Forest City has garnered significant interest from both domestic and international investors following Prime Minister Datuk Seri Anwar Ibrahim’s announcement on August 25, 2023, designating the area as a Special Financial Zone (SFZ).

With the official signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement, Forest City, as Flagship G, has been formally incorporated into the JS-SEZ. This milestone is expected to further bolster international investment.

Deputy President of Country Garden Pacificview Sdn Bhd, Syarul Izam Sarifudin, said that the project has attracted attention from 11 companies expressing interest in establishing operations within the Forest City SFZ.

“We have observed growing interest in Forest City from investors both locally and globally. As the project developer, we are committed to ensuring the successful implementation of this initiative,” he said in a statement on Wednesday (Jan 29).

Syarul Izam is also optimistic that 2025 will bring further economic and developmental impact to Forest City, which was designated a Tax-Free Zone on Nov 15 last year.

He added that the announcements regarding Forest City’s SFZ, its duty-free status, and the JS-SEZ are expected to position the area as a key driver of economic growth, not only for Johor but for Malaysia as a whole.

“We will work closely with both state and federal governments to ensure smooth planning and mutual benefits,” he said.

To address investor concerns and provide insights, Forest City has planned a series of seminars. On Jan 18, a seminar was held focusing on Malaysia’s only 0% tax single-family office, providing investors with an understanding of policies and available incentives.

On the same day, Forest City launched pre-bookings for the first phase of commercial units in the new year. The flexible office and shopfront small office flexible office (SOFO) commercial spaces, located in Cerulean Bay, will soon be introduced to the market.

Meanwhile, Syarul Izam highlighted that Forest City’s development and its designation as an SFZ have drawn international interest, particularly from financial institutions. This was evident during a recent visit by a Johor delegation, led by Johor Mentri Besar Datuk Onn Hafiz Ghazi, to the Dubai International Financial Centre (DIFC).

“The visit to Dubai’s international financial centre was a valuable learning and expertise-sharing session, especially for Forest City. Our goal is not to compete with them but to identify key insights that can be applied here.

“These initiatives will not only benefit industry players investing in Forest City but also create job opportunities and economic spillover effects for other downstream sectors,” he said.

As a result of the visit, several parties have expressed interest in investing and establishing businesses in Forest City SFZ, particularly in the field of Artificial Intelligence (AI).

Syarul Izam also reaffirmed Forest City’s commitment to supporting economic growth and infrastructure development in the surrounding area, further increasing its long-term appeal.

“In the future, Gelang Patah will be a preferred destination due to the various facilities available, including ports, access to Singapore, industrial areas, and recreational amenities,” he said.

To enhance transportation connectivity, Forest City, following the successful launch of its bus service to and from the Malaysia-Singapore Second Link, is set to collaborate with Causeway Link once again. The partnership will introduce weekend and holiday bus services between Forest City and Kuala Lumpur.

Additionally, plans are underway to upgrade the island’s cycle lanes and transportation links, integrating them with Johor Baru’s public transit system. This initiative aims to provide residents and visitors with a more efficient and convenient travel experience.

With its combination of incentive policies and global vision, Forest City is emerging as a benchmark project in the Asean region. The establishment of the Special Financial Zone, Duty-Free Island, and Special Economic Zone positions it as a key hub for attracting investments, creating employment opportunities, and driving economic growth.

Source: The Star

Forest City draws increased investment interest following special financial zone status

The demand for both low-powered and high-powered chips in the development of artificial intelligence (AI) systems will lead to a significant increase in advanced data centre infrastructure, says Mah Sing Group Bhd.

Commenting on DeepSeek’s recent launch of its AI model using lower-powered chips, the group said this reflects growing demand for high-performance computing and AI adoption.

“This is a promising development for Mah Sing’s data centre venture,” it said in a statement issued on Tuesday.

Mah Sing said land near energy hubs will become increasingly valuable.

Its Southville City development, with its strategic suitability as an AI hub, is ideally positioned to leverage this trend, it said.

It added that the Southville Data Centre, with its immediate access to reliable and higher capacity energy, offers a competitive edge in accelerating market deployment for its data centre partners.

“This, coupled with DeepSeek’s innovative approach, positions AI-driven data centres as the future backbone of the digital economy, ensuring they can meet the ever-growing demand for computing power and energy reliability in this transformative era.”

Source: The Star

DeepSeek’s AI breakthrough to spur AI adoption, data centre infrastructure – Mah Sing

The Communications Ministry has identified 67 industrial areas nationwide to be equipped with 5G internet services, said its minister Fahmi Fadzil.

He said the locations of these industrial areas were identified through cooperation with the Investment, Trade, and Industry Ministry (MITI).

“Our aim is to prioritise these areas because the benefits of 5G for micro, small, and medium enterprises (MSMEs) are significant.

“We want to ensure that factories can take advantage of fast connectivity through 5G,” he told Bernama after attending the ministry’s Strategic Working Direction Meeting 2025 here today.

Also present were the ministry’s secretary-general Datuk Mohamad Fauzi Md Isa, Malaysian National News Agency (Bernama) Chief Executive Officer Datin Paduka Nur-ul Afida Kamaludin, and Bernama Editor-in-Chief Arul Rajoo Durar Raj.

Meanwhile, Fahmi said the penetration rate of 5G usage among the public is also increasing by two to three percent each month and is nearing 53.3 percent nationwide.

He stressed that the Communications Ministry is also committed to ensuring that communities in rural areas receive at least 4G coverage before being upgraded to 5G.

“Previously, we had the National Digital Network (Jendela) Phase One initiative, which should see the completion of 1,661 towers by June this year, marking the first step.

“Second, I expect that between the two 5G networks, they may see strategic collaboration to ensure that the towers in rural areas can be utilised for 5G purposes,” he said.

He added that Jendela Phase Two will involve between 2,500 and 3,000 locations in rural areas that lack internet access.

Source: Bernama

67 industrial areas identified for 5G connectivity, says Fahmi

Australia’s global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the agreement was reached through a meeting with the company’s leadership team led by executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Investment, Trade and Industry Ministry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Anwar said through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the Federal Government.

“Sabah will have a relatively large port in the region when DP World comes in. The Federal Government has informed Chief Minister Datuk Seri Hajiji Noor and the state government to provide full support and cooperation,” he said.

In addition, the Prime Minister said Google would continue implementing major programmes in Malaysia, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

He said issues related to artificial intelligence, including in the fields of medicine and education were also discussed in the meetings with global companies.

On another matter, Anwar said Asean region’s great potential was his main message at the WEF, adding that as the regional grouping’s chair for the year, Malaysia has highlighted the region’s special features including in the field of economy and trade.

“It trades intra (Asean) and is also a trading force with the United States, China, Europe and BRICS.

“With nearly 700 million people, the fastest economic growth and a peaceful region, Asean has great potential,” he said at the closing press conference in conjunction with his working visit to WEF 2025, Bernama reported.

He said apart from trade and economic potential, Asean also wants to focus on energy transition issues, education, food technology, connectivity and digital.

Anwar attended the summit at the invitation of WEF founder and chairman of the board of trustees, Prof Klaus Schwab – his first since assuming office in 2022.

“We are grateful that as it is the first time I attended as Prime Minister, I think the treatment and recognition of (WEF) for the country is very good.”

Among the leaders Anwar met on the sidelines of the WEF were Dutch Prime Minister Dick Schoof and Somalia President Hassan Sheikh Mohamud.

Source: The Star

Green hydrogen hub coming to Bintulu

The declaration of the Port of Sipitang Oil and Gas Industrial Park (SOGIP Port) marks a strategic milestone with significant potential to drive Sabah’s economic growth, Deputy Chief Minister III Datuk Shahelmey Yahya said. 

Shahelmey, who serves as the state’s works minister, said the new port, located in Sipitang approximately 140 kilometres from Kota Kinabalu, will provide a major boost to local economic sectors such as transport, shipping, and logistics. 

“The economic potential of this area is undeniable. Its strategic location on the west coast of Sabah, facing the South China Sea, positions Sipitang as a new gateway for maritime trade in the region. 

“This port will create job opportunities for local residents, enhance household income, and promote sustainable economic growth,” he said during the official declaration ceremony of the SOGIP Port here today. 

He emphasised that the initiative aligns with the Sabah Maju Jaya (SMJ) roadmap spearheaded by Chief Minister Datuk Seri Hajiji Noor to strengthen the state’s economic and infrastructure development. 

“As a new port area, Sipitang not only enhances Sabah’s capacity to handle international cargo but also broadens access for businesses to the global market. 

“This development represents a key step towards bolstering trade ties between Malaysia and its neighbours, as well as the wider region. We are confident this will significantly boost both bilateral and multilateral trade growth,” he said. 

At the event, Shahelmey also represented the Chief Minister to witness the signing of the port concession agreement between the Sabah Port Authority, Sabah Oil and Gas Development Corporation Sdn Bhd, and SOGIP Port Sdn Bhd. 

He added that with the infrastructure in place, Sipitang is set to become a vital logistics hub for the region, further supporting trade and industrial activities. 

“Through the provision of modern facilities, we are confident this project will enhance Sabah’s standing as a key player in international trade and logistics, while accelerating integration with the global economy. 

“I believe the SOGIP Port project will not only benefit the immediate area but will also serve as a catalyst for more sustainable and balanced economic development across Sabah,” he added. 

Source: Bernama

SOGIP port launch boosts Sabah’s economic prospects

AUSTRALIA’S global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said the agreement was reached through a meeting with the company’s leadership team led by Fortescue executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle, and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Ministry of Investment, Trade and Industry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Commenting further, the prime minister explained that through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the federal government.

“As for Sabah, which will have a relatively large port in the region when Dubai Ports comes in, the federal government has informed Chief Minister Datuk Seri Hajiji Noor and the Sabah government to provide full support and cooperation,” he added.

In addition, the prime minister said Google would continue implementing major programmes such as the one established in Selangor, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

Furthermore, he said that issues related to artificial intelligence, including in the fields of medicine and education, were also discussed in the meetings with global companies.

Anwar attended the WEF 2025 for the first time as prime minister since taking office in 2022 at the invitation of WEF founder and chairman of the board of trustees Klaus Schwab from Jan 20-22.

Throughout the three-day visit, Anwar was accompanied by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir and Digital Minister Gobind Singh Deo.

Source: Bernama

Australian metal mining firm to invest in Sarawak’s green energy sector

Malaysia’s political stability and clear policy prescriptions in the MADANI Economy framework have encouraged big players in the artificial intelligence (AI) industry, including semiconductor companies, to invest in the country.

Prime Minister Datuk Seri Anwar Ibrahim said the government has provided enough incentives to attract big players from the United States, Europe and China to make huge investments in Malaysia.

Along with the progress of AI, he called for a comprehensive approach to integrating AI into Malaysia’s national framework, emphasising the urgency of establishing robust AI legislation, a national AI office, and data protection measures.

“We have to navigate — (through) the National AI Office, legislation, data protection, and whatever it takes to make sure that we are fully equipped,” he said during a special one-on-one exclusive dialogue entitled “A Conversation with Anwar Ibrahim’’ moderated by WEF founder and executive chairman of the board of trustees Prof Klaus Schwab here today.

“AI means changing the education system, health services, blockchain. It will have to come about, and we are pushing it at a faster pace, partly because of my age. I don’t have time to wait,” the 77-year-old leader added.

Source: Bernama

Malaysia secures AI industry investments with clear MADANI economy policies – PM Anwar

Penang is expected to strengthen its position as a top medical tourism hub in South-east Asia with an upcoming multibillion-ringgit Penang Medi-City project in Batu Kawan.

The mega-project, spread out over 235.8 acres, will take about 15 years to complete and is expected to feature mixed development of at least four hospitals, various health and wellness facilities, technology parks, commercial centres, serviced apartments, schools and residential areas.

“This is one of the largest private investments we are receiving in Penang, at RM2 billion for phase one and a few more billions in the other phases, in a sector outside of the manufacturing sector,” said Penang chief minister Chow Kon Yeow at a press conference after the official signing ceremony of a master sale and purchase and development agreement between Penang Development Corporation (PDC) and Fajarbaru Builder Group (FBG).

He said PDC has been working on the idea for a medical city for more than five years and have discussed it with various companies.

“We have also called for Request for Proposal for this,” he said.

He added that the project will be a catalyst project for Batu Kawan as it is expected to feature more than 1,000 hospital beds and become a one-stop medical hub for Penang, the northern region and Asean.

“Penang is now dominating the medical tourism industry in the country, with a 45 per cent market share,” he said.

He said the medical tourism industry in the state has continued to expand in recent years that the state is one of the main destinations for medical tourists seeking high quality medical services at affordable rates.

He said the Penang Medi-City development in Batu Kawan will strengthen the state’s position as a main medical tourism hub in South-east Asia.

He also said the project is expected to create thousands of job opportunities during construction and upon completion, it could create even more high-value jobs in the medical and services industry.

“This project proves that Seberang Perai and Batu Kawan is set to be the future of Penang,” he said.

FBG group executive chairman Tan Sri Chan Kong Choy said Phase One of the project, which covers about 51 acres, will have a gross development value of RM2 billion.

“There will be one hospital first but we are also in discussions with several other medical operators, local and international,” he said.

He said the overall project, which is in four phases, will have not less than four hospitals of various disciplines.

“There will also be related healthcare and wellness service operators,” he said.

He said they will also consider traditional Chinese medicine and alternative medicines operators as these are also huge growing markets.

Phase one of the project is expected to launch in the fourth quarter of next year and will take about eight years to complete.

Source: Malay Mail

Penang cements position as medical tourism hub with RM2b Penang Medi-City project

Malaysian companies, especially those in the logistics sector, should go regional with a whole-of-government approach to create Malaysian global champions in services, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said transport services continue to be a significant contributor to Malaysia’s trade deficit, reflecting reliance on foreign shipping and logistics providers to support Malaysia’s export-driven economy.

Liew said this is a cause for concern and calls for more effort to transform the situation.

“We should build a Malaysian brand image of trustworthiness and friendliness for Malaysian global service providers to thrive in the export of services,” he said in his opening speech at the Service Conference 2025 (SERV25) here on Monday.

Liew also suggested that Malaysia should do more to make itself a hub for regional headquarters, tourism, higher education, research and development (R&D) activities, legal and arbitration services, and finances, especially Islamic finance.

He said emerging sectors such as digital trade, and sustainable and green services are areas Malaysia can make a global difference.

“The linkage between services, manufacturing and technology should be firmly established,” he said, a sign that Malaysia is seeing an upsurge in manufacturing activities, thanks in part to supply chain relocation, with manufacturing-related services being core to the development of a robust services sector.

“We must do more to link the two sectors together, and more importantly, connect manufacturing and services with Malaysian technology,” he said.

He said the service sector linkage to supplement “Made in Malaysia” with “Made by Malaysians” is crucial.

SERV25 brought together speakers and thought leaders to explore cutting-edge digital transformation strategies to reshape Malaysia’s economic landscape.

Source: Bernama

Chin Tong urges Malaysian logistics companies to go regional

The logistics sector in Johor remains poised for growth, bolstered by the productivity of Johor Port and the Port of Tanjung Pelepas (PTP), both of which continue to maintain low vessel dwell times. 

Industry experts believe planned developments, such as the Johor-Singapore Special Economic Zone (JS-SEZ), are expected to further solidify Johor’s position as a key logistics hub in Southeast Asia.

MMC group managing director Tan Sri Che Khalib Mohamad Noh Johor continues to be a major logistics hub due to its strategic location, comprehensive land, sea, and air transport infrastructure, deep connectivity and green lanes to Singapore, ample land availability, as well as a strong labour supply.

Che Khalib said the proposed initiatives under the JS-SEZ will foster greater cross-border movement of people, integration, and connectivity between Johor and Singapore, which will in turn intensify cross-border trade and logistics. 

“The JS-SEZ will also promote renewable energy, green industrial parks, and one-stop investment centres, which would attract high-value investors that prioritise ESG and reduced carbon emissions,” he told Business Times. 

Meanwhile, transport consultant Wan Agyl Wan Hassan said with larger warehousing capacities compared to Singapore and access to well-established ports such as PTP and Johor Port. 

“Johor’s proximity to Singapore gives it a golden opportunity to shine as a logistics hub. 

“Singapore’s reputation as a global logistics leader is unmatched, but rising costs and limited space there mean Johor can step up as the affordable and scalable alternative,” he said. 

Meanwhile, Wan Agyl said the global logistics industry’s current turbulence—driven by the Red Sea crisis and the rising trend of regionalisation—has further highlighted Johor’s potential. 

He noted that companies are now seeking alternative routes and warehousing solutions closer to their production and consumption hubs.

“Yes, the Red Sea crisis is a challenge, but it’s also a wake-up call. Global logistics is shifting towards regionalisation, sustainability, and resilience. Johor must seize this moment to position itself not just as a backup to Singapore but as a vital player in the global trade network.

“By focusing on these strategies, Johor might have the chance to thrive in the face of global disruptions,” he said. 

Kenanga Investment Bank Bhd has maintained its “neutral” stance on the seaport and logistics sector as the shipping diversion from the Red Sea continues to weigh down on global trade.

However, the firm expects the domestic logistics sector to play a key role in connecting economies that benefitted from the trade diversion due to the United States (US)-China trade tensions.

“Nevertheless, we continue to see a bright spot in the domestic logistics sector, benefiting from the booming e-commerce, the global tech upcycle driven by demand for artificial intelligence, and a resilient US economy,” it added.

Source: NST

Johor’s logistics sector set for growth, driven by Johor Port and PTP productivity

Sime Darby Property Bhd is joining hands with Singapore-based YCH Group, a supply chain solutions outfit, to develop logistics hubs in Malaysia, Vietnam and other Asean markets.

The two companies inked a memorandum of understanding (MOU) for the proposed partnership at the sidelines of the 102nd Asean Business Advisory Council (Asean-BAC) Meeting on Thursday.

According to Asean-BAC, the first major milestone will be the development of a landmark logistics facility in Sime Darby Property’s port-centric township of Bandar Bukit Raja in Klang, Selangor. The facility is expected to cost at least RM300 million and will be modeled after YCH’s flagship Supply Chain City in Singapore.

“The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects,” said Asean-BAC in a statement.

The MOU was one of three announced during a press conference by the Asean-BAC on Thursday, including one signed by Malaysia’s Bornion Green Sdn Bhd and the Philippines’ Yovel East Research and Development Inc to establish a Musang King durian plantation in the Philippines.

“The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects,” said Asean-BAC.

The third MOU was one entered into between the Canada-Asean Business Council and Asean-BAC to boost trade and investment between Asean and Canada, particularly via the Asean-Canada Free Trade Agreement (ACAFTA).

Sime Darby Property’s shares closed unchanged at RM1.47 on Thursday, giving the group a market capitalisation of RM10 billion.

Source: The Edge Malaysia

Sime Darby Property to partner Singapore’s YCH Group to develop logistics hubs in SEA

A significant simplification of the nation’s research and development (R&D) tax incentives, alongside reformation of the grant system, will be included in the 13th Malaysia Plan (13MP), according to Economy Minister Datuk Seri Rafizi Ramli.

He said the changes aim to address long-standing concerns about the complexity and accessibility of existing mechanisms supporting innovation and business growth.

“The new R&D tax incentive framework will streamline processes, removing unnecessary bureaucratic hurdles that have deterred businesses, particularly small and medium enterprises, from fully benefiting from such schemes.

“The focus is on making the system user-friendly, ensuring that businesses can easily understand and claim these incentives,” Rafizi said at a 13MP engagement session with industry players today.

In addition to the tax incentive reforms, a comprehensive overhaul of the grant system will be included in the plan, Rafizi disclosed.

“This initiative seeks to reduce the layers of complexity that currently hinder businesses from accessing critical funding. By simplifying application processes and eligibility criteria, the government aims to foster a more inclusive and efficient allocation of resources.”

Rafizi said the reforms are part of a broader strategy to enhance the nation’s competitiveness in the global market while ensuring that public resources are effectively utilised.

“The new measures will include clearer guidelines and improved communication with stakeholders, ensuring businesses understand how to navigate the updated systems. The goal is to build trust and confidence among businesses that these incentives and grants can deliver meaningful support,” he explained.

Rafizi said businesses and industry groups have long advocated for such reforms, pointing to the barriers posed by overly complicated processes. “These updates are expected to alleviate frustrations and encourage broader participation across sectors.”

The government will release further details on the implementation timelines and specific changes to the R&D tax incentives and grants soon.

Despite allocating more than RM1 billion annually for R&D, Rafizi noted, there remain significant gaps in translating research into market-ready innovations.

He shared that his ministry, alongside the Ministry of Investment, Trade and Industry, is working on a comprehensive plan to also enhance R&D commercialisation, and foster collaboration among academia, public institutions and the private sector.

“This initiative, expected to be presented to the Cabinet within the next few months, will play a crucial role in positioning Malaysia as a leader in high-value industries and global competitiveness,” he added.

Furthermore, Rafizi said, the 13MP will not only focus on reforming R&D tax incentives and the grants system but also address broader systemic challenges to strengthen the country’s economic structure.

“We are taking a sector-specific approach to economic reform, including energy transition plans under the National Energy Policy. These reforms aim to create a robust foundation for Malaysia’s economic growth and its ability to adapt to global changes.”

The minister said one key focus is optimising Malaysia’s supply chain and logistics system, pointing out that inefficiencies in the supply chain, such as the high logistical costs of moving goods across regions unnecessarily, have hindered economic efficiency.

“By investing in infrastructure, data systems, and regulatory frameworks, the government plans to enable regional distribution systems that minimise costs and improve transparency in pricing. These efforts are part of a broader strategy to streamline the movement of goods and ensure consistency in the supply chain,” he added.

Rafizi also said SMEs face challenges in scaling up and integrating into larger value chains.

“Efforts to strengthen the SME sector will focus on addressing structural barriers and creating opportunities for growth, ensuring that SMEs continue to drive innovation and economic resilience,” he added.

Source: The Sun

Rafizi: R&D tax incentive, grant frameworks will be simplified, overhauled under 13MP

The potential implementation of export limitations by the US government on artificial intelligence (AI) chips is not expected to impact the operations of existing data centres in Malaysia, according to deputy minister of investment, trade and industry (Miti) Liew Chin Tong.

After his keynote speech at the CEO Series: Economy & Business Forum on Thursday, Liew said the Malaysian government will take a cautious, evaluative stance to better understand how these proposed restrictions might influence future developments and partnerships.  

“We will engage in internal discussions, collaborate with key stakeholders, and also reach out to the incoming US administration to gain a clearer understanding of the extent of the regulatory changes,” he said.

Liew added that Malaysia, along with other countries classified under Tier 2, has prepared strategies to manage the potential challenges.

Under these proposed restrictions, the American companies would be permitted to request blanket approval for shipping chips to data centres globally, with stipulations that no more than 25% of their total computational capacity is located outside of Tier 1 nations, and no more than 7% is situated in any single Tier 2 country.  

Meanwhile, Liew highlighted the importance of Malaysia fortifying its internal economic infrastructure to foster mutual benefits for both local and foreign investors, noting that many of Malaysia’s industrial parks have become overly concentrated on real estate development, which fails to advance the nation’s broader economic objectives.

“As the global supply chain has shifted over recent years, it is clear that investors are drawn to Malaysia not simply because of our numerous industrial parks, but because of the strength and depth of our ecosystem,” Liew explained.

He added that while factories may be interconnected on a global scale, they often lack sufficient domestic linkages.

Source: The Edge Malaysia

Malaysia’s data centres unaffected by US AI chip export restrictions, says deputy Miti minister

The Bandar Teknologi Maju Perlis project planned for development in Chuping, Padang Besar is poised to become a key driver of the digital economy in the northern state, positioning Perlis as a strategic destination for international investment.

A collaboration between the Perlis State Secretary Incorporation (PSSI) and Sirage Skyvast Holdings Sdn Bhd, the project aims to establish an off-grid technology hub with sustainable energy infrastructure.

Perlis state secretary and PSSI chairman Datuk Rahimi Ismail said the project would cover an area of 600 acres and is designed to feature artificial intelligence (AI) data centre, large-scale data facilities and high-performance computing (HPC) applications.

“The project will utilise a dedicated energy system that includes a 1.6 Gigawatts (GW) solar plant, a 4.875 GW battery energy storage system (BESS) and a 1 GW combined cycle gas turbine (CCGT) plant.

“This infrastructure will ensure a stable, sustainable and reliable electricity supply without relying on the national grid,” he said during the memorandum of understanding (MoU) exchange ceremony for the project at the Perlis State Legislative Assembly Complex today.

The Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail witnessed the MoU exchange along with Perlis Menteri Besar Mohd Shukri Ramli.

Rahimi stated that the high-impact project is expected to generate 9,000 jobs during the construction phase and 2,000 jobs once fully operational, as well as attract an estimated RM49 billion in investments, in line with the Chuping Valley Industrial Area (CVIA) development and Perlis Digital Plan 2021-2025.

He added that the project would also benefit real estate, tourism and retail sectors, enhancing market value and encouraging new developments.

Rahimi also mentioned that the project has garnered attention from Communications Minister Fahmi Fadzil, who sees it as a catalyst for data centre investments in Malaysia, with benefits extending beyond Perlis.

“This data centre will provide a complete infrastructure for operators like Microsoft and Google. Previously, many data centres were concentrated in Singapore, but they are now shifting to Malaysia. With available land in Perlis, we can attract more investments here,” he said. 

Source: Bernama

Bandar Teknologi Maju Perlis set to drive digital economy growth

DATA centres (DCs), which have grown in importance in the age of digitalisation, took centre stage in 2024 owing to the massive foreign direct investments (FDI) into the sector and Putrajaya’s recent approval of a total DC capacity of 4gw, making Malaysia a “DC powerhouse” in the region and a prominent player on the global stage. Still, questions remain over the full benefits to be gained from such resource-hungry investments.

A whopping RM90.2 billion in FDI for 12 DCs were committed between 2021 and June 30, 2024, according to the Malaysian Investment Development Authority (Mida). These were primarily by major tech companies like Nvidia, ByteDance, Microsoft, Google and Singapore Telecommunications, which are major data users and processors.

Google, for instance, announced in October a US$2 billion (RM8.9 billion) investment to build its first DC in Malaysia. The global tech giant is also investing US$1 billion in DCs in Thailand. Meanwhile, Singapore substantially bumped up its DC investments to US$5 billion in 2024 from US$850 million in 2022.

Increasing data usage, cloud computing and artificial intelligence (AI) have accelerated the need for DCs, which provide the facilities to store and process data. In other words, they are essential infrastructure to support the digital economy. However, the AI boom has necessitated a new type of DC that supports real-time processing and data storage, often requiring proximity to end-users.

The DC boom is not unique to Malaysia. According to a report by global consulting firm McKinsey & Co, the global demand for DC capacity could rise at an annual rate of between 19% and 22% from 2023 to 2030 to reach annual demand of 171gw to 219gw globally.

“This contrasts with the current demand of 60gw, raising the potential for a significant supply deficit. To avoid a deficit, at least twice the DC capacity built since 2000 would have to be built in less than a quarter of the time,” it said in an Oct 29 report.

In Asia-Pacific, current DC capacity exceeds 10,500mw and is expected to more than double to 24,800mw by 2028, spurred by increasing adoption of cloud computing and AI, which in turn will benefit several industries across the value chain.

According to reports, Singapore currently has more than 70 DCs with a total capacity of 1.4gw. But Malaysia will soon eclipse its southern neighbour, as utility giant Tenaga Nasional Bhd (KL:TENAGA) has signed 31 electricity supply agreements (ESA) with DC operators in the country, for a total energy demand of 4,700mw.

The acceleration in DC capacity is mind-boggling in that Malaysia’s DC market in 2023 only had 40DCs with 100mw to 150mw — a development that took almost 20 years to achieve.

There are two kinds of DC operations — DC colocation and hyperscale DC. In the past, most DCs were built to focus mainly on DC colocation, which is a service provided by DC operators to companies that would rent space, power and connectivity in the DC to host their own servers and IT equipment. As a result, the growth in DC capacity has been in stages, depending on the digitalisation efforts of these companies.

On the other hand, hyperscale DCs are typically massive and purpose-built facilities designed to support the tremendous computing and storage demands of cloud computing, big data and other data-intensive applications. Major investors in hyperscale DCs are usually large technology players such as Apple, Google, Microsoft, Amazon Web Services, Facebook, Alibaba, Tencent and ByteDance.

Debate over benefits of DC investments

However, beneath the fanfare of major investments made by global companies, there are questions about the real economic benefits of the DC boom to Malaysia. Will it translate into the economic multipliers promised?

Industry observers and experts say the DC boom in the country is a positive development as it supports the digital economy and will create new jobs, among other benefits.

But a big drawback of DCs is their voracious appetite for land, electricity and water. They also require a consistent and steady supply of electricity at all hours of the day for data processing and cooling systems.

Malaysia currently has a peak electricity demand of close to 20gw. Putrajaya’s recent approval of a total DC capacity of 4gw makes the country Asean’s top DC hub. But will this put a tremendous strain on its resources?

Can the increase in electricity usage lead to higher GDP growth?

Sunway University Business School professor of economics Yeah Kim Leng says Malaysia is benefiting from the initial stage of DC development, which is attracting FDI and construction projects. The multiplier effect that comes from being a DC hub will come after the completion, he tells The Edge.

“Malaysia can specialise in data services, particularly those related to generative AI, which have applications across various sectors like healthcare and services, leading to improved service quality and innovative solutions. This will enable Malaysia to progress beyond semiconductors and acquire the technology transfer from having big tech companies in the country,” he adds.

According to Knight Frank’s SEA-5 Data Centre Opportunity Index report, Malaysia attracted RM141.72 billion in digital investments in the first 10 months of 2024 — three times the approved digital investments for the whole of 2023 (RM46.2 billion). These investments are expected to create 41,078 job opportunities.

The report also highlights that DCs are a critical component in powering the growing digital economy and that their operations demand substantial energy and water to ensure uninterrupted functionality of servers, cooling systems and other IT equipment.

“The sudden surge in data centre investments in Malaysia, especially in Johor over the past two years, has raised concerns about the nation’s and the state’s ability to handle the increased demand for electricity and water resources. Stakeholders are questioning whether the existing infrastructure can sustainably support this rapid growth without compromising environmental commitments and local communities,” Knight Frank says in a December 2024 report.

In this regard, it was reported that the Johor government has taken a strategic and decisive stance to reject nearly 30% of DC applications.

At the federal level, Prime Minister Datuk Seri Anwar Ibrahim cautioned against rushing to build DCs, especially if they do not add value to Malaysians in terms of high-income jobs and knowledge-sharing. “The traditional approach of providing support and incentives to investors without taking into account the economic spillover achieved is no longer sustainable,” he said in his Budget 2025 speech, noting high quality investments were preferred.

Following the announcement, Treasury secretary-general Datuk Johan Mahmood Merican said Putrajaya was working on restructuring its incentive packages for DC investments to ensure broader economic benefits, and that it would be announced in mid-2025.

“We are rethinking this enthusiasm with data centres. They are large in terms of capex, but sometimes they don’t necessarily create many high-skilled jobs. And sometimes, they consume a lot of electricity and water,” he added. 

Source: The Edge Malaysia

Can Malaysia capitalise on its data centre ambitions?

Sarawak will potentially supply power to Sabah and Brunei once a 500MW combined cycle gas turbine (CCGT) facility is completed in Miri by 2027, says Tan Sri Abang Johari Openg.

The Premier said Sarawak already had an agreement with Sabah to supply 50MW of power, but the neighbouring state had requested an increase to 100MW.

“We are looking at our capacity in terms of energy production.

“By 2027, the CCGT facility in Miri will be ready with 500MW capacity, so we will be able to supply to our neighbours,” he told reporters after giving a special address in conjunction with his eighth anniversary of taking office as Premier here on Monday (Jan 13).

Abang Johari said Sarawak was also planning three more combined cycle plants in Bintulu with 500MW capacity each by 2027.

With this additional capacity, he said Sarawak would be able to meet Sabah’s request for 100MW.

He also said the state was in discussions with Brunei on power supply.

In his special address, Abang Johari said the RM2bil CCGT facility in Miri would enhance the power supply in northern Sarawak besides potentially serving Sabah and Brunei.

He also said the plant would use a mixture of methane and hydrogen to reduce emissions and boost energy efficiency.

“During my visit to Mitsubishi Heavy Industries’ Takasago Hydrogen Park (in Japan), I witnessed the world’s first large-frame hydrogen-powered gas turbine.

“This breakthrough technology will be integrated into Sarawak’s CCGT facility, reinforcing our leadership in low-carbon energy transition,” he said.

Source: The Star

Miri gas turbine plant can power Sabah, Brunei once ready, says Abang Johari

Malaysia is exploring how financial technology (FinTech) can serve as a key instrument in all the agreements signed between the country and Asean, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Currently, there are 16 multilateral and bilateral agreements between Malaysia and Asean, with the 17th to be inked next week.

While he did not elaborate further on these agreements, he emphasised that FinTech was a foundational tool for operationalising them.

“We are looking at how FinTech can be a major instrument, enabler, or foundation in all the trade agreements we have signed, such as the Asean Single Window (ASW) agreement and the Regional Comprehensive Economic Partnership (RCEP),” he said.

Tengku Zafrul was speaking at the Forum Ilmuwan Malaysia Madani Series Four: Using Technology in Financial Services to Drive Prosperity and Inclusivity on Friday evening.

The event, moderated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, was streamed live on Communications Minister Fahmi Fadzil’s Facebook.

Tengku Zafrul spoke alongside Malayan Banking Bhd president and group chief executive officer Datuk Khairussaleh Ramli, and Funding Societies Malaysia Group chief operating officer and CEO Wong Kah Meng.

Meanwhile, Tengku Zafrul highlighted the crucial role of FinTech in integrating Asean trade and expressed hope that it would bring greater inclusivity.

“Currently, intra-Asean trade accounts for only 22 to 23 per cent of total Asean trade, largely dominated by large companies.

“But as you know, Asean is driven by small and medium-sized enterprises. Hopefully, FinTech will bring more inclusivity to the game,” he said.

While FinTech holds immense potential, Tengku Zafrul acknowledged challenges, including technological accessibility gaps.

“When we talk about FinTech in Asean, or even in Malaysia, not everyone has access to the technology, which is another issue we need to address,” he said.

He also expressed hope that technology and its inclusivity could benefit as many Malaysians as possible, especially as many have questioned whether they have felt the impact of GDP growth.

Tengku Zafrul urged a whole-of-government and whole-of-nation approach, calling for collaboration among stakeholders, including investors, academia, and policymakers, to build an inclusive and sustainable future.

Source: Bernama

Tengku Zafrul: Malaysia to leverage FinTech in Asean trade agreements

Engineering and project management consultant HSS Engineers Bhd (HEB) is set to expand its recurring income stream with its second venture in the renewable energy sector by developing a 95MW alternating current large-scale solar photovoltaic plant (LSS plant) in Teluk Intan, Perak.

HEB’s wholly owned subsidiary, HEB Energy Sdn Bhd, and its consortium partner Unique Fire Holdings Bhd have accepted a letter of notification from the Energy Commission to undertake the development of the plant.

HEB Energy and Unique Fire will set up a special purpose vehicle to undertake the project, which encompasses financing, design, construction, installation, testing, commissioning, completion, operation, and maintenance of the LSS plant. HEB Energy will own a 40% equity stake in a special purpose vehicle and Unique Fire the majority 60%. The estimated commercial operation date of the plant is Oct 11, 2027.

The LSS plant is part of the government’s fifth LSS bidding exercise, known as LSS-Peralihan Tenaga SuRia. The initiative is aimed at supporting Malaysia’s goal of achieving 70% renewable energy capacity by 2050, as outlined in the National Energy Transition Roadmap.

HEB executive vice-chairman Tan Sri Kuna Sittampalam said: “With this second and larger solar power project, we are in a pivotal position to advance as a key player in Malaysia’s ambitious renewable energy goals under NETR, building on our expertise in project management and engineering design. This initiative aligns with the government’s commitment to global climate action under the Paris Agreement.”

He added that they are on the cusp of profound growth in their participation in the renewable energy sector, fuelled by progressive government initiatives, including a RM1 billion allocation for the Green Technology Financing Scheme and RM300 million for the National Energy Transition Fund under Budget 2025.

“Expanding our vertical of recurring and long-term income-based contracts also underscores our commitment to diversifying sector coverage and revenue streams, catapulting us to substantial growth in the years to come,” Kuna said.

The development of the LSS plant, is contingent upon the consortium executing a solar power purchase agreement with a corporate consumer to commit to purchasing solar energy generated by the plant for 21 years.

The project, to be funded via internally generated funds and/or external borrowings, will contribute positively to HEB Group’s financial performance from 2027 onwards. It is the second project under HEB Group’s recurring and long-term income-based contracts vertical, after the 29.99MW solar photovoltaic plant project in Kuala Muda, Kedah. The vertical provides HEB Group with long-term income and complements its core expertise in engineering and project management consulting.

Source: The Sun

HSS Engineers expands further into renewable energy with solar plant project in Perak

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