Malaysia is now more selective in choosing foreign direct investments, with a focus on projects that would greatly benefit the country, especially in the field of artificial intelligence (AI) and data technology, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the opening of a data centre that used to depend on cheap energy and water to move and cool the operating systems, is now no longer sufficient.

“Now, if you want to (establish) a data centre, you must have AI,” he said, referring to projects like Nvidia in Johor, “which is an example of how technology needs to be improved to remain relevant,” he said at the Ilmuan Malaysia Madani Forum here on Wednesday organised by Tenaga Nasional Bhd.

Anwar said universities in this country should also be empowered to produce skilled workforce in the field of AI and engineering in order to meet the needs of high-tech investors.

“So, if the investment is big, we are now more selective in choosing investments that can benefit the country more,” he explained.

Meanwhile, touching on the national budget, he outlined education and health as the main priorities, with the highest allocation given to the education sector, followed by health. 

Source: Bernama

Malaysia to prioritise foreign investments in AI and data tech, says PM Anwar

The Ministry of Trade, Investment and Industry (Miti) will continue to nurture talent, deepen trade relationships and ensure Malaysia remains a leading manufacturing and services hub, contributing to a prosperous and inclusive Asean.

In giving the commitment, its minister Tengku Datuk Seri Zafrul Abdul Aziz said the path towards that would be supported by strong policies, world class infrastructure and a resilient economy.

“Through the New Industrial Masterplan 2030 (NIMP 2030), for example, we hope to create 3,000 smart factories by 2030, by integrating advanced technology, utilising data for strategic insights and delivering personalised services,” he said in his keynote address at a dinner organised by InvestKL Corporation on Thursday.

Zafrul said balancing and integrating both the manufacturing industry and modern services will elevate the manufacturing industry.

In terms of modern services, he highlighted the three sectors mentioned in NIMP 2030, namely digital and ICT, global services and professional services, and manufacturing-related Services (MRS).

“On digital and ICT services, for example, we have been enabling activities such as digital infrastructure, which includes data centres and cloud computing,” he added. “We are thrilled that companies such as Google and Amazon Web Services (AWS) have chosen Malaysia to establish their cloud network.”

Malaysia’s total approved investments in the first half of 2024 stood at RM160 billion, an 18% year-on-year increase, of which the services sector, particularly in technology and digital services, made up RM97.2 billion, or 60.7% of total approved investments.

“The establishment of the AWS world class cloud infrastructure in Malaysia, for example, will digitally enable developers, startups and enterprises, as well as government, educators and even non-governmental organisations (NGOs) to have greater choice for running their applications and serving end-users from AWS data centres located in Malaysia,” he explained.

The key to the success of the country’s modern services sector is talent, so Miti is also taking steps to ensure that its people have the skills to match the demands of a rapidly evolving services sector. “We are fully committed to developing the skilled workforce necessary to support Malaysia’s continued rise as a global player in high-tech industries,” he said.

Through “sub-policies” such as the National Industry Framework for ESG (i-ESG), National Semiconductor Strategy (NSS), the Green Investment Strategy (GIS) and the Circular Economy Policy Framework for Manufacturing, the path towards reindustrialisation is geared towards not just growth, but also sustainable and inclusive growth, he said.

Plans for an inclusive Asean

As chair of Asean next year, Zafrul said the government is currently putting together a solid to-do list to build a more prosperous, sustainable and inclusive Asean.

It includes working towards the substantial conclusion of the Digital Economy Framework Agreement (DEFA), “which is most relevant in the context of our modern services discussion today,” he said. “I would also like to highlight that in a world where supply chain re-configuration has become a high stakes venture, many global companies and multinational companies also need a neutral, peace-loving partner. That partner is Asean.”

During the chairmanship of Asean next year, Putrajaya will not only ensure that the commitment to Asean Centrality is renewed, “but we will strive to defend Asean Neutrality; we have seen the dividends pay off handsomely for us in these challenging geopolitical times,” he noted.

The minister said he is highly optimistic about Asean’s growing role in the global supply chain, and consequently, its growing significance in the global order. “Asean’s proposition as the premier supply chain point and gateway to numerous key markets is still at its nascent stage. Malaysia, in particular, will always remain open to all our friends from within and outside the region.”

Source: Bernama

Malaysia digitally equipped to be regional services hub for global companies — Zafrul

The private sector must play a key role in developing Artificial Intelligence (AI) education in Malaysia, says Prime Minister Datuk Seri Anwar Ibrahim.

He said the private sector’s involvement in Technical and Vocational Education and Training (TVET) could also serve as a model for collaboration in AI education.

Anwar said partnerships between the government and major corporations, including banking institutions and conglomerates are crucial to ensure that AI programmes meet the nation’s future needs.

“Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has strengthened TVET, but we cannot rely solely on outdated TVET syllabi.

“Private sector cooperation would further enhance its efficiency, especially in AI and technical training,” he said in his keynote address at the Invest Malaysia – Iskandar Puteri 2024 conference held at Sunway Hotel Big Box, here today.

Anwar stressed the importance of collaboration between entities such as Khazanah Nasional, Bursa Malaysia, and major corporations to produce a skilled workforce equipped to handle AI technologies.

“I believe AI technical training will be more effective with private sector involvement compared to traditional education programmes,” he said.

The conference, hosted by Bursa Malaysia and co-hosted by Maybank, CIMB Securities and HSBC Malaysia, focused on Iskandar Puteri as Malaysia’s southern economic gateway.

Themed ‘Where Policy Meets Progress’, it saw the participation of 500 local and foreign delegates.

The conference highlighted key developments, particularly on the Johor – Singapore Special Economic Zone (JSSEZ), and offered insights into Malaysia’s macroeconomic landscape, particularly Johor’s market prospects.

Also present were Johor Menteri Besar Datuk Onn Hafiz Ghazi, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar, and Johor’s Economic Investment adviser Datuk Seri Hasni Mohammad.

Malaysia’s first AI faculty was set up at Universiti Teknologi Malaysia (UTM) with an initial allocation of RM20 million.

Anwar said establishing UTM’s AI Faculty in just four months was a key step towards talent development in line with growth and investment initiatives in Iskandar Puteri’s economic and financial zones.

“I am impressed by UTM’s ability to launch its AI Faculty in such a short time. During my visit to Abu Dhabi, I saw similar AI projects take one to two years to complete,” he said.

Anwar also called for continued efforts to attract international investments through closer collaboration with Asean countries, citing the JSSEZ as an example of effective cross-border partnerships.

“We are witnessing strong collaboration between Johor and Singapore through the JSSEZ, with industry players working together to ensure its success,” he said.

Meanwhile, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the Invest Malaysia-Iskandar conference covered a range of topics including data centre investments, Johor’s property market, and the JSSEZ’s potential impact on regional development.

The conference marked its fifth edition of the 2024 series, following conferences in Melbourne, China, Singapore, and Hong Kong.

Source: NST

PM: Private sector involvement key to AI education development

The state government takes pride in the performance of technology and innovation-driven investments entering Selangor, including the opening of Google’s digital and data centre in Elmina Business Park, Sungai Buloh.

Menteri Besar Dato’ Seri Amirudin Shari said this reflects the investors’ confidence in the state’s potential to strengthen the sector and support future technology industries.

“Google’s investment is expected to create 26,500 new job opportunities. The administration is confident that today’s programme will drive innovation growth among youth and create more high-tech job opportunities.

“Simultaneously, the administration also organises various programmes involving primary, secondary, and university students every year. These are carried out in collaboration with state-run universities, Universiti Selangor, and Universiti Islam Selangor,” he said.

Speaking at the Central Zone Malaysia Techlympics 2024’s closing ceremony today, Amirudin said that each year, RM1 million is allocated to run programmes and modules related to science, technology, engineering, and mathematics.

“We are confident that this initiative will not only address employment issues and the shortage of engineers but also help create a nation of inventors.

“By becoming creators, we become stronger because others will use what we create,” he said.

Source: Selangor Journal

Tech, innovation sectors draws investors, creates new job opportunities — MB

Malaysia’s ambition to become a modern services hub is pivotal to its transition towards a sustainable high-income economy, says Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Speaking at the InvestKL Malaysia, Paving the Way to a Modern Malaysia dinner, he said the nation’s ongoing efforts to attract global investments had significantly transformed its investment landscape over the past two years.

“Despite global challenges, Malaysia has consistently outperformed its regional peers, particularly in terms of GDP growth, political stability, and ease of doing business. We also possess world-class digital and physical infrastructure, which provides a solid foundation for our emphasis on modern services,” he said.

Tengku Zafrul said that the modern services sector, encompassing digital, government, finance, healthcare, and education services, was essential for Malaysia’s progression to a sustainable high-income economy.

“In advanced economies, modern services elevate the manufacturing sector beyond labour-intensive activities. A well-implemented modern services sector will not only complement Malaysia’s manufacturing industry but also drive innovation and economic complexity, while catalysing national development,” he said, adding that the nation’s future as a modern, inclusive, and prosperous country hinged on attracting high-impact investments and strengthening trade relationships.

With strong policies, world-class infrastructure, and a resilient economy, Tengku Zafrul expressed confidence that Malaysia would continue to thrive on both regional and global stages.

Meanwhile, InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli praised Malaysia’s remarkable transformation from an agriculture-based economy to one driven by manufacturing and services.

“Today, 60 per cent of our GDP is contributed by the services sector, reflecting global trends towards automation, advanced technologies, and artificial intelligence. This is the new frontier of modern services, embracing digitalisation, sustainability, and knowledge-based activities,” he said.

He said that Kuala Lumpur was at the forefront of the services industry, bolstered by digital solutions, innovation, and a dynamic talent pool.

“Malaysia’s prime location, robust infrastructure, and skilled workforce continue to position us as a top destination for foreign investments. MITI has been committed to enhancing the ease of doing business and introducing forward-looking policies that have begun to yield results,” he added.

Azmi also pointed to recent investment announcements from prominent tech companies, highlighting Malaysia’s strong value proposition and its ability to attract leading global firms.

“InvestKL has secured investments from over 140 multinational companies, contributing billions of ringgit to the economy and creating more than 30,000 high-skilled executive jobs in Greater Kuala Lumpur,” he said.

These investments, he said, had generated significant economic benefits nationwide, positioning modern services as a major contributor to Malaysia’s GDP.

Malaysia attracted RM160.0 billion of approved investments, which is an 18 per cent increase compared to RM135.6 billion approved investments in the same period last year.

The services sector emerged as the clear frontrunner, commanding a significant share of RM97.2 billion or 60.7 per cent of the total approved investments, an increase of 14.4 per cent from the same period last year.

Source: NST

Tengku Zafrul: Malaysia eyes modern services as key to high-income economy

GDEX Bhd’s recent foray into information technology (IT) is aimed at improving the efficiency of its logistics and last mile delivery operations, said managing director and group chief executive officer Teong Teck Lean.

Speaking to The Edge on Thursday, he said the company is expanding its offerings to include both logistics and technology solutions, which could slightly increase the group’s pricing power in the market.

“A lot of people think we no longer want to focus on courier services. No…in fact, express delivery remains our largest contributor. We see challenges in the courier industry, with too many foreign companies entering the domestic market and too much price pressure.

“We believe the best way to survive is to enhance our customers’ experience with our business solutions so that many brand owners will prefer to use our courier services. Once our last-mile operations recover, we’ll have more cash flow to potentially acquire other businesses,” Teong said.

He is targeting double-digit revenue growth from the IT segment, aiming for 12% in the upcoming financial years though he acknowledged that the growth may not be as significant as that seen in the express delivery segment.

In the first half ended June 30, 2024 (1HFY2024), the group’s IT segment accounted for 10.37% of total revenue, at RM196.3 million. Express delivery remains the largest contributor at 86.03%, while logistics accounted for 3.05%.

To recap, in June, GDEX’s shareholders approved the group’s plan to diversify into IT services and solutions. Back in 2022, the company acquired equity stakes in three IT companies: Web Bytes Sdn Bhd (38%), Sweetmag Solutions Sdn Bhd (51%) and Anon Security Sdn Bhd (60%).

When asked about the potential for further acquisitions in the IT segment, Teong said: “Definitely, the ecosystem can be much better. Beyond these business acquisitions, we also have partnerships, collaborating with other businesses to offer solutions. So, if any future acquisitions make sense for us, we will continue on that journey as well.”

Setting sights on year-end profitability

Teong further shared that the group aims to return to profitability by the end of this year after two consecutive annual losses.

“However, I know it is a bit challenging for us.

“Overall, our second-quarter results (2QFY2024, ended June 30) show that our EBITDA (earnings before interest, taxes, depreciation, and amortisation) and cash flow are quite positive,” he said.

For 2QFY2024, GDEX narrowed its net loss to RM2.92 million, down from RM11.35 million a year earlier, due to effective cost management in express delivery services. Revenue increased slightly to RM96.88 million from RM95.08 million, while EBITDA was RM11.4 million, and free cash flow stood at RM12.9 million.

For 1HFY2024, GDEX reported a net loss of RM5.08 million on revenue of RM196.3 million.

Teong shared this information with The Edge following the signing ceremony on the collaboration between GDEX and the Government-Industry TVET Coordination Body (GITC) on Thursday, which aims to develop a skilled and competent workforce to meet the needs of the courier and logistics industry.

Through this collaboration both parties plan to jointly develop internship programmes and work-based learning opportunities for practical experience.

Both GITC and GDEX will also exchange information and expertise to align technical and vocational education and training (TVET) curricula with industry requirements, as well as explore opportunities for joint projects and initiatives related to TVET and the logistics industry.

GDEX is a homegrown courier and logistics company that was the first in the industry to set up a training academy, known as GDEX Academy, to provide technical and vocational training on courier and logistics curriculum for its employees. These employees, who are mainly school leavers, have the opportunity to obtain their certificates and diploma through programmes that are accredited by Malaysian Skills Certification (Sijil Kemahiran Malaysia).

GITC was established in February 2022 to steer the national TVET agenda by coordinating industry cooperation through an industry-led platform at the national level to articulate skills and manpower requirements across various sectors. Additionally, GITC serves as a unified source of reference for industry input on TVET development and demand to the government.

Source: The Edge Malaysia

GDEX’s diversification into IT to improve efficiency of logistics, last mile delivery operations — CEO

Malaysia is generating enough energy surplus to power new major development projects as well as grow its exports, its prime minister said today, as it looks to court investors to a special economic zone (SEZ) planned with neighbouring Singapore.

The two countries plan to finalise a deal by the end of the year to develop the SEZ in Malaysia’s southern Johor state, just north of Singapore, aimed at attracting investment and freeing up the movement of goods and people.

Prime Minister Datuk Seri Anwar Ibrahim said the government would continue to pursue renewable energy and energy transition initiatives, as it aims to achieve net-zero emissions by 2050, while still focusing on projects like the Johor-Singapore SEZ.

“Taken together with various energy-focused projects in all states and regions of Malaysia … we are confident of a surplus of energy that feeds developments such as the JS-SEZ, as well as have enough to grow our exports of energy,” Anwar told an investment event in Johor.

Johor is expected to see a rise in energy demand, having attracted large investments in data centre facilities in recent years from tech giants such as Nvidia, and China’s ByteDance.

The investment boost has helped propel Malaysia’s economy this year, with growth beating expectations in the past two quarters, and the local stock market becoming the best performing in the region, Anwar said.

Economic performance in the third quarter was similarly “looking promising”, Anwar said. 

Source: Malay Mail/Reuters

PM Anwar: Energy surplus to drive Johor-Singapore SEZ as Malaysia woos investors

Sabah has the potential to become a leader in green hydrogen production through Ocean Thermal Energy Conversion (Otec). Energy Commission of Sabah (ECoS) chief executive officer Datuk Abdul Nasser Abdul Wahid said that the technology could be a game changer for the state’s energy sector.

Citing a marine survey conducted by Universiti Teknologi Malaysia, Abdul Nasser said that Sabah has the greatest potential for Otec throughout Malaysia.

He added that the survey explored the topography and temperature differences of the waters surrounding Sabah, revealing a potential of 20,000 megawatts of Otec energy.

“But assuming that only per cent of this potential has been tapped, there is still a significant amount of energy that can be converted into electricity. And when you have electricity in abundance like that, you can actually generate a lot of other things,” he told the media after launching the commission’s two online applications at a hotel here.

The commission has initiated a two-year feasibility study on the technology in the east coast area.

Abdul Nasser added that Otec can not only produce electricity but also enable the desalination of water to provide fresh water and facilitate electrolysis to generate green hydrogen.

“We’re looking more towards a prime product like green hydrogen. You can generate enough revenue to actually make this a viable business case and develop Otec on a larger scale,” he said, adding that building the Otec facilities would cost double that of a hydroelectric power plant.

He noted that a 100-megawatt gas power plant would cost over RM1 billion, while a hydroelectric plant of the same capacity would range between RM2 billion and RM3 billion.

Abdul Nasser said that following the recent passing of enactments related to energy during the state assembly legislative sitting, Sabah has attracted interest from companies in Australia and the United Kingdom. He said there is a demand for green hydrogen among developed countries, including Japan.

“Because when you say green hydrogen, it must come from a green source. For example, there are other types of hydrogen; they call it grey hydrogen, which is produced from natural gas. They don’t want that. They want green.

“They want green hydrogen for sustainability and their energy transition agenda. We believe that Otec can be a game changer in the future for off-takers like this and for others to follow in order to obtain green hydrogen based on their hydrogen roadmap agendas,” he said.

Source: NST

Sabah aims to lead in green hydrogen production via Otec technology

Iskandar Investment Bhd (IIB) is poised to reap benefits from the Forest City Special Financial Zone (SFZ) incentives, as it leverages its position as a master developer of Iskandar Malaysia.

Iskandar Malaysia’s land area is 2,217 sq km, three times larger than Singapore. It is home to two million people and its population is set to grow to three million next year.

IIB president and chief executive officer Datuk Idzham Mohd Hashim said SFZ, designed to attract high-value investments with its tax incentives and streamlined processes, was expected to generate spillover that would directly benefit IIB’s projects, such as Tech Medini and GBS Iskandar @ Medini.

IIB’s developments in Iskandar Puteri are recognised as a growing hub for technology and innovation.

It is anticipated to see increased demand for premium commercial space, driven by an influx of multinational corporations and financial institutions, he told the New Straits Times today.

“Iskandar Puteri’s proximity to Forest City places it in an ideal position to attract businesses looking for high-quality infrastructure and connectivity.

“The SFZ will accelerate Iskandar Puteri’s transformation into a world-class business district, creating a surge in high-skilled jobs and further boosting our role in Johor’s economic development,” he said.

Khazanah Nasional Berhad (KNB), the Employees Provident Fund (EPF) and Kumpulan Prasarana Rakyat Johor (KPRJ) are the shareholders of IIB.

Idzham said Forest City’s strategic location and its proximity to Singapore would enhance Johor’s competitiveness, while positioning it as a prime destination for global investors.

With infrastructure projects like the Rapid Transit System (RTS) and the potential revival of the High-Speed Rail (HSR) on the horizon, IIB was expecting further investments to flow into Iskandar Puteri.

“The RTS is expected to strengthen connectivity, which will make Iskandar Puteri even more accessible and attractive.

“We see the establishment of Forest City SFZ as a pivotal moment in Johor’s economic landscape, with the potential to cement the state as a key financial hub in Southeast Asia.

“For IIB, SFZ will serve as a catalyst for attracting high-value investments and driving regional growth, which will cement our status as a key player in the country’s economic landscape,” he said.

Last Friday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that Forest City SFZ would be the first in the country to offer a zero per cent concessionary tax rate on income generated by eligible investments from the Single Family Office Vehicle (SFOV1).

SFOV1 is a corporate vehicle which is wholly owned, directly or indirectly, by one or more individuals from a single family and established solely for the purpose of holding the investments of family members.

Other SFZ’s strategic incentives, include a zero to five per cent corporate tax rate, a flat 15 per cent income tax for knowledge workers and streamlined immigration processes is set to draw multinational corporations and global financial institutions, boosting job creation and stimulating sectors like financial services, technology and logistics.

Idzham said Forest City SFZ would complement Iskandar Puteri’s projects by attracting a new wave of businesses, increasing demand for high-quality commercial space, and driving further investments in infrastructure. This would accelerate Iskandar Puteri’s transformation into a world-class business district and a centre for high-skilled jobs.

Source: NST

Iskandar developer to capitalise on Forest City’s financial zone

Solar District Cooling Group Bhd has teamed up with Sunrise Shares Energy Sdn Bhd (SSE) to promote the adoption of renewable energy solutions and sustainability advisory services across multiple sectors in Malaysia.

In a statement today, Solar District said the collaboration will see both companies jointly offering energy solutions to their respective clients.

Solar District will leverage its expertise in Building Management Systems (BMS), solar thermal systems, and energy efficiency services.

SSE will promote its portfolio of commercial solar panels, solar-powered streetlights, and battery energy storage systems.

“Together, the two companies will work to provide clients with complete solutions for enhancing energy efficiency, reducing operational costs and achieving sustainability goals,” it said.

Under the agreement, Solar District said both companies will also offer joint sustainability advisory services, helping clients obtain green building certifications and low-carbon certifications, as well as promoting sustainable development strategies.

“This collaboration will enable both companies to explore new business opportunities through joint ventures, co-marketing initiatives, and other strategic partnerships,” it said. 

Solar District managing director said Edison Kong said the partnership allows the companies to combine their strengths and offer energy solutions.

“Together, we aim to make a significant contribution to the country’s transition towards a greener economy,” said Kong.  

SSE director Matt Tan said the collaboration presents an exciting opportunity to expand the company’s reach and capabilities in the renewable energy market.

Source: NST

Solar District, Sunrise Shares to jointly promote RE adoption

Tax incentives in the Forest City Special Financial Zone expected to attract huge investments

The tax incentives offered in the Forest City Special Financial Zone (FCSFZ) have the potential to turn Johor into a financial centre in the south and attract investments into the state, especially from family offices and high-networth individuals.

Turning the potential into reality, however, will require a well established and reliable ecosystem, including regulations and infrastructure, upon which a successful FCSFZ can not only help the metropolis shed its “ghost town” image, but also be adopted elsewhere in the country and even abroad depending on its success, said commentators.

Last week, the government announced a few tax incentives to revive the struggling mega-project, among which was a corporate tax rate of 0% to 5%, 0% tax rate for family offices and a 15% personal income tax rate for knowledge workers and returning Malaysians who choose to work there.

Putrajaya also announced financial companies will enjoy incentives such as special deductions on relocation costs, enhanced industrial building allowances and withholding tax exemptions.

“This is a good initiative, especially with a tax regime starting from 0%. However, we await the details on grounds of qualification. Family offices, financial technology (fintech), shared services and digitalisation are the way forward.

“What is needed is the legal framework to ensure efficiency and transparency. What happened to some countries where it was abused must not happen here. And the ecosystem must be right to attract knowledge workers to FCSFZ,” said Olive Tree Property Consultants chief executive officer Samuel Tan.

He added that apart from attracting knowledge workers from abroad, upskilling and reskilling of the existing pool of local talent is an important part of the talent retention initiative.

Lower tax itself is insufficient if the quality of living is not up to expectations, Tan added. In this regard, the stakeholders must ensure FCSFZ offers an environment where people find it safe, convenient and efficient to work.

Tan said the authorities should consider widening the scope of investments to the special economic zone (SEZ) whereby more players can invest. This would make Forest City more vibrant with diverse supporting industries and services.

Tax consultant S M Thanneermalai of Thannees Tax Consulting Services, however, warned the incentives could be trouble for other economic zones in Malaysia as it leads FCSFZ to cannibalise on investments which could, in turn, lead the other state governments to push for similar or even better incentives for themselves from the federal government.

“The incentives will be good for FCSFZ as they could help utilise its existing infrastructure and attract various new economy investments, which will help to improve its occupancy rates, but it could come at the expense of other economic zones in the country,” he told Starbiz.

Kenanga Research noted the tax benefits were very competitive compared to the corporate income tax rate of 17% in Singapore for example. As a result, it may help create a more vibrant fintech ecosystem in the FCSFZ as there are an estimated 1,580 fintech firms in Singapore as at 2022, compared to over 300 companies locally.

Furthermore, the research house noted multinational corporations, which will be subject to the global minimum tax rule of at least 15% effective tax rate from 2025, could view the tax incentives at FCSFZ as offering some potential benefit to them.

Is the offer made attractive enough to attract family offices to consider? High-networth investor Ian Yoong Kar Yin believes the zero tax incentive is very competitive.

“These are undoubtedly very attractive incentives for family offices to relocate to FCSFZ. It will nevertheless take a few years.

“It is highly likely that many family offices will be from ultra-high-net-worth families from North-east Asian countries ex-japan. The proximity of FCSFZ to Singapore will be a major draw, given the much improved logistics and knowledge pool,” he said.

He added the legal and regulatory framework for family offices required fine tuning to bring them in line with Singapore, Switzerland and other counties.

He said Bank Negara could encourage domestic banks to establish multi-family offices in FCSFZ as many banks in Malaysia had private banking arms which were precursor of multi-family offices.

Much like Tan of Olive Tree, Yoong said the concessionary corporate tax rate and individual tax rate were major draws for fintech companies in South-east Asia to relocate to FCSFZ but must be complemented with issues like security, quality of life and amenities.

He, however, believes it’s very likely that FCSFZ will be the sole special financial zone in Malaysia with such incentives for the next few years.

Meanwhile, the Securities Commission (SC) has been tasked with coordinating the single family office incentive scheme.

The regulator yesterday announced the incentive for the family office require such setups to establish and operate a registered office in Pulau 1 of the FCSFZ.

The tax incentive is for a 20-year period covering the initial period of 10 years and additional/subsequent 10 years.

To qualify for the initial 10-year period, the single family office vehicle (SFOV) must be a new investment holding company incorporated in Malaysia and seek pre-registration with the SC on the eligibility of the tax incentives.

The management company or SFO which is a related company of SFOV to be set up and operate out of Pulau 1, should have at

“This is a good initiative, especially with a tax regime starting from 0%. However, we await the details on grounds of qualification. Family offices, financial technology, shared services and digitalisation are the way forward.” Samuel Tan

least one investment professional with a minimum monthly salary of RM10,000.

The SFOV must also hold assets under management (AUM) of at least Rm30mil and meet minimum local investment in eligible and promoted investments of at least 10% of AUM or Rm10mil, whichever is lower. The SFOV must also spend a minimum of RM500,000 annually in operating expenditure (opex) locally.

The SFOV must also employ a minimum of two full-time employees of whom at least one is an investment professional, with a minimum monthly salary of RM10,000, the SC stated. The SFO or management company may not need to get certain licences under the Capital Markets and Services Act 2007 (CMSA) as long as it only provides services for its SFOV.

“Establishing the SFO scheme positions Malaysia to enhance its investor base by attracting regional and Malaysian families to manage their wealth from Malaysia,” SC chairman Datuk Mohammad Faiz Azmi stated in a statement.

“The projected economic multiplier of this initiative from the local substance requirements is estimated to range from Rm3.9bil to Rm10.7bil, which also includes the positive effects on creation of skilled employment and the demand for other ancillary services,” he added.

To qualify for the additional 10 years, the SFOV must hold AUM of at least Rm50mil, employ four full-time employees and spend a minimum RM650,000 annually in opex locally. The incentives come at a time when Malaysia and Singapore are close to finalising an agreement over a proposed Johorsingapore SEZ to be set up in Johor.

Maybank Investment Bank Research believes the boost in economic activity in FCSFZ will drive higher property demand there and its surrounding area which would benefit property companies like S P Setia Bhd, UEM Sunrise Bhd, Eco World Development Group Bhd and Sunway Bhd which have projects in the state.

Forest City, which is located in Tanjung Kupang, comprises four man-made islands and is a joint venture between Country Garden and Esplanade Danga 88 Sdn Bhd, which is a Johor state government subsidiary.

Hong Leong Investment Bank Research added with the special financial zone designation, future developments in Forest City will likely see more government involvement and by local companies.

“It is possible that more local contractors will be involved in building Forest City, unlike in the past where it was largely undertaken by the Chinese. Broadly, we feel that Johor-based contractors such as Kimlun Corp Bhd and Ekovest Bhd as well as Sunway Construction Group Bhd could stand to benefit from this,” it said.

Source: The Star

Johor set to become a financial hub

Sarawak Premier Tan Sri Abang Johari Openg today said that Bintulu Port will be expanded to facilitate the increase in the handling of hydrogen-based and other petrochemical products.

He said that, at the moment, the port’s annual cargo throughput volume exceeds 50 million tonnes, mainly due to the increase in liquefied natural gas (LNG) throughput.

“I have this feeling that this volume will increase with all the plants and investments that we are getting in Bintulu because of our diversification policy on our gas products,” he said at the launch of the Borneo Oil and Gas Supply Base of the Bintulu Port.

He said when the port was established in the 1980s, it was mainly dedicated to LNG and it does not cater to other economic activities arising from the resources that the state has.

LNG, he said, is one of the activities using gas as feedstock.

“We have a lot of other derivatives from gas, for example, the methanol plant is one of them.

“As such, the port will no longer be just for LNG. There are a lot of by-products out of gas,” he said.

The premier said the establishing of the supply base is an appropriate approach for the state government to help in regulating activities as a result of the state’s gas reserves, both offshore and onshore Sarawak.

He noted that Sarawak has about 60 per cent of Malaysia’s gas reserve offshore.

“There will be a lot of activities offshore because of the gas reserve and that exploration is still going on and there could be some new areaswhere we can explore and find more reserve,” he said.

He said he believes that Bintulu Port will help to leapfrog the state’s economy, not only in terms of supply base, but also for the export of products produced in the state.

Source: NST

Bintulu Port expands to accommodate growing gas, petrochemical demand

In Keynesian prophecy, artificial intelligence (AI) productivity can be projected based on McKinsey’s guesstimate that generative AI would add 2% to 5% to the current gross domestic product (GDP). This figure is optimistic, if compared to a mere 0.66% productivity growth highlighted in a Massachusetts Institute of Technology study, whose projections calculated that not all jobs could unlock greater productivity with AI. Productivity gains could also reset as newer job roles require their own investments to cultivate, thereby diluting economist John Maynard Keynes’ possible future and sharpening the tension between AI’s uncertain gains and unpredictable impact.

Furthermore, as AI is computed in data centres, which are infamous as high energy and water guzzlers, the development and deployment of this contentious technology could be a double-edged sword.

Yet, amid these are the possibilities AI could hold for Malaysia.

AI could impact many aspects of Malaysia’s future. For example, ChatGPT could be seen as groundbreaking and hold immense potential across multiple fields. In learning, it could unlock new dimensions of human intelligence and potential. Conversely, it could be regarded as the mother lode of disruptors, bearing security risks and ethical issues where the cumulative advances in ChatGPT are said to have the potential of rendering many educators irrelevant.

The future of the Malaysian cadre could be shaped by the technology whose impact ranges from unexplainable to well-nigh dangerous. Yet, to restrain development and the economy from AI deployment could risk impacting the nation’s competitive future. After all, management consulting firm Kearney’s projected addition of US$1 trillion (RM4.2 trillion) to Southeast Asia’s GDP is a tantalising goal.

Rethinking AI policy

To achieve the good while mitigating the bad, Malaysia would have to reflect on domestic AI policies, not only on the means and ways the technology might impact society or the economy, but also to direct AI’s development as an industry to advance its goal of becoming a developed nation.

Malaysia is not short of plans to deploy or develop AI. The AI Roadmap 2021-2025 and 10-10 Malaysian Science, Technology, Innovation and Economy (MySTIE) Framework sought to strengthen the AI ecosystem for developers and R&D. Meanwhile, the New Industrial Master Plan 2030 (NIMP) cites AI as a possible sector to boost the country’s semiconductor design ambitions. NIMP hinges on economic complexity as Malaysia’s vision of becoming a high-income nation, whereby complexity is gauged by the nation’s productive capabilities to produce diverse and complex goods. However, the plans are not interlinked in an ecosystem which could kick-start an AI industry. This could take a page out of early AI policies in Japan and China that sought to invigorate the market by encouraging AI production in smart cities or smart-home appliances.

Malaysia should take advantage of the semiconductor industry and cultivate a value chain that has both software and hardware components, thus starting in code and possibly finishing in chips powering computers. This would not be impossible as the country has already displayed ambitions to move to the front end and enhance capacity in the back end of chips. Efforts for an integrated design park, such as the semiconductor accelerator and integrated circuit (IC) design park, are aimed at gathering local and global IC design houses to synergise collaboration. While this is indeed a laudable move to add value along the semiconductor supply chain, it is still too early to tell whether it could reap the low hanging fruit, especially if the complementary ecosystems are not present.

But is that enough? Certainly not, once we get down to the elephant in the data room — computing power — without which Malaysia’s AI future will remain bleak.

Environmental concerns

Calculations of computing power can vary, especially on the AI being trained. Yet, training any AI would consume energy, especially to dissipate heat. Furthermore, training AI produces more data, which means more space. Market intelligence provider TrendForce estimates that it would take 20,000 graphics processing units (GPUs) to train the generative pre-trained model underlying ChatGPT.

At commercialisation, the figure should reach above 30,000, especially because of data generation and user numbers. Chips would have to be produced with sustainability in mind, while data centres need to find ways to keep cool. In other words, the digital economy cannot be cleaved from the green economy, which explains the concerns about the flurry of data centres on Malaysian shores. Data centres account for 1% to 5% of the world’s total greenhouse gas emissions while, comparatively, emissions from the aviation industry make up 2% to 3%. It doesn’t end there, as the consumption of electricity will exceed 5,000mw by 2035 in Malaysia alone. On average, a data centre with the capacity of 100mw uses more than 4,000 cu m of water per day for cooling.

Between 2021 and 2023, Malaysia attracted RM114.7 billion in data centre investments, competing for limited resources in regions where they operate. And there’s the rub: Where do we draw the line between economic growth and environmental degradation?

The pressing question is whether these incoming companies have the necessary skills and resources to minimise their environmental impact and commit to green operations. The usual trade-off contentions apply: stringent regulations might raise concerns about slowing foreign investments. But the emphasis should lie on attracting high-calibre investments that align with the country’s long-term sustainability objectives, such as the National Energy Transition Roadmap.

Now, getting high and mighty about the imperative for going green may look good on paper but reality bites hard. In 2020, 50.9% of the peninsula’s electricity was generated from coal, which raises questions about our ability to supply sustainable energy to the expanding data centre sector. Achieving a balanced energy mix is crucial to support these dual objectives of aligning the nation’s renewable energy goals and digital ambitions. Hence, a cost-benefit analysis is needed to balance the economic gains with environmental sustainability.

Climate solutions

Malaysia could benefit from adopting a model like Singapore’s Green Data Centre Technology Roadmap by allocating capacity to data centre operators that prioritise sustainability alongside economic value. It is worth noting that the Malaysian Communications and Multimedia Commission (MCMC) introduced a technical code for green data centres in 2015. This technical code is now undergoing revision to match present technologies. Although it guides operators in enhancing energy efficiency and reducing carbon footprints, it remains non-binding and voluntary.

Meanwhile, the Ministry of Energy Transition and Water Transformation (Petra) and the Ministry of Investment, Trade and Industry (Miti) have announced that Malaysia can expect a robust framework focusing on energy and water efficiency. Undoubtedly a welcome move, this framework is set to introduce innovative solutions, moving from guidelines to enforceable standards.

Nevertheless, there needs to be active inter-ministry discussions to facilitate communication between the relevant agencies overseeing standards and compliance. For instance, the technical code serves as a baseline in developing a framework based on established principles and best practices. These need to be enhanced in areas, such as reliable and resilient water supply, water resource management and other critical public services. Siloed approaches would be counter-productive, especially in a cross-cutting sector such as information and communications technology (ICT).

Hosting more data centres, Malaysia should fully harness AI and technological innovations to advance transformative climate solutions for mitigation and adaptation in as much as creating a thriving digital economy must stem from a multi-dimensional approach that dynamically seeks to exploit the opportunities for growth and expansion while never losing sight of our planet’s limits.

Datuk Prof Dr Mohd Faiz Abdullah is chairman of the Institute of Strategic and International Studies (ISIS) Malaysia

Source: The Edge Malaysia

Greening chips and data centres

Digital investment totalling RM185.3 billion has been approved from 2021 to June 2024, including projects from leading companies such as Nvidia Corp and Amazon Web Services, Prime Minister Datuk Seri Anwar Ibrahim said.

He said the efforts to attract investment in strategic digital sectors continue to be coordinated through the ‘Digital Investment Office’ initiative.

Anwar shared this information via a post on X’s social media platform after chairing the Fourth National Council for Digital Economy and Industrial Revolution (MED4IRN) Meeting No. 2/2024.

“I have been kept informed of the latest progress regarding the implementation of phase two of Malaysia’s Digital Economy Blueprint and the National 4IR Policy, which demonstrates positive development,“ he said.

He also noted that 21 of the government’s 25 digital projects, set to be completed by 2025, have been integrated with fourth industrial revolution (4IR) technologies.

“The meeting acknowledged the status of the country’s 5G network, one of the fastest globally, with Malaysia achieving 82 per cent 5G coverage in populated areas,“ he added.

However, Anwar emphasised the need to further expand 5G services nationwide, prioritising industrial zones, critical services, schools, and especially public higher education institutions.

Source: Bernama

Malaysia approves RM185.3 billion in digital investments from 2021 to June 2024 – PM Anwar

Malaysia must focus more on green computing hardware and software to keep up with advancements in information technology (IT) infrastructure if it wants to continue attracting global data centre investments.

Sarkunarajah Shanmugam, an IT infrastructure and operations professional, said these investments in green or sustainable IT are crucial given Malaysia’s rising reputation as a data centre hub in Southeast Asia. He urged the government to provide incentives, including tax breaks, to allow data centers which are the backbone of the digital economy to continue upgrading their hardware to one that is more energy efficient and keep data centers modern.

Small and medium enterprises (SMEs) should also be given incentives and encouraged to embrace green computing, he said during “The Nation” talk show aired on Bernama TV recently.

Going more into green computing is pertinent and strategic as Malaysia is emerging as a key player in the region, more so given the surging global demand for data storage and processing. In attracting major investments, he said Malaysia’s biggest advantage is its location in a disaster-free zone, devoid of major
natural disasters such as earthquakes and hurricanes. “The stability of the geographical location is critical and that makes for a resilient data centre,” Sarkunarajah said.

Other factors pulling investments to Malaysia include favourable policies for industry players to build new data centres and the country’s proximity to major markets in the region.

“That definitely puts us at an advantage for data centres,” he said when asked to elaborate on the reasons for Malaysia’s rise as a data centre hub in Southeast Asia by the programme’s host Melissa Ong.

Ong said Malaysia’s penchant for attracting data centres was evidenced by Johor Menteri Besar Datuk Onn Hafiz Ghazi’s recent revelation that the state attracted over 50 data centre investments over the last two years.

Malaysia, which recorded approved investments from data centres of RM114.7 billion between 2021 and 2023, reportedly has 71 data centres listed in 11 markets.

Green computing, also known as green or sustainable IT, is the design, manufacture and use of computers, chips and other components that limit the harmful impact on the environment and reduce carbon emissions and energy consumption.

Elaborating on keeping data centres modern, Sarkunarajah said the hardware hosted in these data centres must be replaced with newer and energy-efficient hardware as it becomes available. “So, you can’t be running a server that was built and deployed five years ago whose energy consumption is much higher than the latest servers or the latest hardware.”

“That means we continuously need to be attractive to the market as investors will be encouraged to be able to refresh their technology every five years or so,” he added.

Turning to computer software development and software engineering, he said there have been enough papers written about the energy efficiency of programming languages.

He cited how Python is the preferred programming language for data analysis, but on being energy efficient, Python is one of the least energy-efficient programming languages. “Java is a lot more energy efficient,” he said, emphasising that selecting an energyefficient programming language is akin to green computing.”

“To facilitate this, we need to get more green computing conversations going on in the country for which institutions of higher learning have an enormous opportunity to play. They must create graduates, specially in the IT industry, who consistently think about green computing in their day-to-day work and
projects,” he continued.

He said that approach is critical, which is why the government should also “encourage more SMEs around that (green computing) space” to ensure a more comprehensive sustainable approach across wider sections of the economy.

Source: Bernama

Malaysia Must Focus More On Green Computing To Continue Attracting Data Centre Investments

Artificial intelligence (AI) will be the key focus of the 13th Malaysia Plan (13MP) as the country seeks to strengthen its capabilities in the transformative technology.

Deputy Economy Minister Datuk Hanifah Hajar Taib said AI has become an essential tool in solving challenges across a range of industries.

Once considered the realm of science fiction, AI is now widely used and is seen as the “next big thing” in the digital world, she noted.

“According to research by International Data Corporation, the global AI market is currently valued at US$235 billion, and it is expected to rise to over US$ 631 billion by 2028. The largest AI spending is currently focused on IT services, banking, and retail,” Hanifah Hajar said at the 11th Malaysian Statistics Conference today.

Since the 12MP, she said, Malaysia has prioritised investment in AI research and development, with the aim of bolstering the nation’s digital infrastructure, including 5G networks and data centres.

She also said that through structured policies, the government has attracted significantly higher foreign investments, recording a 57.2% increase in approved foreign investments by the National Committee on Investments in 2023, many of which relate to AI.

“As an initial step, Malaysia’s first AI faculty at Universiti Teknologi Malaysia was established with a RM20 million allocation,” she added.

Hanifah Hajar said the country is still in the process of adopting AI platforms such as Chatbots, Smart Agriculture, and electronic identity verification systems, such as eKYC, which have already improved productivity and security across various sectors.

“However, AI needs to be understood by all levels of society, and the government is actively working to raise awareness of AI, including through online self-learning programmes developed in partnership with MyDigital Corporation and Intel Corporation.”

Hanifah Hajar said Malaysia is also focusing on building an AI ecosystem through the National Artificial Intelligence Roadmap 2021 to 2025. “This roadmap is designed to strengthen the country’s digital infrastructure, such as 5G networks and data centres, while also attracting foreign investments in AI-related sectors.”

Meanwhile, Chief Statistician Malaysia Datuk Seri Mohd Uzir Mahidin said AI is not a threat but an opportunity for the nation’s development, enabling the production of more relevant and timely data. “Department of Statistics Malaysia (DoSM) is planning to establish the National Big Data Analytics Centre, which will serve as a national data hub connecting data between the public and private sectors.”

He disclosed that 45 DoSM officers have been recognised as highly skilled data scientists in the fields of statistics, advanced data analytics, artificial intelligence, and machine learning.

“As a proactive measure, DoSM is revising the Statistics Act 1965 (Amended 1989) to ensure it aligns with current needs and technological advancements,” said Mohd Uzir.

Source: The Sun

Artificial intelligence will be key focus of 13th Malaysia Plan: Deputy minister

Indonesia remains the largest market for Malaysia’s medical tourism, with patients from the neighbouring country accounting for 64.9% of the total number of medical tourists last year, according to analysts.

TA Securities said that most of these patients come from major cities such as Jakarta and Surabaya, choosing Penang and Kuala Lumpur as their primary destinations for medical treatment. Popular hospitals include Island Hospital, Gleneagles, Penang Pantai Hospital, and the National Heart Institute in Kuala Lumpur.

Additionally, patients from China and India also play a significant role in the growth of the sector, contributing 5% and 3.1%, respectively, of the total medical tourists.

“Nearly half of the medical tourists from China seek fertility and cancer treatments, while patients from India tend to opt for general and specialised medical care,” TA Securities said in a research note.

With the implementation of a 30-day visa-free policy until the end of 2025, the Malaysia Healthcare Travel Council (MHTC) expects a notable increase in medical tourists from both countries.

TA Securities said that Penang and Kuala Lumpur remain the main hubs for medical tourism in Malaysia, with Penang accounting for 40.5% of the country’s medical tourism revenue last year, and Kuala Lumpur contributing 41%. Both cities offer a wide range of high-quality healthcare services that are easily accessible to international tourists.

Malaysia continues to receive international recognition as a provider of quality medical care, with two local hospitals – Gleneagles Kuala Lumpur and Sunway Medical Centre – being listed among the World’s Best Hospitals 2024. This accolade reflects the world-class treatment available at local hospitals, on par with other leading nations in the global healthcare sector.

Furthermore, MHTC is expanding its government-to-government collaborations with countries such as the Maldives and those in the Middle East to attract more medical tourists. These partnerships include promoting specialised treatments for particular communities, such as China’s Muslim population seeking high-quality healthcare.

MHTC is also leveraging the presence of expatriates working in Malaysia as medical tourism ambassadors. Foreign patients who have resided in Malaysia for extended periods serve as long-term testimonials for the quality of the nation’s healthcare services, distinguishing them from short-term health tourists who only come for temporary treatments.

In regional competition, TA Securities remarked that Thailand and Singapore remain Malaysia’s primary rivals. Thailand recorded the highest medical tourism revenue in Asean, with around US$850 million in 2023, surpassing Malaysia’s RM2.25 billion.

“Although Singapore is smaller in scale, the country targets patients requiring complex treatments from advanced markets. However, the strong Singaporean currency reduces its appeal to cost-sensitive medical tourists,” it added.

TA Securities also mentioned that the Indonesian government is actively improving its domestic healthcare infrastructure to reduce its citizens’ dependence on overseas treatments. However, this effort is expected to take time, as many Indonesians, particularly those in the high-income bracket, continue to seek medical treatment abroad due to the perception that the local healthcare system has yet to meet satisfactory standards.

Since its establishment in 2005, MHTC has continued to excel in promoting Malaysia’s medical tourism industry, as evidenced by the growing number of health tourists and impressive revenue growth. The government has also shown strong support for the sector, allocating RM30 million under the 2024 Budget to finance international promotions.

Moreover, internationally accredited hospitals in Malaysia remain a key draw. A total of 92 healthcare facilities, recognised by the Health Ministry and MHTC, are now promoted as top medical tourism destinations, including 22 elite hospitals offering high-quality treatments for tourists from around the globe.

Source: The Sun

Indonesia remains largest contributor to Malaysia’s medical tourism market

Malaysia remains an attractive investment destination for green and renewable energy projects due to its unique cost advantages, strategic location, and supportive government policies, including the National Energy Transition Roadmap (NETR).

Cypark Resources Bhd executive chairman Datuk Ami Moris said since the launch of the NETR in August 2023, there has been an incredible amount of activity and headlines regarding new projects and new partnerships being forged across the private and public sectors in support of the roadmap’s six energy transition levers.

“This bodes well for Malaysia as a whole and, as a result, has also generated many opportunities that a company like CRB could pursue. Sarawak’s growing autonomy has also created further avenues for potential business opportunities in the vast East Malaysian state, which is why we recently established an office there.

“Considering our long history in solar renewable energy, expertise in floating and hybrid solar solutions, and as the owner and operator of the only functioning smart waste-toenergy (WTE) plant in the country, we are wellpositioned to benefit from these new opportunities,“she said in its annual report filed to Bursa Malaysia.

She said that by the end of 2024, CRB’s 390MW renewable energy (RE) capacity will establish the company as the largest independent RE producer and significantly strengthen its financial position.

“Thus, we do have some space to pare down our debts and to be more selective about our work as we work towards our 800MW RE capacity by 2027 target,” Ami said.

She said CRB continues to see strong growth drivers, especially in the net energy metering space, cross-border electricity sales and the upcoming implementation of third-party access that will allow independent power producers to sell electricity directly to customers.

“The WTE space also looks promising as state governments and local authorities grapple with the sustainable disposal of waste, especially in the face of growing land scarcity and increasing populations,“she said further.

According to a Bursa Malaysia filing, CRB posted revenue of RM17.2 million for the fourth quarter ended April 30, 2024, primarily generated from brownfield projects.

The filing noted that the decrease in construction revenue in the current quarter from the LSS2 projects located in Kelantan mainly attributed to their nearing completion, resulting in a lower contribution from LSS construction revenue. The division recorded a loss before tax of RM6.6 million for the current quarter, mainly due to increased administration costs, particularly higher professional fees incurred during the quarter.

Malaysia’s current RE capacity level is at 25%, inching closer to the country’s target of 31% RE share in the national installed capacity mix by 2025, 40% by 2035 and 70% by 2050.

Source: The Sun

Cypark Resources well-placed to tap opportunities in renewable energy

The Johor government is currently reviewing 36 applications to develop data centre infrastructure in the state, says executive councillor Lee Ting Han.

The investment, trade, consumer affairs and human resources committee chairman said there are already 10 data centres in operation in Johor, with seven more in development.

“These developments are part of phase one (of Johor’s data centre sector development strategy), which we expect to complete by 2027 based on the current (progress).

“Next year, we plan to begin phase two, focusing on the data centre ecosystem, including cooling systems, material production, server racks, and printed circuit boards, among others.

“Once this is in place, we can move on to phase three, which involves attracting investment in artificial intelligence, cloud computing, and big data,” he said.

He was speaking to the media after officiating the Tunku Abdul Rahman University of Management and Technology (TAR UMT) Sunbeam Splash event at Austin International Convention Centre here on Monday (Sept 16).

He also noted that completing these investments will take time because of their strategic importance.

“At the same time, we need to work with the private sector and local companies to organise courses that will train local talent to meet the workforce demands of these projects,” he added.

Source: The Star

First phase of Johor’s data centre strategic plan set for completion by 2027, says exco man

Aligning paradigm shifts and social consensus is essential for sustainable green growth in Malaysia, says Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said the Madani Economy Framework has rightly framed the nation’s green growth trajectory as an opportunity and not a burden.

“However, there are a lot more whole-of-government mindset shifts and whole-of-society consensus building that we will have to embark on together.

“To think about growing green or green growth in Malaysia in the 2020s, there are several paradigm shifts that we will need to make and also to bring society along. The climate debate has often been adversarial but we have a chance to make it more consensual,” he said during his speech at the National Climate Governance Summit (NCGS) 2024 on Sept 12.

Liew said among the several paradigm shifts that need to be made include articulating clearly how investments offer domestic benefits to the nation’s push for net zero (by 2050), rethinking the approach to balancing supply and demand, moving people back into inner cities, ensuring Malaysia is at the forefront of affordable technology innovations and creating a new price structure.

Liew said instead of only highlighting the absolute monetary value of a certain investment project, Putrajaya should engage with the public on how each investment creates jobs and provides a boost to the country’s journey towards net zero.

On the issue of balance in supply and demand, he said, “Malaysia is good at planning supply and meeting most of its requirements, but when we face a problem, our instinct is to provide additional supply. Shouldn’t we also look at demand management?”

For instance, on the matter of traffic congestion, he said the government could opt for “creatively” repurposing toll roads and providing discounts during non-peak hours through reverse congestion pricing.

The climate concerns can also be helped by bringing people back into cities and thereby stopping the issue of sprawling cities.

“Once more people live in inner cities, they will not need to own a car and that will change the usage pattern of energy and other resources as well as the cost of building infrastructure.

“I have repeatedly explained how moving more people back into inner cities is a great green investment and growth opportunity,” he said.

Liew pointed out that Malaysia’s weather was beneficial to a variety of agricultural products and hence the country should invest in agritech to solve the problems of food security and climate change.

And finally, he suggested that the public and private sector start the conversation on carbon measurement, pricing, trading and taxing as soon as possible to come up with a new price structure on issues like emissions and carbon offsets.

“Malaysia is blessed with the fact that we have plenty of land covered by forests and potentially more secondary forest. If there is a right price for carbon offsets, then protecting our forests would be something both noble and one that generates sustainable revenue.”

He added that getting the price right also includes dealing with the federal-state incentive structure and opting to create more mechanisms for states to generate revenue from sustainable resources.

“While there is a long road ahead in our nation’s push to net zero, I am glad that this government has put in the right framework and has accepted the intellectual premise that growth has to be green, and green growth is an opportunity, not a burden,” he said.

Source: The Star

Changes needed in nation’s push for net zero

Malaysia must be at the forefront of innovating affordable technology to solve problems in our pursuit of green growth, including addressing food security and climate challenges, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said Malaysia has the best weather for most agricultural products, and hence, investments in agrotechnology should be undertaken, as the country should be known as the leader in green technology on all fronts.

“For instance, the Netherlands is a major exporter of food and agricultural products, despite its small geographical size and limited resources. It is the technology that tilts the balance,” he said during his keynote address at the National Climate Governance Summit (NCGS) 2024 on Thursday. 

He also said that to focus on green growth in Malaysia in the 2020s, several paradigm shifts need to be made, bringing the society along.

“Very often, those who think that the push for net zero is a cost centre, are looking at the current price structure.

“We will have to create a new price structure. For instance, we will have to start the conversation of carbon measurement, pricing, trading and taxing as soon as possible,” he stressed.

Liew noted that Malaysia is blessed with plenty of land covered by forests, and potentially more secondary forests.

“If there is a right price for carbon offset, protecting our forests would be something both noble and one that generates sustainable revenue,” he said. 

Liew pointed out that getting the price right also includes dealing with the federal-state incentive structure.

“At the moment, most of the revenue generated by the state governments is from exploiting natural resources and sprawling the cities, or for using lands in a way that is not sustainable.

“We need to get the price right to create more mechanisms for the states to generate revenue from sustainable sources,” he said.

Besides that, he said Malaysia will have to be very clear that investments must bring domestic benefits, and should not have adverse impact on climate.

“The National Investment Aspirations and the goals set out in the New Industrial Master Plan (NIMP) 2030 should be the subjects of public discussions, and not just the absolute monetary value of a certain investment project,” he said.

Source: Bernama

Liew: Malaysia should lead in innovating affordable tech for green growth

IN THE bustling and dynamic world of logistics, companies face the challenge of staying competitive in a fast-paced global market.

As technological advancements, shifting consumer expectations and environmental concerns reshape the industry, maintaining long-term success requires constant innovation and adaptability.

For companies with decades of experience, like Sin Hock Soon Group (SHSG), thriving in this landscape means continually evolving to meet changing demands.

With 30 years in the logistics sector, the organisation has navigated these challenges by staying committed to innovative practices, customer-focused solutions and sustainable operations – positioning itself as a preferred logistics provider across Malaysia, Singapore and Thailand.

Legacy of dedication

Founded in 1994, SHSG’s origins date back to the 1970s when founders Yew Chye Seng and Ong Chye Eng laid the groundwork for what would become a successful family business.

The couple, born in Bagan Serai, Perak and Tanjung Musang, Kedah respectively, began their journey in the rice trade, working tirelessly to grow, transport and market the grain.

This dedication enabled them to establish Sin Hock Soon Trading Sdn Bhd, Yew Chye Seng Holding Sdn Bhd, Sin Hock Soon Group and YHL Group.

As the businesses grew, their children joined the operations, carrying the organisation forward and marking the beginning of its expansion.

By the mid-1980s, the family had opened branches in Johor Baru, Kuala Lumpur and Butterworth, strengthening its presence across Malaysia.

Guided by core values of teamwork, decisive and open decision-making, honesty and passion, the family’s hard work culminated in the establishment of a diversified business empire, spanning transportation, agriculture and manufacturing industries.

Today, SHSG continues to honour the legacy of its founders, symbolised by Wisma Yew Chye Seng in Butterworth, which stands as a tribute to Yew’s spirit of self-improvement and the values of credibility, perseverance and diligence that have guided the family’s success.

Comprehensive services

SHSG has developed significantly since its humble beginnings, now offering a comprehensive range of tailored logistics services designed to meet the diverse needs of its clients.

The organisation’s services include cargo transportation, tanker transportation, container haulage, warehouse and depot management, freight forwarding and customs brokerage, as well as engineering, leasing and support services.

To complement these services, SHSG has a versatile fleet of transport, consisting of open cargo trucks, box trucks, curtain sider trucks and road tankers. It also has haulage prime movers, 20ft and 40ft trailers, air-ride trailers, tipper trailers and side-loader trailers to move import and export containers.

What sets the organisation apart is its unwavering commitment to safety, security and system efficiency.

The organisation places safety at the forefront of its operations, ensuring that every cargo is delivered securely, timely and in compliance with industry standards.

Security is another cornerstone of their services, with integrated monitoring systems, online telematics GPS systems and cargo liability insurance, to give clients peace of mind regarding the location of every shipment.

It also leverages proven technology, such as electronic data interchange (EDI) systems, to enhance operational efficiency and continuously improve service delivery and quality.

Additionally, SHSG’s services are guided by the ISO9001 quality management system, ensuring continuous improvement, customer satisfaction and adherence to all applicable legal regulations.

Embracing sustainability

As the logistics industry faces increasing pressure to adopt more environmentally friendly practices, SHSG is taking a proactive stance by adopting Euro 5 diesel standards.

The organisation is acquiring a fleet of Volvo lorries equipped with Euro 5 diesel engines, in partnership with Volvo (Malaysia) Sdn Bhd and Volvo (UK).

This move aligns with the country’s broader strategy to reduce greenhouse gas (GHG) emissions, underlining SHSG’s commitment to sustainability in the logistics transportation sector.

Euro 5 diesel is known for its lower sulphur content, which significantly reduces harmful emissions from vehicles, thereby contributing to better air quality and public health.

By embracing this standard, SHSG not only enhances the environmental performance of its fleet but also sets a benchmark for the local logistics industry, demonstrating its dedication to reducing its carbon footprint and supporting the nation’s environmental goals.

Source: The Star

Pioneering logistics excellence across three decades

Artificial intelligence (AI) is driving Malaysia’s economic transformation, with 140 AI solution providers successfully onboarded into the Malaysia Digital AI ecosystem, says Gobind Singh Deo.

The Digital Minister said the companies involved have generated an impressive Rm1bil in revenue between August 2023 and July this year.

With such an outcome, he said the initiative incorporated by the Malaysia Digital Economy Corporation (MDEC) highlights the immense growth potential of the nation’s AI sector.

“Today, I am proud to announce that MDEC, through its AI initiatives, has successfully onboarded 140 AI solution providers into the Malaysia Digital (MD) AI Ecosystem.

“These companies have generated an impressive Rm1bil in revenue, underscoring the vast growth and promise of Malaysia’s

AI sector.

“Their accomplishments underscore the current impact of AI in Malaysia, its economic transformation, and naturally, its future development,” he said during his address at MDEC’S Malaysia Digital Tech Adoption Summit: Artificial Intelligence event here yesterday.

“From boosting productivity in small and medium enterprises (SMES) to enhancing efficiency in large corporations, AI is reshaping the business landscape,” said Gobind, who was accompanied by MDEC chairman Syed Ibrahim Syed Noh.

According to MDEC head of digital industry acceleration, Wan Murdani Wan Mohamad, among the sectors involved in the MD AI Ecosystem are services, finance, digital cities and digital Agtech.

“All of the companies involved are local Malaysian digital firms,” he said during a press conference later.

Further to this, Gobind highlighted the various benefits that AI could offer both to small and large businesses.

“For SMES, AI adoption means increased productivity, reduced operational costs, and access to advanced technologies that allow them to stay competitive.

“Large enterprises, meanwhile, can leverage AI to streamline operations, automate complex processes, and generate insights that fuel growth.

“AI is reshaping how we work and how we all interact. It is changing the dynamics of industries across the globe,” he added.

Earlier in his speech, Syed Ibrahim highlighted the importance of adopting AI into society, as the technology can assist the public and companies effectively.

“This means investing in upskilling our workforce, promoting continuous learning, and ensuring that Malaysians from all walks of life have access to the tools and resources they need to participate in this Ai-powered future.

“We are optimistic about the future of AI in Malaysia. The opportunities for growth, expansion and diversification are vast.

“This summit is a significant step forward in shaping the national AI landscape, setting the stage for future advancements that will drive Malaysia to the forefront of global digital innovation,” he said.

To ensure AI is responsibly used, Syed Ibrahim said it is crucial to address the ethical and societal impacts of the technology.

“We must ensure AI is used responsibly and that its benefits are equitably distributed. Inclusivity and ethical governance will be key pillars as we continue this transformative journey,” he added.

The Malaysia Digital Tech Adoption Summit offers a unique platform for partnerships and collaborations. A notable feature of this summit is the AI Adoption business matching session.

This session aims to foster collaboration among SMES, large enterprises and tech providers, enabling Ai-driven projects that can transform industries and spur economic growth.

Source: The Star

‘AI driving nation’s economic transformation’

Terengganu Incorporated (Terengganu Inc), in collaboration with TNB Power Generation Sdn Bhd (TNB Genco), has launched a floating solar farm at Lake Kenyir, expected to generate up to 2,000 megawatts (MW) of electricity.

Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar announced that, within the next six months, the project will produce 400MW of electricity, with an investment of RM2 billion.

He highlighted that the initiative aims to boost the state’s revenue.

“This aligns with the state government’s goal of generating 1,000MW of solar energy within the next five years, boosting Terengganu’s energy capacity by more than 30 per cent by 2025.

“Furthermore, Terengganu Inc is advancing the national agenda by encouraging all subsidiaries to adopt solar energy through the installation of panels at their business premises,” he said during his speech at last night’s Dinner Ceremony for Terengganu Inc’s Board of Directors Corporate Training Programme.

Ahmad Samsuri, who also chairs the state-owned investment holding company, reported significant growth in the group’s revenue, rising from RM964 million in 2018 to RM1.5 billion last year, an increase of RM558 million.

He noted that Terengganu Inc recorded a pre-tax loss of RM43 million in 2018 but turned around with pre-tax profits of RM78 million in 2021, RM76 million in 2022, and RM46 million in 2023.

“For this year, the group is targeting revenue of RM1.8 billion, which represents a 24 per cent increase from last year. Profit before tax is expected to reach RM100 million,“ he said.

Looking ahead, Ahmad Samsuri said Terengganu Inc would take strategic steps to ensure sustained profitability, including reducing reliance on oil palm plantations by halting the expansion of plantation areas.

Instead, the group will focus on improving operational efficiency in existing plantations.

“In addition to renewable energy projects, we are working on solar energy initiatives for international markets under the Cross Border Energy Sale (CBES) programme.

“We are also progressing with a sustainable Carbon Credit programme, which has the potential to generate new revenue for both the company and the state. Terengganu Inc is currently running two pilot projects aimed at realising these new income streams,“ he said.

Ahmad Samsuri revealed that the group is also exploring opportunities in the burgeoning healthcare sector, which has grown markedly over the past three years and is expected to reach RM900 million by 2030, up from its current value of over RM300 million.

“In addition, there is a high-potential project that a government-linked company (GLC) may undertake, though I cannot disclose the details at this time. In shaa Allah, this project, valued at over RM1 billion, will come to fruition,” he added.

Source: Bernama

Terengganu Inc, TNB Genco launch 2,000mw floating solar farm at Lake Kenyir

Conducive government policies, including the National Artificial Intelligence Framework and the Digital Economy Blueprint, have positioned Malaysia as a leader in AI innovation and adoption.

IBM Malaysia managing director Dickson Woo said that as Malaysia prepares to serve as chair of Asean in 2025, the country will be leading the region in scaling AI.

“These initiatives reflect the Madani Government’s proactive stance in nurturing a robust digital ecosystem, attracting global tech investments and ensuring that AI development aligns with ethical standards,” said Woo, who added that such policies have accelerated AI integration across various sectors and paved the way for Malaysia to influence Asean’s digital future.

He explained that AI’s potential to transform industries is already evident, with sectors such as banking and manufacturing witnessing enhanced productivity, efficiency, and innovation.

“Generative AI, in particular, is enabling businesses to automate processes, optimise resources and create new opportunities for growth. As AI becomes more integrated into economic strategies, the opportunities for job creation, higher efficiency, and sustainable development multiply, offering a pathway to a more prosperous and inclusive regional economy.”

However, the promise of a digital Southeast Asia can only be realised if there is a concerted effort to invest in talent development.

“By focusing on reskilling and upskilling the workforce in critical areas like AI, cloud computing and cybersecurity, Malaysia can ensure that its people are equipped to thrive in the digital age,” said Woo. “Collaboration between governments, educational institutions, and private sector leaders will be crucial in fostering a digitally skilled workforce capable of driving the region’s AI agenda forward.”

In conclusion, IBM continues to support Malaysia’s vision of a digitally empowered future through initiatives like IBM SkillsBuild and IBMZXplore.

“These programmes are designed to reskill and upskill local talents in critical areas such as AI, cloud computing and cybersecurity. By partnering with educational institutions and non-profit organisations, IBM also aims to equip Malaysia’s workforce with the skills needed to thrive in the digital age, ensuring the country’s continued leadership in AI and digital innovation,” said Woo.

Source: The Sun

Malaysia can lead Asean’s AI revolution, says IBM