The nation is intensifying efforts to modernise and expand both Port Klang and the Port of Tanjung Pelepas this year to enhance capacity, improve throughput and position Malaysia as a pivotal regional trade hub, said Transport Minister Anthony Loke.

For this year, Malaysia is continuing with and expanding transformative infrastructure projects designed to elevate the nation’s global standing.

“Port Klang is one of the world’s top 15 busiest ports. It is a cornerstone of our trade and economic activity. And unofficially, I can tell you, Port Klang had become among the top 10 busiest ports last year.

“It is yet to be announced by the international ranking, but by our own calculations, we are at the top 10 right now. The Port of Tanjung Pelepas, one of our leading transhipment hubs, is undergoing significant expansion,” he said.

Loke was delivering his keynote speech at the CGS International Securities Malaysia Sdn Bhd’s 17th Annual Malaysia Corporate Day today.

With a sprawling 1,900-acre (768.90 hectares) terminal and 1,600-acre (647.50 hectares) free zone, it serves major shipping lines and plays a critical role in the logistics sector.

He added that the development underscores Malaysia’s commitment to strengthening its maritime capabilities and competitiveness on the global stage.

Parallel to these efforts, the country is also exploring the vast potential of the bunkering industry — with a projected annual growth rate of four per cent and a global market size set to reach US$160 billion (RM718 billion) by 2030, Malaysia is poised to become a key player in this thriving sector.

“This aligns with our broader goal to enhance the maritime ecosystem, creating opportunities for growth and innovation,” Loke said.

At the same event during a fireside chat session, the minister said the country is looking at the resources that should be invested into green bunkering.

“And this is where Malaysia should have a greater advantage than other countries, especially our neighbouring countries.

“Because we produce some of these sustainable fuels. Therefore, we are looking at becoming a producing country instead of a consuming country,” he said.

Source: Bernama

Malaysia to boost Port Klang, Port of Tanjung Pelepas to become regional trade hub

Transport minister says JS-SEZ has larger warehouse facilities than Singapore

THE Johor-Singapore Special Economic Zone (JS-SEZ) is anticipated to attract increased investments from the logistics sector, especially from companies relocating from Singapore to Johor.

Transport Minister Anthony Loke said this is because Johor offers larger warehouse facilities compared to Singapore.

“Singapore still has certain advantages in its airports and ports and the trading, but I think many back-end operations can (potentially) be relocated to Johor.

“We hope to work on this with port operators and authorities,” he said at the CGS International 17th Annual Malaysia Corporate Day 2025 yesterday.

“By fostering innovation and attracting investment, the JSSEZ is set to become a beacon of economic collaboration.

“Similarly, the Asean Highway Network and Trans-Asean Gas Pipeline initiatives underscore our dedication to enhancing connectivity and energy security across the region.”

Loke said the government is also intensifying efforts to modernise and expand Port Klang and the Port of Tanjung Pelepas to enhance capacity and improve throughput.

“Parallel to these efforts, we are exploring the vast potential of the bunkering industry. With a projected annual growth rate of 4.0 per cent and a global market size set to reach US$160 billion by 2030, Malaysia is poised to become a key player in this sector.

“This aligns with our broader goal to enhance the maritime ecosystem.”

He added that digitalisation powered by the Internet of Things and artificial intelligence is enhancing traffic management, road safety and public transport efficiency.

He said the freight systems are evolving with blockchain and digital logistics.

“The Malaysia-Hong Kong Dual Air Cargo Hub and smart port initiatives position us as a regional leader in logistics. These developments align with the Asean Digital Economy Framework, which aims to make the region a global digital powerhouse.”

Source: NST

More logistics investments anticipated

Swift Haulage Bhd has announced plans to expand into cold chain logistics to diversify its revenue streams through a joint venture (JV) investment.

The company signed a JV agreement with its major shareholder, Singapore-based JWD Asia Holding Pte Ltd (JAH), to establish Swift Cold Chain Sdn Bhd, which will operate and manage a temperature-controlled warehouse and transport business.

Under the agreement, Swift Haulage will hold 7.34 million shares or a 51% stake in the JV, amounting to an investment of RM7.34 million, while JAH will own the remaining 49% stake, equivalent to 7.06 million shares, with a RM7.06 million investment.

JAH currently owns a 20.48% direct stake in Swift Haulage, according to the company’s Bursa Malaysia filing on Tuesday.

Swift Haulage aims to leverage JAH’s expertise in logistics to provide reliable and cost-efficient temperature-controlled solutions. According to the company, JAH’s parent company SCGJWD Logistics Public Co Ltd is experienced in managing a large number of cold chain pallets (approximately 242,000 units) and is knowledgeable in operating automated storage and retrieval systems (ASRS).

“This JV also presents an opportunity to optimise the potential of our assets in Shah Alam and Tebrau, which are strategically positioned to support cold chain distribution both domestically and internationally. Our Shah Alam logistics hub is well-positioned to efficiently serve urban areas with its strategic location and advanced infrastructure. Feasibility studies are underway for a cold chain facility in Tebrau, which, if realised, will cater to Singapore’s high-demand market by leveraging Malaysia’s cost advantages. In addition to these initial setups, we are exploring expansion opportunities in the northern region, including Penang and other locations where Swift has a presence in Malaysia,” said Swift Haulage group CEO Loo Yong Hui in a statement.

He added that the partnership with SCGJWD will allow Swift Haulage to tap into the latter’s expertise, including their ASRS technology, in order to fast-track their entry into the cold-chain logistics sector.

The company plans to fund its capital contribution through internally generated funds and/or bank borrowings.

The JV is expected to positively contribute to future earnings.

Among the risks highlighted by Swift Haulage in regards to the JV are delays in infrastructure development for cold storage facilities and systems, which could impact operations and customer satisfaction.

It also added that the JV is exposed to demand uncertainty, as market demand for cold chain logistics may fluctuate or fail to meet projections, potentially affecting profitability.

“The board of Swift Haulage will endeavour to take all necessary steps to ensure the terms of the JVA which are within the control of the company are met on a timely basis, closely monitoring market conditions, and adopting robust project management and contingency measures to mitigate potential challenges,” it added. 

At Tuesday’s noon break, shares of Swift Haulage were unchanged at 44.5 sen, valuing it at RM391 million.

Source: The Edge Malaysia

Swift Haulage in JV deal to expand into cold chain logistics

Kenanga Research continues to like the utilities sector for its earnings defensiveness and resilience, backed by regulated assets that generate recurring cash flow to provide decent dividend yields of up to 3%.

The research house has reaffirmed its “overweight” call on the sector with Tenaga Nasional Bhd (TNB) as its top pick.

It said TNB would be a long-term beneficiary of the influx of foreign direct investment to build data centres in the country, while it also sees value in YTL Power International Bhd for its artificial intelligence (AI) data centre venture.

“TNB’s earnings are expected to be led by higher demand from new data centres, which boost its plant efficiency and drives the bottom line.

“Higher capital expenditure on transmission and distribution infrastructure is also expected, propelled by data centres and this adds to its regulated asset base for Regulatory Period 4 from January 2025 onwards,” Kenanga Research said.

The research house expects electricity demand growth this year to remain robust, driven by increasing demand from data centres.

It said this was supported by three consecutive quarters of record electricity demand, which grew 9.6% year-on-year (y-o-y), 6.3% y-o-y, and 6.1% y-o-y, with data centres requiring 150 megawatts (MW), 190MW, and 248MW of energy from the first quarter to third quarter of the financial year ending Dec 31, 2024 respectively.

However, it added that this represented only 15% of the completed 1,700MW capacity of data centres as of September 2024.

“Therefore, demand from this segment is expected to surge in the future. Additionally, there is a potential demand growth opportunity of 7,200MW, including 31 projects (equivalent to 4,700MW) for which electricity supply agreements are already signed.

Meanwhile, the research house said all eyes would be on YTL Power’s AI data centre delivery as the Nvidia Blackwell chips to be used in the 20MW AI-focused data centre are scheduled to be delivered in the first quarter this year.

In addition, the delivery of the building for the remaining 80MW AI data centre is expected to be ready by the second quarter of the year.

“The successful delivery of the AI data centre over the next 12 months remains pivotal to YTL Power’s earnings performance. In a blue-sky scenario, YTL Power’s fair value could rise to RM6.53, compared with our target price of RM5 if the AI data centre project is executed successfully,” the research house added.

Source: The Star

Utilities sector to continue benefitting from data centres

Malaysia is poised for significant data centre growth this year fuelled by substantial investments from major technology companies, according to Public Investment Bank Bhd (PublicInvest). 

The firm sees positive inflows for the various industries in Malaysia following a sharp increase in data centre investments. 

“Data centres are a critical component in powering the growing digital economy, and Malaysia can specialise in data services, particularly those related to generative artificial intelligence (AI), which have applications across various industries like healthcare and services, leading to improved service quality and innovative solutions. 

“This will help the country to broaden beyond semiconductors and gain from the technology transfer from big tech companies,” it said. 

Meanwhile, PublicInvest said that despite various trade concerns over the heightening trade tension, the year of 2025 is touted to be a time of technology breakthroughs, which will see many opportunities to invest, innovate, and develop. 

The firm believes AI remains at the forefront of key topics, as did cybersecurity, cloud computing, and robotics. 

“We also gather that some local automated test equipment (ATE) makers have started receiving more enquiries in the last 2 months, although the outlook visibility remains short. 

“In the local scene, data centre play continues to be in the limelight. 

“Overall, we are selectively upbeat on the technology stocks, as certain segments like automotive are still facing a challenging outlook. Maintain overweight on the sector, and our top picks are Cloudpoint Technology Bhd and QES Group Bhd,” it added.

Source: NST

Major tech firms to drive data centre growth this year

Flagship jobs under NETR, LSS5 programme catalysts

The renewable energy (RE) industry will continue to take centre stage this year with the execution of some flagship catalyst projects under the National Energy Transition Roadmap (NETR) and the fifth round of the largescale solar five (LSS5) programme.

For one, RE players can expect to see earnings recognition from the engineering, procurement, construction and commissioning (EPCC) works on the 800MW Corporate Green Power Programme (CGPP) projects.

Additionally, EPCC awards for the two GW capacity under LSS5 will provide further opportunities for order-book replenishment for RE pure-plays, said Maybank Investment Bank Research (Maybank IB).

“The Energy Commission (EC) recently informed shortlisted bidders for the two GW projects under the LSS5 programme and expects EPCC contracts to be awarded from the second half of 2025 (2H25) onwards with an estimated value of around Rm7bil.

“This will sustain momentum for solar order-book replenishment opportunities for RE pure plays in 2025 and beyond,” the research firm said in a report.

LSS5 projects are slated for commercial operations in 2026 and 2027.

Meanwhile, the oversupply of solar PV modules has kept prices low, boding well for RE players.

Citing data from the International Energy Agency (IEA), Maybank IB said global solar manufacturing capacity is expected to exceed 1,100GW by 2024 – more than double the projected solar PV demand in 2024.

Additionally, the recent United States-imposed tariffs on solar panel imports from China and four South-east Asian countries, namely, Malaysia, Cambodia, Vietnam and Thailand, may create price pressures across the global supply chain.

“Despite this, the IEA expects China to maintain its lead in solar production while continuing to drive demand.

As a result, the IEA anticipates that the average price of the solar modules will remain low in the coming years.

Among solar EPCC players, Maybank IB has Solarvest Holdings Bhd as its top stock pick. “We are optimistic on Solarvest’s prospects for its growing order book and asset base amid strong demand for RE over the medium to long term.

“Solarvest currently trades at 20 times 2025 earnings per share.

“We believe Solarvest deserves a premium valuation due to its leading market share in the solar industry, with the largest order book among solar players,” said the research firm.

Maybank IB, which is confident Solarvest will secure EPCC contracts for new LSS5 projects, given its strong historical win rate, has a RM2.14 target price on the stock.

Solarvest shares closed at RM1.72 last Friday.

Apart from the LSS5, the government had introduced several new policies on RE in 2024, which will serve as the seeding catalysts for significant growth and development in the sector from this year.

This include the new Low Carbon Energy Generation Programme for non-solar renewable resources.

A total quota of 400MW is available with participation on a “first come, first served” basis.

However, since its launch in February 2024, uptake has been limited, with only 0.4MW of the quota applied so far. This maybe due to lower demand for non-solar resources compared to solar energy, said the research firm.

Another significant development was the establishment of the Energy Exchange Malaysia in April 2024, aimed at facilitating cross-border electricity sales to neighbouring countries.

The first phase offers a capacity of up to 300MW using the existing interconnection between Malaysia and Singapore.

Last month, Tenaga Nasional Bhd and Singapore’s Sembcorp Power signed an agreement for Malaysia’s first RE export to Singapore, supplying 50MW of electricity from December.

However, the pricing and additional details remain undisclosed.

“We view RE export as a potential new revenue stream (from RE sales and wheeling charges) and a growth driver for Malaysia’s RE sector, which has traditionally relied on domestic LSS and CGPP schemes,” said Maybank IB.

Source: The Star

Renewable energy to power 2025

Key domestic factors and a global recovery are expected to drive the anticipated growth this year 

The Malaysian economy is set to thrive with renewed green vigour in 2025. 

Various industry reports highlight that the country is projected to experience continued growth across several sectors and industries this year. 

In its annual economic outlook for 2025, the Mastercard Economics Institute (MEI) forecast Malaysia’s economy to achieve 4.7% growth in GDP, driven by a robust labour market and strengthening investments. 

According to MEI, private consumption is expected to be a key driver of growth as household purchasing power improves, propelled by better-quality and higher-paying employment, particularly within the higher-skilled white-collar services sub-sectors. 

Meanwhile, MIDF Amanah Investment Bank Bhd’s Market Outlook 2025 projected the economy to grow by 4.6%, despite anticipating possible volatility next year. 

Head of research Imran Yassin said the anticipated growth in 2025 will be driven by key domestic factors and a global recovery. 

He also projected the FTSE Bursa Malaysia KLCI (FBM KLCI) to reach 1,800 points in 2025, with market consensus forecasting a healthy 9% year-on-year (YoY) earnings growth this year. 

“Furthermore, the FBM Hijrah and FBM 70 are projected to register robust YoY earnings growth of 16.1% and 9.7% respectively, this year,” he said. 

The job market shows positive trends, with rising employment, wage increases and a growing tourism sector supporting higher consumer spending.

He added that these factors, combined with government initiatives such as salary hikes for civil servants and cash assistance programmes, will provide a solid foundation for economic expansion. 

Malaysia is expected to experience continued growth in international trade, driven by high demand for technology products, automotive goods and raw materials. 

Although global tensions between China and the US may pose some challenges, Malaysia’s trade is projected to remain resilient. 

The recent release of the third quarter of 2024 GDP statistics indicated that the economy expanded by 5.2% overall in the first three quarters of 2024. 

Bank Negara Malaysia (BNM) governor Datuk Abdul Rasheed Ghaffour said moving forward, the growth of the Malaysian economy will be driven by robust expansion in investment activity, continued improvement in exports and resilient household spending. 

Malaysia Committed to Green Agenda

In recent years, the government has introduced numerous initiatives to promote sustainability among industry players and across the nation, aiming to attract more foreign direct investment (FDI) and demonstrate its commitment to combating climate change. Under the Paris Climate Agreement, Malaysia is committed to achieving net zero by 2050. 

Recognising that manufacturing is the second-largest source of greenhouse gas emissions in Malaysia — contributing 10% of the nation’s total emissions, second only to the energy sector at 78.5% — the International Trade and Industry Ministry (MITI) has emphasised the importance of implementing robust policies to transition the manufacturing sector towards sustainable practices. These efforts are pivotal in supporting the country’s ambition to achieve its net-zero emissions target. 

As such, the New Industrial Master Plan 2030 has made the “Push for Net Zero” one of its four key missions. 

The plan aims to decarbonise Malaysia’s industries by accelerating the transition to sustainable practices, shifting to renewable and clean energy, catalysing new green growth areas and advancing green infrastructure. 

Malaysia has launched several key initiatives to advance its decarbonisation goals, including three mission-based “kick-off” projects — creating decarbonisation pathway role models, launching a locally manufactured electric vehicle (EV) by Perusahaan Otomobil Kedua Sdn Bhd and deploying large-scale carbon capture, utilisation and storage (CCUS) solutions. 

MITI said additional projects aligned with these goals are anticipated in the future. 

“The current projects are progressing well, but they are by no means the only initiatives we are focused on,” the ministry told The Malaysian Reserve (TMR). 

Hard-to-abate sectors such as iron and steel, cement and chemicals — currently reliant on fossil/coal-based power — must also be addressed. 

Collectively, these sectors contribute over 66% to total emissions (including process and fuel emissions for Malaysia’s industrial production under the United Nations Framework Convention on Climate Change). 

Other efforts include the establishment of the Independent Steel Committee and the Green Investment Strategy launched last year. 

“All these efforts contribute to a decarbonisation push that will create new economic opportunities for Malaysia, particularly in positioning ourselves as a leader in emerging green growth areas such as EVs, renewable energy (RE) and CCUS. 

“These new growth areas also depend on the adoption of sustainable practices and technologies, as well as transitioning our power generation to renewable and clean energy — an area we are actively collaborating with the relevant ministries,” MITI added. 

As of September 2024, MITI has approved 588 green investment projects across sectors such as bioenergy, circular economy, energy efficiency, green mobility and RE, with a total investment value of RM8.2 billion. 

Tenaga Nasional Bhd (TNB) began the development of a utility-scale solar power plant through a competitive bidding process in April 2024, with a total quota of 2,000 megawatt (MW). TNB has also implemented a corporate Power Purchase Agreement (PPA), allowing direct purchase of renewable electricity based on third-party access and has offered special incentives to companies adopting green initiatives, including solar power. 

MITI said the government is ensuring economic growth aligns with sustainability goals through a combination of regulatory frameworks, market incentives, investment in green technologies and international cooperation. 

These efforts support the transition to a sustainable, low-carbon economy while stimulating innovation, creating jobs and safeguarding the environment for future generations, it added. 

Various incentives and funding opportunities are available for sustainable investment projects, such as the Green Investment Tax Allowance (GITA) and the Green Income Tax Exemption (GITE). 

Under Budget 2024, the government has expanded the Green Technology Tax Encouragement, including GITA and GITE, to cover green hydrogen activities, EV charging stations and wind energy. These measures are expected to attract more investment from industry players to carry out green and low-carbon activities. 

Growth, Reforms and Green Opportunities Await 

The economic outlook for this year is marked by expectations of continued robust growth, stable inflation and the implementation of structural reforms aimed at boosting incomes. 

Williams Business Consultancy Sdn Bhd director Dr Geoffrey Williams said that domestic demand will remain the cornerstone of the economy, providing a solid foundation for expansion. 

However, there is also hope for an improvement in trade and FDI, which could further bolster economic prospects. 

He also pointed out that the current economy is in good shape, with strong economic growth, inflation at normal levels and low unemployment. 

Williams said the central bank is likely to maintain the Overnight Policy Rate (OPR) at 3%, and that fiscal policy remains stable in line with fiscal responsibility guidelines. 

“Next year, we should see the rollout of subsidy rationalisation for RON95 and the progressive wage. There was a rebound in the trade surplus, and hopefully, this can be sustained as global growth and trade improve,” he told TMR. 

Commenting on sustainability, Williams pointed out that the sectors which will benefit most from the government’s push towards green technology and carbon neutrality would be the clean energy generation and rare earth industries. 

Malaysia’s economic shift towards sustainability and green technology offers certain advantages, particularly in RE, with green electricity exports to Singapore already underway. 

He said that Malaysia’s investment in green energy could potentially bear fruit by this year, through growth in income, as “clean energy investment can provide a good source of export revenue” for the country. 

“The abundance of rare earth metals will be a useful long-term resource for Malaysia to meet international demand from green industries, especially in EV batteries,” he said. 

Williams also believes that investment in sustainable agriculture could yield significant economic benefits by 2025. 

“Sustainable agriculture should focus on providing food security for domestic consumers to reduce dependence on international sources,” he added. 

In the face of rapid industrialisation and urbanisation, he cautioned the government to strike a balance between economic development and environmental conservation. 

“Economic development in Malaysia can benefit from the demand from green industries overseas. The balance to be struck is between the opportunities of the green economy and the benefits to economic growth and rising incomes for Malaysians. 

“Environmental conservation has to be a priority, but this requires moderate regulation and enforcement that does not compromise economic benefits.” 

Regarding foreign investment, the primary attraction will be access to clean energy and water for data centres. 

Beyond this, green initiatives are not expected to have a significant effect on FDI in Malaysia by 2025. 

Moreover, Williams believes that green technology will have a minimal impact on Malaysia’s economic diversification efforts by this year. 

The country will continue to rely on traditional sectors such as oil and gas, palm oil, electrical and electronics, and services. 

Govt Initiatives Support RE Industry

Meanwhile, MK Land Holdings Bhd RE head Kamarulzaman Abu Bakar said the government’s increased emphasis on sustainability and RE targets has positively impacted the company’s operations and investments, particularly through policies that promote green technology and initiatives such as the Corporate Green Power Programme (CGPP), Large-Scale Solar 5 (LSS5) and the Corporate Renewable Energy Supply Scheme.

These initiatives have enabled the company to expand its RE portfolio. 

“These shifts have also encouraged the establishment of a dedicated RE division within MK Land, underscoring our commitment to long-term involvement in the sector,” he told TMR. 

He added that the company plays a significant role in supporting the country’s RE transition, aligning with national aspirations to achieve 31% RE usage by 2025 and 70% by 2050. 

The company has several RE projects at various stages, including a 10.95 MW solar farm at Lembah Beriah, Kerian, Perak, which was completed in May 2023. The farm supplies green energy to TNB under a 25-year PPA. 

The company is currently developing a 30 MW solar farm in Kulim, Kedah, under CGPP, in partnership with Total Energies Renewables SAS. This project aims to provide clean energy to corporate consumers. 

Looking ahead, the company is also participating in the LSS5 scheme with a proposed 94 MW project, pending approval from the Energy Commission, which is expected to issue a decision in the first quarter of 2025. 

“In addition to solar energy, we are exploring opportunities in other RE areas such as biomass, mini-hydro and floating solar systems, aligning with Malaysia’s sustainability goals and global net-zero carbon targets by 2050,” he added. 

On the outlook, Kamarulzaman believes that the RE and green tech sectors are poised for significant growth, driven by global net-zero carbon targets by 2050, government incentives and green funding opportunities from financial institutions. 

In anticipation of 2025, the company is confident in its preparedness for this evolution, supported by its dedicated RE division, its track record of completed and ongoing solar farm projects, as well as its RE diversification plans. 

“Our focus remains on leveraging both local and international partnerships to drive innovation and long-term sustainability in the RE sector.” 

However, Kamarulzaman said the company faces key barriers in scaling up its RE initiatives, primarily due to high capital costs and changing regulations. 

“The substantial upfront investment required for solar farm development remains a significant challenge. 

“(Regarding) regulatory compliance, adapting to evolving regulations and obtaining necessary approvals can be challenging,” he said. 

In his view, to accelerate the adoption of RE and green tech in Malaysia by 2025, the government could provide additional policy or regulatory support, such as offering more MW capacity allocations to RE players, thereby expediting the achievement of national targets. 

He also suggested that the government create opportunities for more companies to participate in RE projects, fostering a competitive and innovative market landscape. 

“The government could provide financial incentives and subsidies to offset high initial capital costs. These measures, combined with clear and streamlined regulatory processes, will support Malaysia’s transition to a sustainable energy future.” 

At the same time, he expressed that strategic partnerships, both local and international, are essential in driving the adoption of green tech in the country. 

Kamarulzaman emphasised the crucial role of local partners, highlighting their in-depth understanding of local regulatory requirements and processes, which significantly accelerates project approvals and implementation. 

On the other hand, international partners, equipped with expertise and experience in green technology, provide valuable insights that local players can adopt and emulate for effective project execution. 

For example, he shared its partnership with Total Energies Renewables for the 30 MW CGPP solar farm demonstrates the benefits of combining local insights with global expertise. 

Source: The Malaysian Reserve

Economic growth to be sustained in 2025 with focus on green sector

79% of Malaysian professionals anticipate role changes due to AI 

Malaysia is set to experience robust economic growth in 2025, driven by advancements in its digital economy, manufacturing and construction sectors. 

According to Randstad Malaysia’s 2025 Job Market Outlook, 59% of employers plan to expand their teams while 41% expect the most hiring activity in technology-related roles. 

The rapidly advancing technologies of automation and artificial intelligence (AI) are transforming economies and job markets globally, with Malaysia being no exception. 

Randstad Malaysia country director Fahad Naeem noted that as Malaysia’s businesses continue to grow, the demand for talent with specialised skills is on the rise. 

“We are seeing a significant need for skilled professionals proficient in technologies such as AI, data analytics, and digital infrastructure.” 

He added that digital integration is occurring across corporate sectors, including legal, human resources, shared services, marketing and accounting. 

This creates opportunities but also raises hiring expectations, particularly in digital literacy and commercial acumen. 

With opportunities and challenges ahead, the country has been proactive in developing policies, fostering collaborations and initiating programmes to ensure its workforce remains competitive in an AI-driven future. 

Navigating Workforce Transformation, Policy Development

Malaysia’s workforce is adapting to the growing impact of automation and AI, albeit gradually. 

JobStreet by Seek Malaysia acting MD Nicholas Lam shared that Malaysia’s workforce is progressively embracing automation and AI, with significant progress observed in tech-savvy industries. 

“The Decoding Global Talent Report 2024 reveals that 79% of Malaysian professionals anticipate role changes due to AI, highlighting their openness to embracing technological advancements,” he said. 

To navigate these transformations, the Malaysian Employers Federation (MEF) has been hard at work helping employers. 

Its president Datuk Dr Syed Hussain Syed Husman said MEF connects employers and policy-makers, ensuring the regulatory environment supports innovation and protects employers’ interests. 

MEF also advocates for policies that facilitate the adoption of automation and AI and enable employers to leverage government incentives for new technology adoption.

These efforts, according to Syed Hussain, are essential in helping businesses remain competitive while aligning with global advancements in technology. 

The federal government has implemented several initiatives aimed at upskilling and reskilling the workforce. 

Programmes such as the Malaysia Digital Economy Blueprint, MyDigital and the National AI Roadmap 2021-2025 reflect its commitment to preparing the workforce for a digital economy. 

WORQ CEO Stephanie Ping mentioned that programmes like the Employment Insurance System and Future Workforce Training Scheme have been introduced to address the challenges posed by automation and AI. 

Despite these efforts, there is room for improvement. Lam said policies may be enhanced by offering tax incentives for companies investing in AI training and development, subsidising reskilling programmes for mid-career workers and ensuring equitable access to digital infrastructure in under-served regions. 

Subsidising reskilling programs for mid-career workers and ensuring equitable access to digital infrastructure are additional measures that could strengthen the workforce’s readiness. 

Such enhancements would not only foster technological adoption but also create a level playing field for businesses of all sizes, enabling smaller companies to access resources necessary for growth. 

Challenges, Collaboration Across Sectors 

Implementing lifelong learning and training initiatives poses several challenges. 

Employers face high financial commitments, tight schedules and employee resistance to upskilling programmes. 

Syed Hussain described that micro, small and medium enterprises may lack resources, both financial and human, to develop and implement training programmes. 

“Implementing lifelong learning and training initiatives for employees requires high financial commitments and can be a major constraint. 

“Employers must balance these costs with other business priorities,” he said. 

The government and private sector must work collaboratively to address these barriers and provide flexible learning opportunities. 

Ping noted that nearly 300,000 workers have been displaced since 2020 due to automation. 

She explained that as of September 2024, the hardest-hit sectors included manufacturing, with 75,615 layoffs, followed by wholesale and retail trade (43,614), professional and scientific services (23,907), as well as information and communication technology (19,931). 

Specialised retraining programmes tailored to industry needs could help workers transition seamlessly into emerging roles. 

For instance, reskilling workers in manufacturing to operate automated systems can bridge the gap between job displacement and new opportunities. 

Collaboration between public and private sectors is essential for workforce transformation. 

“These collaborations bridge gaps between talent supply and demand, ensuring workers are equipped with skills that match evolving job market requirements,” said Ping. 

Moreover, such partnerships ensure that skills development initiatives are industry-relevant and address real-time workforce needs. 

WORQ itself plays an active role in fostering these partnerships. Ping said WORQ’s vibrant community facilitates networking and partnership opportunities. 

By connecting government agencies, educational institutions and private sector players, coworking spaces like WORQ allow cohesive and practical workforce development efforts. 

These spaces also provide a unique platform for businesses and policymakers to align their goals and co-create strategies supporting workforce readiness for future challenges. 

According to Lam, programmes like Microsoft’s AIForMYFuture, which aims to equip 800,000 Malaysians with AI skills by 2025, show the potential of such partnerships. 

He said to enhance these collaborations, focus should be placed on scalability to include underserved communities, customisation for industry-specific needs and sustainability through continuous education frameworks. 

“Such partnerships can foster local innovation, create jobs, and support Malaysia’s economic growth.” 

Education, Lifelong Learning, Industry Alignment

Aligning education systems with the demands of automation and AI is a national priority. 

MEF has lauded the establishment of AI faculties in public universities. 

Syed Hussain said establishing AI faculties in universities aligns academic offerings with the evolving demands of modern workplaces, particularly in sectors increasingly reliant on AI technologies. 

He added that by integrating AI-focused education that emphasises theoretical and practical applications, graduates can enter the workforce with a robust set of skills tailored to contribute effectively to fields like machine learning, data analysis and automation processes. 

He said this not only enhances employability but also drives innovation and competitiveness within industries seeking to leverage AI technologies. 

Platforms like JobStreet’s Career Hub have also been instrumental in issuing over 3,300 certifications and logging 145,000 minutes of consumed learning content. 

These tools provide accessible opportunities for workers to remain competitive. 

Additionally, industry-driven training initiatives, such as targeted workshops on data analytics or cybersecurity, can complement formal education and address specific skill gaps. 

The impact of automation varies across industries, and in manufacturing, it streamlines processes such as assembly, quality control and inventory management. 

“Industries are investing in advanced robotics and predictive maintenance technologies, ensuring their workforce remains competitive,” shared Syed Hussain. 

Similarly, retail trade has been transformed through stock management and self-checkout systems. 

The healthcare sector has seen advancements in diagnostics and surgeries, while financial services rely heavily on data analysis and fraud detection. 

Plantation and agriculture industries benefit from technologies like drones, while hospitality focuses on personalised guest engagement. 

By adapting to these changes, businesses are not only improving productivity but also ensuring that workers remain integral to operations despite technological advancements. 

Empowering SMEs, Balancing Progress

Small and medium-sized enterprises (SMEs) require targeted support to adopt AI and automation. 

Syed Hussain recommended that governments provide grants and subsidies to SMEs for AI adoption and worker training. 

He said public-private partnerships and reskilling programmes can further enhance their capabilities. 

By combining the above, SMEs will be in a better position to embrace AI and automation while at the same time transforming employees to be more resilient and skilled. 

Providing access to affordable digital tools and creating knowledge-sharing platforms can further support SMEs in this transition. 

To address fears of job displacement, employers must adopt proactive strategies. 

“Employers should communicate their automation plans, reiterating how new technologies may complement human roles rather than displacing them,” Syed Hussain added. 

Workforce transformation requires reskilling, job redesign and clear career pathways, while employee engagement builds trust in technology. 

Meanwhile, success could be measured through metrics like unemployment rates, retention and career progression. 

By integrating advanced technologies with human-centric design, Malaysia can drive economic growth and create better jobs, ensuring automation complements the workforce. 

Lam said in the next five to 10 years, critical skills in demand may include data analytics, machine learning, cyber security and AI. 

“Beyond technical expertise, human-centric skills like creative problem-solving, leadership and emotional intelligence may also gain prominence as they complement technological advancements.” 

To embrace this transition, individuals should proactively pursue learning opportunities through online courses and certifications. 

Employers, in turn, can foster a culture of continuous education and innovation, empowering their workforce to thrive in the evolving landscape.

Source: The Malaysian Reserve 

Preparing Malaysia workforce for an AI-driven 2025

David Black, CEO and Founder of Blackbox Research

SOUTHEAST Asia’s digital economy is at an inflection point, with e-commerce driving rapid digital adoption and reshaping consumer habits at an unprecedented pace.

Today, Malaysia sits at the heart of this transformation, uniquely positioned to harness the e-commerce boom sweeping across the region. Yet, to fully capitalise on its potential and not lose ground to its neighbours, Malaysia must confront key challenges, including its logistics infrastructure.

As part of Blackbox Research’s continued commitment to decoding the region’s economic dynamics, I am pleased to introduce our latest whitepaper Grasping the E-Commerce Opportunity in Southeast Asia.

This study zeroes in on Malaysia, not only for its central role in Southeast Asia but also for its untapped potential to become a regional e-commerce powerhouse.

Through 30 hours of in-depth interviews with 17 expert voices within the e-commerce and logistics sector, we explored the critical opportunities and barriers shaping Malaysia’s e-commerce landscape.

Malaysia’s strategic location, strong courier networks, and growing digital consumer base provide a solid foundation for e-commerce success. However, logistical inefficiencies leading to service inconsistencies and increasing delivery costs are major challenges that could hinder the nation’s e-commerce growth.

Malaysia’s strategic position in Southeast Asia’s e-commerce landscape

Malaysia has steadily emerged as a key player in Southeast Asia’s digital economy, ranking second in regional e-commerce performance – narrowly edging ahead of Indonesia and Thailand – according to the perceptions of the experts surveyed in our study. With high mobile penetration and a digitally savvy population, Malaysia is poised to cement its role as a vital hub for the region.

Despite these advantages, Singapore leads the pack, with 59% of experts ranking it first for its advanced infrastructure and strong government backing. Malaysia must close the innovation and logistics gaps to compete at this level.

Strategic initiatives such as the National eCommerce Strategic Roadmap and the Digital Free Trade Zones are already in place to catalyse this growth. But further effort and solutions will be needed including fostering inclusive and consistent dialogues with policies shaped by input from all stakeholders – including e-commerce platforms, sellers, and logistics providers alike.

The logistics sector: A backbone in need of strengthening

Logistics is the critical lifeline of any e-commerce ecosystem, and in Malaysia, it has become a double-edged sword. High logistical costs, especially for shipping between Peninsular and East Malaysia, are major bottlenecks that stifle business growth: only 6 of 17 experts in our study considered Malaysia’s logistics infrastructure as supportive of sector development.

For those who feel the system is hindering progress, the accumulation of costs borne by sellers such as rising logistics expenses, import costs, and taxes, combined with currency fluctuations, is making it increasingly challenging for them to remain cost competitive.

Advanced logistics technologies such as AI-powered route optimisation and real-time tracking, hold the promise of unlocking greater efficiencies. Experts in our study emphasised the need to prioritise the establishment of regional e-fulfillment centres to tackle last-mile delivery challenges and streamline logistics nationwide, a move that could greatly enhance Malaysia’s regional competitiveness.

However, the bare truth remains that rising base costs of logistics pose a serious threat for sellers, creating a ripple effect that erodes already slim profit margins and places smaller players in an increasingly precarious position.

For some, this escalating financial pressure could spell the difference between survival and being forced out of the market, particularly for those already struggling to compete in an intensely competitive landscape.

As businesses grapple with rising operating expenses and consumers face inflated prices, Malaysia risks losing its competitive edge. This underscores an urgent need for targeted measures to reduce delivery costs and bridge the gaps between Peninsular and East Malaysia, as well as underserved areas.

The role of public-private collaboration in driving growth

Insights from the study’s experts highlighted that aligning public and private efforts is key to positioning Malaysia as a competitive e-commerce and logistics hub in Southeast Asia, unlocking new opportunities and shared prosperity for the sector.

This is especially evident as leading e-commerce nations thrive on a symbiotic relationship between public and private sectors.

For Malaysia to achieve a similar transformation, collaboration among e-commerce platforms, third-party logistics providers, and government bodies will be essential to addressing last-mile delivery inefficiencies and cross-border shipping complexities.

Our whitepaper highlights the importance of targeted infrastructure investment in rural regions: our study found that delivery costs could be reduced by up to 60% with the establishment of fulfillment hubs.

These improvements, coupled with ongoing digitalisation initiatives and leveraging established e-commerce trends like social selling and customer-centric services such as same day delivery – practices that are common in neighbouring countries – will position Malaysia’s e-commerce sector to thrive on a global scale.

A call to action for Malaysia’s e-commerce future

Malaysia’s e-commerce story is one of great promise, but the next chapter depends on decisive action. Gross Merchandise Value in Malaysia is expected to double by 2030, but this forecast growth rate lags some of its Southeast Asian neighbours.

It can be said that the stakes have never been higher. The findings in our whitepaper illuminate the path forward: invest in logistics innovation, foster inclusive public-private dialogue, regulate with dexterity and creativity, and build infrastructure that supports both urban and rural markets.

As always, Blackbox Research is glad to contribute to this critical discussion. By addressing logistical inefficiencies head-on, Malaysia has the potential to secure its position as a regional leader, delivering prosperity to businesses and consumers alike.

I invite policymakers, industry leaders, and stakeholders to join this journey of transformation, ensuring that Malaysia realises its e-commerce potential.

Source: The Sun

Unlocking Malaysia’s e-commerce growth: The role of logistics

■ Malaysia is a strong contender in South-east Asia’s data centre boom

■ Allocation of resources by big tech is still mainly concentrated in Malaysia in terms of value

■ Sectors that could give further upside are construction, property, utitlities, technology and telecommunications

AS Malaysia steps into 2025, the country’s data centre industry is buzzing with activity, spurred by a convergence of artificial intelligence (AI) adoption, robust investments from hyperscalers, and strategic policy frameworks.

Yet, the nation’s position as a prime data centre hub faces mounting challenges from regional players like Thailand and Vietnam, eager to carve their share of the lucrative market.

Despite the increasing competition, Malaysia’s unique proximity to Singapore and its strategic investments in infrastructure continue to position it as a strong contender in South-east Asia’s data centre boom.

Kenanga Research in its recent report notes that Singapore remains the leader in the region’s data centre landscape, boasting over 1.4 gigawatts (GW) of capacity and housing more than 70 facilities.

Global tech giants like Google have committed billions to the island nation, further cementing its status as a hyperscaler hub. However, with limited land and strict sustainability policies, Singapore’s expansion is constrained, creating opportunities for its neighbours.

“Singapore has earmarked 300 megawatts (MW) of additional capacity for data centres that could be brought onstream, with another 200MW reserved for green data centres,” states Kenanga Research, adding that the spillover effect to Malaysia is expected to persist, as companies seek to capitalise on Malaysia’s strategic location, competitive costs and growing infrastructure to meet hyperscale demands.

Malaysia has emerged as a key destination for data centre investments. Notable projects, such as Princeton Digital Group’s (PDG) 52MW green data centre campus in Johor, underscore the country’s appeal. PDG highlights that “hyperscalers make up 80% of its business,” reflecting the demand from major players leveraging Malaysia’s favourable conditions.

Between 2021 and 2023, Malaysia approved an impressive Rm114.7bil in data centre investments. This positions the country as a go-to alternative for hyperscalers seeking scalability without compromising latency-sensitive operations.

New contenders

While Malaysia holds the upper hand, Thailand and Vietnam are not sitting idle.

In Thailand, investments from Oracle, Amazon Web Services, and Microsoft signal a growing appetite for data centre infrastructure.

The Thai Board of Investment reports 38 data centre and cloud service projects valued at 98.5 billion baht, alongside progressive policies like a direct power purchase pilot project and reforms on wheeling charges.

Vietnam is making inroads with regulatory changes, such as lifting foreign ownership restrictions for data centre investors. Nvidia’s recent agreement to establish an AI research and development centre further cements Vietnam’s ambitions.

“All said, at the moment, it appears clear that the existing allocation of resources by big tech is still mainly concentrated in Malaysia in terms of value,” says Kenanga Research, suggesting that the momentum remains in Malaysia’s favour for now.

Beneficiaries

Meanwhile, the data centre boom has spillover benefits for various sectors in Malaysia, from construction and utilities to technology and telecommunications.

Kenanga Research points out that the adoption of AI, particularly generative AI, fuels this demand, with companies racing to establish training and inferencing capabilities. Malaysia’s unveiling of its local large language model, ILMU0.1, and the establishment of a national AI office underscore the country’s commitment to leading AI development in the region.

In terms of sustainability, Malaysia’s regulations encourage innovative practices without being overly restrictive. For example, data centres are now required to avoid areas with a water stress index above 0.8.

This aligns with global trends while ensuring resources are managed responsibly. Green energy initiatives, such as the corporate renewable energy supply scheme, are also gaining traction.

The recent agreement between Bridge Data Centres and Tenaga Nasional Bhd (TNB) to secure long-term renewable energy supply illustrates the growing synergy between the data centre industry and solar energy players.

Kenanga Research notes that Malaysia’s contractors are rising to the challenge of delivering data centres under increasingly stringent requirements. It highlights that Gamuda Bhd, for instance, has started offering “innovative bundled solutions” that integrate water infrastructure and power connectivity into their pitches for data centre projects.

This holistic approach not only addresses sustainability concerns but also enhances the appeal of Malaysia as a destination for data centre investments, it argues.

The brokerage projects that in aggregate, the sectors that could give further upside would be construction, property, utitlities, technology and telecommunications, in that order.

Kenanga Research estimates a potential market of Rm20bil for construction companies involved in data centre projects, based on an assumption of 700MW annual rollout.

Construction players like Gamuda, Sunway Construction Group Bhd, and IJM Corp Bhd could see significant upside, securing up to 50% market share, it adds.

In the property sector, developers like Sime Darby Property Bhd are capitalising on the build-and-lease model, offering steady returns and recurring income. In addition, landowners can monetise their holdings by partnering with data centre operators, with demand for land projected to rise.

Utility companies like YTL Power International Bhd, on the other hand, are poised to benefit from increased energy demand. For TNB, meanwhile, it is estimated that every 0.5 basis point increase in energy demand would improve the counter’s target price by RM1.30.

In the technology sector, Kenanga Research says that firms specialising in data centre equipment, such as switches and servers, stand to gain.

Nationgate Holdings Bhd and PIE Industrial Bhd, for example, are projected to benefit from the fit-out phase of data centres, with contributions to forecast earnings exceeding 30%.

In the telecommunications industry, Telekom Malaysia Bhd remains a key player, leveraging its extensive submarine cable network to support data centre operations.

Under banking, Kenanga Research notes that green financing opportunities are also emerging, with banks like Malayan Banking Bhd and CIMB Group Holdings Bhd actively involved in data centre deals. These green loans align with the broader sustainability goals of the industry.

Overall, with a robust ecosystem in place and strong support from both the government and private sectors, Malaysia’s data centre industry looks set to maintain its lead in SouthEast Asia.

Source: The Star

Riding the data centre wave

Malaysia’s renewable energy sector is gearing up for strong growth ahead in 2025, buoyed by key initiatives under the National Energy Transition Roadmap (NETR), said Apex Securities.

In a research note on Thursday, among the key initiatives are the 800MW Corporate Green Power Programme (CGPP) and the 2GW Large-Scale Solar 5 (LSS5), which are anticipated to unlock RM7.2 billion worth of engineering, procurement, construction, and commissioning (EPCC) projects.

“These developments will enhance order book replenishment opportunities for RE players, ensuring robust earnings visibility for the sector in 2025,” the house added.

Looking ahead, analysts foresee battery energy storage systems (BESS) emerging as a crucial component for the RE sector’s evolution, especially in achieving the nation’s target of a 70% renewable energy share by 2050, through addressing the intermittency challenges associated with renewable energy sources.

According to Bloomberg, Chinese solar companies are grappling with an oversupply, which has driven solar prices to a historic low of US$0.9 per watt, marking an 18% decline in 2024.

While this overcapacity prompted the Chinese government to introduce measures aiming to alleviate oversupply in the medium term, Apex Securities suggests that the short-term impact on local RE EPCC players will be minimal unless stricter policy controls are implemented.

“In the absence of such measures, RE EPCC are likely to benefit from continued access to cheaper modules, supporting solar adoption,” the house added.

Apex Securities, which kept an ‘overweight’ stance on the sector, cited top picks with a ‘buy’ call, including Pekat Group Bhd and Solarvest Holdings Bhd, driven by the growing data centre market and the robust pipeline of renewable energy projects.

Source: The Edge Malaysia

Renewable energy sector braces for strong growth in 2025 — Apex Securities

As artificial intelligence (AI) and generative AI gain mainstream traction, there is growing enthusiasm about establishing data centres worldwide to store and process the data fuelling these technologies. In 2023, the global data centre market was valued at US$219 billion, and is projected to grow to US$585 billion by 2032. This represents a 2.7-fold increase, with a compound annual growth rate of 12%, making data centres a significant economic catalyst.

Between 2021 and 2023, Malaysia attracted RM115 billion (US$27 billion, based on an exchange rate of 4.32) in investments from prominent stakeholders to establish data centres in the country. These investments are expected to create 2,325 new high-value jobs (for example, data scientists, cybersecurity analysts and network engineers). Once all committed data centres are fully operational, their combined capacity is expected to reach 3,200mw.

However, as the saying goes, “there’s no free lunch”. Let’s delve into what Malaysia needs to trade for these investments and the anticipated high-value jobs.

Our valuable land

Land is an essential resource for building data centres. For example, Yondr Group’s 300mw hyperscale data centre campus will be established in Sedenak Tech Park, a 745-acre site. Similarly, GDS Holdings Ltd’s hyperscale data centre campus and Equinix’s IBX JH1 will be set up in Nusajaya Tech Park, covering 509 acres of land in total. Additionally, the YTL-Nvidia collaboration to develop AI infrastructure will be located in the YTL Green Data Centre Campus, with 275 acres of the total 1,640-acre land designated for data centre development.

If all the data centres in Malaysia were to operate as green data centres powered by renewable energy (for example, solar power), even more land would be required for solar panel farms to supply this energy. For example, at the YTL Green Data Centre Campus, only about 17% of its 1,640-acre site is allocated for data centres, while the remaining 83% (about 1,361 acres) is likely to be designated for the solar panel farm. According to Hisham Mustaffa, a former chief engineer at Tenaga Nasional Bhd, generating 1mw of solar energy requires roughly 10 acres of land (see ESG, The Edge, Issue 1532, July 15, 2024). Therefore, the 1,361 acres of YTL Green Data Centre Campus may be insufficient to support a 500mw solar panel farm.

Assuming all the committed data centres currently under construction in Malaysia — aggregating 3,200mw — were powered by solar energy, about 32,000 acres would be needed for solar farms. For perspective, 32,000 acres is equivalent to 11% of Kuala Lumpur’s total land area.

Our precious water

Both data centres and solar panel farms require substantial water resources for their operations. In this part of the world, air cooling is not feasible, making water cooling the go-to solution for managing server heat.

According to datacentrereview.com, a 500mw data centre consumes around 13 billion litres (or 13 million cu m) of water annually for cooling. Extrapolating from this, data centres with a combined capacity of 3,200mw (that is, assuming all adopt water cooling) would require roughly 83 million cu m of water each year.

Although solar panels do not need water to generate electricity, they require periodic cleaning to maintain efficiency. According to estimates from the 550mw Desert Sunlight Project, each panel requires around 2.5 litres of water per cleaning cycle, with two cleanings needed per year. While the water demand for solar panel farms is considerably lower than data centres, it still adds up.

For perspective, it needs around 10,000 solar panels to produce 1mw of electricity. A 500mw solar farm, therefore, consists of five million solar panels. For a total capacity of 3,200mw, this translates into 32 million panels. These 32 million panels would require about 0.16 million cu m of water annually for cleaning.

While Malaysia benefits from an annual rainfall averaging 3,000mm that provides about 900 million cu m of water, however, this resource is not evenly distributed, with some states experiencing droughts and water shortages. Hence, the water requirements for data centres and solar panel farms must be carefully managed to ensure long-term sustainability.

The promise of high-value jobs

While part of the RM115 billion investment is indeed allocated to construction and development jobs, these are indirect jobs that only last through the construction phase of data centres. The real promise of high-value jobs are those with roles directly related to the operation of the data centres. Specifically, these roles include IT operation personnel such as server managers, network engineers, cybersecurity analysts, software programmers and similar positions.

“So, how many high-value jobs will a data centre create?” A quick answer often given is, “It depends”, largely on the scale of the data centre and the degree of automation implemented. To avoid leaving readers in limbo, additional research was conducted to form pragmatic assumptions. For instance, a 500mw data centre campus could accommodate around 33 operators (that is, assuming a 15mw capacity per operator). In return, these operators would require a collective workforce of about 726 to 1,023 employees. Of this collective workforce, 198 to 330 are in IT operations.

Applying the same assumptions, an aggregate total capacity of 3,200mw could accommodate around 213 operators and create between 1,278 and 2,130 high-value jobs. While these figures fall short of the reported 2,325 new high-value jobs, it is important to note that the calculation is based on an average operator capacity of 15mw, an arbitrary figure. If we adjust the assumption to an average operator capacity of 10mw, the number of operators that the 3,200mw capacity facility can accommodate would rise to 320, thereby increasing the number of high-value jobs. In other words, the anticipated 2,325 high-value jobs in the data centre sector appear achievable under the revised assumption.

In summation

The RM115 billion investment in data centres presents a strategic trade-off. It requires significant resources, including valuable land — particularly for solar-powered data centres — and water, which is essential for temperature control and maintaining the efficiency of solar farms. In return, this investment stimulates the economy during the initial development phase and is expected to create 2,325 high-value jobs to support their operation. While the high-value jobs directly linked to data centres may be limited, the greater potential for job creation lies in the downstream segments of the data centre value chain.

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Dr Lim Kok Tiong is a financial economist, credit and climate risk specialist, seasoned project/programme manager and independent researcher

Source: The Edge Malaysia

Data centres: Strategic trade-offs and the promise of high-value jobs

Gamuda Bhd is acquiring 389.7 acres of land in the Springhill Industrial Park, Port Dickson for RM424.4 million, cash, from a joint venture (JV) between MUI Properties Bhd and Chin Teck Plantations Bhd.

Gamuda intends to use the land to develop cloud or data centre infrastructure, according to its bourse filing on Monday. Gamuda’s indirect subsidiary, Gamuda DC Infrastructure Sdn Bhd, has signed a sale and purchase agreement with West Synergy Sdn Bhd for the deal.

West Synergy is 60%-owned by MUI Properties’ wholly-owned Peristal Enterprise Sdn Bhd and 40%-owned by Chin Teck’s Double Alliance Sdn Bhd. MUI Properties is 72.26%-controlled by Malayan United Industries Bhd.

The land is valued at RM25 per square foot based on the purchase price. An independent valuation by Savills (M) Sdn Bhd appraised the land’s market value at RM400 million, or RM23 per square foot. 

Gamuda plans to use internal funds to pay for the acquisition. As of end-October this year, the group had RM3.12 billion in cash reserves. The land purchase is expected to be completed by the end of July 2025

MUI Properties said Gamuda acquired the land in the industrial park of its flagship Bandar Springhill development for the outfit’s high-tech digital infrastructure hub.

“Bandar Springhill, which strategically straddles the North-South Expressway and is within half hour travel to Seremban and KLIA, is sited within Malaysia Vision Valley 2.0 planned to elevate the country’s progress in digitalisation and high-tech digital infrastructure development. The sale is expected to establish Springhill as a hub for high-tech digital infrastructure and complementary developments,” it said in a separate filing.

With this transaction, MUI Properties has made a major step forward in the group’s ongoing initiative to monetise its land bank and investment properties, said its executive chairman and chief executive officer Andrew Khoo. “The sale proceeds will, amongst others, enable us to expand our portfolio of new land banks for further growth and long term sustainability.” 

The company is expected to book a pro forma net gain of RM206.13 million from the land disposal.

Shares in Gamuda ended nine sen or 1.92% higher at RM4.78 on Monday, valuing the group at RM27.19 billion.

MUI Properties’ shares, whose trading was suspended earlier on Monday to make way for the announcement, was last traded unchanged at 43.5 sen, giving the company a market capitalisation of RM328.59 million. Chin Teck also settled unchanged at RM7.97, valuing it at RM728.17 million.

Source: The Edge Malaysia

Gamuda buys land from MUI Properties-Chin Teck JV for RM424m cash, for data centre project

As major tech investors make their mark on the nation, it’s just as crucial to safeguard users from the challenges and risks that modern technology can bring.

Major investments

Malaysia made headlines as the country cements its position to become the regional hub for technology by catering to the growing demands for digital infrastructure.

In May, Microsoft said it would invest US$2.2bil (RM10.47bil) over the next four years in Malaysia’s new cloud and artificial intelligence (AI) infrastructure as well as partnering with the government to establish a national AI centre.

Then Google announced that it would invest US$2bil (RM9.4bil) to house its first Google data centre and Google Cloud region in Malaysia, which is expected to support some 26,500 jobs across various sectors. The data centre will be set up at Elmina Business Park in Greater Kuala Lumpur.

Later in August, Amazon Web Services (AWS) launched its AWS Asia Pacific data centre in Malaysia, where the company said it is planning to invest an estimated US$6.2bil (RM29.2bil) to the country through 2038.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the construction of the Google data centre, along with other investments into the country, is expected to create over 64,000 high-value jobs locally.

Enhancing cybersecurity

On Aug 26, the Cyber Security Act 2024 came into effect, giving greater authority to the chief executive of the National Cyber Security Agency to issue directives and monitor compliance. The Act also identifies 11 entities as National Critical Information Infrastructure (NCII) including government; banking and finance; transportation; defence and national security; information, communication, and digital.

With this Act, an authorised person is required to report to the National Cyber Coordination and Command Centre System (NC4) if a cybersecurity incident has been detected at a NCII entity and it has to be made within six hours. It also outlines how NCII entities could face legal consequences if they fail to take measures to secure their systems against cybersecurity threats.

Eye on AI

As AI is changing the way we work, process information and create content, Malaysia introduced the Artificial Intelligence Governance and Ethics (AIGE) guidelines on Sept 20.

Deputy Prime Minister Datuk Seri Fadillah Yusof highlighted the importance of ensuring transparency and accountability in the development and application of AI, while Science, Technology and Innovation Minister Chang Lih Kang said the AIGE serves as an initial reference for industries and AI players. He also hopes that certain aspects of the guidelines can eventually be legislated.

Tech misdirections

Moving forward with technology also means some initiatives are needed to help users keep up while also ensuring they are protected from online dangers.

In a Sept 7 statement, Malaysian Communications and Multimedia Commission (MCMC) said that its effort to regulate Internet traffic through domain name service (DNS) management or redirection was meant to protect users from harmful content.

The statement was issued after it was revealed through a telco FAQ that MCMC has ordered local ISPs to implement public DNS redirection by Sept 30.

However, the directive sparked backlash among users about potential online censorship and that it could be used to restrict Internet freedom.

Eventually, Communications Minister Fahmi Fadzil instructed MCMC to halt the implementation after considering public feedback.

In October, an announcement on the MyJPJ app said it would be mandatory for users to log in using a MyDigital ID starting Oct 10.

As users rushed to get a MyDigital ID before the implementation date, netizens raised concerns on how the measure may not be convenient for senior citizens and questioned the cybersecurity aspect of MyDigital ID.

Eventually, Transport Minister Anthony Loke said the Oct 10 deadline for the MyDigital ID sign-in for the MyJPJ app has been deferred, adding that he acknowledged public grouses on the matter.

Source: The Star

Striding towards tech hub status

Samaiden Group Bhd’s subsidiary, Samaiden Sdn Bhd (SSB), received a letter of notification (LoN) from the Energy Commission on Dec 23 to develop a 99.99MW large-scale solar photovoltaic plant in Pasir Mas, Kelantan.

This achievement underscores SGB’s continuous commitment to advancing Malaysia’s renewable energy sector and supporting the nation’s energy transition goals, the company said in a statement. The LoN confirms SSB as a shortlisted bidder under the large-scale solar 5 (LSS5) programme.

SGB was selected for Package 3 (30MW to 500MW category) based on its competitive bid and compliance with request for proposal criteria. The project highlights SGB’s expertise in large-scale renewable energy solutions.

The LSS plant, which will have a maximum export capacity of 99.99MW, will significantly contribute to Malaysia’s renewable energy capacity. The project will operate under a 21-year solar power purchase agreement between SGB and Tenaga Nasional Bhd, ensuring a stable and long-term revenue stream.

The plant is scheduled to achieve its commercial operation date by Oct 11, 2027, which is the date it will begin supplying electricity to the national power grid.

SGB group managing director Datuk Chow Pui Hee said securing the LoN and standing out as one of the successful bidders marks an important milestone for SGB and highlights the company’s ability to execute large-scale renewable energy projects.

“The 99.99MW LSS plant in Pasir Mas aligns seamlessly with our strategic plan to expand the group’s asset ownership.

“This project is a testament to SGB’s commitment to supporting Malaysia’s goal of achieving a 70% renewable energy mix by 2050, and we are eager to bring this initiative to fruition while maintaining our dedication to environmental stewardship,“ she said in a statement.

SGB is a renewable energy (RE) specialist principally involved in engineering, procurement, construction, and commissioning and asset investment in solar photovoltaic systems and other RE plants.

The project in Pasir Mas serves as another step forward in SGB’s journey to strengthen its position as a key player in Malaysia’s renewable energy industry.

Source: The Sun

Samaiden selected to develop solar photovoltaic plant in Pasir Mas, Kelantan

Sarawak will embark on two mega infrastructure projects – a new international airport and deep-sea port in Kuching – to fulfil its vision to become a regional aviation and sea hubs.

The state government and private sector are expected to invest some RM100bil over the next five to 10 years to fund the two projects, according to Sarawak Premier Tan Sri Abang Johari Tun Openg (pic).

Describing the new airport and deep-sea port projects as “massive” in scale, he said the two projects, together with other large and strategic projects in the offing, are designed to propel Sarawak to become a new economic force in Asia.

“We will build the new, seamless airport with our own state funds as we need to expedite its implementation.

“I am confident that the proposed new international airport in Kuching will add another x-factor to the ecosystem that would make Sarawak attractive to businesses, investment and visitors,” Abang Johari said in his Christmas message.

He had said recently that Sarawak might work together with Malaysia Airports Holdings Bhd on the new airport project, depending on capital capability.

“The construction of the new airport would make the role of our new airline, upon the take-over of MASwings, becomes more apparent as our regional carrier to connect Sarawak with regional and other destinations.

“While acknowledging that an airline is not an easy venture to manage, we have no choice but to invest in the new airline in order to suit our purpose with our own business model.

“Hoping for existing airlines to accommodate our needs is not an option for us if Sarawak wants to be a well-sought destination for tourists and business people alike,” added Abang Johari.

The Sarawak government is scheduled to ink a sale-and-purchase agreement with Malaysia Aviation Group (MAG), the parent company of MASwings, tomorrow to acquire the airline.

Following the signing, the transfer of ownership from MAG to the Sarawak government is expected to take six to nine months, subject to specific conditions, according to Sarawak Transport Minister Datuk Sri Lee Kim Shin.

Post-acquisition, Lee said the Sarawak government would actively work on transforming MASwings into a regional carrier serving destinations with a four-to-seven hour air travelling range.

The new airport project is currently in the evaluation phase, with a preliminary study underway, according to Sarawak Tourism, Creative Industry and Performing Arts Minister Datuk Sri Abdul Karim Rahman Hamzah.

Once the next phase preparations are ready, he said the Sarawak Premier will announce the project site, development cost and other specifics.

Abang Johari had said the new airport will be equipped with latest technology apart from having seamless infrastructure and is expected to have the capacity to serve up to 15 million passengers annually, tripling the current airport terminal’s capacity.

The new airport will also serve as a commercial cargo hub.

Built in 1983, the existing Kuching International Airport has grown and is currently operating beyond its designed capacity.

In 2023, the airport handled about 5.32 million passengers and 45,598 inbound and outbound flights.

In the immediate term, Lee said the Sarawak government had submitted a proposal and seek funding of RM71mil from the federal government to upgrade and enhance the existing facilities of the Kuching International Airport to cater for its continued growth.

On the new deep-sea port project in Tanjong Embang, Gedong, Samarahan Division, Abang Johari said last month that it would be a new smart port, including a state-of-the-art gas terminal, to be built on an artificial island.

Petroliam Nasional Bhd now exports liquified natural gas (LNG) via Bintulu Port, the largest LNG export terminal in East Asia.

Undertaken by state-owned Petroleum Sarawak Bhd (Petros), the new deep-sea port project is estimated to cost between RM25bil and RM30bil.

“The Sarawak Gas Roadmap (SGR) will see our natural gas being channelled to other parts of the state (beyond Miri in northern Sarawak) in a move to ensure that we can use more of our gas to develop our local economy rather than just having our gas exported to other countries.

“Already, Petros has started to build a RM2bil 500 megawatt combined cycle gas turbine power plant project in Miri to boost power supply in northern Sarawak while pipeline lines are being constructed to supply gas to Samalaju, 70km away from the gas terminal at Tanjung Kidurong in Bintulu.

“The SGR will also eventually see natural gas being channeled to other parts of Sarawak, notably Kuching where there will be another gas terminal at the new proposed deep sea port at Tanjong Embang. Gas will also be distributed for domestic use like what is being enjoyed by users in Miri.

“That is why Sarawak needs to have full control of its gas supply and distribution in order for us to be able to implement programmes to fully benefit the people of Sarawak without much hindrance.

“Sarawak has the lawful rights to control the distribution of its natural gas.” said Abang Johari in his Christmas message.

Under the SGR, Petros will have four gas hubs – Miri, Bintulu, Samalaju and Kuching.

Meanwhile, the federal government is expected to hand over the entire operation of the Bintulu Port to the Sarawak government by 2025.

The process of changing the status of the Bintulu Port from a federal port to a state port is slated to be completed in 2024.

As a state port, Bintulu Port will continue to be Malaysia’s premier LNG port.

Source: The Star

Sarawak to build sea port, new airport in Kuching

Malaysia stands at a defining moment in its semiconductor journey — an opportunity to reshape its future while building on its legacy as a manufacturing powerhouse. This is not just an evolution but a bold transformation — one that moves the country from beyond assembling components to becoming a driving force in shaping technologies that will define the industry’s future.

The launch of the National Semiconductor Strategy (NSS) in May 2024 by Prime Minister Datuk Seri Anwar Ibrahim marked a turning point. This landmark initiative provides Malaysia with a once-in-a-generation chance to rise above the competition, secure its relevance and establish itself as a pivotal player at the forefront of the global semiconductor value chain.

As demand for global semiconductors continues to soar, Malaysia cannot afford to rest on its laurels as a manufacturing hub. Instead, it must ascend the value chain, positioning itself as a creator of cutting-edge technologies and innovation. Diversifying capabilities and fostering innovation are no longer optional — they are essential to maintaining a competitive edge in an ever-evolving global market.

Yet, this transformation is not without its challenges.

Shaping a resilient future

As Malaysia sets its sights on becoming a global semiconductor leader, it faces a critical set of challenges — most notably, the shortage of skilled and relevant talent.

The industry demands highly specialised expertise, and we must take proactive steps to meet this requirement within the necessary time frame. A comprehensive talent programme is essential, one that inspires youth and displaced individuals to pursue opportunities in the industry, while also ensuring that educational institutions align with industry needs.

Equally pressing is the need to strengthen Malaysia’s semiconductor supply chain. Recent global disruptions have exposed vulnerabilities, underscoring the urgency to build resilient, localised supply chains. Strengthening these chains will not only secure the semiconductor industry’s future but also fortify Malaysia’s economic foundation, ensuring innovations reach global markets swiftly and without interruption, thus bolstering our competitiveness on the world stage.

As Malaysia pushes the boundaries of innovation, we must also foster a culture of entrepreneurship and creativity within local industries.

Aligning policy with practical innovation is key to maintaining our edge in the global tech race. This will require unprecedented collaboration between the public and private sectors, with a strong focus on fostering home-grown talent and companies. Together, we can lay the groundwork for a future in which Malaysia not only participates in the technological revolution but drives it forward.

Where innovation meets technology

To truly lead in the semiconductor sector, Malaysia must integrate local companies into every layer of the semiconductor ecosystem. Strengthening manufacturing capabilities is essential, but nurturing creativity and empowering local players to develop proprietary technologies is the game-changer. This shift requires a deliberate focus on innovation, transforming Malaysia from a participant to a pioneer in the global semiconductor arena.

A key priority in this transformation is advancing front-end semiconductor technologies, particularly in integrated circuit (IC) design and development. By fully capitalising on the global semiconductor boom, Malaysia must focus on IC design, become a leader in advanced packaging, and drive innovation in equipment and automation technologies. These areas are not just technical goals; they represent Malaysia’s ticket to becoming a critical node in the broader semiconductor ecosystem.

Guiding Malaysia’s semiconductor revolution

Since the awakening after the Covid-19 pandemic, hardly a day goes by without one hearing of how the electronics industry is key to the global economic scene. As competition intensifies, it has become increasingly evident that Malaysia must take decisive steps to stake its rightful claim in this critical sector.

Recognising this urgency, the prime minister has entrusted the Ministry of Investment, Trade and Industry (MITI) with the responsibility of formulating a comprehensive strategy, as highlighted during the National Investment Council meeting in early 2024.

As the secretariat of the NSS Task Force — led by MITI and chaired by MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz — CREST (Collaborative Research in Engineering, Science and Technology) huddled in various conference rooms in discussion with key thought leaders, along with advice from our Special Advisory Board, which represents the top companies in the industry locally and globally. I felt both awe and pride, witnessing Malaysia’s brightest minds united around a transformative vision. From day one, I worked closely with these leaders and stakeholders, and witnessing the strategy’s debut when the prime minister announced it at Semicon Southeast Asia 2024 was a proud and nerve-wracking moment.

It was not just a policy launch — it was a turning point, a bold declaration of Malaysia’s ambition to lead in the global semiconductor industry.

Since its inception, MITI and CREST have played a pivotal role in shaping its direction, collaborating with industry leaders and stakeholders to ensure it addresses real-world needs. Today, this living, actionable blueprint requires intense collaboration with our triple-helix partners — academia, industry and government. From aligning talent development with industry demands to advancing technological capabilities, CREST has played a pivotal role in ensuring the NSS addresses real-world challenges while charting a path for Malaysia’s semiconductor aspirations.

Recently, we hosted two critical dialogues — the CREST Industry Workshop and the CREST Academia Workshop 2024 for NSS. These workshops demonstrate how CREST fosters a collaborative environment, bringing together thought leaders, researchers and practitioners to ensure the NSS evolves in step with industry needs and academic advancements. These sessions were not just discussions; they served as platforms for shaping tangible action plans to bridge gaps, identify opportunities and align efforts with Malaysia’s strategic objectives.

CREST’s commitment to talent development is further exemplified by initiatives such as The Great Lab Talent Development Programme. In collaboration with industry partners, this programme equips students with the hands-on experience and skills needed to excel in the electrical and electronics sector. It is part of our broader mission to build a steady pipeline of talent capable of meeting the evolving demands of the semiconductor industry. By providing access to industry-led projects and internships, CREST ensures students gain real-world experience, preparing them for success in this competitive field.

Through partnerships with universities and global leaders, CREST fosters an ecosystem in which knowledge flows freely between academia and industry. This collaboration accelerates technological development and cultivates a culture of continuous learning, ensuring Malaysia stays at the forefront of semiconductor innovation.

In a recent discussion, MITI Deputy Minister Liew Chin Tong emphasised the critical importance of achieving one of the key targets under the NSS: the setting up of 10 Malaysian semiconductor “unicorns” with RM1 billion in revenue each, along with the development of 100 related companies nearing that same threshold. This vision resonates deeply with us at CREST.

We have been at the forefront of SME (small and medium enterprise) development for years, launching programmes that provide the mentorship, networking opportunities and affordable workspaces needed for success. One such initiative is CREST Place, a collaboration with Northern Corridor Implementation Authority and Universiti Sains Malaysia, offering co-working spaces, private offices and an IoT (Internet of Things) Cloud Data Centre — an ecosystem designed to support start-ups. Through this initiative, we have nurtured more than 30 start-ups, including rising stars in IC design such as Oppstar Bhd and SkyeChip Sdn Bhd. CREST’s commitment to SME growth was further recognised when we were awarded the prestigious “Tokoh SME” by the Malaysia Service Providers Confederation for two consecutive years in recognition of our contributions to developing local businesses.

Policies that inspire action

While the NSS provides a strong framework, its success hinges on translating vision into measurable outcomes.

Malaysia needs robust think tanks, research institutions and innovation clusters to deliver tangible results. These ecosystems must foster transformative technologies, create high-value jobs and retain top talent.

By rooting growth in local industries, Malaysia can build a thriving, self-sustaining ecosystem while avoiding talent outflows to other markets.

Expanding Malaysia’s talent pipeline is equally crucial. This demands upskilling programmes, partnerships with global semiconductor leaders and robust STEM education initiatives. Addressing the skills gap ensures Malaysia meets industry demand while cultivating innovators who will shape its semiconductor future.

Innovating for self-reliance and sustainability

By fostering an environment that supports home-grown solutions, Malaysia can reduce its reliance on imported technologies while creating sustainable economic growth.

A robust policy environment, paired with strategic investments in innovation, will empower local companies to drive advancements in front-end semiconductor technologies.

This is not just about keeping pace with global players — it is about leading the way.

With the NSS as a guiding blueprint, Malaysia is primed to transition from a manufacturing powerhouse to a global innovation leader. The path forward will demand bold decisions, unwavering commitment and collective action. Malaysia can shape the semiconductor industry’s future, not just for itself but for the world.

This is the promise of the NSS and the potential of a nation ready to lead.

It is a challenging journey, but as the saying goes, every great achievement begins with a single step — and we are certainly stepping in the right direction.

With decisive action, continued investment in human capital and a commitment to innovation, Malaysia can rise beyond competing in the global semiconductor race — it can lead it.

As semiconductors drive the next wave of technological progress, Malaysia’s focus on innovation, resilient supply chains and home-grown talent will secure its place at the forefront of this transformative movement.

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Jaffri Ibrahim is CEO of Collaborative Research in Engineering, Science and Technology (CREST), an industry-led organisation that leads efforts to strengthen the country’s electrical and electronics sector by fostering a market-driven ecosystem and advancing talent development

Source: The Edge Malaysia

Technology as the stepping stone for innovation

When someone mentions Cyberjaya, many automatically equate it to technology and digital. This is because its origins date back to the nation’s Multimedia Super Corridor (MSC) initiative in 1997. This ambitious project is aimed at creating a high-tech environment to attract global tech giants, foster groundbreaking innovation and stimulate foreign direct investment (FDI).

Today, Cyberjaya has solidified its position as Malaysia’s leading tech hub. It boasts a vibrant ecosystem comprising tech start-ups, multinational corporations, renowned research institutions and world-class educational centres. The city has emerged as the cradle of cutting-edge technologies such as artificial intelligence (AI), cybersecurity, fintech and smart city solutions.

These are further solidified by the slew of technology FDIs pouring into the country and data centres racing to plant themselves in the city, further solidifying its status as a preferred destination for tech companies.

At the heart of Cyberjaya’s transformation lies Cyberview Sdn Bhd, a dynamic tech hub developer. The landowner of Cyberjaya, Cyberview was entrusted in 2019 with the mission to revitalise the city through a new master plan. This plan is focused on building capacity in emerging technologies, research and development (R&D) and commercialisation and innovation (C&I), particularly in the areas of smart mobility, smart healthcare and digital creative.

Cyberview’s strategic initiatives have been instrumental in shaping Cyberjaya into a vibrant tech hub. The company also spearheads the development of a thriving tech ecosystem, creating a conducive environment for businesses to grow in Cyberjaya.

Small and medium enterprises (SMEs) and start-ups now enjoy the robust infrastructure, incentives and programmes provided. To help these companies ease into the city, Cyberview offers soft landing zone packages, including rental-free co-working spaces and programmes, as well as facilitation and services at the Cyberjaya Investment & Services Centre.

Nurturing the next generation of leaders

Cyberview’s grand plan of fostering tech start-ups and SMEs includes establishing the Cyberview Living Lab programme. Through this suite of initiatives that cuts across key value chains including Talent, Accelerator, Pilot and Enterprise, Cyberjaya offers tech entrepreneurs a home base to kickstart and boost their innovative solutions.

For instance, the Cyberview Living Lab Accelerator (CLLA) programme was developed to identify, enhance and encourage the growth of talent, accelerating them through mentorship while providing a platform for the companies to test and validate their products and solutions prior to commercialisation.

The CLLA programme has nurtured over 120 start-ups, raised more than RM263 million in investments and generated more than RM837 million in revenue. Each cohort is carefully selected, comprising high-potential start-ups with disruptive ideas across various sectors, including fintech, edtech and cleantech.

The programme also comes with invaluable one-on-one mentorship, networking opportunities, customised training, funding access to investors, industry partners, corporates, as well as free workspace and market access.

As a testament, Tigasfera Greentech Sdn Bhd and Tenaga Alam Sekitar Kita (M) Sdn Bhd, known as TEASK, whereby both companies are part of the Cyberview Living Lab Pilot programme, share how Cyberview has helped them upscale their business through strong support and unlimited opportunities.

“I feel that Cyberview has been helping us and they have a balanced structure. For example, apart from providing mentorship, they also offer incentives for interns, so that we can have interns to help us out,” says Tigasfera CEO Yusof Faizal Amin. “These offerings are very useful for start-ups and ventures as these reduce costs on our end while we invest in developing our projects.”

Tigasfera is a pioneering company that offers innovative on-site waste conversion solutions. Their groundbreaking portable waste-to-value compact solution can effectively transform a wide range of waste materials, including biomass, food scraps, paper, plastics, rubber and fabrics into valuable by-products.

These by-products encompass electricity, solid carbon (biochar), industrial gases and waste, providing businesses and organisations with a sustainable and profitable way to manage their waste.

By adopting Tigasfera’s technology, businesses can significantly reduce their carbon footprint while generating additional revenue streams.

Furthermore, the company actively engages in aggregating the downstream by-product value chain. This involves supplying biochar-enhanced fertilisers and renewable electricity for localised use and as carbon credits. Yusof believes that this comprehensive approach not only minimises waste but also contributes to a more sustainable future.

TEASK’s co-founder, James Tan, on the other hand, highlights the numerous advantages gained through their partnership with Cyberview that stretch beyond the provision of office and workspace facilities, and incentives on internship, as the company also benefits significantly from mentorships offered by Cyberview’s experienced mentors.

“In this journey, not many people will spend time and interact with you. [But] at Cyberview, they spend time interacting with you. And as a Malaysian start-up, this is a very local journey, it is difficult when there is no proper guidance. Cyberview staff have not only been there as mentors, but are there to motivate as well. They just keep telling you to go forward. You know, that is something that I would say both of us are very thankful to the Cyberview team for,” he adds.

TEASK, a Malaysia-based renewable energy company founded in 2022, is dedicated to providing clean and sustainable energy solutions to the nation. The company specialises in the development and installation of solar energy systems and hydro-powered generators. A unique focus of TEASK is the creation of innovative movable solar energy stations designed specifically for electric vehicles (EVs).

TEASK’s movable energy station offers a sustainable and cost-effective solution by combining solar energy generation, advanced energy storage and EV charging capabilities, particularly for two-wheeled electric vehicles.

As for Tigasfera, Cyberview is actively supporting Tigasfera’s efforts to implement a waste collection pilot project in Cyberjaya. This initiative leverages Tigasfera’s Integrated Circular and Renewable Energy (i-CARE) Hub Pilot Site located at Bukit Damar, Cyberjaya, to transform waste into valuable energy.

The six-month pilot trial commenced in May and is targeted to be completed by year end. In this project, Cyberview’s area of support will be on the collection of waste material for feedstock, connection and facilitation with Majlis Perbandaran Sepang (MPSP) and other relevant authorities.

Tigasfera’s first integrated containerised solution, the EcoSfera 1.0, is currently in the R&D phase. This compact Waste-to-Energy containerised box is designed to be deployed at customers’ sites and remote locations, enabling on-site waste conversion and energy generation. The company is actively conducting a proof of concept (POC) to validate the technology and its potential applications.

Yusof says the company also plans to expand its business operations office in Cyberjaya by the third or fourth quarter of 2025. The office will serve as a site office for projects within Cyberjaya, Putrajaya and Sepang.

TEASK, meanwhile, will be launching the TEASK 3 “Moveable” Energy Station as a POC in Cyberjaya next year. The pilot project is a collaboration with DPulze Mall, Tryke, Ebixon and Cyberview.

According to Tan, with the support of the local authorities, business partners and community, TEASK aims to focus on collecting data on daily usage, including the usage percentage and the amount of carbon dioxide emissions saved.

The Cyberview Living Lab initiatives and programmes empower the tech companies by providing these essential resources and services to accelerate their growth, scale their businesses, and make a significant impact on the global stage.

Meanwhile, Cyberjaya is emerging as a model for sustainable development, blending technological innovation with environmental responsibility. From renewable energy initiatives to groundbreaking sustainable developments, the city demonstrates how progress and sustainability can go hand in hand.

Source: The Edge Malaysia

Cyberjaya: A vibrant ecosystem for innovation

UVCell Solar and Iozela Data Center have entered into a strategic collaboration to develop two major projects, with Penang serving as the location for a highly advanced data centre complex, and Pahang becoming the site for a comprehensive renewable energy hub.

Together, these projects will contribute to Malaysia’s environmental sustainability goals while boosting the local economy and fostering international collaboration.

The Penang data centre will be developed with a strong focus on sustainability, integrating full facilities, including a management office, staff accommodation, and a green plantation farm designed to enhance the overall environmental, socialm and governance (ESG) impact of the project. The site will integrate nature and technology, creating an eco-conscious ecosystem.

The data centre also aims to advance Malaysia’s digital infrastructure while minimising its carbon footprint, serve as a model for ESG-compliant technology, and support the nation’s low-carbon ambitions.

In Pahang, UVCell Solar will develop a renewable energy hub featuring solar and biomass farms capable of generating 300-500MW of clean power to supply the Penang data centre and surrounding infrastructure, cutting reliance on traditional energy and reducing carbon emissions.

UVCell Solar will also establish a management office in Pahang to oversee the development and operations of renewable energy facilities.

The combination of solar and biomass technologies will help Malaysia further diversify its energy sources and enhance its energy security while contributing to the country’s zero-carbon emissions goals.

The collaboration will involve top-tier vendors from around the world, including Japan, China, the United States and Singapore, to ensure the highest standards of innovation and expertise. These international partners will bring their advanced technological expertise in renewable energy, data infrastructure, and sustainability.

While international collaboration is key, the majority of the workforce for both projects will be locally sourced from Malaysia, with a focus on training and employing skilled professionals from the surrounding communities in Penang and Pahang. This approach will not only create significant job opportunities but also help build long-term capacity in Malaysia’s renewable energy and digital sectors.

The projects in Penang and Pahang will contribute significantly to these efforts, showcasing how green technologies and digital infrastructure can coexist to create a more sustainable future.

Additionally, the partnership will help bring foreign investors to Malaysia, strengthening the country’s position as a hub for green technology innovation in Southeast Asia.

Both companies are committed to ensuring the success of this project, which will not only provide environmental benefits but also drive economic growth, create jobs, and enhance Malaysia’s reputation as a global investment destination for green technologies.

Source: The Sun

UVCell Solar and Iozela Data Center collaborate to develop major projects in Penang and Pahang

Malaysia is poised for significant data centre (DC) growth in 2025, fuelled by substantial capital expenditures (capex) from major technology companies.  

Kenanga Research said as Malaysia ushers in 2025 with a keen focus on artificial intelligence (AI), global big tech firms are still very much in the generative-AI rush, racing to get ahead of competition.

This anchors big tech’s still-bullish guidance on 2025 capex, especially in chips, server and DCs, which in turn, is giving confidence that Malaysia is set for a strong 2025 growth in DC build-out and fit-out plays, cloud adoption as well AI-related themes, including GPU-as-a-service.

The firm said the mix of DC workload to cater to AI will outstrip the growth that comes from just enterprises moving onto cloud.

“For Malaysia, there is no slowdown in the race to build out data centres that are suited for AI.

“For instance, ByteDance has stated its intention to make Malaysia as an AI hub, with additional investment potential of RM10 billion, while also bringing in supply chain investment to the tune of another RM1 billion,” it said.

Additionally, Malaysia has been the main beneficiary of proximity to Singapore, enjoying the spillover effect as Tenaga Nasional Bhd had seen demand in applications of up to 11GW of power for new DCs.

While Malaysia has been and continues to be the beneficiary of high DC demand due to Singapore’s spillover, Kenanga Research said competition in the region intensifies as big tech spreads out investments, namely Thailand.

Although Malaysia has set more regulations for sustainability which require DC roll-outs to be more attentive to local resource needs, the firm said these are not seen to be restrictive towards getting new business.  

Nevertheless, contractors are looking at innovative delivery approaches to secure DC work.

For example, Gamuda Bhd is in talks to build water treatment plant able to cater for several DCs at one go.

Kenanga Research said Malaysia’s DCs are now moving into market rate for solar, with the recent signing of a heads of terms between Bridge Data Centres and TNB on bilateral energy supply under Corporate Renewable Energy Supply Scheme (CRESS).   

TNB in recent quarter indicated that the take-up in electricity for DCs in operation rose to 248MW, 15 per cent of the completed 1.7GW of DCs.

“There is a potential demand growth opportunity of 7,200MW, including 31 projects (equal to 4,700MW) for which electricity supply agreements (ESAs) are already signed.

“We have an assumption of about 700MW of new rollouts every year in data centres. The likelihood of our numbers being exceeded is high, if the pipeline that TNB is seeing materialises,” the firm added.

In an optimistic scenario, Kenanga Research said the sectors with the greatest potential for growth are expected to be construction and property, followed by utilities, technology and telecommunication.

In terms of leverage to DCs, the firm noted that technology and the construction space contribute most to valuations at the moment.

“These are respectively more than 30 per cent of target price and above 20 per cent for construction names.

“Under an optimistic scenario, our target prices are at the magnitudes of up to 40 per cent higher for the names that we cover. Risks to our call would be a pullback in AI/DC spending,” it said.

Source: NST

Malaysia set for booming data centre growth in 2025

Malaysia has been and continues to be a beneficiary of high data centre demand, thanks to Singapore’s spillover and high capital expenditure (capex) totalling US$21.2 billion (RM94.55 billion) by big tech firms, said Kenanga Investment Bank Bhd (Kenanga IB).

It said Singapore has been the leader with over 1.4 gigawatts (GW) of data centres, housing more than 70 data centres and has traditionally been a hub for hyperscalers like Google, which has invested US$4 billion (RM17.8 billion) in four data centres there, twice the amount the tech giant has committed to spend in Malaysia.

“In the near term, Singapore has earmarked 300 megawatts (MW) of additional capacity for data centres that could be brought onstream, with another 200 reserved for green data centres.

“Some of these data centres are clearly part of Singapore’s SG+ strategy, a case in point would be Princeton Digital Group, with its 52MW JH1 green data centres campus in Johor,” Kenanga IB said.

With Tenaga Nasional Bhd’s revelation that it had seen demand in applications of up to 11GW, this indicates that countries in the region will continue to enjoy the spillover effects.

“As a data centre hub, Malaysia has enjoyed a head-start, having approved RM114.7 billion in investments related to data centres between 2021 and 2023,” it said.

Kenanga IB also cited the latest Knight Frank’s data centre report 2024 as saying that tech giants like Google, Amazon Web Services, Microsoft and Oracle, following NVIDIA’s lead, have announced heavy investments in Malaysia totalling US$21.2 billion over the past 12 months.

These hyperscaler investments were sufficient to crown Malaysia once again atop the data centre spending in this region for 2024.

“In the near term, we think this is still a positive signal for capex play, and likely to benefit the visibility for Malaysia data centre build-out/fit-out,” it said.

Nonetheless, although the existing allocation of resources by big tech is still mainly concentrated in Malaysia in terms of value, competition in the region intensifies with Thailand up-and-coming and Vietnam getting into the fray.

For instance, Kenanga IB said Microsoft followed the lead of Oracle and Amazon Web Services, by looking to invest in Thailand, while Nvidia signed an agreement early this month to establish an artificial intelligence research and development centre in Vietnam.

Source: Bernama

Malaysia continues to benefit from high data centres demand — Kenanga IB

Energy transition remains an attractive investment space with significant opportunities and contract flows that will boost sentiment in the renewable-energy (RE) sector.

Phillip Capital Research stated in a report that the upcoming contract award announcements for the fifth phase of the government’s Large Scale Solar (LSS5) initiative offer engineering, procurement, construction and commissioning (EPCC) jobs worth some RM7bil.

The research house added the adoption of the Corporate Renewable Energy Supply Scheme (CRESS) is likely to gain momentum with the finalisation of the LSS5 projects.

“Developers with identified land for solar assets, whose bids for LSS5 are unsuccessful, may pivot to CRESS as an alternative for project development, potentially generating another round of EPCC contract opportunities for the sector,” the research house said in its Malaysia Strategy report.

It added the recent expansion of rooftop solar capacity is likely to drive further contract opportunities for solar EPCC companies such as Pekat Group Bhd, BM Greentech Bhd and Solarvest Holdings Bhd.

“We project the sector’s aggregate earnings to grow by 63% in 2025, driven by robust order books bolstered by ongoing Corporate Green Power Programme and Net Energy Metering (NEM 3.0) projects,” Phillip Capital Research said.

Its top picks for the RE sector are Pekat with a “buy” rating and a target price of RM1.15 and BM Greentech with a “buy” rating and a target price of RM2.65.

“We favour Pekat’s substantial exposure to high-growth sectors, including solar energy and data centres. BM Greentech stands out for its comprehensive energy-solution offerings in bio-energy, water and solar energy, supported by initiatives under the National Energy Transition Roadmap,” the research house said.

Pekat is expected to deliver high earnings growth of 114%, underpinned by its recent acquisition of 60% interest in EPE Switchgear (M) Sdn Bhd.

The research house also has a “buy” rating on Solarvest at a target price of RM2 as it expects the company to be one of the beneficiaries of Malaysia’s solar RE initiatives, supported by its solid market share and proven execution track record.

Source: The Star

Energy transition offers opportunities for investors

Malaysia’s energy sector registered significant growth this year, driven by incentives that catalysed players to undertake new green energy ventures, particularly solar systems.

The solar industry stood out, thanks to the Solar For Rakyat Incentives Scheme (SolaRIS), which provides rebates of up to RM4,000 for new Net Energy Metering (NEM) applications.

This led to over 667 NEM Rakyat consumers installing solar photovoltaic (PV) systems as of July 2024, with daily applications increasing from 100 to 150.

It is a positive response from the public, aligning with the National Energy Transition Roadmap (NETR).

Malaysia explores renewable energy opportunities

Malaysia is planning to explore renewable energy sources such as hydrogen and nuclear to achieve net-zero carbon emissions by 2050.

For instance, small modular reactors make nuclear energy more viable by offering safer, cost-effective solutions with less radioactive waste and stable long-term costs.

The government also aims to produce two million tonnes of hydrogen annually, increasing to 16 million tonnes by 2050.

This will support decarbonisation in sectors such as power generation and transportation, reducing reliance on fossil fuels.

Promising outlook for energy in 2025

The energy sector is expected to grow even more vibrant next year, as the government plans to adopt new technologies and enhance existing incentives such as NEM.

In the solar sector, Budget 2025’s allocation for NETR will be raised to RM300 million from RM100 million this year.

Additional incentives will encourage more premises

to adopt solar photovoltaic installations, with up to RM70 million in e-rebates allocated to promote the purchase of energy-efficient electrical equipment.

The excitement could stem from the government being more open to the use of new technologies for electricity generation to achieve the netzero carbon emissions target by 2050.

These technologies include battery energy storage, pumped hydro storage, carbon capture, nuclear technology, and both small and large-scale reactors.

On its part, the Ministry of Energy Transition and Water Transformation (PETRA) will intensify the implementation of renewable energy (RE) programmes.

Among them are the Feed-in Tariff (FiT) programme, NEM, Self-Consumption (SELCO), Corporate Green Power Programme (CGPP), and Clean Renewable Energy Supply (CRES), to reach the RE installed capacity target of 70 per cent.

As Malaysia assumes the Asean chairmanship in 2025, the country is committed to finalising the Asean Power Grid (APG) strategic initiative next year.

APG is not just about connecting energy systems across land and underwater but also about positioning the region as a green energy hub capable of attracting international investment.

It is encouraging to note that, to date, all member states have essentially reached an agreement on the APG.

To this end, the government will look at how TNB can play a role in realising the APG initiative, with the aim of making the country and the region the main energy hub of the future.

The government is aware of the significant investment required and is considering ways for TNB to collaborate with other entities to ensure the APG’s success.

TNB, tasked with transitioning from coal to renewable energy, has conducted extensive research to ensure the transition is smooth and effective.

Concerns over sustainable power supply in Sabah

TNB’s subsidiary, Sabah Electricity Sdn Bhd, is reportedly facing financial difficulties and requires federal government support to ensure a sustainable power supply.

Its chairman, Datuk Seri Wilfred Madius Tangau, stated that without federal support, Sabah risks blackouts as early as January 2025.

Wilfred said the company’s cash flow is in deficit and, without immediate assistance, will be unable to pay Independent Power Producers (IPPs) and fuel suppliers. 

Source: Bernama

Powering Malaysia’s future: Solar growth amid challenges

Malaysia’s energy sector registered significant growth this year, driven by incentives that catalysed players to undertake new green-energy ventures, particularly solar systems.

The solar industry stood out, thanks to the Solar For Rakyat Incentives Scheme, which provides rebates of up to RM4,000 for new Net Energy Metering (NEM) applications.

This led to over 667 NEM Rakyat consumers installing solar photovoltaic (PV) systems as of July 2024, with daily applications increasing from 100 to 150.

It was a positive response from the public, aligning with the National Energy Transition Roadmap (NETR).

Malaysia is planning to explore renewable-energy (RE) sources such as hydrogen and nuclear to achieve net-zero carbon emissions by 2050.

For instance, small modular reactors make nuclear energy more viable by offering safer, cost-effective solutions with less radioactive waste and stable long-term costs.

The government also aims to produce two million tonnes of hydrogen annually, increasing to 16 million tonnes by 2050.

This will support decarbonisation in sectors such as power generation and transportation, reducing reliance on fossil fuels.

The energy sector is expected to grow even more vibrant next year, as the government plans to adopt new technologies and enhance existing incentives such as NEM.

In the solar sector, Budget 2025’s allocation for NETR will be raised to Rm300mil from Rm100mil this year.

Additional incentives will encourage more premises to adopt PV installations, with up to Rm70mil in e-rebates allocated to promote the purchase of energy-efficient electrical equipment.

The excitement could stem from the government being more open to the use of new technologies for electricity generation to achieve the net-zero target by 2050.

These technologies include battery energy storage, pumped hydro storage, carbon capture, and nuclear technology with both small and large-scale reactors.

On its part, the Energy Transition and Water Transformation Ministry will intensify the implementation of RE programmes.

Among them are the Feed-in Tariff programme, NEM, Self-consumption, Corporate Green Power Programme, and Clean Renewable Energy Supply, to reach the RE installed capacity target of 70%.

As Malaysia assumes the Asean chairmanship in 2025, the country is committed to finalising the Asean Power Grid (APG) strategic initiative next year.

APG is not just about connecting energy systems across land and underwater but also about positioning the region as a green-energy hub capable of attracting international investment.

It is encouraging to note that, to date, all member states have essentially reached an agreement on APG.

To this end, the government will look at how Tenaga Nasional Bhd (TNB) can play a role in realising the APG initiative, with the aim of making the country and the region the main energy hub of the future.

The government is aware of the significant investment required and is considering ways for TNB to collaborate with other entities to ensure APG’S success.

TNB, tasked with transitioning from coal to RE, has conducted extensive research to ensure the transition is smooth and effective. 

Source: Bernama

Growth in solar powering domestic energy sector

Malaysia has risen to the top in the region solidifying its position as Southeast Asia’s leading digital hub securing RM141.72 billion in digital investments in the first ten months of the year—three times 2023’s total.

Knight Frank Malaysia released its Data Centre Research Report 2024, bringing together key insights in a single report, showcasing Malaysia’s dominance in the SEA-5 Data Centre Opportunity Index. Ranking first in the index for the second consecutive year, Malaysia recorded a significant annual take-up of 429 MW, outperforming regional peers. This growth is driven by strategic investments from tech giants like Microsoft, Amazon Web Services (AWS), Google, and Oracle, totaling USD 23.3 billion.

Keith Ooi, Group Managing Director of Knight Frank Malaysia, stated, “Malaysia’s strategic efforts in digital infrastructure are not just a blueprint for the region but a call for global players to seize this unparalleled opportunity. The country’s commitment to technological innovation and sustainability makes it a preferred destination for data centre investments and a model for economic resilience.”

Amy Wong, Executive Director of Research & Consultancy at Knight Frank Malaysia, added, “Malaysia’s position at the top of the SEA-5 Data Centre Opportunity Index for two consecutive years underscores its regional leadership in the data centre industry. With an impressive annual take-up of 429 MW and a GDP growth forecast of 5.5% for 2025, Malaysia’s robust infrastructure, strategic investments, and forward-looking policies continue to set it apart. This dominance not only reinforces Malaysia’s competitive edge in Southeast Asia but also signals the nation’s readiness to sustain long- term growth in the digital economy.”

The Malaysian government’s proactive measures, including the Green Lane Pathway and the Corporate Renewable Energy Supply Scheme (CRESS), are instrumental in shaping a resilient data centre ecosystem. By significantly reducing timelines for electricity supply and promoting renewable energy adoption, these initiatives have not only enhanced Malaysia’s infrastructure readiness but also underscored the country’s commitment to sustainability and technological advancement. Chelwin Soo, Director of Land & Industrial Solutions at Knight Frank Malaysia, remarked, “As the world leans into green innovation, Malaysia’s leadership in renewable energy and sustainable data centres sets a precedent for responsible technological growth.

By fostering strategic partnerships between real estate developers, data centre operators, and supply chain companies, Malaysia is creating a dynamic ecosystem that drives industry evolution. The synergy between public initiatives and private innovation positions Malaysia as a magnet for industrial growth, unlocking vast opportunities for both local and global players in the years to come.”

Justin Chee, Executive Director of Valuation & Advisory at Knight Frank Malaysia, noted, “As our data centre industry transitions into a stabilisation phase, the focus on sustainability, energy efficiency, and innovation will define its future trajectory. Notably, Johor has emerged as a key player, surpassing Klang Valley in IT capacity and driving substantial land transactions for large-scale data centre developments. The exponential growth in Johor, particularly in areas like Kulai and Iskandar Puteri, is attracting major international operators and creating significant opportunities for land acquisitions and partnerships.” Chee further added that, “Meanwhile, Klang Valley continues to evolve, with a strong pipeline of large-scale data centres such as those planned by Google and AWS.

By striking a balance between regulatory frameworks, technological advancements, and strategic land acquisitions, Malaysia is well-positioned to lead the way in sustainable data centre growth across the region.”

The report paints a promising picture of the data centre industry, showcasing its potential to drive economic growth, create high-value jobs, and lead the way in sustainable practices. As Malaysia continues to solidify its position in this vital sector, the collaboration between government, industry players, and educational institutions will be essential in fostering a thriving data centre ecosystem.

Source: Business Today

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