haulage’s 2H to improve on expansion in warehousing

Malaysia must explore the potential for cooperation with Qatar in the artificial intelligence (AI) sector and take advantage of the incentives amounting to nine billion Qatari riyals (RM1=0.77 Qatari cents) announced by the kingdom.

Prime Minister Datuk Seri Anwar Ibrahim welcomed the announcement of the incentives, saying this is in line with the government’s aim to empower the sector in Malaysia.

“Yes, our focus is cooperation with Qatar in the field of AI. That is there. For example, Qatar has an AI research institute. (Thus) I have asked (Higher Education Minister) Datuk Seri Dr Zambry Abd Kadir to take follow-up action with his counterpart, the Minister of Education of Qatar,“ he told Malaysian reporters, concluding his visit to the West Asian country today.

Earlier, Qatar Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani, who is also the Minister of Foreign Affairs, announced a “massive” digital transformation effort with incentives worth about nine billion Qatari riyals, including in the field of AI, during the Qatar Economic Forum this morning.

Anwar, also the Minister of Finance, said that among the forms of cooperation that can be done with Qatar in AI is education and investment. Commenting on the results of his short visit to Qatar, he said the confidence of Qatari companies in Malaysia’s ability has resulted in an export value potential of RM700 million.

Thus, Anwar said he is optimistic that bilateral trade between the two countries will exceed the amount of trade achieved last year, extending the upward trend.

“In these three months, due to the encouragement from the Qatari government as well, the increase in trade (increased by almost 180 per cent). Both the (Qatar) leaders, the Emir of Qatar (Sheikh Tamim bin Hamad Al Thani) and the Prime Minister (Sheikh Mohammed Abdulrahman Al Thani), in addition to the (Qatar) ministers who met my fellow ministers, assured that this amount will be increased much more in terms of trade, investment and cooperation,“ he added.

The total bilateral trade between Malaysia and Qatar reached RM4.2 billion last year.

From January to March this year, total trade between the two countries increased 178.4 per cent to RM1.43 billion (US$303.9 million) compared to RM514.9 million (US$116.7 million) for the same period in 2023.

As of last year, Qatar was Malaysia’s fifth largest trading partner, the sixth largest export destination and the sixth largest source of imports from the West Asian region.

Anwar, who ended his official visit to Qatar today, is scheduled to depart for the Kyrgyz Republic by boarding a special plane at the Doha International Airport here this evening.

Source: Bernama

Leverage on Qatar’s digital transformation, take advantage of incentives – PM Anwar

Tech giant Microsoft’s RM10.5bil investment to support Malaysia’s digital transformation will not only help local businesses be more efficient but also lead to better wages and higher skills for workers, say trade groups.

The investment, which includes building cloud computing and artificial intelligence (AI) infrastructure as well as creating AI development opportunities for an additional 200,000 people, will definitely boost Penang’s manufacturing sector, said Federation of Malaysian Manufacturers Penang (FMM Penang) chairman Datuk Lee Teong Li.

“Microsoft’s investment has the potential to drive socio-economic progress and enhance Malaysia’s competitiveness in the global tech landscape.

“The investments will definitely benefit our digital infrastructure, and the skills will help Malaysian businesses, communities and developers apply the latest technology to drive inclusive economic growth and innovation across the country.

“AI adoption will spread across key industries and the public sector while ensuring AI governance and regulatory compliance.

“It is also expected to create better-paying jobs for our people as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey,” he said yesterday.

Lee said this will lead to more job opportunities and stimulate economic growth by providing people with valuable skills and employment.

“Additionally, it can attract other tech companies and foster a thriving ecosystem to position Malaysia as a hub for innovation in the region,” he added.

Although some manual jobs and clerical work will be made obsolete by AI, these workers could be retrained for other roles, he said.

On May 2, Microsoft announced that it will invest US$2.2bil over the next four years in Malaysia to support the country’s digital transformation.

The company said the investment will include building cloud and AI infrastructure, training 200,000 people in using AI, and supporting the growth of Malaysia’s software developer community.

This will be Microsoft’s single largest investment in its 32-year history in Malaysia, and the firm will work with the Malaysian government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities.

Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai pointed out that Microsoft’s investment in Malaysia is the largest in South-East Asia.

“It follows Nvidia’s investment of US$4.3bil in December last year to develop artificial intelligence (AI) infrastructure in Malaysia.

“With Malaysia’s prominence in semiconductor manufacturing and the emergence of generative AI as the next big technology disruptor, AI and semiconductor manufacturing are becoming increasingly intertwined, with AI playing a crucial role in optimising manufacturing processes and enhancing chip design.

“This is in addition to Malaysia’s increasing role in AI chip manufacturing,” he said.

He added that investors are eyeing Malaysia, especially after the government announced that it is crafting the Semiconductor Strategic Plan.

“Intense interest in Malaysia by many companies has resulted in announcements like the ones from Microsoft,” he said.

Source: The Star

Microsoft to spur new era

Microsoft Corp’s commitment to invest a staggering US$2.2 billion (US$1=RM4.74) in Malaysia is undoubtedly a stimulus to upgrade the country’s technological capability as well as emerge as a renowned centre for innovation.

To facilitate the transfer of technology from the US software giant, the government must also invest by providing the right infrastructure to build a critical ecosystem to support growth of artificial intelligence (AI), cloud systems and cyber security capabilities.

Universiti Utara Malaysia School of Economics, Finance and Banking senior lecturer Muhammad Ridhuan Bos Abdullah said Malaysia should leverage on the tech giant’s commitment to speed up the transition of the economy to higher value-added complex operations as opposed to traditional linear practices.

A linear practice follows a “take-make-waste” pattern without consideration for recycling or reuse while higher value-added complex operations which is part of a circular economy is a system where products and materials are reused, repaired, and recycled to reduce waste and lessen the impact on the environment and society.

“Nevertheless, this effort requires significant investment from the government, and as outlined in the New Industrial Master Plan (NIMP 2030), talent, provision of infrastructure as well as incentives and the creation of a conducive ecosystem are very critical,” he told Bernama.

He highlighted that the growth of the electrical and electronics (E&E) sub-sector could be accelerated in a short period using AI technology, for which policymakers should identify specific areas within this sub-sector to boost export production and ultimately expand the gross domestic product growth.

“This means that with Microsoft’s capital investment support, technological advancement will accelerate, and 300,000 individuals integrated with AI technology will enhance productivity (human capital).

“Microsoft’s investment will benefit talent and the combination of resources (capital and talent), or upskilling will provide advantages in terms of innovation/production and positively impact the country’s exports,” he further explained.

Like in Malaysia, Microsoft announced its commitment to invest US$1.7 billion in Indonesia while also sounding its commitment to invest in Thailand for which the sum has yet to be announced.

Muhammad Ridhuan said Microsoft has identified the competitive advantages and synergistic links of the three Asean countries (Malaysia, Indonesia and Thailand).

“I view this positively because, in terms of market (population), regulations and investment climate, synergy can be created among these countries,” he explained.

Last week, the US software giant announced additional investment amounting to RM10.5 billion (US$2.2 billion) in Malaysia over the next four years, which is the largest single investment by the company in its 32 years of operations in Malaysia.

This investment covers the development of cloud systems and infrastructure and AI, the creation of AI skill opportunities for an additional 300,000 people, the establishment of a National AI Centre of Excellence, enhancing the nation’s cyber security capabilities, and supporting the growth of the system developer community in Malaysia.

The tech company has reportedly purchased land in Kulai, Johor, to develop a data centre.

At the moment, Johor has 13 data centre facilities across more than 1.65 million square feet of land. The state is also ranked as the largest data centre market in Malaysia and ninth-largest in Asia Pacific.

Commenting on the creation of AI skills for 300,000 people, Muhammad Ridhuan emphasised that synergies between policymakers and the supply side need to be parallel.

Meanwhile, economic analyst at the Putra Business School, Universiti Putra Malaysia, Associate Prof Dr Ahmed Razman Abd Latiff, said the plans to establish a National AI Centre of Excellence and boost Malaysia’s cyber security capabilities would lure more international technology companies to invest in Malaysia as the entire ecosystem was being developed and enhanced.

“The project, which will be made possible through Microsoft and the Malaysian government joining hands, will indicate clear and focused investor-friendly policies with opportunities for innovation.

“It is not just providing the basic infrastructures for investors (but) would give a clear signal that Malaysia wants more technology investors to come into the country,” he told Bernama.

He said that there will be opportunities for innovation and sufficient human capital to support the whole industry with a strong economic base and critical support from the government. 

Source: Bernama

Microsoft’s staggering investment a technological shot in the arm for Malaysia

Penang has established Penang Chip Design Academy, an initiative to bolster its Integrated Circuit (IC) design and digital sectors to support the state’s plan to develop an IC Design and Digital Park.

The academy is a key component of the Penang Science, Technology, Engineering, and Mathematics Talent Blueprint to be launched next month, Penang state investment agency InvestPenang said in a statement today.

It will “cement the state’s ambition to become a preferred investment destination for design and digital businesses and entrepreneurs,” InvestPenang said.

Headed by Penang Skills Development Centre, in collaboration with key industry players, electronic design automation tool providers, academia and investPenang, the academy focuses on end-to-end design development. It aims to develop talent for the IC design ecosystem via upskilling and reskilling with academic training and hands-on experience.

“Plans are being finalised for opportunities for private-public funding mechanism,“ InvestPenang said in the statement.

According to Verified Market Report, the global IC design service market was valued at US$48.97 billion (RM230.6 million) in 2023 and is expected to reach US$84.16 billion by 2030, with a compound annual growth rate of 3.92%.

Penang secured nearly RM20 billion of approved services investments between 2019 and 2023, representing 9% of the state’s total approved investments during this period, InvestPenang said.

The state currently houses 18 of 20 semiconductor IC design companies in the country, including the three local IC design champions SkyeChip, Oppstar Technology and Infinecs Systems.

“With the substantial influx of investments into Penang, coupled with the growing demand in IC design and digital sectors, talent is increasingly recognised as one of the key differentiators in attracting investments, as businesses prioritise regions with highly skilled and adaptable workforce.

“Hence, the ultimate objective for the academy is to prepare individuals to become industry-ready IC design engineers, underscoring the state’s dedication to move up the value chain and unlock opportunities for growth and prosperity in this digital era,“ InvestPenang added.

Source: Bernama

Penang sets up academy to support chip design, digital sector

IBM Malaysia has played a significant role to position Malaysia as a hub for aerospace innovation, citing the transformation of Turkish Aerospace Malaysia (TUSAS Malaysia) in Cyberjaya as a recent “success story”.

“From a modest beginning, TUSAS Malaysia has expanded into a major engineering hub specialising in various aerospace projects,” new managing director and technology leader Dickson Woo said in a statement today.

“A prime reason for its rapid growth was the adoption of IBM’s Engineering Lifecycle Management (ELM) technologies, which significantly enhanced productivity and compliance with stringent international standards,” he said.

Woo, who assumed his new position earlier this month, said IBM Malaysia plays a pivotal role in accelerating development and ensuring end-to-end traceability in TUSAS Malaysia’s projects, which in turn reinforces Malaysia’s reputation as an aerospace innovation hub.

“This technological advancement, particularly in sectors such as aerospace, dovetails with the broader goals of the government under the MADANI Economy framework, and aims to create a more resilient and diverse economy,” he added.

Woo said he will align the company’s operations with the government’s vision for technological and economic resilience.

“Working with both government agencies and the local business community, IBM Malaysia is geared towards supporting this framework by enhancing productivity and fostering economic resilience across all sectors,” said Woo.

He said IBM Malaysia intends to harness its advanced AI and hybrid cloud technologies to propel digital transformation across various sectors, enhancing business efficiency and national competitiveness.

On the 2024 national budget’s focus on sustainability, Woo said he will steer IBM Malaysia towards major sustainability initiatives to align with national goals.

The company intends to leverage its technology platforms, including AI and hybrid cloud solutions, to transform sustainability ambitions into practical and actionable strategies for businesses in Malaysia.

“This strategic alignment enhances business efficiency while contributing to a healthier environment and sustainable development in Malaysia,” said Woo.

IBM Malaysia also aims to mitigate the challenges that organisations face when adopting sustainable practices by offering robust technological solutions to enable the integration of sustainability into core business processes.

This includes overcoming technological barriers and enhancing data insights, which are significant hurdles for many companies.

“As we focus on AI and hybrid cloud technologies, we are setting industry trends, ensuring that IBM remains at the forefront of technological innovation,” said Woo.

Source: Bernama

IBM Malaysia plays major role in country’s aerospace hub aspirations

Karpowership, a Turkish operator of floating power plants, is keen on collaboration opportunities in Sabah to fulfil the state’s power needs, said its Asia commercial operations director Tolga Bayav. 

He said the integration of the company’s floating power plant solutions, known as powerships, may assist in ensuring a stable and dependable power supply in the state, as well as Malaysia, which in turn would drive industrialisation while attracting foreign investments.

“In Malaysia, Karpowership will also support economic opportunities and increase the quality of life… We are continuously exploring ways to innovate and adapt our offerings to meet the specific needs of the energy sector. 

“Our experience in ongoing projects and partnerships are aimed at not only supplying power but also enhancing the strategic energy capabilities of our clients. We are committed to investing in sustainable power technologies and building long-term relationships that support the objectives of the Malaysian government,” he said.

He said this to Bernama when met on the sidelines of the Defence Services Asia (DSA) and National Security (NatSec) Asia 2024 exhibition here on Wednesday. 

Elaborating on the what the company has to offer, Bayav said it specialises in both long-term independent power producer projects and short-to-medium-term bridge gap solutions, catering to base load, peak shaving, and mid-merit requirements. 

He said the company boasts an operational fleet of 36 powerships which could deliver upwards of 6,000 megawatt capacity, alongside a floating gas infrastructure fleet. 

“With 19 successfully completed power supply contracts, we continue to expand the energy portfolio. Karpowership’s areas of operation span from powership, floating storage regasification unit, land-based and solar solutions, driving impactful change in the global energy landscape,” he said, adding that the company is also exploring the potentials for collaboration with Petroliam Nasional Bhd (Petronas).

Meanwhile, Bayav said the DSA 2024 provides a pivotal platform for energy companies such as Karpowership to demonstrate their capabilities and advanced technological innovations in the energy sectors. 

“The response has been overwhelmingly positive. The dignitaries appreciated our efforts in pushing the boundaries of what’s possible in mobile power generation,” he said. 

Source: Bernama

Turkish company Karpowership eyes investment in Sabah’s power sector

AS the world shifts towards net zero and green economy, it will lead to small and big transitions affecting daily lives, workplace conditions and environment, employees’ skill set and jobs, business models and the way of doing business.

The scale of green transition is likely to be disruptive to the labour market. The greening of the economy, greening production of goods and services as well as green investment will inevitably bring about greening existing jobs and replacement as well destruction of some jobs while creating new green skills jobs.

What is green job? There is a lack of universally accepted definition or accepted way of categorising green jobs and green skills. This can lead to confusion and potential greenwashing.

The International Labour Organisation (ILO) defines green jobs as jobs that are good for people, good for the environment and good for the economy. Green jobs are decent and socially responsible as well as for the preservation and restoration of the environment.

As the economy and businesses gear up for green transformation and the challenges of climate change and sustainable technological change, the creation of green jobs and demand for green skills is on the rise.

The green economy transition is driving green jobs growth across traditional sectors such as manufacturing, agriculture, healthcare, construction and finance as well as new emerging green sectors such as electric vehicles (EVs), renewable energy (RE), circular economy, environmental services, sustainable city development, erosion control and flood mitigation management.

Additionally, green transition in particularly hard-to-abate sectors, which include heavy-duty trucking, shipping, aviation, iron and steel, and chemicals and petrochemicals, also create green transition jobs that need reskilling and upskilling of existing job profiles.

The ILO estimated that about 100 million new green jobs can potentially be created by 2030, leading to a net job creation of 25 million jobs. A total of 18 million jobs can be created by achieving sustainability in the energy sector and six million jobs can be created by embracing the circular economy.

The Global Green Skills Report 2023 indicated the increase in demand for green skills is outpacing the increase in supply, raising the prospect of an imminent green skill shortage.

Between 2022 and 2023, the share of green talent in the workforce rose by a median of 12.3% across the 48 countries examined, while the share of job postings requiring at least one green skill grew nearly twice as quickly by a median of 22.4%.

Between 2018 and 2023, the share of green talent grew by 5.4% per year while the share of jobs requiring at least one green skill grew by 9.2%.

Addressing this growing demand of green skills need requires a multifaceted approach, encompassing education and training, industry collaboration, and policy support to businesses’ skills needs identification and anticipation and equip workforce with the skillset, competencies and knowledge needed to build a sustainable green future.

Stakeholders in public and private sectors have to develop regulations, programmes and policies that foster green skills development and create pathways for workers to transition into green jobs.

For Malaysia, it is important for the policymakers and businesses to meticulously make policy assessment and readiness for developing a green workforce capable of helping the economy and businesses transition towards sustainable growth.

Malaysia has a well-developed green economy agenda dating back to the National Policy on Climate Change (2010) and National Policy on the Environment (2020), focusing on stewardship of the environment; effective resource management; enhanced environmental conservation; continuous improvement in the quality of the environment; sustainable use of natural resources; the role of the private sector; commitment and accountability; and active participation in the international community.

The green economy agenda was further reinforced in the 11th Malaysia Plan (2016-2020) and the 12th Malaysia Plan (2021-2025), outlining the strategic thrust of pursuing green growth for sustainability and resilience.

The focus areas include strengthening the enabling environment for green growth, the adoption of sustainable production and consumption concepts, the conservation of natural resources for present and future generations, and the strengthening of resilience against climate change and natural disasters.

The National Plan was reinforced by the National Green Technology Policy, the Environmental Quality Act (1974), the Green Government Procurement Guidelines (2018), New Industrial Master Plan 2030 and the National Energy Transition Roadmap to set overall directions, initiatives and enablers of supporting all stakeholders in implementing environmental sustainability.

Malaysia’s definition of green jobs is guided by the ILO definition, whereby green jobs are decent jobs that contribute to preservation or restoration of the environment.

The government has initiated occupational analysis in some of these new and emerging industries in green technology. The Occupational Structure of the Green Technology Industry project (2011) identified the main sectors likely to utilise occupations in green technologies.

The first iteration structure identifies six key sectors which include energy, manufacturing, transportation, buildings, waste and water, and has found 71 job titles that could be classified in green technology.

The second iteration of the Green Technology Occupational Framework only focused on the energy sector (RE and energy efficiency), and 112 occupations were identified.

The Green Jobs Portal, a proactive measure taken by the Environment and Water Ministry, has set a target of providing more than 200,000 green jobs by 2030. Data from MYFutureJobs indicated that there were 30,000 green jobs available in 2023,

How can policymakers and businesses increase the number of green jobs? The implementation of New Industrial Master Plan 2030 and National Energy Transition Roadmap to accelerate the economy’s and industries’ green transformation will attract potential investment in new green areas of up to RM1.3 trillion and is expected to generate 310,000 jobs by 2050.

The government can use a wide range of policy interventions, regulations and environmental standards, green taxes as well as financing measures to support and incentivise private sector and businesses to undertake green transformation.

These include increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

Building climate-resilient infrastructure, smart city and public housing development, expanding green public transportation, RE, smart electricity grids, and investment in flood mitigation, climate change mitigation and adaption project, as well as agriculture for creating sustainable food security – all these public investments will create green job opportunities.

Additionally, the government can collaborate with the financial institutions to provide loans at reasonable interest rates and grants for investing in green projects such as sustainable agriculture, renewable or low-carbon emission technology, smart government and private buildings, private housing, public walkways and cycleways and EV infrastructure.

The government can send decisive policy signals to the private sector that it is committed to the development of green economic prosperity.

For example, by offering tax incentives, subsidies and grant funding to support the collaboration between the industry, research institutes, academic institutions and private research and development firms to boost innovation and invest in transformative technologies such as RE, carbon capture, waste management and energy efficiency.

Green subsidies and tax rebates can be provided to boost demand for green products and services like EV, solar panels, RE and energy-savings equipment and appliances. This would increase the demand for green skills and encourage suppliers to reskill.

Businesses must demonstrate a commitment to equipping the workforce with green skills for talent motivation and retention while illustrating good career prospects in the green pathway.

Furthermore, businesses prioritising sustainability can send a strong message to their employees about their ESG values.

Enhancing skills is key to the green transition and harnessing the potential of artificial intelligence. Green skills are the knowledge, abilities, values and attitudes needed to develop a pool of workforce capable of helping businesses’ green transition.

Active labour market policy plays an important role to train and develop green skills. Both public and private investments in skills and training development are critical to building a resilient green and digital transition.

The greening of skills must take place through active labour market education and training. Policymakers and businesses must provide the necessary green training and career pathways, area-specific reskilling, design tailored and effective programmes to the workforce.

Lee Heng Guie is Socio-Economic Research Centre executive director. The views expressed here are the writer’s own.

Source: The Star

Get ready to develop a green workforce

Malaysia boasts a robust framework for Environment, Social, Corporate Governance (ESG), underpinned by an unwavering commitment to environmental sustainability, social inclusivity and corporate governance.

And federal initiatives such as the Malaysian Code on Corporate Governance (MCCG) and Bursa Malaysia’s sustainability reporting requirements exemplify the nation’s dedication to upholding these principles, said Invest Sabah Berhad chairman Senator Tan Sri Anifah Aman.

Speaking at the opening of the Environment, Social, Corporate Governance (ESG) Initiatives Awareness Forum at Magellan Sutera Harbour Resort here on Tuesday, Anifah added that Prime Minister Datuk Seri Anwar Ibrahim’s advocacy for carbon emission reduction and promotion of renewable energy epitomise Malaysia’s steadfast commitment to forging a sustainable future.

Anifah’s speech was delivered by Invest Sabah Berhad deputy chairman George Wong Hsueh Cheng.

Anifah said that under the visionary leadership of Chief Minister Datuk Seri Hajiji Noor, Sabah has embarked on a comprehensive ESG strategy and the state has taken decisive measures to combat illegal logging, champion reforestation efforts, and transition towards renewable energy sources, including solar and hydroelectric power.

In the realm of social inclusivity, Sabah, he pointed out, remained steadfast in its support for indigenous rights and the advancement of rural communities.

The government’s unwavering commitment to preserving traditional land rights and investing in critical infrastructure, education and healthcare ensures equitable participation in economic progress, Anifah stressed.

“Governance in Sabah is anchored in transparency and the fight against corruption, thus fostering a conducive environment for business and investment. Furthermore, the state is steadfast in promoting sustainable tourism, ensuring that this vital sector flourishes without compromising our natural heritage,” he said.

Anifah said that as the global business landscape continues to evolve, the principles of ESG ascend to greater prominence, adding, “These guiding principles steer us towards integrating sustainability, social responsibility and ethical governance into our operational frameworks. In doing so, we fortify our resilience, attract investment, and contribute to the holistic betterment of society.”

The forum, he said, serves as a conduit for exploring the latest advancements in ESG practices and discerning optimal strategies to navigate this dynamic terrain and also serves as a catalyst for forging strategic alliances and fostering collaborative endeavors in sustainability.

“By engaging with industry stalwarts, policymakers and esteemed academics, we stand to glean invaluable insights and cultivate innovative approaches to ESG. The networking opportunities presented here today offer fertile ground for cultivating relationships with like-minded professionals, thereby catalysing positive transformations within our organizations and broader communities,” he said.

Meanwhile Invest Sabah Berhad CEO and organising chairperson of the event, Dr Firdausi Suffian, in his welcoming address said that it was an honour to host the event in Sabah, as the state is one of the best places in Malaysia in relation to sustainability given its well-recognised, well-preserved biodiversity with its existing governance and regulation, internationally recognised for preserving its biodiversity, and of course one of the economic houses for the country given its considerable contribution in term of resources.

ESG, he said, is tied to the broad theme of sustainability and has been and continues to be an overarching concern in all policy levels as it is an important narrative and needs to be incorporated in our investment ecosystem.

“The role of Invest Sabah is pertinent in this matter, this organisation is poised to be the frontier for attracting investment to the state. We are committed to creating favourable investment climate to attract quality investment to drive structural change with strong emphasis on technology, sustainability, and socioeconomic inclusivity,” he said.

“ESG is not mutually exclusive. It is interrelated by nature. it is important to factor in capacity, capability and feasibility in practising ESG. It is known that with the advance of technology, we can mitigate our environmental degradation but at the same time we need to ensure capacity building is there so it will not compromise our society’s well-being.

“And while configuring policy we need to ensure it is practical and feasible by all. One important thing we need to avoid at policy making is topdown disconnected, bottomup disintegration in pursuing sustainable resilience. We have to work towards an inclusive approach, That’s why today we bring you this forum to discuss the broad challenges of sustainability, climate change and organisation agilities,” said Dr Firdausi.

According to him, the federal and state governments are committed to low-carbon development aimed at restructuring the economic landscape to a more sustainable one in line with the SDG goals.

He stressed that pursuing economic development with sustainable agenda is nothing new in Malaysia and also Sabah.

“Efforts in doing so has been recalibrated, refreshed and reaffirmed in national policy such as Madani Economy framework, 12th Malaysia Plan, Budget 2024, New Industrial Master Plan 2030 and of course National Energy Transitional Roadmap (NETR). In particular, NETR has explicitly stated to meeting the country’s climate commitment to cut 45% carbon intensity against GDP by 2030 compared to the 2005 baseline.

“Similarly in Sabah, the grand Sabah Maju Jaya plan has made a clear policy stance on sustainability with a specific theme under this policy to ensure development is espoused with sustainability and inclusivity,” he said.

The state government, he said, has introduced key gamechanger policies in relation to decarbonisation, renewable energy and sustainability such as Sabah Energy Roadmap and Master Plan, Blue Economy (first state to introduce the policy), Oil Palm Biomass Policy, and Ocean Thermal Energy Conversion (OTEC) Enactment 2024. All these policies is setting the tone for reducing carbon footprint and to meeting the global agenda for net-zero.

“Sabah policy makers have come out with sustainable governance and regulations more than three decades ago to protect our forest, biodiversity and marine life. The recent 28th Conference of Parties to United Nations Framework Convention on Climate Change has widely praised for Sabah good forest conservation governance, sustainable forest management and increasing carbon stock size of its totally protected forest areas. Under SMJ efforts today our Total Protected Areas have reached 1.9 million hectares. Mind you it is this state that made carbon emission trade-off for West Malaysia,” he pointed out.

Sustainability, Dr Firdausi said, has been an important narrative in Sabah policy-making institutions.

“I remember more than a decade ago, a question was asked to Sabahans to choose tree/ monkey or coal. As we all know coal plant is a cheaper source of energy.

“However, for the love of the environment, Sabahans choose tree/monkey over coal, even though this decision may somehow limit generating energy for the industry and household.

“Based on the preliminary findings, Total Primary Energy Sources (TPES) for national renewable energy comprising hydropower, solar and bioenergy constituted a mere 3.9%. However for Sabah despite our energy challenges so far our TPES accounted for around 7% higher than the national average. Under the current leadership we can see the state will continue working towards a greater sustainable development,” he said.

Source: Borneo Post

Malaysia has robust framework for ESG — Anifah

LOW-PROFILE company Nextgreen Global Bhd, which is in the business of turning empty fruit bunches (EFB), a byproduct of palm oil mills, into green and sustainable products such as pulp and paper, pulp moulding, fertiliser and animal feed, is now ready to showcase to the world what it can do.

After years of research and development (R&D) in the area of EFB and successfully commercialising its pulp production facility — with a capacity of 10,000 tonnes per year — in 2022, Nextgreen has found partners with the financial muscle to help scale up its operations.

“We have the breakthrough technology, now it is time for us to scale up. That is why we invited IOI Corp Bhd and also China’s Xiamen C&D Paper & Pulp Group Co Ltd to do business with us,” says Nextgreen managing director Datuk Lim Thiam Huat, 60, in an interview with The Edge.

Lim owns a 13.06% stake in Nextgreen, making him the second largest shareholder behind Datuk Gan Kong Hiok, who had 17.7% equity interest as at Feb 13, 2024.

Lim says the group invested about RM20 million over the last two decades to get to where it is today in terms of manufacturing paper pulp from EFB using its patented technology, known as the Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP), which he believes is the first of its kind in the world.

“Quite a number of companies have gone ahead [and tried to produce paper pulp from EFB], but they faced difficulty in achieving the quality of what Nextgreen can do today. Many have only been able to achieve the level of corrugated paper, but not up to the international standard required.

“As a result, they have not been able to commercialise it and are forced to shut down after a while because they cannot sell their products,” Lim says.

On April 8, Nextgreen announced a joint venture with IOI Paper Pulp Sdn Bhd, an indirectly wholly-owned subsidiary of IOI Corp, for the development of a zero-waste paper pulp plant in its Green Technology Park (GTP) in Pekan, Pahang.

On the same day, Nextgreen’s shares closed at a three-month high of RM1.05, up 13% from a low of 93 sen on April 3.

The joint venture (JV) announcement with plantation giant IOI Corp was followed by another one, where the newly established JV company — Nextgreen IOI Pulp Sdn Bhd — will team up with Xiamen C&D, a Fortune China 500 company, to develop the paper pulp production facility in Pekan.

The plan will see a new JV company established, with Nextgreen IOI Pulp holding 75% and Xiamen C&D the remaining 25%.

The three parties will work together on developing the paper pulp production facility that will span 43 acres within the GTP. The plant, which will cost RM600 million, is expected to be completed within 18 to 20 months, with an initial capacity of 100,000 tonnes of paper pulp per year produced from oil palm EFB.

“To scale up in a big way, we needed financial support as well as an off-taker. Of course, we already have a letter of intent from Japan’s Marubeni Corp as one of our off-takers.

“But having another party to participate with us; one that understands our business and loves our concept of the circular economy, zero waste, as well as a green product, that’s where Xiamen C&D comes into the picture,” Lim says.

The roles Xiamen C&D will play in the project include assisting with the financing of the project as well as being an off-taker of the products made by the pulp production facility.

Rolling out on full steam

Nextgreen is certainly not stopping at just 100,000 tonnes of paper pulp per year from its upcoming facility. With the backing and encouragement of its Chinese partner, it will scale up to 200,000 tonnes after achieving its initial 100,000-tonne target.

Thereafter, the plan is to double capacity to 400,000 tonnes per year, says Lim. All these goals are expected to be achieved within three years of the commencement of the paper pulp facility under the JV.

The JV company’s ambition is huge because it also has plans to set up a paper pulp facility in Sabah and Sarawak in the future.

Lim adds that it would also make sense for Nextgreen to expand into Indonesia, the world’s top producer of palm oil, because of the abundance of raw materials available in the country.

“We have decided to go ahead with the next plant in Indonesia. We have identified several places and we are targeting for it to take place this year,” he says, declining to elaborate.

However, he adds that it is clearly spelt out in the term sheet with Xiamen C&D that the Chinese partner intends to expand with Nextgreen IOI Pulp in Malaysia as well as Indonesia.

Nextgreen also intends to set up 20 collection centres throughout Malaysia, says Lim. The collection centres will serve as points of collection of the EFB from palm oil mills for its paper pulp facility and also a processing facility for organic fertiliser.

The group currently has four collection centres and aims to have 20 over the next five years. Each collection centre will involve around RM50 million to RM60 million of investment.

A year ago, Nextgreen entered into a shareholders’ agreement with Greentech Malaysia Alliances Sdn Bhd, Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd and Koperasi Perkhidmatan Setia Bhd to establish a JV company called GTC Biomass Bhd for the purpose of constructing, developing and commissioning two collection and processing centres in the country.

Greentech Malaysia Alliances will assist in bonds or green sukuk issuance while the cooperative will help in getting crowdfunding from other cooperatives for a chance to subscribe for preference shares in the JV company.

Cheaper than wood-based pulp

Unlike other recycled materials that tend to be more expensive to produce compared with the conventional material, transforming EFB into paper pulp fit for various paper products is significantly cheaper than wood-based pulp.

“There is vast availability of EFB in Malaysia, in the range of 30 million tonnes. At the moment, only 10% to 15% of EFB is being utilised for energy conversion and there is a balance of 85% available from the mills,” Lim points out.

The market price for a tonne of EFB ranges from RM2 per tonne to as high as RM12 per tonne, depending on the quality of the EFB.

“It is not very costly to convert the EFB into pulp. In fact, it is cheaper than the wood pulp process. When we entered into this business, we wanted to make sure that we could achieve a comparative price [with the wood pulp process] because if our cost was too high compared to the wood pulp process, it would not be economically viable.

“We have a bit of an advantage over wood pulp because our raw material is much cheaper than wood chips. To turn wood chips into pulp, manufacturers have to either buy the wood chips from the market or go into reforestation and harvest them. There is also the cost to bring the wood chips to the mills,” says Lim, adding that there is savings of some US$150 per tonne from just using EFB as raw material.

Based on the savings alone, one can understand why Xiamen C&D, which produces 13 million tonnes of paper and pulp per year, would be keen on Nextgreen’s technology and is supportive of the expansion of the latter’s operations.

Lim acknowledges that competitors from other countries will eventually catch up with Nextgreen’s patented technology but he is not worried about it because of the ecosystem the group has built to safeguard its interests, which would make it difficult for competitors to follow suit.

Palm oil millers are incentivised with carbon credits based on the amount of EFB delivered to Nextgreen. The group also incentivises millers who are usually in the plantation business by offering them discounts on the fertilisers the group produces.

The discounts are possible because Nextgreen saves on logistics cost, thanks to its collection centres, which double as mini processing plants for EFB pulp, thereby producing the fertiliser by-product close to the millers.

Nextgreen has also worked with various governing bodies such as the Ministry of Plantation and Commodities and the Malaysia Palm Oil Board to come up with regulations and requirements to ensure that there is due process at the collection centres.

“Our proposal was adopted in the National Biomass Action Plan, which put in some safeguards where parties cannot take the EFB without addressing the waste and environment,” Lim says.

Still need time for earnings to show

While Nextgreen has grand ambitions for itself going forward, it will still take some time before the earnings show.

Assuming the construction and setting up of its paper pulp facility goes as planned and achieves commencement within its targeted timeline of 18 months, earnings from the 100,000-tonne-per-year paper pulp facility will only start to roll in at the end of 2025.

The revenue that can be generated from the facility is estimated at RM355 million per year, based on the average market price of pulp at US$750 per tonne, with a gross margin of 30% and net margin of 20%.

Between now and the commencement of the facility, Lim sees earnings improving slightly, coming on the back of the group’s sales of the various by-products of the EFB pulp production at its current 10,000-tonne paper pulp facility.

For the financial year ended Dec 31, 2023 (FY2023), Nextgreen’s revenue nearly doubled to RM63.73 million from RM32.93 million in FY2022.

Net profit, however, fell 29% to RM9.65 million from RM13.61 million in the previous year on the absence of certain non-operating income — a reversal of impairment losses and gains of disposal on property, plant and equipment (PPE) — in FY2022. It also incurred higher income tax expenses amounting to RM2.54 million in FY2023 compared with RM11,000 in FY2022.

In the second half of this year, Nextgreen will see a contribution from its by-products, namely its organic solid fertiliser, a liquid fertiliser and animal feed.

It is worth noting that no part of the EFB goes to waste as Nextgreen, through its R&D, has managed to find a use for all the residue and discharge from the pulp-making process and convert these into commercialisable products.

“The idea of this zero waste concept is looking at how we can address the oil palm industry issues brought up by the West. If we take up the EFB, only extract and take the good part of it out and leave waste behind, the problem goes back to the environment, then there is no meaning,” notes Lim.

He is optimistic about the prospects for the by-products as well, pointing out that the initial response from the trial plot conducted has been good and that the group has potential off-takers who are interested in being distribution agents for its products.

Nextgreen’s share price closed at 89.5 sen last Friday — down just 2% over the past year — valuing the group at RM903.8 million. 

Source: The Edge Malaysia

Nextgreen Global scales up operations, turning biomass into green products

Princeton Digital Group (PDG) has secured its first RM1.28 billion (US$280 million) green loan for its 150 megawatt (MW) artificial intelligence (AI)-ready JH1 campus in Sedenak Tech Park (STeP) in Johor.

JH1 is one of largest AI-ready campuses in Asia and is designed to cater to the infrastructure demands of some of the world’s most pre-eminent AI and cloud companies.

The 150MW hyperscale project is a planned US$1.5 billion investment for PDG. 

The US$280 million financing is for the first 52MW phase of JH1 which is on track to be ready for service in June 2024, completing within just 12 months from the commencement of construction.

PDG chief executive officer and co-founder Rangu Salgame said the company has been at the forefront of developing Asia’s data centre infrastructure to enable the massive growth of AI and cloud in the region. 

“Our data centre campuses are AI-ready and combine quality and resilience of infrastructure with a primary focus on sustainability,” Rangu said.

“JH1, and this financing by top banks, are evidence of how PDG is solving for sustainability while building at scale for AI.  “With our unmatched track record of execution, this further cements our position as a leading pan-Asian data center operator,” he added in the statement.

According to PDG, the loan is being provided by three banks, namely Maybank, Standard Chartered Bank and UOB Malaysia who acted as Joint Green Loan Coordinators. 

PDG is a developer and operator of Internet infrastructure, headquartered in Singapore with presence and operations in Singapore, China, India, Indonesia, Malaysia, and Japan.

Source: NST

Princeton Digital secures RM1.28b green loan for AI-ready campus in Sedenak tech park

Sime Darby Plantation Bhd (SD Plantation) today said it will work with major shareholder Permodalan Nasional Bhd to develop the 404 hectare Kerian Integrated Green Industrial Park (KIGIP), in Perak.

In a statement today, the company said a joint proposal was submitted to the Ministry of Investment, Trade & Industry (MITI) in February.

The development will be located in SD Plantation’s Tali Ayer Estate in Perak.

KIGIP, conceptualised to attract green electrical and electronics (E&E) investments into the country, was announced by the government in the 2024 Budget.

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

“The decision to actively participate in the KIGIP development is an important milestone for us as we venture into the natural adjacency of plantation companies,” SD Plantation’s group managing director, Datuk Mohamad Helmy Othman Basha said.

Conceptually, SD Plantation said about 67 per cent of the main zone will comprise industrial areas, whilst the balance will house other infrastructure such as commercial and residential facilities and large green spaces.

Its plans are subject to feasibility studies, due diligence, legal requirements, and other internal approval processes.

On its push into industrial park development, Mohamad Helmy said the company is well positioned to expand into the industrial park development area due to its landbank and strong balance sheet.

“By collaborating in such projects, instead of just signing off our land, we aim to secure more sustainable revenue streams for our shareholders,” Mohamad Helmy said.

The group holds strategic landbanks in various states throughout Malaysia, and active discussions are currently ongoing with several state agencies to develop these lands into industrial parks.

The intention is to replicate KIGIP’s green energy model where feasible.

SD Plantation said the solar farms for KIGIP will be owned and operated by the company, as renewable energy has been identified as a key strategic pillar and revenue source for the group.

It is also a key component of SD Plantation’s net-zero strategy, specifically, a 42 per cent reduction target in Scope 1 and Scope 2 Energy and Industrial carbon emissions by 2030.

Renewable energy is expected to contribute significantly to the company within the next five years.

SD Plantation said moving forward, the company will identify less productive agricultural lands to convert them into solar farms.

SD Plantation started leasing its land to third party solar farms under the government’s Large Scale Solar (LSS) schemes 1 and 4.

For LSS4, about 40 per cent of the quota for solar farms awarded by the Energy Commission of Malaysia was on SD Plantation’s land.

Additionally, under the Corporate Green Power Programme, 38 per cent of the quota was produced on the company’s land, some for its own use.

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

Source: NST

Sime Darby Plantation to work with PNB to develop 404ha Kerian Integrated Green Industrial Park

The Investment, Trade and Industry Ministry (MITI) has confirmed that an announcement on Google’s investment in Malaysia will be made in the near future.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said this follows the virtual meeting on Monday between Prime Minister Datuk Seri Anwar Ibrahim and Google president and chief investment officer Ruth Porat and other senior management members of the tech giant.

“Digital Minister Gobind Singh Deo and I also attended this virtual meeting. The discussion covers, among others, the investment in our country, the amount of which will be announced after being approved.

“I am made to understand that the announcement will be made in the near future,” he told the media after a dinner reception in honour of the Saudi Arabian delegation to Malaysia yesterday.

Among other issues to be discussed are the exchange of expertise as well as reskilling and upskilling of Malaysians in three sectors, namely education, agriculture and health, Tengku Zafrul said.

He said the Digital Ministry will coordinate the use of artificial intelligence while in terms of investment, MITI and the Malaysian Investment Development Authority (MIDA) are making preparations with Google.

In a post on Facebook yesterday, Anwar, who is also Finance Minister, revealed that he held an online conference with Porat as a follow-up to their meeting in the United States last year.

The prime minister said during the session, Porat informed on the progress of the framework areas that Google and parent company Alphabet can expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government.

In November 2023, the Malaysian government and Google announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the rapidly growing digital economy.

Source: Bernama

Announcement on Google’s investment in Malaysia to be made in near future – Tengku Zafrul

Resource site Baxtel cites Johor as the largest data centre market in Malaysia now, as multinational corporations (MNCs) with regional presence pour investments into the state, according to a report by Channel News Asia.

The site lists some 13 data centres facilities across more than 1.65 million square feet of land mass in Johor, with another four under construction.

Baxtel ranks Johor as the ninth-largest data centre market in Asia Pacific.

According to digital economy experts, Johor’s data centre boom is fuelled by multinational corporations with regional presence, whereas data centres elsewhere in the country is catered to the domestic market.

Property agency Zerin Properties believs Johor is poised to attract RM17 billion (US$3.6 billion) in new data centre investments this year, building on the RM51.1 billion invested in 2022.

The report said southern Johor in particular is seeing a boom in data centres thanks to its proximity to Singapore, spillover effects of the US-China trade war, as well as cheaper land, water and power.

Major data centre players like Nvidia, AirTrunk, GDS International, YTL Power as well as Princeton Digital Group have set up operations there, and tech giant Microsoft has reportedly purchased land in Kulai to open a data centre.

Zerin Properties highlighted the Malaysian government’s role in actively supporting Johor’s data centre ecosystem by developing industrial parks with suitable infrastructure.

Among the largest are the 745-acre Sedenak Tech Park (STeP) and the 509-acre Nusajaya Tech Park, it said.

Meanwhile, a research report from real estate consultancy Knight Frank predicts that Johor’s data centre market will exceed Greater Kuala Lumpur in terms of “live capacity.”

It said this will be driven by its proximity to land-scarce Singapore which, between 2019 and 2022, paused new data centre development.

It said Johor’s proximity to Singapore has led many multinationals based in the city state to expand across the Causeway to take advantage of Johor’s cheaper land, construction costs as well as operating expenses, particularly electricity tariffs, for their data centres.

“Another factor is United States-China strategic competition, which has spurred corporations from China and the West to diversify and expand in Southeast Asia in the semiconductor and digital infrastructure space,” it said in the report.

The report also highlighted the need to improve the water and power industry in Johor, as some experts have flagged disruptions in both as areas of concern.

The data centre industry is both power and water intensive.

Source: NST

Johor now the largest data centre market in Malaysia, driven by investments from MNCs: report

Prime Minister Datuk Seri Anwar Ibrahim today held an online conference with the president and chief investment officer of technology (CIO) giant Alphabet & Google, Ruth Porat.

In a post on Facebook, Anwar who is also the Finance Minister said the session was a follow-up to their meeting in the United States last year.

The prime minister said during the conference, Porat informed on the progress of the framework areas that Alphabet & Google can expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government.

“Alphabet & Google very much welcomed the leadership, commitment and speed of facilitation given by the Malaysian government since the previous meeting,” he said.

Anwar said the discussions also touched on the importance of cooperation and support of technology and artificial intelligence (AI) related to the education, health and agriculture sectors.

“I emphasised that these efforts must eventually bring comprehensive economic and social benefits without leaving out any group or community, especially in terms of technology literacy.”

Anwar hopes these efforts will bear fruit particularly in launching the national technology transition planning and creating job opportunities.In November last year, the Malaysian government and Google announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the fast-growing digital economy.

Source: Bernama

Alphabet & Google president updates Anwar on progress of potential areas of expansion in Malaysia

The National Artificial Intelligence Roadmap (AI Roadmap) positions Malaysia as a global leader in AI technology, said elevator company Kone Malaysia.

Managing director Teoh Tze Ping said the integration of AI into industries such as manufacturing, healthcare and construction can lead to substantial growth and competitiveness on a global scale.

“Malaysia can position itself as a hub, attracting investment and talent while staying competitive in the global AI landscape,” Teoh said in an interview with SunBiz about AI in predictive maintenance of vertical transportation in buildings.

The AI Roadmap is a document aimed at improving the quality of life for the people of Malaysia through the application of AI technology, while also accelerating the transformation of the country into a high-technology nation.

Teoh said the roadmap presents a framework for harnessing the potential of AI to drive economic growth.

“As AI continues to evolve, Malaysia is poised to reap the benefits of this technological revolution, ultimately contributing to its economy and journey towards becoming a leader in AI innovation while delivering benefits to the businesses and communities,” he said, adding that Kone Malaysia also views the roadmap as an opportunity to collaborate with government agencies and industry peers to accelerate the adoption of AI technologies.

In Malaysia, industry players have either initiated or are involved in AI projects and programmes. Among them are Petroliam Nasional Bhd (Petronas) and Telekom Malaysia Bhd (TM).

Petronas` uses Al to manage its platform data, introducing new technology to the oil and gas industry by shifting from condition-based monitoring and conventional analytics to predictive maintenance driven by predictive analytics.

In its Dulang platform, the VROC Al-validated the root causes of failures 2000 times faster, resulting in RM15 million in cost avoidance.

Meanwhile, TM has signed a memorandum of agreement with Huawei Technologies (M) Sdn Bhd to expand its cloud infrastructure offered through TM ONE.

International companies and digital startup companies in Malaysia are also leveraging AI to stay relevant and be competitive.

National ICT Association of Malaysia, Malaysian Global Innovation & Creativity Centre, Technology Park Malaysia and Malaysia Digital Economy Corp have reported that more than 100 companies in the country are associated with AI.

Teoh said Kone Malaysia believes that AI is set to be the game-changer to make maintenance proactive and predictive.

“Our main priority is to improve and enhance our predictive maintenance. This includes revolutionising maintenance with new, intelligent, and fully connected services,” he added.

Teoh said Kone Malaysia utilises AI and predictive maintenance to enhance the efficiency and reliability of elevators, escalators, and automatic building doors.

“Our predictive maintenance approach connects your elevators, escalators, and automatic building doors to our cloud-based service and uses AI-based analytics to make smarter predictive maintenance decisions,” he shared.

For high-rise buildings, he said, the people flow management is a critical aspect to minimise wait time, reduce congestion, and maximise efficiency. “This is where the integration of AI can assure smooth and seamless people flow in complex-built environments.”

Teoh said that by analysing the vast amounts of data collected from sensors embedded in elevators, Kone 24/7 Connected Services provide information on upcoming maintenance needs and identify any issues before they cause problems.

“The services use machine learning to help customers detect potential breakdowns before they occur, as well as help our technicians get the right information, at the right time, so they can diagnose and fix problems quicker,” he explained.

Source: The Sun

National roadmap positions Malaysia as global leader in AI technology: Kone