DATA centres are not exactly a new industry. However, we entered a new phase in 2024 with the advent of generative artificial intelligence (AI). The demand for data centres increased exponentially to accommodate its intense computational demands.

The market size of AI is expected to grow by four times within the next six years, and it will drive an annual growth of 15% in global data centre energy demand over the same period of time.

I have been told that a CHATGPT search consumes about 10 times more energy than a conventional Google search. The energy consumption of AI data centres is immense and will have a significant impact on the net zero carbon emissions aspirations of many organisations and even countries.

The generative AI boom is presenting the same set of challenges to data centres everywhere in the world.

Prime Minister Datuk Seri Anwar Ibrahim, in his Budget 2025 speech on Oct 18, mentioned this:

“The country … must embark on a new paradigm shift to attract more meaningful investments. We can no longer sustain the outdated approach of offering incentives and support to investors without considering the broader economic benefits.

“For instance, investment in data centres should not be pursued unless they bring tangible added value to the rakyat, such as high-paying job opportunities and knowledge transfer.

“A fresh shift in focus is now essential, ensuring that the support provided has a multiplying effect that directly benefits the rakyat and the nation, rather than merely serving the profit motive of the investor companies.”

Now, this is a challenge for everyone, that when we grow the data centre business, we must think not just about the infrastructure but also about the multiple challenges that we have to deal with. There are five such challenges that we must work on together.

First, how to create jobs, and more importantly high value jobs, in this industry. I understand that data centres on site don’t create a sufficient number of jobs. We must think of how to generate the multiplying effect of creating jobs in operations, maintenance, and along the entire supply chain.

The job opportunities may not be on site, but the industry will have to articulate that it is growing jobs at all levels.

While developing the data centres in Johor’s Sedenak, Kulai, and Iskandar Puteri, which have now become the focal point of data centres, how do we create higher-skilled maintenance, engineering, and services jobs in Kuala Lumpur or Johor Baru? It has to come as a package.

Johor Mentri Besar Datuk Onn Hafiz Ghazi has said he asked data centre operators about pay rates, and they pay S$4,000 (RM13,150) in Singapore and RM4,000 in Malaysia. This is why he advocated for industry players to pay Malaysians at least 50% of what they pay Singaporeans, especially after benefiting from the low cost of utilities, land, and labour in Malaysia, which are 70% cheaper than in neighbouring countries.

How do we create jobs that pay well? How do we benchmark pay? My advice to the Malaysian industry, whether you are in a data centre or other sector, do not benchmark Malaysian pay against pay in countries with a lower skill capacity. Benchmarking has to be done differently. Malaysia should be thought of as a “Singapore at a discount”. When we think about jobs, we need to think about pay. There is no talent problem in Malaysia – the only problem is that Malaysian talents are working in Singapore. When you offer two-thirds of Singapore pay, they will come back to work in Malaysia.

The second question is water consumption. The data centre industry will have to invest in creating alternative water sources instead of competing with the people for water. For instance, southern Johor has many rivers but most of them are very dirty. Should investment be put into cleaning them up and reclaiming that water, apart from other solutions?

The third challenge is energy consumption. Two years ago, the Malaysian government made a commitment to reach net zero carbon emissions as early as 2050. This year, the Prime Minister reaffirmed that target. Energy intensive industries, including data centres, will have to look into technologies – existing and new – to help achieve this national target.

Investments in renewable energy is imperative to allow for the data centre industry to grow while minimising impact on sustainability.

The fourth challenge is localisation. This is, again, mandated by the Prime Minister to Miti (Inter-national Trade and Industry Ministry). The Prime Minister requested that Miti and Mida (Malaysian Investment Develop-ment Authority) look into mechanisms for the data centre industry to localise.

One good example is server racks. Over the past few months, the import of server racks has been quite significant. How can the government work with industry players to instead create Malaysian equipment for domestic consumption of data centres as well as potentially for export? We must remember that Malaysia has very strong metal fabrication and equipment industries that have been serving the semiconductor industry for a while.

The fifth and final challenge – the nation will also have to work with the data centre industry to prevent speculative build. AI is going to power a lot more demand for data centres, but at the same time, we need to ensure there is no speculative build which could result in a glut.

Finally, I highly encourage data centre industry players to form an association, to build a collective voice, and a common policy platform, as well as to advocate for good and solid policies for the common good of the industry and the nation.

The data centre industry is in a new phase globally. Everyone is facing the same challenges, and this is the best time to come together and work together – the government, the industry players, the users, and the wider stakeholders – to look at how to build this industry and how to deal with the challenges outlined above. I hope we can work together so that this industry can flourish, and at the same time, Malaysians benefit from the industry.

LIEW CHIN TONG Deputy Minister International Trade and Industry Ministry

Excerpt from a speech delivered at the Malaysia Cloud and Data Centre Convention 2024 on Oct 24.

Source: The Star

Challenges and opportunities of the data centre industry

Malaysia’s renewable energy and green technology industries are positioned for strong growth as the global green transition is creating significant opportunities for the country.

Allianz SE chief economist Ludovic Subran said industries such as solar energy, sustainable manufacturing and green tech innovation are experiencing high demand, especially as global supply chains push for cleaner energy sources.

He noted that Malaysia’s strong export performance in upstream industrial sectors such as technology and equipment bolstered the renewable energy sector.

“We are seeing a surge in new export orders for technology and industrial machinery, with the renewable energy market particularly well-positioned to benefit. As the world transitions to greener energy solutions, Malaysia is poised to capture more value from its exports in this space,“ Subran said during a media briefing on Autumn Economic Outlook 2024-2026: The Great Balancing Act today.

He said that the potential for service-based sectors, particularly in high-value outsourcing, to contribute to future growth. “Malaysia’s proficiency in English and its cost advantages present a strong case for attracting more business in services like legal, tax, and consulting related to the green transition.”

Touching on the domestic economy, Subran said Malaysia’s gross domestic product (GDP) growth for 2025 is expected to slow down amid external economic headwinds and domestic challenges

He forecast a 0.5% reduction in Malaysia’s GDP growth in 2025, citing fiscal tightening and the Malaysian central bank’s decision to maintain interest rates.

“A significant adjustment is happening due to a weaker domestic real estate market and concerns around political-economic uncertainties. Households are feeling the pressure and without interest rate cuts, residential real estate prices are not growing as fast, which impacts consumption,” said Subran.

Additionally, he noted that fiscal tightening measures have reduced public expenditures, which is expected to contribute to slower growth. “The half-point fiscal cut is creating what we call the ‘Ricardian’ effect, where consumers are holding back on spending due to expectations of higher taxes or reduced public benefits,” he added.

Subran said the ringgit’s performance is expected to fluctuate significantly depending on the United States presidential election outcome.

“If former US president Donald Trump returns to office, the ringgit could depreciate by 5-10% due to a stronger US dollar. A Trump presidency would put considerable downward pressure on the ringgit as the dollar strengthens. On the other hand, if Kamala Harris takes office, we expect the ringgit to face only a mild depreciation of around 2-3%, which is more manageable,” he said.

Despite the potential recovery, Subran noted, the volatility of the global market remains a concern for Malaysia, especially with the need for external capital to fund growth. “The ringgit’s vulnerability stems from Malaysia’s reliance on external financing, which exposes it to currency shifts, particularly in times of political and economic turbulence abroad.”

Looking ahead, Subran mentioned that Malaysia will need to navigate these economic challenges by balancing domestic policy adjustments with efforts to strengthen its renewable energy and green technology sectors.

“While the immediate outlook may appear challenging, sectors tied to green energy and sustainable technology provide a solid foundation for future growth. The key will be to foster strong research and development partnerships, improve incentives for technology investment and ensure that Malaysia continues to move up the value chain in the global market.”

As Malaysia positions itself to capitalise on these industries, Subran said, the country’s long-term economic prospects remain bright, provided that both external vulnerabilities and domestic policy adjustments are managed effectively.

Source: The Sun

Malaysia’s renewable energy, green tech industries set for strong growth: Allianz SE

The water reservoirs at Bakun, Murum, and in the near future, Baleh, will provide huge areas for floating solar installations, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said this huge potential of solar resources can be used to pump water and subsequently utilised to generate power during unavailability of the sunlight, thereby providing additional and sustainable energy for Sarawak.

“This not only addresses our water management needs but also supports our goals of sustainability and energy efficiency,” he said in his keynote address at the Borneo International Water and Wastewater Exhibition and Conference (BIWWEC) 2024 at the Borneo Convention Centre Kuching (BCCK) today.

He added that these initiatives highlight Sarawak’s proactive approach to preparing its water and wastewater infrastructure for the demands of a growing population and a changing environment.

Abang Johari said renewable energy derived from water at hydropower plants such as Batang Ai, Bakun and Murum provided sustainable use of Sarawak’s water resources to achieve generation mix comprising predominantly renewable sources.

“Future renewable hydropower will also be implemented through cascading power sources with a series of smaller reservoirs which will have minimal impact on the environment and displacement of affected communities.

“The reservoir for the hydropower provides potentially suitable sites for floating solar, which can be used with PHES (pumped hydro energy storage), thereby increasing further renewable energy generation from water resources,” he said.

He informed that a 50MW floating solar farm is currently under construction at Batang Ai Hydropower reservoir, which upon its completion by this year end will become the largest floating solar farm in Malaysia.

“These efforts reflect Sarawak’s dedication to safeguard our environment while ensuring a reliable and sustainable water supply and utilisation for future generations,” he remarked.

During the ceremony, Abang Johari witnessed the exchange of Memorandums of Understanding (MoUs) between several organisations, namely Affin Islamic Bank Berhad and the Malaysian Water Association (Sarawak Branch); Weida Resources (Sarawak) Sdn Bhd and Singapore’s HSL Constructor Pte Ltd; Malaysian Water Association (MWA) and Singapore Water Association; International Water Association (IWA) and MWA; and IWA and Persatuan Perusahaan Air Minum Seluruh Indonesia (Perpamsi).

Also present were Deputy Premier Datuk Amar Dr Sim Kui Hian, Utility and Telecommunication Minister Dato Sri Julaihi Narawi and his deputies Datuk Liwan Lagang and Datuk Dr Abdul Rahman Junaidi, as well as BIWWEC organising chairperson Rodziah Mohamad.

Source: Borneo Post

Premier: Sarawak to tap into floating solar installations potential on hydro dams reservoirs

Glomac Bhd is currently in talks with respective parties to venture into the waste-to-energy business, as part of its plan to seek new sources of revenue, according to group managing director and chief executive officer Datuk Seri FD Iskandar Mohamed Mansor.

“We also have to get the buy-in from the respective councils because at the end of the day, this waste is collected by councils. So, if they don’t send it to you, you won’t get it. But as the Malaysian economy is growing, our landfills cannot accommodate it much longer. How many more landfills are you going to open? One of the ways to eliminate this is waste-to-energy. Yes, we are looking at it, but we are still in the talking stages,” said FD Iskandar.

While the group is open to consider any new business ventures, he assured that the company will still stay true to its core business as a property developer.

“Let me put it very clearly that we are still very much a property and real estate firm. If there’s anything synergistic to the property and real estate industry, yes, we are always open,” he told reporters after Glomac’s 40th annual general meeting on Wednesday.

Glomac first revealed that it is considering diversifying into new businesses in an interview with The Edge Malaysia weekly, published earlier this month, saying that the new venture must be within areas that have synergies with its core business in property development. One of the businesses that the group is considering is green energy.

FD Iskandar is also the chairman of GreenRE Sdn Bhd, which was set up by the Real Estate and Housing Developers’ Association (Rehda) Malaysia in 2013 to drive sustainable real estate in Malaysia’s property industry by providing green building certification and rating, green building training and awareness programmes, and by funding research and development into related areas.

Notably, Naza Corp Holdings Sdn Bhd, another property developer, in May completed the acquisition of a 100% stake in Berjaya Enviro Holdings Sdn Bhd (BEnviro) from Berjaya Corp Bhd for RM700 million in cash, marking its entry into the green economy with a focus on municipal and scheduled waste, as well as the waste-to-energy sector.

Source: The Edge Malaysia

Glomac in talks to venture into new businesses beyond property development

The Ministry of Investment, Trade, and Industry (MITI) is finalising sustainable development guidelines for data centres.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, said his ministry has held several engagement sessions with various government agencies and data centre industry players in Malaysia to develop the guidelines.

He added that the guidelines include metrics such as Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) to measure energy and water efficiency.

“In addition, to ensure a comprehensive approach to sustainable data centre development, the guidelines also set a metric for Carbon Usage Effectiveness (CUE) to measure carbon emissions by data centres.

“The guidelines are being finalised and will be one of the requirements for incentive applications for future data centre investments,“ he said during a question-and-answer session in the Dewan Rakyat today.

Tengku Zafrul said this in response to a question from Mohd Syahir Che Sulaiman (PAS-Bachok), who asked about the current status of energy and water usage guidelines for data centres, as part of efforts to ensure data centres in Malaysia support the net-zero carbon emission target by 2050.

He added that the government also encourages the implementation of green technology policies and the use of renewable energy (RE) in data centre operations to achieve the 70 per cent RE target by 2050, as outlined in the National Energy Transition Roadmap.

Tengku Zafrul noted that the Corporate RE Supply Scheme (CRESS) is also being implemented to facilitate access for data centre operators to RE sources generated by third parties.

“CRESS will facilitate and enable more data centres to benefit from RE, making the operational costs of the centres more competitive in the long term,“ he added.

Source: Bernama

MITI finalising sustainable development guidelines for data centres

Sarawak has the advantage of having renewal energy and water in abundance, which would enable the data centre industry to thrive in the state, said the Premier.

Datuk Patinggi Tan Sri Abang Johari Tun Openg noted that data centres need sufficient and reliable supply of energy and water as a cooling agent to enable them to function smoothly.

“You asked me if Google can go to Sarawak, it depends on you (Google). It’s not up to us to decide because basically what you want is the bottom line.

“If you can have the bottom line more in Sarawak, why not come to Sarawak?” he said at a luncheon jointly hosted by digital technology solutions provider Accenture and Google Singapore yesterday on the sidelines of the weeklong Singapore International Energy Week (SIEW) Summit.

Sarawak currently has one Tier IV data centre located in Santubong, which was launched in 2022 and operated by PP Telecommunication Sdn Bhd.

During the recent International Digital Economy Conference Sarawak (Idecs) 2024, Aizo Group Bhd inked a memorandum of understanding (MoU) with NetRunner Sdn Bhd to jointly establish a Tier IV data centre hub in the state to meet an increasing demand for secure and reliable data storage and processing facilities.

Abang Johari acknowledged that while places such as Singapore enjoyed an advantage in the growth of data centres, Sarawak’s location would not be a problem with connectivity.

“Your operation can be in Sarawak but you may work from other parts of the world if there’s good connectivity,” he said.

Abang Johari later met with Singapore Senior Minister Teo Chee Hean and Education Minister Chan Chun Sing.

Earlier, he had a meeting with Richard Lochhead, Minister for Business of the Scottish Government, and Deputy Minister (Energy) at the Prime Minister’s Office of Brunei Dato Seri Paduka Awang Mohamad Azmi Mohd Hanifah.

Upon arrival at the Sands Expo and Convention Centre in the morning, the Premier was interviewed by CNBC and later delivered his keynote address as well as launched the Sarawak Energy booth.

In the evening, he and key members of his entourage were guests at a dinner hosted by Second Minister for Trade and Industry Tan See Leng.

Source: Borneo Post

In wooing Google, Premier points out abundance of renewable energy, water in Sarawak for data centres to thrive

The implementation of a sustainability-linked regulatory framework could catalyse data centre developments in regions beyond Cyberjaya and Johor, such as Kedah, as investors seek to tap into new areas for digital hubs, according to BMI.

BMI, a Fitch Solutions company, believes this could create a scenario where these emerging regions either benefit from demand spillover from major markets or evolve into new digital hubs.

However, this strategy requires a higher risk tolerance, as investors may need to commit capital even when demand may not materialise immediately in these regions.

In a statement today, it noted that Kedah shares similar characteristics with Malaysia’s major markets before they became saturated, making it an attractive option for investors.

Its strategic location enables it to capitalise on the submarine cables that run in Southern Thailand — a connectivity source which could be leveraged by data centres.

It said the real estate private equity firm, the Area Group, has begun construction of a data centre campus in Kedah.

“Investment into this area comes amidst above-average power, water and connectivity infrastructure presence, hedging against the potential introduction of regulation aimed at enforcing sustainability-linked standards for the domestic data centre industry.

“These are likely to be contributing factors to the movement of investment away from saturated domestic sub-markets such as Johor,” it noted.

The first phase of the data centre campus will have an estimated gross development value (GDV) of US$2.4 billion (US$1=RM4.30), and the entire 63 hectares, upon completion, will have an estimated GDV of US$15 billion. 

Nevertheless, BMI still believes Johor will continue to be the leader in Malaysia in terms of upcoming information technology (IT) (critical power) load, with 268.5 megawatts (MW) of live capacity.

There are approximately 507MW of capacity under construction, and another 921MW planned for delivery over the long term.

However, it noted that flooding is a key environmental risk, posing a threat to the timeliness and cost implications of projects within the region.

“It is noteworthy that flooding is a large risk in many parts of Malaysia, however, investors may be enticed by the lack of structural constraints compared to the most saturated markets,” it said.

Source: Bernama

Sustainability plan to boost Malaysia’s data centre growth – BMI

THE rising demand for skilled talent in the digital industry is set to be addressed with the launch of the Digital TVET & Careers hub in Kuala Langat.

Officiated by Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong, the initiative was spearheaded by TVETAA, an organisation dedicated to advancing technical and vocational education and training in Malaysia, and supported by key industry players and training organisations, aiming to equip the workforce with critical digital skills.

“The digital landscape in Malaysia is evolving rapidly, and with it, the demand for skilled talent has reached unprecedented levels, driven by local and international investments.

“The future of work is changing globally, accelerated by emerging technologies like Artificial Intelligence (AI), big data, cloud computing, and cybersecurity.

These trends are highlighted in the World Economic Forum’s Future of Jobs Report 2023, signaling the urgency for a well-prepared digital workforce,” said Wilson Ugak on Sept 26.

The Digital TVET & Careers hub aims to bridge the gap between the demand for digital talent and the current supply from educational institutions.

“We are addressing this issue by offering industry-recognised, internationally certified qualifications, ensuring our talents meet the evolving needs of digital players,” said TVETAA managing director Datuk Bruce Lim Aun Choong.

This unique partnership unites industry leaders, educational institutions, and digital training providers to create a seamless talent pipeline, he added.

Leading companies and the Malaysia Digital Chamber of Commerce (MDCC) also pledged their support by establishing industry labs and resources within the hub.

“The TVET hub offers a blend of academic learning, hands-on upskilling and reskilling, and the cultivation of a growth mindset.

“Our goal is for the hub to act as a finishing school, preparing candidates from partner institutions for real-world digital careers,” he said.

By shortening traditional educational pathways and aligning them with industry needs, the initiative ensures just-in-time talent production, preparing the workforce to meet the fast-evolving demands of the digital economy.

Malaysia Digital Economy Corporation (MDEC) senior vice president Raymond Siva said this significantly reduces the time required to develop industry-ready talents while keeping pace with technological advancements.

“We will continue collaborating with industries to identify current and future skill demands, facilitated by agencies like MDEC and the Malaysia Productivity Corporation (MPC).

“Simultaneously, we are working with institutions such as universities, polytechnics, colleges, and GIATMARA centres to identify high-potential digital talents for our training programmes,” said Wilson Ugak, who also witnessed the signing of collaborative agreements between TVETAA and institutions like Universiti Malaysia Kelantan (UMK), Universiti Putra Malaysia (UPM), Universiti Malaysia Sabah (UMS), and various polytechnics and GIATMARA centres during the event.

Source: The Star

New regional digital TVET hub to train talents

Investment in digital infrastructure is crucial for driving innovation, strengthening Malaysia’s economy, and ensuring long-term competitiveness in the global market. 

In response to the 2025 Budget announcement, Open DC founder and managing director Weng-Yew Wong said, “”The allocation of RM3.8 billion by Bank Negara in SME funding loans marks a significant step in empowering entrepreneurs as they transition to digitalisation and automation.” 

Wong, who is also the founder and managing director of Extreme Broadband, emphasised that this initiative will support small and medium-sized enterprises (SMEs) in their digital transition, helping them remain competitive in the global market.

He also lauded the additional RM10 million allocated to the National Cyber Security Agency (NACSA) and the recruitment of 100 new personnel to enhance national security, which will boost confidence in Malaysia’s digital economy and make the country more resilient in an increasingly interconnected world.

However, Wong noted that the RM10 million allocation is just a starting point, as the scale of investment needed is far greater.

The announcement of a second 5G network to strengthen Malaysia’s ICT sector and accelerate 5G adoption is timely, he said, especially as the country prepares for its Asean chairmanship in 2025.

Wong said he believes that the investment in digital infrastructure by the government is important to elevate Malaysia’s global position and foster a more competitive business environment.

Source: NST

Investment in digital infrastructure vital to sustain competitiveness in global market

The second 5G network can increase the country’s competitiveness as well as attract investment from technology-based companies to establish business facilities in Malaysia, said the Academic Coordinator of the Faculty of Electrical Engineering, Universiti Teknologi Malaysia (UTM), Associate Prof Dr Leow Chee Yen.

He said the second 5G network to be announced by the government, as tabled by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2025 in the Dewan Rakyat last Friday, will showcase the country’s infrastructure development, which is on par with that of developed nations.

“It will also speed up the digitisation of various economic sectors. With the introduction of two 5G networks, we hope to fast-track the implementation of advanced industrial applications such as automation, robotics and artificial intelligence, which demand a network that is highly responsive, fast, and reliable,” he said when contacted by Bernama.

Leow praised the tabling of Budget 2025 which allocated RM120 million to improve internet access in all public institutions of higher learning (IPTA), schools, military camps and MARA institutions.

“The internet facilities in most of these institutions are now obsolete. The use of modern technology will provide faster and more efficient internet access,” he said.

In another development, Leow lauded the use of MyDigital ID, a unified government application that integrates all relevant agencies, making it easier for the public to manage their affairs.

He said the application allows citizens to access various government services using one account, all at their fingertips.

“For me, more important is the advanced security features in MyDigital ID. It uses the latest technologies such as encryption, blockchain, multi-factor authentication as well as smart artificial intelligence, to ensure that all online transactions are done safely and reliably.

“In addition, the use of MyDigital ID can also reduce cases of identity theft, forgery and cyber fraud that have been increasing lately,” he said.

Meanwhile, Information Technology expert, Dr T Sashi Kumar welcomed the allocation of RM100 million to strengthen the functions of the National Information Dissemination Center (NADI) nationwide.

The move, he said, will improve existing infrastructure and services, while benefiting the Small, Micro and Medium Businesses (PMKS).

“It will help speed up the business digitization process as well as resolve issues related to financing and e-payment, as often emphasised by traders.

“This will also encourage the PMKS sector to digitalise their services and accelerate the use of electronic payments,” he added.

Meanwhile, the Dean of UTM’s Faculty of Electrical Engineering, Prof Dr Jafri Din said the RM20 million allocation in Budget 2025 to strengthen the role of the National Fraud Response Centre will strengthen the management of the online fraud system in this country.

Source: Bernama

Second 5G network can increase country’s competitiveness, attract investment — academicians

Sarawak is committed to supporting Southeast Asia’s transition to renewable energy by harnessing its potential to become the “Battery of Asean”, supplying predominantly renewable power through the interconnected Borneo and Asean Power Grid.

Sarawak Premier Tan Sri Abang Johari Tun Openg said as regional demand for clean energy increases, these efforts are crucial for enhancing cross-border energy exchange, strengthening regional energy security, and accelerating clean energy transition.

“Looking ahead to the Asean Plan of Action for Energy Cooperation for the 2026–2030 period, and with Malaysia set to assume the Asean chair in 2025, we are committed to deepening regional cooperation and fostering greater connectivity across our energy systems,” he said in his keynote address at the Singapore International Energy Week (SIEW) Summit on Monday.

The premier, in pushing the envelope further, said making the Asean Power Grid a reality would require more than just technological and financial solutions.

“It needs political will, policy alignment, harmonisation of regulations and standards, infrastructure development, and regional cooperation.”

Abang Johari said Sarawak is collaborating with the federal government to advance the Asean Power Grid, with the formation of a joint taskforce between Malaysia and Indonesia to accelerate its development.

He emphasised that Sarawak is not only focused on providing clean power for its own development but also sees significant commercial potential in exporting electricity.

Abang Johari said the state is a strong proponent of regional interconnectivity, foreseeing that power trade within Asean will gradually shift from bilateral connections to a more integrated network incorporating renewable sources.

He said Sarawak’s partnerships with Indonesia, Sabah, Brunei and Singapore could serve as a foundation for cross-border energy trade through pioneering projects such as the Borneo-Indonesia-Malaysia-Philippines Interconnection.

Abang Johari shared that since 2012, Sarawak has formed a partnership with Indonesia’s Perusahaan Listrik Negara in the Kalimantan region, marking a significant step towards regional energy collaboration in Borneo.

Building on this foundation, he said Sarawak is advancing the Mentarang Induk Hydroelectric Plant (MIHEP) in Indonesia, a project that promises to reshape the nation’s energy landscape, and explore the potential to link North Kalimantan’s significant hydropower resources to the rest of Borneo and beyond.

“From our role as energy producer, exporter and utiliser, Sarawak is committed to foster cross-border partnerships and investments as our energy transition success stories can serve as models for other jurisdictions.”

Speaking at a press conference later, Abang Johari said discussions are still ongoing with Indonesia regarding Sarawak’s undersea cable project to export electricity to Singapore, with hopes that the infrastructure could be ready by 2030.

“Next year, Malaysia as the chair of Asean will initiate further on this.” 

Source: Bernama

Sarawak aims to lead regional energy transition, becoming the ‘Battery of Asean’, says Abang Johari

Project to position state as digitally advanced region

Sarawak Energy Bhd (SEB) is to power the Sarawak Data Centre Park (SDCP) project, the state’s first energy-efficient tier four data centre hub to be located here.

Wholly-owned subsidiary Syarikat Sesco Bhd has inked a memorandum of understanding (MOU) with Netrunner Sdn Bhd on the sale and purchase of electricity for the project.

Netrunner is a special-purpose vehicle focused on attracting investments for a state-of-the-art data centre park in Sarawak and will lead the technical development and design of the SDCP.

Netrunner has also entered into a MOU with AIZO Bhd (formerly Minetech Resources Bhd) to explore the joint development of the SDCP.

Netrunner directors and shareholders Ahmad Rahizal Datuk Ahmad Rasidi and Emma Yazmeen Yip Mohd Jeffrey Yip are also executive directors of AIZO.

The two Mous were among several others signed and witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg during the 7th International Digital Economy Conference Sarawak 2024 here last week.

Data centre tiers are a standardised ranking system that indicates the reliability of data centre infrastructure.

This classification ranks from one to four, with one being the worst and four the best-performing level. A data centre receives this international ranking from an independent organisation, Uptime Institute.

Netrunner director Ronnie Lim said the set up of the proposed tier four data centre hub, which is targetted for completion in 2030, will enhance Sarawak’s reputation as a forward-thinking, digitally advanced region.

The SDCP is set to establish a new standard for data centre operations in Malaysia by addressing the increasing demand for advanced data storage and processing capabilities in the region.

The project aims to support local economic development while incorporating efficient technologies and sustainable practices in line with Sarawak’s commitment to green energy and responsible development.

Lim said the project will contribute to job creation, foster technological innovation and promote eco-friendly development initiatives.

“It embodies a vision where digital infrastructure growth harmonises with environmental stewardship and social responsibility, paving the way for a more sustainable future in Sarawak.”

The data centre project will provide infrastructure that supports both local enterprises and international clients, further establishing Sarawak as a hub for digital innovation.

SEB group chief executive officer Datuk Sharbini Suhaili said the state-owned utility firm’s collaboration with Netrunner demonstrates its dedication to meeting the growing digital infrastructure needs of the region with reliable energy.

“As we work towards becoming a digital utility, collaborations like these align with our vision of building a stable energy future while supporting Sarawak’s aspiration of becoming a leader in the digital economy,” he added.

AIZO executive chairman Datuk Abang Abdillah Izzarim said the MOU with Netrunner represents AIZO’S maiden venture into the data centre industry.

“This strategic move marks a key step in the company’s diversification into digital infrastructure, a rapidly growing sector that represents significant growth opportunities.

“By entering the data centre market, AIZO is positioning itself to meet the rising demand for secure and efficient data management solutions while reinforcing its commitment to innovation and sustainable development in Sarawak.

“This MOU is a significant milestone for all parties involved and we are excited to contribute to Sarawak’s advancement into the digital age.

“Working alongside the Sarawak government and Netrunner, we believe the data centre park will become a cornerstone for the region’s digital infrastructure,” added Abang Abdillah, also the son of the Sarawak Premier.

When opening the conference, Abang Johari said Sarawak had launched two major initiatives to advance its digital agenda – the Sarawak Technology and Innovation Sandbox (STIS) and Sarawak Digital Residency Programme (SDRP).

He said the STIS, which is developed in partnership with the National Technology and Innovation Sandbox, Sarawak Digital Economy Corp, Startup Borneo and Tegas, aims to facilitate the state transition to a knowledge-based economy.

The STIS is expected to drive innovation in agritech, smart cities and cultural industries, positioning Sarawak as a food security hub and supporting the Sarawak Post Covid-19 Development Strategy 2030.

The SDRP, said Abang Johari, is a bold initiative aimed at attracting professionals, remote workers, foreign entrepreneurs and investors to Sarawak.

“With flexible terms, we are positioning Sarawak as an inclusive digital hub that welcomes global talent. Our first initiative under this programme – De Rantau Sarawak – will open for applications early next year in collaboration with the Malaysian Digital Economy Corp, further solidifying Malaysia’s status as a top destination for digital nomads in South-east Asia,” he added.

Source: The Star

SEB to power Sarawak Data Centre Park

The Budget 2025 provides significant support to further accelerate Malaysia’s digitalisation, encourage the adoption of artificial intelligence (AI) and drive inclusive growth, said the Malaysia Digital Economy Corporation (MDEC).

The support will further position Malaysia as a leading digital hub within the Asean region.

Its chief executive officer Anuar Fariz Fadzil said the Budget 2025 is apt as Malaysia prepares to chair Asean next year.

“With strategic initiatives in place, Malaysia is ‘future ready’ and well-equipped to drive regional collaboration in key areas such as AI, the digital economy and innovation, and strengthening our role in Asean and beyond,” he said in a statement today.

Anuar said the proposed budget provides incentives to both local and foreign investors to continue investing in Malaysia, especially in high-value activities, including digital services.

He added that the nation’s small and medium enterprise (SME) community also stands to benefit from initiatives to embrace digital tools for greater productivity and operational efficiencies, enabling SMEs to survive and thrive in an increasingly competitive global economy.

The RM1 billion allocation for the National Fund-of-Funds and RM1 billion Pioneer Fund by the Retirement Fund Inc are key initiatives to support Malaysia’s startup ecosystem.

“We also welcome the additional RM65 million for Cradle Fund to expand regional and global potential for local startups, as well as the RM15 million matching grant to encourage collaboration between government-linked companies and startups through corporate venture capital,” Anuar said.

A significant highlight of Budget 2025 was the successful attraction of US$16.9 billion (RM72.6 billion) in investments from global technology giants, including Amazon Web Services, Microsoft, Google, and Oracle.

“These investments will catalyse job opportunities for the rakyat while upskilling initiatives and the establishment of centres of excellence are set to enhance Malaysia’s standing within Southeast Asia’s digital landscape,” he said.

On the AI front, the government’s RM10 million allocations to the National AI Office and RM50 million for AI education demonstrate a strong commitment to advancing AI and building a skilled talent pipeline.

“These efforts will accelerate AI adoption and ensure Malaysia leads in AI innovation and ethical development across the region,” Anuar said.

Source: Bernama

Budget 2025 to accelerate Malaysia’s digitalisation, AI adoption

The Pahang government plans to mirror the efforts of Kuala Lumpur and Johor by attracting participants from the data centre industry to invest in the state.

State investment, industry, science, technology and innovation committee chairman Datuk Mohamad Nizar Najib highlighted the potential of the industry and emphasised that Pahang should not miss out on the sector’s opportunities to drive the state’s economy.

“We will assess the number of investment proposals from data centre companies. However, Pahang’s involvement may not match the level of the Klang Valley and Johor, which have each attracted between 40 and 50 data centres.

“This caution is due to concerns about the supply of water and electricity, as data centres consume significant amounts of these resources. Additionally, robust fibre optic infrastructure is essential,” he explained during the “My Digital Tour (JSD) @ Kuantan and Pahang Technology Revolution Expo (TReX) 2024”.

Also present was Amiruddin Abdul Shukor, head of corporate services at the Malaysian Digital Economy Corporation (MDEC).

MDEC has identified several locations in Pahang, including Kuantan, Gambang, and Bentong, as suitable for meeting the conditions needed for data centre development.

“The development of data centres must ensure that people still receive adequate basic facilities,” said Nizar.

He also urged MDEC to assist the state government in attracting more digital nomad workers — those who rely heavily on technology and live a nomadic lifestyle while working remotely — to choose Pahang as their base.

He pointed out that Pahang offers attractive locations such as Cameron Highlands, Fraser’s Hill, and Janda Baik in Bentong, which could help boost the state’s economy.

“Whether individuals are digital nomad workers, digital entrepreneurs, vloggers, TikTokers, or YouTubers, they can work remotely from here,” he noted.

Amiruddin expressed MDEC’s readiness to support Pahang in attracting investments from the data centre industry, as it falls within the agency’s remit.

“When it comes to investment, the Investment, Trade and Industry Ministry (MITI) will take the lead, but MDEC is involved because it pertains to our activities and ecosystem.

“One successful collaboration is the green data centre in Sedenak, Johor, and more recently, we’ve been asked by the Premier of Sarawak to assist in developing a data centre there,” he added. 

Source: Bernama

Pahang to focus on wooing data centre industry investors

Microsoft is committed to partnering with the government to drive responsible artificial intelligence (AI) innovation in Malaysia, enabling a future where digital transformation benefits everyone.

Microsoft Malaysia managing director Laurence Si said Budget 2025, unveiled by Prime Minister Datuk Seri Anwar Ibrahim on Friday, reflected the government’s commitment to create positive outcomes for Malaysia through driving AI innovation and responsible adoption.

“Support for enterprises, especially micro, small and medium enterprises (MSMEs) to harness transformative digital and AI technologies will enhance the country’s global competitiveness and resilience, fuelling our journey toward high-income nation status,” he said in a statement.

Under the RM421 billion budget, which is the highest in history, the government has proposed to allocate RM10 million to the National AI Office (NAIO) as well as to increase the research and development to RM600 million.

Si said this will be instrumental for tapping into next-generation opportunities at the intersection of AI and science, empowering local researchers to tackle complex challenges and unlock exponential benefits across society. He said strengthening the local AI ecosystem will enable Malaysia to unlock multiple benefits from the growing investments in digital infrastructure, positioning the country as a regional digital powerhouse.

“The ASEAN AI Safe initiative further paves the way for Malaysia’s chairmanship of ASEAN, fostering collaborative efforts to realise transformative AI benefits responsibly across the region,” he added.

Meanwhile, Cult Creative chief executive officer Shermaine Wong said the budget is a crucial step in fostering talent and innovation, both of which it believes are core pillars of the Malaysian economy, especially in the digital sectors.

She said with the industry being talent-heavy, initiatives that prioritise funding, digital tools and support for content-preneurs are timely and vital for driving competitiveness and long-term growth.

She noted that the RM50 million Digital Matching Grant and Bank Simpanan Nasional’s Digital Grant align with the needs of modern-day “content-preneurs.”

Wong highlighted that the RM1 billion Strategic Investment Fund under the New Investment Incentive Framework not only aims to enhance local talent capacity but also encourages the execution of high-value activities that can elevate Malaysia’s content creators to new heights.

“Cult Creative firmly believes that nurturing talent and providing access to resources will spur greater innovation, empower young creatives and unlock new opportunities within the industry,” she said.

Source: Bernama

Microsoft pledges to drive responsible AI innovation in Malaysia, supporting Budget 2025’s digital transformation goals

Budget 2025 is a step towards accelerating Malaysia’s clean energy transition and the company is eager to participate in the Kenyir Floating Hybrid Solar Farm, said Solarvest Holdings Bhd.

It said the government’s decision to continue key energy initiatives, including the continuation of the Green Technology Financing Scheme (GTFS) with a funding amount of RM1 billion until the year 2026 demonstrates a commitment to fostering a thriving renewable energy sector.

“Budget 2025 is a significant step forward in solidifying Malaysia’s position as a leader in renewable energy. By allocating over RM300 million under the National Energy Transition Fund (NETR), compared to RM100 million this year, the country is set to enhance its energy landscape.

“The consistently strong demand for solar energy and net energy metering (NEM) underscores the importance of extending NEM to June 2025. This move will enable clean energy providers like us to further contribute to the nation’s energy transition,” it’s group chief executive officer Davis Chong said.

He said Solarvest is looking forward to participate in the Kenyir Floating Hybrid Solar Farm, the green hydrogen hub in Terengganu and the remaining 10 NETR flagship projects.

“Additionally, e-rebates of up to RM70 million are provided to encourage consumers and industries to buy energy-efficient electrical equipment, supporting individuals and businesses transitioning to clean energy solutions. This will drive greater adoption of renewables, delivering lasting benefits for our economy and communities.”

Solarvest looks forward to partnering with public and private sectors to further the nation’s sustainability goals.

Source: Bernama

Budget 2025 accelerates clean energy transition, Solarvest keen on Kenyir Solar Farm

Most of the 10 flagship catalyst projects and initiatives implementation for the National Energy Transition Roadmap (NETR) introduced in August last year, are on schedule.

NETR outlines 10 flagship catalyst projects and 50 key initiatives under six energy transition levers.

They are energy efficiency (EE), renewable energy (RE), hydrogen, bioenergy, green mobility, as well as carbon capture, utilisation and storage (CCUS) to unlock economic opportunities and reduce carbon emissions. 

The flagship catalyst projects are championed by various entities including Petroliam Nasional Bhd, Tenaga Nasional Bhd, Khazanah Nasional Bhd and SEDC Energy. 

The NETR flagship catalyst projects and initiatives, championed by different entities both in the public and private sectors, demonstrate the varying and unique approaches in advancing Malaysia energy transition.

The projects and initiatives serve as pathfinders to explore new economic opportunities in supporting the nation’s green growth for climate resilience through energy transition. 

The Energy Efficiency and Conservation Act 2023 has been enacted, while the bill on CCUS is schedule to be tabled by the end of 2024.

Another notable progress is the completion in the construction and commission of 2.0 per cent biomass co-firing system in Tanjung Bin Power Plant.

“The co-firing initiative with a target capacity of at least 15 per cent biomass by 2027 is anticipated to substantially reduce carbon dioxide, emissions, equivalent to planting about 141 million mature trees.

The introduction of Corporate Renewable Energy Supply Scheme (CRESS) in July 2024 enabled the companies to supply or acquire green electricity through the national grid network system.

The scheme is an important enabler for several the NETR projects as an off-take mechanism, it said. 

Another significant progress is the development of the large scale solar photovoltaic (PV) plants under the fifth competitive bidding round by the Energy Commission in April 2024.

These solar power plants with a total combined capacity of 2,000 megawatt (MW) are scheduled to commence operations in 2026. 

Likewise, TNB is advancing its RE initiatives with the commencement of the hybrid hydro-floating solar PV project at its hydro dam lakes, with a total planned capacity of 2,500MW. 

The project, starting with an initial 30MW at the Chenderoh hydro dam in Perak, is set to expand to other locations including the Temenggor hydro dam in Perak and Kenyir in Terengganu by 2027. 

A successful National Energy Transition Roadmap (NETR), which was introduced in August last year, could increase the “green” energy contribution to Malaysia’s gross domestic product (GDP) to RM220 billion in 2050 from RM25 billion in 2023.

“The successful implementation of the NETR is expected to increase the sector’s GDP contribution from RM25 billion in 2023 to RM220 billion in 2050, with 310,000 job opportunities will be generated.

“It is also expected to reduce greenhouse gas (GHG) emissions by 32 per cent in energy sector from 259 megatonne of carbon dioxide equivalent (MtCO,eq.) in 2019,” the report said. 

In addition, the roadmap outlines the phasing out of coal as energy source by 2050, with natural gas being the primary contributor of the total primary energy supply mix at 56 per cent while renewables, namely solar, hydro and bioenergy contributing 23 per cent.

Issues and Challenges

The NETR faces several key challenges including the high cost of energy transition, lack of awareness and demand, technical and commercial feasibility issues, the undesirable consequences associated with fossil-fuel transitioning campaign on Malaysia’s economy, as well as global uncertainties.

The high cost of energy transition requires a total financing of at least RM1.2 trillion.

The report said it is one of the main challenges in achieving the targets outlined in the NETR by 2050. 

“About 63 per cent of this funding is primarily needed for RE and green mobility. Investments in RE, which includes power generation and grid network will involve expanding solar PV and hydropower as well as enhancing grid infrastructure,” it said. 

Meanwhile, green mobility funding focuses on expanding public transportation, boosting domestic EV production, and increasing EV charging infrastructure.

Significant investments are also necessary to scale up nascent hydrogen and CCUS technologies, alongside commitments to improve energy efficiency, advance sustainable aviation and marine transports, as well as establishing green skilling programmes. 

Investments in RE which include grid network costs about RM170 billion and for power generation the cost will be about RM260 billion. 

“Another significant challenge is the lack of awareness and demand due to misconceptions on the benefits of transitioning to sustainable energy. It is often perceived that sustainable energy is costly and less reliable compared to conventional sources.

“This has resulted in the averseness of industries, businesses and households to invest and procure energy-efficient technology and products,” the report added. 

Both technical and commercial feasibility also pose significant challenges to the energy transition. Shortage of expertise, particularly in green technologies, and the high capital expenditure as well as scarcity of resources would further impede the pathway to net-zero. 

On another note, the development of the CCUS in Malaysia has yet to reach commercial scale, due to challenges arising from both the technology’s nascent status and associated high cost.

The report also said that another inevitable challenge is the international commitment to move away from fossil fuels, as deliberated at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC – COP28).

This historic milestone has intensified the call to reduce investments in fossil fuel industries particularly in energy sector. 

“While this supports the net-zero transition pathway, the challenges for Malaysia is to ensure the economic activities will not be affected with the call since energy is one of the key enablers for economic growth.”

Way Forward

In response to the high cost of energy transition, the report said Malaysia may need to consider a blended financing approach, which includes equity crowdfunding, venture capital, philanthropic contributions and multilateral development funds.

The NETF, which was unveiled under Phase 2 of the NETR in August 2023, has been designed as a catalytic blended finance platform, aimed at expediting the mobilisation and deployment of capital.

The facility will enhance the accessibility of funds, streamline investment processes, and ensure a seamless financial flow to finance energy transition projects. 

“Energy transition projects are still surrounded by apprehensions on the commercial viability, either due to being technologically immature or yet to reach commercial scale. 

“However, acknowledging the potential for the projects to achieve commercial scale, government support is pertinent, both financial and non-financial, to accelerate the adoption and commercialisation of green technology, hence contributing to the nation’s sustainable future,” the report said. 

In line with the Putrajaya Low Carbon Green City initiative, 11 locations have been selected for solar roof installations through a collaboration between TNB and Gentari.

These solar roofs help lower GHG emissions, decrease carbon footprint, support climate change mitigation efforts, thereby reducing operating costs. 

The government is also promoting the green economy through the development of a high-tech hub with the establishment of the Kerian Integrated Green Industrial Park.

Meanwhile, the government provided over RM59 billion in grants, loans and financing guarantees for micro, small, and medium enterprises (MSMEs) to bolster business capacity and drive income growth. 

As of end-July 2024, a total of RM2.9 billion was approved for over 20,800 borrowers. 

In addition, the micro loan schemes under Bank Simpanan Nasional Bhd has provided RM245.7 million to over 6,500 borrowers, covering hawkers, traders, micro-entrepreneurs, gig workers and new graduates. 

Meanwhile, Syarikat Jaminan Pembiayaan Perniagaan Bhd has guaranteed 10,153 SMEs loan financing with a total amount of RM10.9 billion while Syarikat Jaminan Kredit Perumahan Bhd approved RM2.8 billion as a housing financing credit guarantee, benefitting 8,644 individuals.

Source: NST

NETR to energise Malaysia, power the future

The government will focus on prioritising digital and technology-based industries, under the high growth high value (HGHV) initiative framework.

This is in line with the goal to position Kuala Lumpur as the leading strategic hub for startups in Southeast Asia and top 20 globally by 2030, said the Economic Outlook 2025.

The report said these initiatives will support Ekonomi Madani’s aspiration in positioning Malaysia as one of the top 30 economies globally.

The KL20 Action Plan (KL20) has been formulated to strengthen the national startup ecosystem and outlined the specific goals to be delivered by 2030.

“The Action Plan underlines five key priorities and several initiatives to transform the ecosystem comprehensively.

“The KL20 lays out tangible reforms to converge key stakeholders, consisting of founders, venture capitalists, talents, incubators and accelerators, with the national agenda of spurring new opportunities, including job creation in high-growth potential fields and enhancing socio economic values,” it said.

The report said the initiatives will benefit small and medium enterprises (SMEs) and entrepreneurs by providing funding and business support as well as facilitating prospects for investment and collaboration.

Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) and BlueChip Venture Capital will create a fund of RM3 billion (RM1 billion each) to attract more venture capital to invest in Malaysia.

The proceeds are earmarked to invest in promising early-stage startups, including via equity financing, knowledge-sharing as well as opportunities to collaborate with industry players, incubators and accelerators.

The economic report added that the government will speed up initiatives under the pre-implementation stages with an effective tracking of any shortcoming during the implementation process.

“Nurturing the growth of promising startups in Malaysia will not only drive domestic innovation but also pave the way for the emergence of homegrown unicorns’ capable of thriving on the global stage,” it added.

Source: NST

Government to focus on digital, tech sectors to put KL in world’s top 20 hubs

Zecon Bhd has signed a tripartite memorandum of understanding (MoU) with Sarawak Digital Economy Corporation Bhd (SDEC) and the Centre for Technology Excellence Sarawak Sdn Bhd (CENTEXS) to develop the Kota Petra Green Technology Park (KPGTP).

The 1,214ha facility will feature a 300-megawatt (MW) solar farm and a Battery Energy Storage System (BESS).

The collaboration aims to utilise the strengths of each organization: Zecon as the landowner, SDEC to accelerate digital technology and telecommunications, and CENTEXS to provide industry-based training and technology testbeds.

KPGTP is located near the Demak Laut Industrial Park and Senari Port, about 7 km from Kuching’s city center, and has been granted Special Economic Zone (SEZ) status by the Sarawak state government.

The project is expected to generate around RM12 billion in investments and create 10,000 jobs during construction, including 4,300 direct jobs.

The anticipated direct annual GDP contribution is at least RM1.7 billion.

Additionally, the park will host six AI-driven data centers, further positioning Sarawak in the data-driven economy.

Zecon is currently seeking funding for the solar farm and associated infrastructure, with an estimated capital expenditure of RM900 million.

During the MoU signing ceremony, Zecon also entered into agreements with Huawei Technology (Malaysia) Sdn Bhd for green technology and China Energy International Group (Malaysia) Sdn Bhd for renewable energy projects.

Source: The Malaysian Reserve

Zecon partners with SDEC and CENTEXS to launch Kota Petra Green Technology Park

Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg welcomed a courtesy visit from United States ambassador to Malaysia, Edgard D Kagan, at his office in Menara Pelita here today.

Kagan said his meeting with Abang Johari was aimed at strengthening trade relations, economic cooperation and investment between the United States and the Sarawak government in the field of renewable energy.

According to an Information Department report, Kagan highlighted that the meeting focused on enhancing trade relations, economic cooperation, and investment between the United States and Sarawak, particularly in renewable energy.

“It is part of Sarawak’s efforts to boost hydrogen development in addition to creating opportunities to strengthen US-Malaysia relations,” he said.

Kagan is currently in Sarawak for a two-day working visit, during which he is scheduled to attend the American Corner Sarawak 20th Anniversary at the State Library in Petra Jaya this afternoon.

Also present during the courtesy call was Sarawak State Secretary, Datuk Amar Mohamad Abu Bakar Marzuki.

Source: Borneo Post

US ambassador meets Sarawak Premier to strengthen renewable energy ties

Approximately RM85.7 billion in research and development (R&D) is required to achieve the targets set by the National Science, Technology, and Innovation Policy (NSTIP) 2021-2030, said the Science, Technology, and Innovation Ministry (Mosti).

The policy aims to increase the gross domestic expenditure on R&D (GERD) to 2.5 per cent of the gross domestic product (GDP) by 2025 and 3.5 per cent by 2030.

“Based on projections, to raise R&D expenditure to 3.5 per cent of the GDP by 2030, the estimated R&D spending needed is RM25.7 billion from the public sector and RM60 billion from the private sector.

“This is based on a contribution ratio of 30:70 between the public and private sectors,” it said on the Parliament website today.

Mosti was responding to Simpang Renggam MP Datuk Seri Hasni Mohammad’s query on whether the R&D funding rate impacts the country’s technological development and innovation capacity, referencing Malaysia’s position compared to other countries like South Korea in terms of R&D allocations.

It said the ratio of GERD to the national GDP is about 1.0 per cent, equivalent to RM13.48 billion, which significantly lags behind South Korea’s allocation of nearly 5.2 per cent of its GDP, amounting to RM368.09 billion in 2022.

“Data also shows that the R&D expenditure ratio between the public and private sectors in Malaysia is 59:41, where the private sector contributes 18 per cent, which is lower compared to the public sector,” Mosti said.

The government is taking proactive steps through initiatives such as the Malaysia Science Endowment Fund, i-Connect, Single Window, grant financing, and double tax deduction incentives for R&D expenditures.

Mosti added that the government is also enhancing access to the latest technology through various programmes under different agencies and departments to increase private sector involvement.

Source: Bernama

Nearly RM86 bln in R&D investment needed to achieve NSTIP targets — Mosti

Chinese companies should consider Malaysia an ideal destination to set up regional headquarters, from which they can expand internationally through Malaysia, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

In his pre-recorded keynote address at the CGS Southeast Asia (SEA) Bilateral Investment Forum here on Wednesday, he said Malaysia’s strength lies in having a skilled and educated multilingual workforce, an internationally-recognised common law framework, a comprehensive logistics network, and a stable society.

He hopes that further communication between Malaysia and China would allow for a deeper and closer collaboration between the two countries.

“In addition to traditional economic and trade cooperation, Malaysia and China should work together on new emerging industries, especially new energy vehicles and solar photovoltaic systems.

“We look forward to closer cooperation in technology development and its application to solve daily challenges,” he said.

In addition to Malaysia assuming the Asean chairmanship next year, Liew said Chinese companies should view Malaysia as a gateway to the rest of Asia.

He noted that the 10 Asean countries currently had a population of 670 million, which is expected to grow to over 800 million in the next two decades.

“When China joined the World Trade Organization in 2001, about 100 million people were considered to be in the middle class.

“Today, by any measure, China has at least 400 million people living a middle-class lifestyle, making it a huge global market,” he said.

According to Liew, if Southeast Asia can develop a middle-class population as large as China’s current 400 million in the next 15 to 20 years, the region will also emerge as a very large consumer market.

“There are many areas where China and Southeast Asia can collaborate. We hope that when Malaysia assumes the Asean chairmanship next year, we can promote more cooperation, especially in new industries, such as new energy vehicles and its standards,” he said. 

Meanwhile, the two-day CGS SEA Bilateral Investment Forum 2024 brings together 300 leading policymakers, industry experts, and business leaders to explore emerging macroeconomic trends and bilateral investment opportunities between China and Southeast Asia.

The forum until Thursday will also explore high-growth sectors such as semiconductors, new energy, healthcare, private equity, hospitality, and the digital economy, featuring expert panellists from China and Southeast Asia.

China Galaxy Securities Co Ltd (CGS) chairman Wang Sheng said the focus on diversified and resilient supply chains had heightened the importance of the China-Asean corridor, creating global growth opportunities for ambitious businesses. 

“At CGS, we have always believed in the power of connection and collaboration. 

“We aim to facilitate cross-border investment and financing, thereby fostering economic and social development across China and Asean,” he said.

As China advances its plans to establish Hainan as the world’s largest free-trade port by 2025, he said the forum will offer invaluable insights into how this transformation will reshape China’s economy and create fresh opportunities for collaboration between Hong Kong, the Greater Bay Area, and Southeast Asia. 

Source: Bernama

Liew urges Chinese companies to set up regional HQs, expand internationally through Malaysia

Pekat Group Bhd is well-positioned to capitalise on substantial growth opportunities driven by Malaysia’s rising demand in the renewable energy sector, Tenaga Nasional Bhd’s infrastructure upgrade and from the surge in data centres investment, said Phillip Capital.

Pekat is a company that specialises in the installation of solar photovoltaic (PV) systems and provides earth and lightning protection (ELP) systems.

Phillip Capital Research has initiated coverage of Pekat with a “buy” call and a target price of RM1.15 that values the company at 22 times the projected earnings for FY2025.

The research house forecasts a 43% compound annual growth rate (CAGR) in Pekat’s net profit over 2023-2026E, supported by its strong RM564 million order book, potential ELP orders from infrastructure and data center projects, as well as from the Tenaga’s grid upgrades as a result of the EPE Switchgear acquisition.

The completion of the EPE Switchgear acquisition marks a significant step forward in Pekat’s growth strategy, “positioning the company to benefit from the rising demand within the power distribution equipment sector,” the research house noted in its report on Wednesday.

The research house added that Pekat’s strong presence in high-growth sectors allows the company to gain a competitive edge and capture a larger market share in Malaysia’s energy landscape.

According to Phillip Capital, the company’s well-established track record in delivering rooftop solar PV systems has allowed it to benefit from Malaysia’s ongoing Net Energy Metering (NEM) programme and large-scale solar initiatives, including the Corporate Green Power Programme (CGPP) and the upcoming Large-Scale Solar 5 (LSS5) initiative.

Meawhile, Pekat’s ELP division is expected to witness strong growth, bolstered by significant public infrastructure projects such as the Penang Light Rail Transit (LRT), Johor LRT/Automated Rapid Transit (ART), and the Mass Rapid Transit 3 (MRT3), which are key drivers for this segment.

However, the research house warns of the potential downside risks, including changes in government policy, slower-than-expected order book replenishment, escalation in solar module prices, and unforeseen project cost overruns and delays. 

At 3.57pm, Pekat was trading at 92.5 sen, unchanged from the previous day’s close. This values the company at RM596.6 million.

Source: The Edge Malaysia

Pekat to capitalise on rising solar energy and data centre opportunities in Malaysia, says Phillip Capital

Premier Tan Sri Abang Johari Tun Openg said today that the state government is establishing the Sarawak AI Centre, which will lead the state’s initiatives in artificial intelligence (AI) development and its integration into the digital infrastructure.

He said the centre would be pivotal in driving innovation and positioning Sarawak as a hub for AI research and development.

“Through strategic partnerships with academic institutions, industry leaders, and government entities, the Sarawak AI Centre will be nurturing a vibrant AI ecosystem,” he said at the opening of the Seventh International Digidal Economy Conference Sarawak (IDECS) here today.

He said one of the centre’s flagship initiatives was the “AI for Smart Agriculture” programme, which uses AI-powered data analytics to optimise crop yields and promote sustainability in agriculture.

He said the centre was also spearheading healthcare projects, such as predictive analytics for early disease detection and enhancing energy efficiency through AI-driven smart grid systems.

Abang Johari said the state remained dedicated to implementing ethical and transparent digital strategies that enhance the quality of life for Sarawakians.

He said the state government would launch its “AI Talent Development Initiative” to cultivate a skilled workforce equipped with advanced AI competencies, aligning with the demands of future industries.

He said these initiatives underscored the state’s commitment to harnessing AI as a fundamental driver of digital transformation across various sectors.

“Moreover, the state government is forming an AI Unit within the civil service and developing an AI data centre to bolster our capabilities.

“We will collaborate with industry experts, academia, federal authorities and international bodies, ensuring a meaningful contribution to our AI transformation journey,” he added.

He said the state government was also at the forefront of AI in public service delivery, adding that its “Dayang” virtual assistant — a local dialect-enabled chatbot — allows Sarawakians to access government services effortlessly through their mobile devices.

He said the tool enhanced user interaction and provided localised services, supporting basic functions like bill payments, Sarawak ID assistance, contractor registration, and case logging via Talikhidmat.

He said that for the private sector, Sarawak Digital Economy Corp (SDEC) was mandated to lead digital transformation in multiple economic areas.

He said the efforts include initiatives such as Go Digital, SME Digitise, Sarawak Digital Mall, and Kamek Digital.

He said SDEC and its key partners, such as the state International Trade, Industry and Investment Ministry, had digitalised more than 20,000 micro, small and medium enterprises across various industries in Sarawak.

“Through the High Tech Transformation Programme, 10 Sarawakian companies in the manufacturing sector have greatly benefited from digital technology adoption in their daily processes,” he said.

He said the state’s digital strategy prioritised local innovation and entrepreneurship.

He said SDEC had empowered the private sector economy in establishing efforts to catalyse the academia-industry linkage via the development and testing of novel or improved products with research and development expertise in emerging technologies.

Abang Johari said the state, which launched its e-wallet, SPay Global (formerly Sarawak Pay) platform in 2017, had facilitated cashless transactions across various public and private services, boosting digital financial inclusion.

He added that to date, SPay had processed RM4.2 billion in transactions, with a registered user base of 770,000 and 91,000 merchant partners in the region.

Source: NST

Sarawak AI Centre to boost digital innovation

Aizo Group Bhd plans to develop a state-of-the-art Tier 4 data centres park in Sarawak.

The company today said it had signed a memorandum of understanding (MoU) with Netrunner Sdn Bhd for the prospect.

Netrunner, a special purpose vehicle focused on attracting investments for data centres park in Sarawak, will lead the technical development and design of the Tier 4 Data Centres Park, ensuring it meets global standards in security, energy efficiency, and reliability.

Aizo will provide infrastructure support, including the development of clean energy solutions and water treatment facilities to ensure the sustainability of the data centres’ operations.

Aizo executive chairman Datuk Abang Abdillah Izzarim said the MoU is a milestone for all parties involved. 

“Working alongside the Sarawak government and Netrunner, we believe that the Tier 4 Data Centres Park will become a cornerstone for the region’s digital infrastructure. 

“Aizo Group is proud to play a role in supporting the growth of Sarawak’s digital economy and ensuring that this project has a lasting positive impact,” he said. 

The MoU represents Aizo’s maiden venture into the data centre industry. 

This move marked a key step in the company’s diversification into digital infrastructure, a rapidly growing sector that presents significant growth opportunities.

“This collaboration aligns with Aizo’s strategic vision of leveraging cutting-edge technology and sustainable solutions to create long-term value for our stakeholders. We remain committed to our goal of driving innovation and supporting Sarawak’s digital ambitions,” he said.

Source: NST

Aizo eyes data centre development in Sarawak