Zecon Bhd has earmarked a 3,000-acre landbank under its Kota Petra Masterplan to lead potential solar farms and green energy-related development, according to group managing director Datuk Zainal Abidin Ahmad.

He said the company is currently in talks with several agencies and technology companies, including Huawei Technologies, on potential solar projects in Sarawak and Sabah.

Last August, Zecon inked a memorandum of understanding (MoU) with Neuto Energy Sdn Bhd, a renewable energy technology firm, to establish a strategic alliance and collaboration for the development of large-scale solar photovoltaic (PV) projects.

To provide strategic connection to the 3,000-acre landbank, which is the site of the Kota Petra Masterplan, Zainal said two bridges across Sungai Santubong and Sungai Serai would be built.

The construction of the proposed Sungai Santubong Bridge has begun with the piling works after the contractor took possession of the site recently, while the Sungai Serai Bridge project will commence later this year, he added in the company’s 2023 annual report.

Sungai Santubong Bridge is a 280m three-lane dual carriageway concrete bridge with seven spans.

Sungai Serai Bridge, meanwhile, is a 150m two-lane dual carriageway concrete bridge with five spans, with navigational clearance heights of 14.6m and six m, respectively.

“We expect to complete the construction of both bridges by the middle of 2026,” said Zainal.

He said for the Kota Petra Masterplan, also in place are plans to collaborate with experts and agencies for digital transformation projects, including technology parks and data centres, which are some of the high-impact industries in line with the Sarawak government’s aspirations.

“The Sarawak government is ambitious about its digital future spearheaded by the Sarawak Post Covid-19 Development Strategy 2030, which aims to make the state a leading digital economy and thriving society by 2030 driven by data and innovation.

“Our resources will be aligned and we strive to play a pivotal role as landowner, developer and contractor to support the Sarawak government in achieving its goals.”

On March 15, 2024, Zainal said Zecon and Sarawak Digital Economy Corp Bhd signed an MoU to collaborate and explore the development of an integrated urban development and industries, as depicted in the Kota Petra Masterplan.

It includes an aerotropolis, logistics, industrial and technology parks, green energy industry and many other industries together with an integrated smart city eco-system incorporating digital infrastructure and smart technologies.

“The group’s Kota Petra Masterplan is imminent and with that we anticipate a very active and exciting 2024.

“The outlook for the group remains very positive and the timing is right for the group to strengthen its position by assuring that all the developments, infrastructure and green energy projects are going ahead as planned,” he added.

Zainal said the financing facilities amounting to RM815.94mil secured by Zecon group from Bank Pembangunan Malaysia Bhd (BPMB) in February 2024 is timely to boost the group’s operations, primarily the up-coming development projects.

BPMB’s Tawarruq Asset Financing Facilities consists of RM616.94mil for Zecon Medicare Sdn Bhd and RM235mil for ServeCo Sdn Bhd (an asset and facility management company under the group).

Both facilities have a tenure of up to 20 years from the date of the first drawdown.

“These are much-needed facilities for the group.

“The proceeds will be utilised primarily to fully settle the group’s existing facilities with the respective financial institutions and any approved balance will be used for working capital.”

Zecon Medicare is the concessionaire for the 243-bed Universiti Kebangsaan Malaysia Children’s Specialist Hospital in Bandar Tun Razak, Cheras, Selangor, under the “build, lease, maintain and transfer” model.

Zecon Medicare is a 51%-owned subsidiary of Zecon while the State Financial Secretary Sarawak owns the remaining 49% equity interest.

Zainal said ServeCo secured a landmark RM1.15bil, 25.5-year contract (concession started on Jan 1, 2021) to deliver comprehensive facility management services for the hospital.

The contract also includes providing services to the nearby 54-room Zecon Hotel.

Source: The Star

Zecon earmarks 3,000 acres for green energy

TECH giant Microsoft Corp announced its plans to invest a staggering RM10.5 billion in Malaysia’s cloud and artificial intelligence (AI) infrastructure which will boost and provide a gamechanger in the country’s economy.

Last Thursday, Microsoft’s chairman and CEO Satya Nadella outlined the company’s ambitious plan to establish a world-class AI infrastructure and provide AI skilling opportunities for 200,000 Malaysians.

“We want to ensure we have world-class infrastructure right here in the country so that every organisation and start-up can benefit,” he said in an event in Kuala Lumpur (KL).

This investment will also bolster collaboration with the government to establish a National AI Centre of Excellence and enhance cyber security capabilities.

Microsoft’s cloud and AI infrastructure promises to unleash a ripple effect of opportunities, empowering businesses to thrive in the digital age and cementing Malaysia’s position as a leader in the global tech industry.

Positive Economic Growth Opportunities

Institute for Democracy and Economic Affairs (IDEAS) economist Carmelo Ferlito (picture) shared insights into the potential ramifications of this big investment.

“This is great news for two reasons. On one side, it creates economic opportunities, on the other, it is an important sign of confidence,” he told The Malaysian Reserve (TMR).

Ferlito said undoubtedly, Microsoft’s substantial investment will have far-reaching implications for Malaysia’s economy.

He added that beyond the infusion of capital, the investment serves as a beacon of confidence, signalling to other potential investors the attractiveness and viability of Malaysia’s technology sector.

“The investment is in itself an FDI and it could signal confidence toward other potential investors,” he noted.

Though it is not automatic, Ferlito said the project has a positive ecosystem.

He said that beyond enhancing IT literacy, it has the potential to catalyse the growth of local companies, forming a robust value chain around the data centre.

“I think the main benefit would not only be the IT literacy that potentially the initiatives can create but also the spillover that can generate in terms of local companies which are going to make up the value chain around the data centre,” he added.

In terms of Malaysia’s global standing in the tech industry, Ferlito believed that Microsoft’s investment serves as a powerful endorsement of the country’s competitiveness and attractiveness to other tech giants.

However, he emphasised that the actual impact will hinge on the execution and outcomes of the project.

“It is a positive signal. It can attract other entrepreneurs, but I think a lot will depend on the actual implementation and results from the project.”

Nevertheless, he was aware of the potential drawbacks and risks associated with such a significant investment.

He highlighted the importance of ensuring a favourable regulatory framework to mitigate these risks and ensure the initiative’s success.

“If, for some reason, the initiative would not be successful, the added value it created will be destroyed. It is important to be sure that the regulatory framework will be favourable for the initiative to thrive,” he noted.

Malaysian Investment Development Authority (MIDA) CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said it is excited to deepen its partnership with Microsoft as it underscores the dedication to innovation and regional industry growth.

“This investment not only reinforces Malaysia’s position as a leading digital hub but also marks a promising start in attracting more companies to embark on this digital journey with us, promoting inclusive growth and prosperity nationwide,” he said.

Updates on Microsoft’s Data Centre in Malaysia Microsoft recently secured a contract with Pasukhas Sdn Bhd, a wholly owned subsidiary of Pasukhas Group Bhd.

With a total lump sum contract value of RM56.9 million, the project is expected to be completed by June 30, 2025.

Microsoft reportedly acquired a plot of land in Johor. The land, spanning 102,560 sq m in Pulai, was sold by local property development firm Crescendo Corp Bhd (CCB).

CCB’s subsidiary, Panoramic Industrial Development Sdn Bhd, entered a conditional sale and purchase agreement with Microsoft Payments (M) Sdn Bhd for a cash consideration of RM132.4 million.

Microsoft also announced a broader commitment to provide AI skilling opportunities for 2.5 million people in Asean member states by 2025. Other than Malaysia, the company be also be in partnership with governments, nonprofit and business organisations and communities in Indonesia, the Philippines, Thailand and Vietnam.

Source: The Malaysian Reserve

Microsoft’s RM10.5b investment in Malaysia — A game changer for the economy

Datuk Seri Anwar Ibrahim has urged all implementing agencies, particularly ministries, to prioritise the training of young people on artificial intelligence (AI) so that the country does not fall behind in this field.

The prime minister said in this regard, training for Technical and Vocational Education and Training (TVET) fields should be given emphasis and enhanced by ensuring that anyone interested, including religious school students, benefit from programmes provided by ministries and government agencies.

“TVET needs to be enhanced to meet (investor demands) like three or four days ago when we had Microsoft investing RM10.5 billion, which requires tens of thousands of workers.

“If (the investment involves) the entire ecosystem, then hundreds of thousands of workers need to be trained. Do we have that capability?” Anwar asked while noting that Malaysia currently lacks some 30,000 engineers.

He said this in his speech at the closing ceremony of the Northern Zone Madani Rakyat 2024 programme, held concurrently with the Penang-level Madani Aidilfitri 2024 celebration at Tapak Pesta Sungai Nibong here on Sunday.

Anwar, who is also finance minister, said that AI and TVET-related training must be accessible to all to avoid disparities in capabilities between urban and rural areas.

“If we only offer these courses to urban elites, there will be a gap with people in rural areas. That’s why the opportunity (for training in AI and TVET) must be available to everyone so that they can fully master both fields.

“I hope the federal government will collaborate with state governments to prioritise this new training stage. Otherwise, we will fall behind,” he said.

The prime minister also urged the Education Ministry (MOE) to continue efforts to foster interest among school students in science, technology, engineering and mathematics (STEM) subjects, thereby strengthening the AI and TVET fields in the country.

“Our children are less interested in mathematics and science. So I told the MOE that there needs to be a concerted push for this transition to happen immediately,” he said.

In this regard, Anwar said MOE cannot rely on old approaches by setting specific targets, but should instead do it now to ensure the country can compete with other nations.

“Learn from what Singapore, Indonesia and Thailand are doing. They all say that adjustments in the universities and the education system must be done now,” he said.

Addressing the current challenges of AI, he said that young people, especially Muslims, need to adeptly master this new technology to help integrate the principles of the Quran and hadith to safeguard the values upheld in Malaysia.

“If we solely import AI from the West, then we will face problems. Our children must have the expertise to integrate the principles of the Quran, hadith and Islamic criteria in the framework or elements of this AI system.

“So, when new technology enters Malaysia, we will not worry that the West will dictate our values. We can uphold our dignity and values as Malaysian citizens,” he said.

Meanwhile, the prime minister said that Malaysia cannot lag behind in terms of public service efficiency compared to neighbouring countries, especially concerning approval processes, as it is crucial to attract investments.

Therefore, Anwar wants the speed level of investment approval to be on par with other countries like Vietnam.

Source: Bernama

PM wants AI, TVET-related training ramped up for country’s youth

In today’s business world, investors are placing great emphasis on Environmental, Social and Governance (ESG) factors.

There is also a growing awareness among businesses of the importance of adopting the ESG agenda in their business practices.

As such, Star Media Group (SMG), with OCBC Bank (Malaysia) Berhad as the main sponsor, is returning with the ESG Positive Impact Awards (ESG PIA), which will honour Malaysian companies that have done well in implementing ESG practices.

SMG group chief executive officer Chan Seng Fatt said the award will provide companies with market recognition for their commitment to ESG.

“The award will definitely give you market recognition for your commitment to ESG, and it will also enhance the corporate image of participants,” he said.

“In today’s investing world, investors are also quite aware and will emphasise the importance of ESG commitments,” he added.

Aside from attracting investors who prioritise sustainability, he added that the recognition will also enhance a brand’s reputation as a responsible corporate citizen.

“I think the impact is tremendous in today’s corporate landscape.

There is more and more emphasis on the importance of ESG and with this award participation, you are telling the market that you are committed and confident in your own commitment.

That will definitely enhance your market positioning and your brand value,” he said.

The ESG PIA Winners Showcase Agenda was held yesterday with presentations by past winners, Heineken Malaysia Bhd and Geomax Rubber Innovative Products Sdn Bhd.

OCBC Bank’s Wholesale Banking managing director, Jeffrey Teoh Nee Teik, said ESG principles have laid the foundation for sustainable business practices.

“I think it sets the whole impact in terms of how businesses engage in environmental impacts, for example, pollution control, scarcity of resources, and managing climate change,” he said.

In addition to the environmental aspect, he said there is also the social aspect, such as human rights.

“These are all critical factors that govern the way businesses should be run in the future, and this is going to be crucial in terms of importance to all the stakeholders, such as governments, regulatory bodies, and future investors,” he said.

Investment, Trade and Industry Ministry (Miti) senior director Dr Meenachi Muniandy said since the ministry introduced the National Industry Environmental, Social and Governance Framework (i-ESG Framework) in October last year, there has been an evolving awareness of ESG, especially among micro, small and medium enterprises (MSMEs).

“Within a year, MSMEs have evolved a lot in terms of ESG awareness. So definitely, awards like this will help them understand what ESG is all about and how they can adopt ESG practices,” she said.

The ESG Positive Impact Awards 2023 is organised by SMG and endorsed by the Natural Resources and Environmental Sustainability Ministry and Miti, with OCBC Bank as the main sponsor.

Log on to https://staresgawards.com.my/ for more information on the application.

SMG’s ESG PIA 2022 Gala Night, which was held on June 8 last year, to drive positive change and inspire others in the country to embrace sustainability, saw 100 companies participating, with 60 awards being given out.

The awards across 15 categories were presented to the winners at the ESG PIA 2022 Gala Night at the M Resort & Hotel Kuala Lumpur. The submissions were evaluated by a panel of judges based on set criteria across three ESG pillars.

Source: The Star

Honouring eco-conscious firms

The Ministry of Digital said Microsoft’s investment of RM10.5 billion (US$2.2 billion) over the next four years is a sign of trust in Malaysia’s digital prospects and a significant step in advancing the country’s digital economy.

In a joint statement by the Ministry of Digital and Malaysia Digital Economy Corporation (MDEC) today, the ministry said the partnership between Microsoft and the government for the establishment of a national AI Centre of Excellence (COE) and the enhancement of the nation’s cybersecurity capabilities is poised to drive further progress in these critical areas.

The ministry also commended Microsoft’s efforts to provide AI training for 200,000 individuals and empower 2,000 Malaysian developers through the AI Odyssey initiative.

“Microsoft has played a pivotal role in numerous collaborative initiatives, including talent development, startup support, and digital adoption for micro small and medium enterprises (MSMEs).

“This investment reaffirms Microsoft’s commitment to Malaysia’s digital growth and showcases the strength of the partnership,” it said.

The statement said Microsoft’s support has been instrumental in MDEC’s efforts to build a robust digital tech talent pipeline, from schools to tertiary learning institutions, and to reskill and upskill the existing workforce to meet evolving industry demands.

This collaboration has led to the creation of the Premier Digital Tech Institutions (PDTI) network, comprising 42 tech-related faculties across 24 tertiary institutions nationwide, and has fostered a pool of AI-ready local companies within the MDEC ecosystem.

With the support of MDEC, Microsoft’s investment encompasses the creation of global business services and the expansion of data centres in key areas throughout Malaysia.

“Microsoft has also been a key partner in the public sector’s digitalisation agenda, having signed the Cloud Framework Agreement with the government in 2022,” it added.

“The Ministry of Digital looks forward to continued collaboration with Microsoft and other industry leaders to drive innovation, foster digital talent development, and accelerate Malaysia’s journey towards becoming a global digital hub,” the statement said.

Source: NST

Digital Ministry: Microsoft’s investment sign of trust in country’s digital prospects

Microsoft’s decision to invest in Malaysia shows that Malaysia is recognised as a preferred hub in South-East Asia, simultaneously reinforcing the region’s position as an important growth market.

According to Tengku Datuk Seri Zafrul Tengku Abdul Aziz, this demonstrated Microsoft’s confidence in South-East Asia, and Malaysia’s strategic position as a gateway for growth.

“Microsoft chief executive officer Satya Nadella has met Prime Minister Datuk Seri Anwar Ibrahim together with a few of my Cabinet colleagues where he expressed his commitment to invest in the next four years, particularly in the areas of data centres and artificial intelligence,” the Investment, Trade and Industry Minister said.

He said this to Bernama on the sidelines of the Bernama Open House 2024, which was held here yesterday.

The American multinational corporation and technology company announced that it is committed to invest US$2.2bil (RM10.5bil) in Malaysia’s cloud and artificial intelligence (AI) and US$1.7bil in Indonesia.

“Microsoft’s investment in the infrastructure over the next four years will upskill 300,000 Malaysians and accelerate the nation’s digital transformation journey,” Tengku Zafrul said.

Earlier, the ministry said that the multinational move also supports Malaysia’s national initiative to embrace new enabling technology, including AI and generative AI, which could unlock US$113.4bil in productive capacity in Malaysia.

The investment will also power up the nation’s economic growth and inclusivity through innovative, cutting-edge technology, it said in a statement.

Malaysia’s steadfast commitment to robust digital infrastructure has convinced many globally recognised multinationals to establish or expand their presence here, as evidenced by the significant RM144.7bil in digital investments approved from 2021 to 2023.

Meanwhile, the Malaysian Investment Development Authority said that Microsoft’s ongoing investment in Malaysia underscores the country’s allure as a prime digital investment destination, boasting a compelling ecosystem for companies looking to establish operations in the region.

Its chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said this continued investment endorses Malaysia’s preparedness to emerge as a leading centre for technology, drawing significant interest from major tech enterprises.

“As digitalisation increasingly reshapes global economies, we welcome Microsoft’s announcement of new investments in Malaysia.

“We look forward to continuing to work with Microsoft to foster innovation in startups, create jobs, and harness the transformative power of artificial intelligence (AI) for the betterment of Malaysian society,” he said in a statement yesterday.

Microsoft’s substantial US$2.2bil investment in cloud and AI infrastructure over the next four years, aligned with the “Bersama Malaysia” initiative launched in 2021.

This initiative aims to elevate Malaysia as a premier digital hub, bolstering economic growth and inclusivity through innovative technology.

“We believe that Microsoft’s cloud and AI infrastructure will create a ripple effect of opportunities that bridge the digital divide while empowering businesses to thrive in the digital age.

“Malaysia has been taking steps to master and make good use of AI. By leveraging AI, this initiative promises to unlock new possibilities for innovation, economic growth and inclusivity,” Sikh Shamsul Ibrahim said.

He added that Malaysia’s robust commitment to digital infrastructure has laid a strong foundation for its journey towards digitalisation.

“As the country advances, the rise of AI is poised to drive transformative changes across our digital ecosystem-from talent development to software applications and infrastructural enhancements, ensuring Malaysia remains at the forefront of innovation and progress.”

Source: The Star

Investment signals rise in regional tech landscape

Technical and Vocational Education and Training (TVET) programmes are set to be enhanced to address the shortage of 30,000 engineers in the country, said Prime Minister Datuk Seri Anwar Ibrahim.

He also emphasised the importance of focusing on Artificial Intelligence (AI) technology to keep pace with current demands.

“I mentioned it in front of all the leadership in the country about our concerns regarding moral values, our identity as Malaysians, and our culture in defending this new technology.

“We are also striving to maintain our faith and morality in accordance with our religious understanding,” he said, adding that that AI technology would also be integrated into the curriculum for students in Tahfiz schools or TVET programmes.

He said this while speaking at the Kelantan-level 2024 Madani Aidilfitri Celebration at RTC Tunjong her on Thursday.

Anwar also assured the Kelantan state government and its people that in terms of TVET training, engineering training, or AI training, the government would provide equal opportunities for Kelantanese youths to excel in these fields.

He stressed that all these advancements should be emphasised in religious education, ensuring that the younger generation does not lag behind.

He said that to realise the effort, Microsoft had expressed interest in investing RM10.5 billion for the development of AI technology in Malaysia.

Meanwhile, Anwar expressed confidence that the more than 13% salary increase announced yesterday for civil servants would receive support from all Members of Parliament.

“I don’t think there will be a problem in approving the additional salary increases for civil servants effective Dec 1.

“Which Member of Parliament would oppose the government’s efforts to increase civil servants’ salaries? Moreover, Kelantan has also expressed its support and acknowledged it as a good proposal,” he said.

On Wednesday, Anwar announced that the salary increase of more than 13% for civil servants from December this year was an effort to balance the income between lower and higher grade workers.

He said under the new Civil Service Remuneration System (SSPA) which was being finalised, the government would also increase salaries to ensure that the minimum income of civil servants exceeded RM2,000 per month compared with the current minimum of RM1,795 per month which includes basic wage and fixed allowances.

Source: Bernama

TVET in Malaysia to be enhanced to address shortage of 30,000 engineers — PM

With high-technology investments continuing to come in from China to Malaysia, it is crucial to develop a larger skilled workforce, says a trade group.

A prominent local vocational institution has also called on Malaysian youth to leverage this upcoming trend and equip themselves well for the market.

China Entrepreneurs Association in Malaysia (PUCM) president Datuk Keith Li said more skilled workers should be trained to meet business needs.

“The investments are coming in, but we need to look at the available manpower.

“The country needs more local skilled workers and technicians to cope with fast growing business needs,” said Li, who was part of the 200-member trade delegation from Malaysia during Datuk Seri Anwar Ibrahim’s maiden visit there as Prime Minister.

Li said the smart technology, cloud computing and digital transformation industries were among the sectors that made investments in Malaysia.

He said Malaysia was a good choice for Chinese investors, with government relations playing an important role.

“They are also impressed by the stability and business-friendly policies here. Malaysia as a whole is good in terms of value, investment, cost of living, and also the living environment,” he said.

When compared to neighbouring countries in the region, Li said Malaysia could add value by having a more streamlined and efficient approval process for key posts at the management level.

He said PUCM is also organising the China Smart Industry, Trade and Culture exhibition in Kuala Lumpur later this month.

It acts as a platform for both Malaysian and Chinese enterprises to interact with one another.

Vocational Training College Malaysia Institute chief executive officer Tan Cheng Liang said Malaysian youth should utilise this opportunity to ensure they are well-prepared for the market.

“The World Economy Forum predicted that 69 million jobs will be created and 83 million jobs destroyed, leading to a contraction of global labour markets of 14 million jobs in the next five years at the present rate of change.

“There will be new jobs where 60% will be based on TVET (Technical and Vocational Education and Training).

“It is the right direction for students to be serious about taking up TVET now, emulating Germany, where 60% of their youth are into TVET, which is their mainstream education,” she said in an interview yesterday.

While less than 30% of Malaysian students pursue TVET, she believes that more are unwilling to study science.

Source: The Star

Look into TVET to prepare country for industrial boom

Prime Minister Datuk Seri Anwar Ibrahim said Microsoft’s RM10.5 billion (US$2.2 billion) investment in Malaysia demonstrates its confidence in the country’s strong economic foundation, clear and focused policies, investor-friendly environment, and political stability.

In postings on social media, Anwar said the investment is in line with, and will be a major contributor to the government’s focus on developing AI capacity in the country.

Anwar received a courtesy visit from Microsoft chairman and chief executive officer, Satya Nadella, and his delegation in Putrajaya earlier today.

Microsoft today announced that the technology giant will increase investments in Malaysia by RM10.5 billion over the next four years.

Anwar said the amount is the largest investment at one time by Microsoft after operating for 32 years in Malaysia.

The investment includes the development of cloud systems and infrastructure and Artificial Intelligence (AI), creating AI skills opportunities for an additional 300,000 people, establishing a National AI Excellence Center, enhancing the country’s cybersecurity capabilities, and supporting the growth of the system developer community in Malaysia.

“After the courtesy visit, Satya and I then attended the National AI Leadership Forum. We had the opportunity to discuss technology-related matters, namely AI, and the government’s plans to prepare the country for this changing landscape.May this collaboration between Malaysia and Microsoft bring significant benefits to the country and its people as a whole,” added Anwar.

Source: NST

PM Anwar: Microsoft’s RM10.5bil investment demonstrates its confidence in Malaysia

Microsoft will invest RM10.5 billion over the next four years to support Malaysia’s digital transformation – the single largest investment in its 32-year history in the country.

Microsoft chairman and chief executive officer Satya Nadella said the company aims to build a “world class AI infrastructure” that will be made available to Malaysia.

Its investment includes building cloud and AI infrastructure in Malaysia as well as creating AI skilling opportunities for an additional 200,000 people in the country.

Via the investment, Microsoft also plans to strengthen partnership with the government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians. “Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country,” said Nadella during the Microsoft Build: AI Day here today.

Separately in a statement, the Malaysian Investment Development Authority (MIDA) stated this initiative is part of the ongoing Bersama Malaysia commitment since 2021.

The commitment is set to transform Malaysia into a leading digital hub, starkly enhancing economic growth and inclusivitythrough innovative technology.

MIDA noted this investment as a promising development that distinguishes Malaysia as a top destination for digital investment.

MIDA CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said Malaysia is poised to establish itself as a leading digital hub, attracting major tech enterprises.

“As digitalisation increasingly redefines global economies, we welcome Microsoft’s announcement of new investment in Malaysia and we look forward to continue to work with Microsoft, a world leader in the digital field, to foster innovation in start ups, create jobs and harness the transformative power of AI for the betterment of Malaysia’s society. “AI now stands as a pivotal game-changing technology that impacts us all.

“Microsoft’s decision to continue investing in Malaysia highlights Malaysia’s attractiveness as a preferred digital investment destination that offers a compelling ecosystem for companies seeking to establish its operation in the region,” he said.

He added Microsoft’s cloud and AI infrastructure will create a ripple effect of opportunities that bridge the digital divide while empowering businesses to thrive in the digital age.

Source: NST

Microsoft to invest RM10.5bil in Malaysia’s cloud and AI infrastructure

The additional investment by Microsoft amounting to US$2.2 billion or RM10.5 billion in the country over the next four years is the largest single investment by the company in its 32 years in Malaysia.

Prime Minister Datuk Seri Anwar Ibrahim said the investment will greatly support the government’s focus on developing artificial intelligence (AI) capacity in the country.

“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.

“Malaysia welcomes this investment decision which proves their confidence in the country’s strong economic base, clear and focused policies, in addition to investor friendliness and political stability,“ he said in his Facebook post.

The Prime Minister said he and Satya Nadella, the chairman and chief executive officer of Microsoft, attended the National AI Leadership Forum after receiving a courtesy visit from him and his delegation in Putrajaya today.

“We had a dialogue regarding matters that touched on technology, namely AI and the government’s plans to prepare the country for change in this area.

“Hopefully this collaboration between Malaysia and Microsoft can bring significant benefits to the country and the people as a whole,“ he said.

Source: The Sun

Microsoft investment is company’s largest single investment ever in Malaysia — PM Anwar

Microsoft’s RM10.5 billion (US$2.2 billion) investment into Malaysia’s cloud and artificial intelligence infrastructure firmly positions the country as a preferred destination for digital investments, said the Ministry of Investment, Trade and Industry (MITI).

It also supports Malaysia’s national initiative to embrace new, enabling technologies, including AI and Generative AI, which could unlock US$113.4 billion in productive capacity in Malaysia.

Microsoft today committed to investments in cloud and artificial intelligence infrastructure in Malaysia that will help transform the country into a leading digital hub regionally, while targeting to skill 300,000 Malaysians.

Microsoft chairman and chief executive officer Satya Nadella made the announcement during the AI National Leadership Forum in Putrajaya, which was graced by Prime Minister Datuk Seri Anwar Ibrahim.

“This strategic partnership with Microsoft is what was envisaged by Malaysia’s New Industrial Master Plan 2030 (NIMP2030). It not only helps us embrace tech rapidly, but also fosters innovation, as well as economic security and inclusivity. While our priority is to attract quality investments, we are also looking for partners who can help champion our commitment to empower our small and medium enterprises (SMEs) and people – through new, enabling technologies, including AI – so that they can also reap the benefits of a more vibrant digital economy in Malaysia. Microsoft’s RM10.5 billion committed investment is an accelerated step towards that positive outcome,” MITI Minister Tengku Datuk Seri Zafrul Aziz said, in a statement.

Transformative technologies such as machine learning, natural language processing, and predictive analytics, powered by cloud and AI services, have the potential to empower businesses of all sizes – including start-ups and micro, small, and medium enterprises (MSMEs) – to unlock their potential by driving differentiation and market competitiveness.

Zafrul added that Malaysia’s steadfast commitment to robust digital infrastructure has convinced many globally-recognised multinationals to establish or expand their presence here, as evidenced by the significant RM144.7 billion in digital investments approved from 2021 to 2023.

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

Microsoft chairman and chief executive officer Satya Nadella said Microsoft is committed to supporting Malaysia’s AI transformation, ensuring it benefits all Malaysians.

“Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country,” he added.

Source: NST

MITI: Microsoft investment positions Malaysia as preferred destination for digital investments

Prime Minister Datuk Seri Anwar Ibrahim expressed on Tuesday, Malaysia’s preparedness to explore new areas of cooperation with Saudi Arabia, in line with the kingdom’s Vision 2030, especially in the fields of renewable energy and hydrogen.

In addition, Anwar, who is also the finance minister, welcomed Saudi Arabian investors to Malaysia to explore potential investments in high-value projects.

He conveyed this when he was granted an audience with Saudi Crown Prince and Prime Minister Mohammed bin Salman at the Yamamah Palace in Riyadh, prior to his return to Malaysia, after attending the World Economic Forum (WEF) Special Meeting which ended on Monday (April 29).

“Our discussion also touched on trade and investment relations between both countries.

“I also welcome investors from Saudi Arabia to Malaysia to explore potential investments in high-value projects such as digital and green economy, artificial intelligence (AI), clean energy, defence, electrical and electronics, and aerospace,” he said in a post on X here on Tuesday.

Anwar also announced that Malaysia is prepared to chair Asean next year, including hosting the Asean Gulf Cooperation Council-China Summit.

“Towards the end of the meeting, I reiterated my invitation for the Crown Prince to make an official visit to Malaysia at his earliest convenience.

“I believe this visit has further enhanced the strong relations between Malaysia and Saudi Arabia, as well as opening various investment potentials that would contribute to the prosperity of Malaysians, God willing,” he added.

Source: Bernama

Malaysia seeking cooperation with Saudi on renewable energy, hydrogen — Anwar

HAVING identified artificial intelligence (AI) opportunities in Malaysia, SNS Network Technology Bhd now expects a meaningful contribution from its newly ventured data centre fit-out business segment.

Besides selling AI super servers, the ICT system and solutions provider is also involved in testing and commissioning as well as operation and management within the premises of data centres. In short, SNS fills the gap between server manufacturers and server buyers.

The group believes its financial performance will be lifted by the sale of AI super servers based on the selling price of RM1.5 million per unit and a gross profit margin of 15%, which is higher than its existing core business’ gross profit margin of about 5%.

“This is a game changer for SNS, and it’s a new playground. Generative AI is at the beginning of a supercycle,” co-founder and managing director Ko Yun Hung tells The Edge in an interview.

With more data centres being set up in the country, especially in Johor, he believes there will be growing demand for AI super servers. “We are seeing a lot of potential from this, for the enterprise segment,” he shares, noting that several tech firms have expressed interest in these servers.

As cost will be one of the challenges in adopting AI, Ko says SNS can play a role in helping clients navigate the AI journey. “Some customers may not want to worry much about the whole AI journey, so they can just subscribe to our services [instead of buying the super servers]. And the service, maintenance and warranty will be taken care of by us.”

He is of the view that SNS will be able to fend off market competition given its multi-channel and multi-brand strategy. Furthermore, the additional services could fetch better margins for the group.

“If you just sell the hardware, it will be about a 5% to 10% gross profit margin,” Ko says. In comparison, the traditional consumer devices business offers a gross profit margin of about 5%.

Headquartered in Ipoh, Perak, SNS started out in 1998 assembling and supplying desktop and related peripherals mainly to schools and cafés. Over the years, it expanded with the sale of ICT products becoming its core business, along with the provision of ICT services and solutions, device repair and related services, and sale of broadband services.

The group sells ICT products through physical and online stores, namely SNS’ own retail stores iTworld, GLOO and Notebook Plaza, as well as third-party marketplaces, while its commercial channel targets businesses, government agencies and educational institutions.

The ICT products sold include Apple, Intel and Samsung. SNS also established an in-house brand JOI of ICT products in 2014, collaborating with Intel and Microsoft.

SNS debuted on the local bourse in September 2022, raising RM90.72 million. Year to date, its share price has gained 56.3% to close at 37.5 sen last Wednesday, valuing the company at RM604.8 million. The stock is also up 50% compared to its initial public offering (IPO) price of 25 sen.

Of its IPO proceeds, RM28.5 million remained as at Jan 31.

For the financial year ended Jan 31, 2024 (FY2024), SNS’ net profit fell 27% to RM31.96 million from RM43.72 million a year ago, partly due to fewer orders from its customers. Revenue slipped 9% to RM1.28 billion from RM1.4 billion the previous year.

Meanwhile, net margin slipped to 2.5% in FY2024 from 3.1% in FY2023.

The commercial channel was the largest contributor to group revenue at 82%, followed by online stores (9%), physical stores (8%) and services (1%).

The bulk of its revenue — close to 99% — was derived from the sale of ICT products comprising hardware, devices and related peripherals, while the remaining came from the provision of device repair and related services, as well as sale of broadband services.

Ko acknowledges that the retail market was not exciting last year, but the situation is expected to improve this year, underpinned by demand for devices, digital transformations and AI adoption.

“The e-commerce segment is already seeing a U-shaped recovery. We are seeing a lot of opportunities, for example government contracts, as it is about time to upgrade the current devices,” he says.

Last October, SNS announced that it is partnering with Seagate Technology to provide enterprise data storage solutions in Malaysia. In February this year, the group secured a contract from Esri Malaysia Sdn Bhd to offer geographical information system solutions for an undisclosed value.

On plans to open 10 retail stores within three years from its IPO using part of its listing proceeds, Ko says the group is sticking to the target and may look to expand to East Malaysia, apart from the Klang Valley, Johor and Penang.

“We are looking at about RM2.5 million to open 10 stores. So far, we haven’t utilised the fund because the market is not very encouraging,” he explains.

“We open retail stores because we want to provide a complete customer buying experience. Sometimes they want to have a retail place where they can explore. And then later on, when the company wants to buy something, we also have our commercial team to support them.”

Currently, it operates 60 brand stores, seven multi-brand concept stores and 12 consignment counters in Malaysia.

SNS is awaiting the Securities Commission Malaysia’s approval for its proposed transfer of listing status to the Main Market from the ACE Market of Bursa Malaysia, after it met the requirement of having an aggregate net profit of at least RM20 million for the past three to five full financial years, with a net profit of at least RM6 million for the most recent financial year.

The transfer listing is expected to be completed by the second half of the year.

Its net cash position improved to RM89.1 million as at end-January 2024, from RM69.73 million as at end-October 2023. It had gross borrowings of RM32.38 million as at end-January 2024, with a gearing ratio of 0.13 times.

SNS does not have a dividend policy, but it hopes to maintain a dividend payout ratio of about 30%-40%. In FY2024, it paid 0.75 sen dividend per share or a total payout of RM12.1 million, equivalent to a dividend payout ratio of 38%.

Ko and executive director Kelvin Pah Wai Onn each own 32.67% of the company, while executive director Siow Wei Ming holds a 7.33% stake.

Premised on the ongoing AI frenzy, Rakuten Trade gave SNS a “buy” call with a target price of 54 sen based on FY2025 price-earnings ratio (PER) of 15 times, which it says are in line with the company’s industry peers.

The research house expects SNS’ FY2024-FY2027 earnings to grow at a robust compound annual growth rate of 39% driven by new AI server sales and continued growth in its existing ICT business, fuelled by consumer device refresh cycles and ongoing digital transformation in education and commerce.

“In addition, SNS maintains a solid balance sheet, with a gearing ratio of 0.13 times as of 4QFY2024. Coupled with 3% FY2025F dividend yield, SNS is currently an attractive proposition at 11 times FY2025F PER,” it says in an April 15 note.

According to Rakuten Trade, Malaysia currently hosts over 40 operational data centres, with the capacity ranging from 100mw to 150mw each. However, upcoming data centre projects indicate an anticipated additional capacity of 1,400mw over the next five to 10 years, driven by low land and energy costs.

“Considering that each GPU (graphics processing unit) server can only support 10kW of data centre usage, the potential for SNS to seize opportunities in this expanding market is significant,” it highlights.

Source: The Edge Malaysia

SNS Network aims to tap country’s data centre boom through new venture

Tex Cycle Technology (M) Bhd said on Monday it has partnered with Evolusi Bersatu Sdn Bhd to invest RM100 million in Sabah’s first integrated scheduled waste management facility.

The facility is expected to start construction in the second half of this year and will be fully operational by the fourth quarter of 2025, Tex Cycle said in a statement.

The project is designed to complement existing scheduled waste management providers, it added.

When contacted, Tex Cycle’s management told The Edge that Tex Cycle will hold a 51% stake in the joint venture (JV), while Evolusi Bersatu, an oil and gas services firm, will own the remaining 49%.

“It also aligns with Sabah’s broader efforts in creating over 150 job opportunities and conserving our natural resources,” said Muhamad Tolling, managing director of the JV company Tex Evolusi Waste Management.

Sabah Chief Minister Datuk Seri Hajiji Noor said this facility represents a significant step in the journey towards a cleaner and more sustainable Sabah, and he believes this will attract more foreign investors who share environmental, social, and governance value.

As opposed to sending wastes to Peninsular Malaysia for processing, the facility prioritises a locally centred waste treatment process, aiming to reduce costs and emissions while ensuring legal compliance and environmental responsibility.

“Additionally, the facility is tailored to serve various industries and offers comprehensive waste management solutions, especially in the oil and gas sector,” the company said.

Datuk Keh Chuan Seng is the largest shareholder in Tex Cycle with a 26.436% stake, held via his private vehicle Frazel Group Sdn Bhd. He was appointed as the group’s executive chairman in May last year after emerging as its substantial shareholder.

Tex Cycle’s executive director Lee Hai Peng also surfaced as the group’s substantial shareholder in May last year, with a 5.129% equity interest.

Their blocks of shares were acquired from Tex Cycle’s previous major shareholder Can Cycle Sdn Bhd, which disposed of its entire 31.565% stake, or 80 million shares.

Klang-based Can Cycle is a private vehicle jointly owned by low-profile businessman Ho Siew Choong and his brothers Ho Siew Cheong and Ho Siew Weng, as well as Periasamy Sinakalai, better known as S Perry.

The 53-year-old Keh is also the executive chairman of stainless steel maker K Seng Seng Corp Bhd. His private entity Frazel Group owns 22.98% of the company, being the second-largest shareholder after Singaporean Cheong Lai Sin (27.43%).

Keh began his career in real estate development in Japan. During his tenure there, from 1991 to 2005, he was involved in local and international property development, as well as the hospitality, agriculture, asset management and financial industries.

Meanwhile, 58-year-old Lee is a non-independent, non-executive director of Solarvest Holdings Bhd and an executive director of K Seng Seng Corp. He joined Chin Hin Group Bhd in 2008 as group accountant, before being promoted to group financial controller the following year. He was made executive director in 2015, a position he held until December 2022. 

On Monday, Tex Cycle’s share price closed up four sen or 3.6% higher at RM1.14, valuing the waste management and recycling company at RM292 million.

Year to date, the stock has gained 65% from 69 sen on Jan 2.

Source: The Edge Malaysia

Tex Cycle in JV to invest RM100m to build Sabah waste management facility

TotalEnergies, a global energy supplier company based in France, has stated its commitment to increasing its investment in Malaysia’s upstream oil and gas (O&G) sector, said Prime Minister Datuk Seri Anwar Ibrahim.

In a post on X today, he said TotalEnergies also plans to continue exploring opportunities in the carbon storage field in Malaysia.

Earlier, Anwar met with TotalEnergies chief executive officer and chairman Patrick Pouyanne on the sidelines of the World Economic Forum (WEF) Special Meeting in Riyadh, Saudi Arabia.

The Prime Minister arrived in Riyadh on Saturday for a three-day working visit during which he will take part in the three-day WEF special meeting.

“TotalEnergies was established in 1984 in Malaysia and has investments in various sectors in the country including renewable energy, electricity, oil and carbon storage.

“Hopefully, this investment can be realised as soon as possible and trigger an overflow of prosperity for Malaysians, especially in creating more job opportunities and knowledge sharing,” said Anwar, who is also the Finance Minister.

Recently, TotalEnergies signed an agreement with Sapura Upstream Assets Sdn Bhd (SUA) to acquire its 50 per cent interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for US$530 million (US$1=RM4.77), subject to closing adjustments.

SapuraOMV’s main assets are its 40 per cent operated interest in block SK408 and 30 per cent operated interest in block SK310, both located offshore Sarawak, Malaysia.

SapuraOMV also holds interests in exploration licences in Malaysia, Australia, New Zealand and Mexico, where a discovery was made in 2023 on block 30.

TotalEnergies owns interests in two production sharing contracts (PSCs) in the exploration phase and in June 2023 signed an agreement with Petronas and Mitsui to develop a carbon storage project in Southeast Asia and evaluate several CO2 storage sites in the Malay Basin.

Source: Bernama

TotalEnergies states commitment to increase investment in Malaysia’s upstream O&G sector – Anwar

Malaysia aims to increase investments in research and development (R&D) to be on par with developed countries that have successfully leveraged R&D to improve their global competitiveness, said Science, Technology and Innovation Minister Chang Lih Kang.

According to him, Malaysia’s R&D investments still lag behind developed countries such as South Korea, Japan and Singapore.

To close the gap, the MADANI Economy agenda had set a target for the country to achieve a gross expenditure on R&D (GERD) of 3.5 per cent of gross domestic product by 2030 to ensure strong economic development in the long term, he said in his keynote address at the MIMOS Technology Preview (MTP) 2024 here today.

“Increased investments in the R&D sector can lead to higher productivity, create highly skilled jobs, and increase the country’s economic value.

“Additionally, it stimulates innovation in key sectors, namely biotechnology, renewable energy, and digital technology, which will help to address current challenges such as food security and climate change,” he said.

Chang said MIMOS, as the country’s leading R&D agency, had a role in supporting the GERD target of 3.5 per cent.

“To reach the objective, MIMOS is carrying out strategic initiatives such as collaborating with industry leaders to develop and use new technologies that meet global energy demand, as exhibited at MTP 2024 today,” he said.

The minister said the collaboration not only spurred technological advancement but also ensured that R&D results have practical applications, thus being able to be commercialised and provide benefits to society.

He said that MIMOS aimed to commercialise 20 R&D projects by the end of 2025.

Chang said 15 technologies were developed during the 12th Malaysia Plan, which were exhibited at MTP 2024.

During today’s event, MIMOS was scheduled to ink a memorandum of understanding with Axicom and Iscada Net (iS.net), as well as a technology licence agreement with SquareCloud to implement MIMOS autonomous chiller control and energy efficiency (Mi-Ace) system technology in government and commercial buildings.

The Mi-Ace system was developed with SquareCloud, utilising artificial intelligence technology and wireless Internet of Things (IoT) to revolutionise building cooling systems that include offices and public spaces.

The system is able to improve cooling performance, achieving energy savings of 12 per cent to 20 per cent by analysing sensor data to optimise operation while ensuring comfort.

The new solution makes the installation process easier and significantly improves the building’s energy management.

Also present at today’s event were Ministry of Science, Technology and Innovation secretary-general Datuk Aminuddin Hassim and MIMOS acting president and chief executive officer Saat Shukri Embong.

Source: Bernama

Malaysia targets higher R&D investments to be on par with developed countries

Saudi Arabia-based renewable energy giant ACWA Power has disclosed plans to collaborate with several strategic Malaysian partners in developing renewable energy projects across multiple states in Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.

In a recent Facebook post following his meeting with ACWA Power chairman Mohammad A Abunayyan and the company’s senior management representatives on Monday afternoon, Anwar said the company also presented its investment proposals, including collaboration in developing several energy projects in Terengganu, Kelantan, Perlis, Sarawak, and Johor.

“I had expressed my appreciation for ACWA Power’s commitment to increasing its investments in Malaysia, and that the country always welcomes any efforts to bolster the nation’s economic growth and the people’s prosperity,” he said.

During the meeting held on the sidelines of the World Economic Forum Special Meeting here on Monday, Mohammad A Abunayyan also disclosed the company’s intention to invest over US$10 billion (RM47.64 billion) in Malaysia over a span of 10 years.

Among the proposed projects are those to be undertaken through collaboration with a local company, Cypark Resources Bhd.

Anwar, who is also the finance minister, said that the Madani government would continue to implement investment-friendly policies by focusing on initiatives to ensure that every investment process is facilitated and expedited.

Foreign Minister Datuk Seri Mohamad Hasan and Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz were also present in the meeting.

Source: Bernama

ACWA Power eyes collaboration with strategic M’sian partners on renewable energy projects, says Anwar

Saudi Arabia-based renewable energy giant ACWA Power has expressed interest in investing more than US$10 billion (US$1=RM4.77) in Malaysia over a 10-year period.

Among the proposed projects are those to be undertaken through collaboration with a local company, Cypark Resources Bhd.

This was conveyed by ACWA Power chairman Mohammad A. Abunayyan when he paid a courtesy call on Prime Minister Datuk Seri Anwar Ibrahim on the sidelines of the World Economic Forum (WEF) Special Meeting here today.

Also present during the half-an-hour call were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz as well as the senior management of Bursa Malaysia-listed renewable energy firm Cypark Resources and its major shareholder, Jakel Group.

Cypark Resources executive chair Datuk Ami Moris said the collaboration in the renewable energy project is in the final stages of discussion and is expected to be finalised by the end of this year.

“ACWA Power, one of the world’s largest renewable energy companies, is keen on investing in Malaysia, implementing technology transfer and sharing its renewable energy expertise for industrial parks in Jasin, Melaka, and Kerian, Perak, to power up green data centres,” she told reporters after the meeting.

Jakel Group managing director Datuk Seri Mohamed Faroz Jakel said Jakel Capital, which is Cypark Resources’ biggest shareholder, will also be involved in the renewable energy project.

“We came to Riyadh to discuss how to implement the collaboration and Jakel also has several large parcels of land that can be developed into solar farms to supply energy to Cypark,” he said.

On the final day of the WEF Special Meeting today, Anwar is also scheduled to hold bilateral meetings with his Pakistani counterpart Muhammad Shehbaz Sharif and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani.

Anwar also received a courtesy call from Turkiye’s Foreign Affairs Minister Hakan Fidan.

The two-day WEF Special Meeting, themed “Global Collaboration, Growth and Energy for Development”, was attended by more than 1,000 participants including heads of state as well as business and industry leaders.

Source: Bernama

Saudi-based ACWA Power keen on investing over US$10b in Malaysia

Iconic Worldwide Bhd is engaged in preliminary discussions with potential partners to develop mega townships and industrial projects throughout Malaysia. 

The group is also exploring avenues to establish resorts, villas, and theme parks, with the aim of bolstering tourism in Penang and leveraging the island’s distinguished reputation as a top-tier global tourist destination.

These developments are integral components of the group’s comprehensive strategy to fully capitalise on the potential within its property development and hospitality management ventures. 

This strategic direction is being guided by the leadership of the new controlling shareholder and executive chairman, Datuk Seri Tan Kean Tet.

Tan expressed confidence in the future prospects of the real estate and hospitality sectors in Penang, citing substantial growth in tourism and the commencement of significant infrastructure projects this year, such as the Penang LRT and the expansion of the Penang International Airport (PIA). 

He remains steadfast in his belief that the future holds promise for real estate and hospitality in Penang.

“As we embark on our next chapter with a renewed focus on property development and hospitality management, we will make bigger and bolder bets that will accelerate our growth and leave an indelible mark on the real estate industry. We are determined to turn around the group and explore opportunities to expand our business.

“On the property side, we have begun early discussions with potential partners to explore opportunities to develop mega township and industrial real estate projects in Malaysia. I believe that demand will only grow for these projects due to Malaysia’s unique appeal as a destination for foreign direct investments (FDI) and domestic direct investments (DDI),” he said.

Tan said the implementation of visa-free travel for tourists from China and India has delivered a positive impact on the local tourism industry, which will support the growth of the group’s hospitality business.

In addition, the expansion of PIA’s capacity from 6.5 million to 12 million passengers a year, slated for completion in three to four years, will deliver a major boost to the local tourism industry. 

“This is a major, catalytic infrastructure project that I believe the market has yet to appreciate,” he said in a statement.

Tan, who was previously a major shareholder of Iconic, is now a controlling shareholder of the group. This is following the group’s successful corporate exercise that raised RM95.6 million via an oversubscribed rights issue, which raised his stake to 36.59 per cent.

Iconic plans to utilise 41.6 per cent of the RM95.6 million gross proceeds to acquire a parcel of freehold, vacant land measuring 15 acres in Paya Terubong, Penang Island.

“The group will submit a proposal to the Penang state authority for planning permission to construct a residential development on this newly acquired asset. It is expected that the gross development value (GDV) of this project will be more than RM300 million,” he said.

In a further boost to the group’s hospitality segment, in the fourth quarter of this calendar year, Iconic will start to manage the Iconic Regency, a serviced apartment in Sungai Nibong. The 42-storey Iconic Regency, one of Penang’s tallest residential towers, comprises 268 serviced apartments with built-ups ranging from 500 sq ft to 850 sq ft. 

Source: NST

Head of Iconic Worldwide keen to develop theme parks, resorts, townships

Malaysian enterprises are encouraged to prioritise responsible Artificial Intelligence (AI) to fully tap into the potential benefits of generative AI and its innovations, according to the AI and analytics platform provider, SAS Institute Inc.

Amir Sohrabi, SAS regional vice president and head of digital transformation for Emerging Europe, Middle East and Africa (EMEA), and Asia, said it is important for business leaders to prioritise responsible AI, whether they are already implementing AI use cases or are still in the planning phase.

He said organisations need to recognise that ensuring responsible AI is a collective responsibility involving all stakeholders in an AI system.

“(Effective) oversight must be spearheaded by the executive management team, focused on ensuring that responsible and trustworthy AI is the top priority for everyone.

“By closely monitoring and auditing AI operations, organisations can quickly identify and address any issues, thereby proactively mitigating concerns before they escalate,” he told Bernama.

Citing the MyDigital report, Amir said that the generative AI has the potential to unlock US$113.4 billion (US$1=RM4.76) in productive capacity in the Malaysian economy, equivalent to one-quarter of gross domestic product in 2022.

The Malaysian government has also planned to introduce a framework for governing AI and establishing ethical guidelines, given the increasing adoption of AI by various organisations.

These regulations aim to promote innovation by creating a conducive environment, addressing risks, and promoting ethical and responsible AI use, he said.

Amir further highlighted that responsible AI practices enhance human well-being, safeguard personal data, and avoid discrimination — the foundation for these features lies in transparency and accountability, but unfortunately, many organisations deploying AI systems struggle to uphold these principles.

He stressed the utmost importance of not underestimating the significance of implementing AI in a responsible, ethical, and secure manner, especially given the accelerating adoption rate.

“Taking proactive measures will not just reduce risks but also enhance cyber resilience — ultimately positioning Malaysian organisations to thrive in the AI era,” he added.

Source: Bernama

Malaysian enterprises urged to make AI a top priority – SAS Institute

Sarawak plans to replace the use of coal at the Sejingkat and Balingian power plants with biomass, in line with the state’s efforts to develop clean and sustainable energy, says Datuk Patinggi Tan Sri Abang Johari Openg.

Speaking to reporters after gracing the national-level World Water Day celebration at Kuching Waterfront yesterday, the Sarawak Premier said doing so would not only reduce carbon emission but also provide economic benefits.

He cited the Drax facility in the United Kingdom, which he visited recently during an official trip to the UK, as an example of a power plant successfully transitioning from coal to biomass as a source of energy.

“At Drax, they previously used coal but have now replaced it with biomass. The investment (to change) is not high because the system is very similar.

“This is what we want to use for Sejinkat and Balingian. We want to decommission coal. I have calculated that we can use our biomass to generate power,” he said.

Abang Johari explained that switching from coal to wood waste could generate power exceeding 500 megawatts.

“Now we only need to strengthen the boiler and also from the point of view of the motor machine, and this will enable Sejingkat (plant) to generate even up to one gigawatt,” he said.

Touching on his visit to the Drax power station, the Premier said the insight he gained has provided him a valuable framework in further developing the state’s renewable energy sector, adding he will discuss this with state utility company Sarawak Energy Berhad.

He also expressed happiness that the European community has recognised Sarawak’s role in addressing climate change.

“We will share the technology we have in renewable energy production including biomass,” he said.

Separately, Abang Johari said the implementation of cascading dams in the hinterland will be carried out elsewhere if the local population objected to it.

“If they disagree, the government will move (the project) to another area. If they feel suspicious, we will go to another place where the people want (the project to be implemented).

“Now we are implementing the project near Sungai Kanowit and Song. In Kapit, they want this cascading source, and we have a new technology that I mentioned as a tank elevator.

“This depends on the theory of gravity, which means that the flow of water can generate energy,” he said.

Also present at the event were Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Premier Datuk Amar Dr Sim Kui Hian, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Minister of Utility and Telecommunication Datuk Sri Julaihi Narawi and his deputy minister Datuk Liwan Lagang, and Fadillah’s deputy minister Akmal Nasrullah Mohd Nasir.

Source: The Borneo Post

Premier: Sarawak to replace coal with biomass at Sejingkat, Balingian power plants

Majuperak Holdings Bhd (MHB) will collaborate with Shizen International Inc to explore the development of a solar photovoltaic (PV) project to expand Perak’s clean energy technology usage.

Menteri Besar Datuk Seri Saarani Mohamad said the project is likely to be developed on land and water.

“This collaboration is based on two objectives — to explore the development of solar PV projects on land, and to assess potential water sites for floating PV projects in Perak.

“This collaboration is also in line with Perak’s determination to develop green technology and efforts to attract investment through the Flagship Programme 12: Water Resources and Renewable Energy Resources,” he said in an MHB statement.

Earlier, MHB group chief executive officer Syed Agil Syed Hashim and Shizen International CEO Rei Ushikubo signed a memorandum of understanding (MOU).

Saarani and Perak State Development Corporation chief executive Datuk Redza Rafiq Abdul Razak, who is also MHB’s executive chairman, witnessed the signing.

The state government welcomes local or foreign companies interested to invest in Perak, Saarani said.

Meanwhile, Redza Rafiq said he welcomes Shizen International’s cooperation and international experience in the field.

“We anticipate great progress from the MOU, because we are prepared to intensify the generation of renewable energy in Perak,” he said.

He said the initiative is also in line with the National Energy Transition Roadmap, which seeks to increase sustainable energy generation in the country.

Source: Bernama

Majuperak, Shizen International to explore solar PV development in Perak

Daiso Malaysia Group Sdn Bhd’s new Global Distribution Centre in Malaysia is set to be its largest warehouse in the world and is projected to have a net positive on the country’s logistics sector.

According to Deputy Transport Minister Datuk Hasbi Habibollah, the centre is expected to handle an annual volume of 9,317 containers of outbound shipments in the future and the strategic location of Port Klang will enable the franchise to have better efficiency in its global supply chain, serving demand in Asia, the Americas, the Middle East, Australia,and New Zealand.

“Daiso will bring in the automated storage and retrieval systems in the new global distribution centre, and I believe the transfer will not only foster opportunities for local businesses but will also empower logistics services providers with advanced tools and methodologies, revolutionising their operations and optimising supply chain management,” Hasbi said at the site officiating ceremony today.

He added that the centre is expected to be built and start operations in January 2027, spanning about 1.7 million sq ft and will be even larger than any Daiso regional distribution centres in Japan.

With a substantial investment of RM1 billion, he said, the investment will enhance the country’s global logistics capabilities, aiming to serve 22 countries and regions strategically.

“With increased investment and job creation, we anticipate a surge in demand for goods and services, boosting sales and revenue to businesses. The growth of Daiso’s business will further stimulate local economic development by creating a demand for local suppliers, contractors, and service providers, fostering economic growth throughout the region,” he added.

Hasbi said the presence of the centre in Malaysia symbolises a partnership that will enhance the capabilities of local companies and open doors to new business opportunities as well as strengthen the bonds between the franchise and local businesses, forging relationships that will be mutually beneficial.

“As we look ahead, the government remains steadfast in its commitment to fostering a conducive business environment for the logistics services sector. By promoting innovation, investing in human capital development, and strengthening regulatory frameworks, we aim to elevate further Malaysia’s position as a premier logistics hub in the region,” he remarked.

The centre was developed in partnership with Daiso and Kajima-SunCon joint venture, represented by Kajima (Malaysia) Sdn Bhd and Sunway Construction Sdn Bhd.

The centre is set to handle a diverse range of products, including kitchen tools, cleaning supplies, personal care items, stationery, and more, totalling about 35,000 stock keeping units.

Source: The Sun

Daiso’s global distribution centre in Malaysia is its largest warehouse in the world

The Ministry of Investment, Trade and Industry (MITI) announced today that of the RM144.7 billion approved digital investments between 2021 and 2023, data centres make up RM114.7 billion, creating 39,231 job opportunities.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said that in 2021 the approved investments were RM3.4 billion, RM80.8 billion in 2022 and RM60.5 billion last year coming from various organisations including Amazon, GDS, YTL and ByteDance.

While approved investments are vital to build up the momentum, he said MITI also gives strong focus on realised investments.

He said that from 2021 to February 2023, there were 2,386 manufacturing projects approved by the National Committee on Investments. From the 1,802 or 75.5 per cent of the projects implemented, 1,597 projects were at the inception stage and 205 are at the construction of buildings or manufacturing facilities stage.

Out of the approved projects, 551 (23.1 per cent) were in the planning stage, while 33 or 1.4 per cent were not implemented due to a change in the respective companies’ strategy, said Tengku Zafrul at the press conference to announce MITI’s first quarter report card here today.

The ministry, he said, will continue to focus on both domestic and foreign direct investments.

As for the performance of the Project Implementation and Facilitation Office (TRACK), he said a total of 802 cases facilitated since its establishment with key issues linked to Customs, power supply, one stop centre -local council and immigration.

On the trade outlook, Tengku Zafrul said trade is set to improve in 2024, but challenges remain amid geopolitical uncertainties.

Source: Bernama

Data centres make up the bulk of RM144.7b in approved digital investments