IT is no secret that Malaysia has high potential to be the region’s next tech hub, with large tech companies investing billions in the country. Amazon Web Services (AWS), the cloud computing unit of tech giant Amazon, launched the AWS Asia Pacific (Malaysia) Region in August 2024, with plans to invest more than US$6.2 billion (RM29.2bil) in Malaysia through 2038.

In line with Malaysia’s digital transformation agenda, AWS Global Data Centers vice president Kevin Miller said that AWS is dedicated to building reliable and highly available infrastructure in Malaysia, enabling local innovation and the development of applications with global potential.

“In supporting Malaysia’s national priorities around AI development and digital infrastructure, we believe AWS can be a valuable partner. With one of the largest investments among cloud providers and as the first to launch a Region here, the conditions are set for impactful digital transformation results.”

“AWS has decades of experience in AI applications, spanning all layers from high-level software to data centre infrastructure. As generative AI has gained momentum, AWS is well-equipped with 12 years of GPU infrastructure and data centres built in the last 15 years that are designed to meet the increasing demands for AI. This capability underscores the need for more energy and infrastructure to drive innovation and growth in various aspects of society.” he told The Star in an exclusive interview at AWS Cloud Day Malaysia 2024.

With over 3500 attendees, AWS Cloud Day Malaysia is one of the country’s largest technology events, designed to empower businesses and leaders to harness the full potential of cloud technology and the latest advancements in AI through detailed tech sessions, customer success stories, hands-on workshops, and innovative solutions presented by AWS experts and partners.

Advancing sustainability

Amazon is a pioneer in sustainability in the technology industry and has been the largest corporate purchaser of renewable energy each for the last four years.

Exemplified by the corporation’s co-founding of the Amazon Climate Pledge to achieve net-zero carbon by 2040, AWS matched 100% of its electricity use with renewable sources in 2023—seven years ahead of schedule.

“We acknowledge that the energy demands of generative AI is significant due to its high computing power requirements, so we are continuously scrutinising our operations to improve energy efficiency and reduce our carbon footprint while serving millions of customers globally.”

“We are enhancing sustainability in our data centres by using lower-carbon concrete and steel, which saved over 22,000 tons of carbon emissions in 2023—equivalent to charging 2.6 billion smartphones. Additionally, we’re focusing on the circular economy, having reduced carbon emissions by over 65,000 metric tons through the use of cargo ships instead of airfreight, and diverted 14.6 million hardware components from landfills for recycling or reuse.

“We are also investing in alternative fuels, such as transitioning to hydrotreated vegetable oil to power our data centre backup generators, which is a renewable diesel made from waste cooking oil. This is only just the beginning of what we can achieve,” said Miller.

Elevating Malaysia’s tech capabilities

To address the talent gap in the tech sector, AWS launched Tech Alliance Malaysia, a public-private partnership initiative aimed at reaching 25,000 learners to develop digital talent in collaboration with Malaysia Digital Economy Corporation (MDEC) and their Premier Digital Tech Institutions (PDTIs), and employers such as CIMB, Deriv, PayNet, and PETRONAS.

AWS Malaysia country general manager Peter Murray said that the move was in line with the organisation’s intent to achieve three goals—developing skills, expanding partnerships, and assisting its Malaysian customers to reach global markets.

“We are focused on becoming a hub for local and global software companies looking to deploy and scale their technology in South-East Asia. Malaysia’s customer ecosystem is eager for top-notch software tailored to local needs, and we are dedicated to helping Malaysia provide these services to customers across the region.

“We’re very proud of what we’ve done to help our customers expand regionally and globally. For instance, Aerodyne, a Malaysian born drone tech-as-a-service platform built on AWS, is now solving big problems for customers in Latin America, Australia, and other regions which have vast spaces and limited infrastructure.”

Noting that the partner community in Malaysia is incredibly strong, Murray added that there is a very bright future ahead for Malaysia to thrive in the tech space.

Source: The Star

AWS is building local, and going global

Top Swedish firms that have been investing in Malaysia’s industrial development since the nation achieved its independence are lending their expertise to the country’s green economy transition by focusing on the sustainability agenda.

The collaboration aligns with both nations’ commitment to environmental protection, forming the core for enhanced mutual trade and investment linkages, said Sweden’s ambassador to Malaysia, Niklas Wiberg.

He noted that Malaysia’s policy shift towards a green economy is expected to attract more foreign investors, especially Swedish firms with expertise in renewable energy (RE) and circular economy practices.

He highlighted significant contributions by Swedish firms in Malaysia towards RE and innovative solutions, saying that sectors such as green energy and telecommunications offer further opportunities for Swedish investment in sustainable practices.

“Swedish companies drive the grid transition here in Malaysia through RE and energy innovations, and promoting circular economy practices in a very clear way,” Wiberg told Bernama in an exclusive interview following his posting about two months ago. He officially began his tenure as Sweden’s ambassador to Malaysia on Aug 15.

Wiberg said leading Swedish companies, such as Atlas Copco (energy solutions), Alfa Laval (water and waste treatment), SKF (automotive and industrial engineering) and Sandvik (multinational engineering) have incorporated sustainable practices in their Malaysian operations, with a focus on RE and innovative energy solutions.

Automotive giants Volvo and Scania, which have been operating in Malaysia since 1967, are also focusing on green mobility, producing electric and hybrid vehicles and promoting biofuels.

“Similarly, retail giant IKEA integrates sustainability into its operations, offering energy-efficient products including their renowned furniture using RE,” he said.

Swedish telecommunications leader Ericsson, too, is making strides, partnering with Digital Nasional Bhd (DNB) to develop Malaysia’s 5G network while prioritising energy efficiency in the telecommunications sector.

“DNB and Ericsson’s collaboration in rolling out one of the world’s best 5G networks in record time is incredibly impressive. I think a lot of governments are looking at the Malaysian model with great interest,” Wiberg said.

Turning to electric vehicles (EV), he said that in Sweden and the countries where he has served, the tipping point for increasing EV usage was having strong supporting infrastructure in place.

This includes vehicle-charging facilities at workplaces and at homes, making it possible for consumers “to go electric if they wish to do so”, Wiberg said, adding that Sweden provides subsidies for electric cars, trucks and buses.

To support Malaysia’s green goals, the Swedish Embassy and Business Sweden introduced the “Pioneer the Possible” platform in 2023, showcasing Swedish innovation in sustainable practices.

“Through this platform, we have continued to make significant progress by building partnerships with our partners here in Malaysia, focusing on sustainable innovation and resource efficiency,” Wiberg said.

Wiberg said his mission as Sweden’s envoy to Malaysia is to strengthen these partnerships and explore new opportunities for joint initiatives in line with the common sustainability goals and efforts for a greener future in Malaysia as well as for the wider region.

He noted that Malaysia has ambitious plans when it comes to digital and green transition, as evidenced by the National Energy Transition Roadmap, the New Industrial Master Plan 2030 and the Malaysia Digital Economy Blueprint.

He said Malaysia has not only clinched free trade agreements with regional economies but also expanded trade and investment with countries outside the region.

There are government incentives to invest in Malaysia, particularly in the technology and green energy sectors. An even stronger demand for sustainable products goes a long way towards making Malaysia an appealing destination for Swedish firms,” said Wiberg.

As such, he said, Sweden hopes to build further on the sustainability agenda and provide the competency that Malaysia is keen to acquire, based on the areas identified in the government’s national development plans.

Commenting on competition between China and the European Union (EU) in the EV Industry, Wiberg said, “China is also making great electric cars, but it’s essential to foster initiatives for a truly competitive market.”

He stressed the need for fair practices that encourage innovation while promoting sustainability.

Along with the United States and Canada, the EU has imposed countervailing duties on imports of battery electric vehicles from China after its investigation concluded that the EV value chain in China benefits from unfair subsidisation.

“Sweden always supports a competitive market that is fair to producers and consumers,” Wiberg said.

He highlighted that the automotive sector is going through a pivotal transformation, adding that Swedish automakers are rapidly advancing towards full electrification, with ambitious plans to produce nearly 100% EV by 2030.

Source: The Sun

Swedish companies supporting Malaysia’s transition to green economy: Envoy

PRIME Minister Datuk Seri Anwar Ibrahim has cautioned against rushing to build data centres (DCs), especially if they do not add value to Malaysians in terms of high-income jobs and knowledge sharing.

The cautionary note was issued by the premier in his budget speech on Friday as he emphasised the need for a new shift to attract more high-quality investments into the country. “The traditional approach of providing support and incentives to investors without taking into account the economic spillover achieved is no longer sustainable,” he said.

While not directly saying the government would relook at the rapid development of DCs in the country, he points out that DC investment shouldn’t be a priority in attracting more foreign direct investment (FDI) unless it directly benefits the people through job creation, higher incomes and knowledge transfer.

This raises questions of whether the government is stepping back from attracting FDI through new DC development, as these facilities require high consumption of water and electricity and huge amounts of land.

“Some may misconstrue [his remarks] as the government wanting to relook at data centre development in the country. But the government can’t just suddenly pull a handbrake on data centre development,” Socio-Economic Research Centre (SERC) executive director Lee Heng Guie tells The Edge.

“Maybe, at this point, the government is looking at the cost-to-benefit analysis of data centre development in the country. But this is not unique only to data centres. As a matter of fact, since last year, the government has been looking at the impact of all new FDI coming into Malaysia’s economy.”

Lee points out that while it is acknowledged that DCs would not create many jobs, they do build a digital ecosystem that spills over into other sectors. “From construction to property to semiconductors and artificial intelligence, they are all correlated.”

Over the past year, Malaysia has become a sought-after destination for DCs in Southeast Asia, especially hyper-scale ones.

The recent spike in DC capacity can be attributed to the boom in cloud services, big data processing and advanced technology adoption that is driving the demand for hyper-scale DCs.

A Sept 24 report by Maybank Investment Bank shows that 766mw of DCs have already been committed, which is three times the current capacity of 280mw. The report also states that the future of 2,016mw still in the early stages is uncertain.

A market observer says Malaysia appears to be at a stage at which it is still accessing DC development. If it is not properly managed, it could result in oversupply.

“It is risky to focus on data centres alone. The country also needs to manage its resources and attract other FDIs that will complement the data centre development,” he adds.

Having said that, many analysts and renewable energy (RE) developers say DCs’ huge appetite for clean energy will drive demand.

As such, the government announced last month a third-party access (TPA) system to open up the national grid to the green energy sector.

Anwar, who is also the finance minister, said the government will also introduce carbon tax on the iron and steel as well as energy industries by 2026. The proposed tax is aimed at promoting the use of low-carbon technologies.

“Revenue generated from this tax will be used to fund green research and technology programmes,” he said.

SERC’s Lee says the two-year timeline for the country to adopt this carbon tax gives high-carbon industries time to work on decarbonisation.

“To decarbonise their operations, companies will be required to invest in RE and other initiatives to be ESG-compliant, which will be capital-intensive,” he says.

Local manufacturers hope the proposed carbon tax will not translate into higher electricity tariffs for the industrial sector.

In a statement on Friday, the Federation of Malaysian Manufacturers says: “Given the coverage of the proposed carbon tax on the iron and steel and energy sectors, it is crucial that the government has in place the emission-trading scheme, which is the preferred mechanism by the industry, to drive more cost-effective emission reductions.”

In Budget 2025, the government also announced a slew of additional initiatives for the RE sector, which is seen as a new economic engine, as the country aims to be net zero by 2050.

The government has raised the allocation to the National Energy Transition Facilitation Fund to RM300 million, from RM100 million in 2024. The Green Technology Financing Scheme has been extended, with an additional RM1 billion allocation until 2026. An e-rebate allocation of RM70 million for consumers and industries to purchase energy-efficient equipment should prioritise small and medium enterprises, in particular, to replace inefficient motors or boilers. The government will also extend the current Net Energy Metering 3.0 (NEM 3.0) programme to June 30, 2025, from Dec 31, 2024, to continue incentivising rooftop solar installation.

Anwar also announced that UEM Lestra and Tenaga Nasional Bhd would invest RM16 billion to increase the transmission and distribution network capacity as well as decarbonise industrial areas. 

Source: The Edge Malaysia

PM urges caution amid data centre buzz

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has urged OM Sarawak to continue exploring new products and processes that embrace green technology in their production.

Speaking at the OM Sarawak 10th anniversary gala dinner last night, he emphasised the importance of expanding their business for a sustainable future, given their status as the largest ferroalloy smelter in the region outside China.

“There must be a roadmap using ferroalloys manganese as a base to develop downstream products that will be sustainable and perhaps one day we can export your by-products overseas.

“Now people are talking about circular economy, and I understand that your ferroalloy production, there (is a) lot of waste from the process that could be further processed to produce other products.

“One such product is calcium silicon cored wire, a tough material that can be turned into screws for use in shipbuilding, steel-based products, and perhaps even airplanes,” he explained.

Abang Johari also highlighted the potential use of production waste for road construction in Sarawak.

“We are constructing many roads, including the Pan Borneo Highway and the coastal highway, and in the next 5 to 10 years, we will be building feeder roads to connect all longhouses and villages.

“We may need raw materials to harden the roads, and as gravel becomes scarcer, perhaps the waste can be used as part of the construction materials,” he said.

Abang Johari added that the supply and value chains for ferroalloy will be in place, allowing OM Sarawak to go downstream and be part of Sarawak’s circular economy.

He noted that he had launched the sustainable blueprint for Sarawak’s economy yesterday, which includes 10 thrusts, one of which focuses on manufacturing sustainability.

He congratulated OM Sarawak on their 10th anniversary and their contribution to the development of Sarawak.

“Ten years ago, you started in Bintulu after the completion of Samalaju Port and became a client to the port, exporting ferroalloys manganese from Sarawak, the largest outside China,” he said.

Abang Johari addressed two critical global issues: climate change and food security.

“To combat climate change, we need to reduce carbon emissions as much as possible. Any product that comes from green energy will have a better place in the market.

“OM Sarawak benefits from our green energy from hydro, which should give your products a premium price in the market,” he said.

He noted that OM Sarawak’s ferroalloys reduce the content of sulfur and oxide in steelmaking, making their products eco-friendly.

Also present at the event were Minister of Food Indsutry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom, Minister of Utility and Telecommunication Dato Sri Julaihi Narawi, Deputy Minister of Infrastructure and Port Development Dato Majang Renggi, Deputy State Secretary (Economic Planning and Develoment) Dato Sri Dr Muhammad Abdullah Zaidel, Sarawak Energy Berhad chairman Dato Ibrahim Baki, OM Holdings chairman and chief executive officer Low Ngee Tong, Resident of Bintulu Division Datu Nyurak Keti, OM Holdings board members Zainul Abidin Rasheed, Datuk Abdul Hamid Sh Mohamed, Tan Peng Chin and Tan Ming Li as well as OM Sarawak managing director Chen Xiao Dong.

Source: Borneo Post

Premier urges OM Sarawak to embrace green technology for sustainable future

Malaysia is on track to become the third-largest data centre market in Asia, after Japan and India with key sector beneficiaries being utilities, renewable energy (RE), property, and telecommunication, among others, said Hong Leong Investment Bank Bhd (HLIB).

In a note today, the research bank said the future of Malaysia’s data centre industry appears bright as global demand for digital infrastructure continues to grow and its role in the data centre ecosystem is likely to expand.

The data centre space in Malaysia is experiencing significant growth, with approved investments totalling RM114.7 billion between 2021 and 2023.

HLIB said the electricity and water are relatively affordable and abundant in Malaysia, attracting data centres which consume large amounts of these resources, and the country also appeals to international data centre operators by enabling them to source RE.

As data centres are electricity guzzlers, it is crucial that the significant rise in energy consumption be met with an increase in RE generation capacity to ensure that Malaysia’s net-zero objectives are met.

“We roughly estimate that 35-40 gigawatts (GW) of RE is needed (assuming solar) to power up 7.2GW of data centres,” it added.

Meanwhile, the research bank opined that besides electricity and water, high bandwidth connectivity has become the third critical utility in the data centre industry.

“Connectivity here refers specifically to fibre and not only with domestic coverage, but extensive reach to international shores as well.

“Fibre that transmits and receives data at the speed of light has become the prerequisite to network between data centres, corporates, developers and end users,” it said.

In addition, HLIB noted that the surge in data centre investments has opened up new opportunities for property developers.

Developers who have land suitable for data centre development can sell the land directly, build and lease data centres to operators or even participate in operating the data centre, it said.

Additionally, the bank said under the construction sector, sophisticated engineering, procurement, construction and commissioning (EPCC) contracts are essential for modern data centres, which require advanced configurations and cybersecurity measures.

“We estimate there is RM130-228 billion worth of data centre construction value (based on an IT load pipeline of 4.5-5.1GW) and this will be a boon for reputable data centre builders,” it said.

Source: Bernama

Malaysia On Track To Become Third Largest Data Centre Hub In Asia – HLIB

Malaysia has received a further push from global technology players as it seeks to become a key regional hub for data management and digital infrastructure.

Having secured investments totalling US$16.9 billion from tech giants such as AWS, Microsoft, Google and Oracle, the domestic data centre landscape gets extra boosts from Bridge Data Centres (Bridge DC) and GDS Holdings.

Bridge DC on Monday signed a second collaboration agreement with local partner Mah Sing Group Bhd to expand Mah Sing DC Hub@Southville City with an extra 200 megawatts (MW) of power capacity.

This agreement builds on an initial partnership established in May 2024 for a 100MW development.

Earlier on Sunday, China’s data centre firm GDS International announced a RM1 billion investment and 5,000 potential job openings in Johor. This was after it signed a memorandum of understanding with five companies from China and Japan.

They were EPG Data Center Module, Longmotive, CoolTech Solution, Wasion Energy and Morimatsu Dialog.

GDS has already invested RM14.33 billion in local tech parks in Nusajaya and Kempas, both in Johor, generating over 300 jobs predominantly for Malaysians.

The new partnerships are expected to significantly expand this impact, providing ample employment opportunities and fostering economic growth in the region.

Meanwhile, Mah Sing said 36 acres, valued at around RM311 million, will be allocated for the latest Bridge DC expansion within Mah Sing DC Hub@Southville City.

Bridge DC will provide a forfeitable deposit as both parties finalise the joint venture agreement, which includes setting share ratios and completing the sale and purchase agreement for the land.

Tan Sri Leong Hoy Kum, Mah Sing’s founder and group managing director, said the collaboration aligns with the 2025 Budget emphasis on digitalisation and AI development.

“Malaysia has successfully secured investment totalling US$16.9 billion from global technology giants such as AWS, Microsoft, Google and Oracle, and the timing of this collaboration is particularly advantageous, given the growing global demand for data centres driven by the rise of AI and cloud computing,” he said in the statement.

Bridge DC, with strong financial backing, is targeting hyperscale and AI data centre customers, according to Leong.

He said Mah Sing DC Hub could play a pivotal role in establishing Malaysia as a key regional hub for data management and digital infrastructure, with the capacity to support up to 500MW.

The data centre’s first phase is expected to go live by 2026.

Leong added that the presence of Bridge DC at Mah Sing DC Hub@Southville City would likely attract more data centre operators, solidifying the hub’s position as a top regional data centre destination.

“This collaboration underscores Mah Sing’s commitment to building cutting-edge digital infrastructure. Our 30-year track record of rapid project execution makes us the ideal partner for data centre players seeking speed to market and scalability,” he said.

Mah Sing also has 42 acres of land in its Meridin East township in Johor Bahru, supporting an additional 300MW of future capacity, offering significant growth potential.

Eric Fan, chief executive officer of Bridge DC, affirmed that the partnership reflects its commitment to investing in Malaysia’s digital infrastructure as a leading regional data centre provider.

Bridge DC will oversee the design, construction, and infrastructure development to meet high-capacity clients’ specific needs, ensuring alignment with digital economy demands.

Source: NST

Data centre players pour in investments

Johor will receive a major foreign direct investment boost as GDS Holdings announces RM1bil in investment and 5,000 potential job openings with the signing of memoranda of understanding (MoU) with five foreign companies.

Johor Mentri Besar Datuk Onn Hafiz Ghazi said GDS Holdings was a leading data centre company that had invested over RM14.3bil in Nusajaya Tech Park and Kempas Tech Park and created over 300 new job opportunities with 86% being Malaysians.

He added that he witnessed the signing of the MoUs during the GDS Data Centre Supply Chain Ecosystem Summit held at a hotel here on Sunday (Oct 27).

The Machap assemblyman said the ceremony witnessed the MoUs between GDS and five companies from China and Japan such as EPG Data Center Module, Longmotive, CoolTech Solution, Wasion Energy, and Morimatsu Dialog.

“This is GDS commitment to bringing its supply chain into Johor.

“I am pleased to note that through this GDS supply chain, it has opened more than 5,000 new job opportunities directly and indirectly to locals, with a total investment of up to RM1bil,” he said in a Facebook post.

Onn Hafiz also added that he hopes that the collaboration between both state and federal governments and industries in Johor will continue to be strengthened.

“This will ensure the state’s economic development to continue and ultimately benefit Johoreans and Malaysians as a whole,” he said.

Source: The Star

Data centre company signing with foreign firms injects RM1bil FDI into Johor, says MB Onn Hafiz

Stellantis, the world’s fourth-largest automaker and leading mobility solutions provider, plans to set up a regional parts hub in Malaysia.

The new hub is a crucial component of Stellantis’ broader strategy to deepen its localisation efforts and bolster its long-term presence in the India & Asia Pacific region, including Malaysia. 

“India and Asia Pacific region is the third growth engine for Stellantis, and the regional parts hub is anticipated to become a key asset in our regional supply chain strategy,” Stellantis Asean chief operating officer Daniel Gonzalez said.

He said the investment underpins Stellantis’ long-term commitment in strengthening our footprint and growth not just in the region, but more importantly in contributing towards solidifying Malaysia’s position as a regional automotive hub.

“We are here to stay and are dedicated to enhancing customer experience, service delivery and operational efficiency with this new hub that will serve both Malaysia and the wider region,” he added.

Set to be operational by the first quarter of 2025, the new regional parts hub is designed to meet and cater to the growing demands of around 20 countries in the region, including key markets such as Malaysia.

The hub is also part of Stellantis’ strategy to enhance its aftersales service by reducing downtime and ensuring efficient access and availability of automotive parts and components to dealers and customers.

It will house automotive parts and components of all Stellantis brands including Peugeot, Citroën, Alfa Romeo, Jeep, RAM, Leapmotor and more.  

“The opening of our regional parts warehouse in Malaysia marks a significant milestone in our dedication to customer-centricity as we continue to better serve our customers across the India and Asia Pacific region.

Strategically located in a Free Trade Zone in Malaysia, this regional warehouse will allow us to improve parts availability, reduce lead time and enhance the overall service efficiency.

It will also enable us to respond quickly to the growing needs of our customers while ensuring they receive the highest level of aftersales support,” Stellantis India & Asia Pacific head of parts & services, Olivier Torchet said.

Since 2021, Stellantis has been building the foundation of the “Built in Asean for Asean” roadmap in Malaysia.

It began with the 100 per cent ownership acquisition of the Stellantis Gurun plant in Kedah, which will be maximised as a regional manufacturing hub for both domestic and export markets in Asean.

In March this year, Stellantis Malaysia was established as the official entity directing and managing marketing, sales, distribution, and after-sales of all Stellantis brands in Malaysia.

Source: NST

Stellantis to set up regional parts hub in Malaysia

The green energy sector has major potential to attract more foreign direct investment (FDI) to Malaysia as the world moves toward sustainable energy sources.

Member of Parliament Dr Mohammed Taufiq Johari (PH-Sungai Petani) said the government should realise that world demand is now moving towards greener and more environmentally friendly solutions.

He cited that programmes like RE100, where international companies pledge to use 100 per cent renewable energy, can be a major driver for countries that can provide clean energy sources.

“This gives Malaysia the opportunity to become a leader in the green sector in the ASEAN region.

“Through an investment strategy that is aligned with environmental and social needs, the government can ensure fair economic growth and benefit future generations,“ he said at the debate session on the Supply Bill 2025 in the Dewan Rakyat today.

Source: Bernama

Green energy sector can attract foreign direct investment to Malaysia

DHL Express has increased its investment in Malaysia with the launch of its RM300 million Kuala Lumpur Gateway (KL Gateway) – its largest investment in the country to date – as part of its strategy to enhance connectivity across Asia.

Previously, the company invested RM13 million to set up its Prai Service Centre in Batu Kawan Industrial Park, Penang, and RM11 million in Malaysia Southern Gateway.

DHL Express Malaysia and Brunei managing director Julian Neo Poh Choon said KL Gateway will support Malaysia’s booming import and export activities, in line with the increase in international trade.

“This new facility is three times larger and can handle four times the shipments compared to the previous premises. With this upgrade, we’re better equipped to support small and medium enterprises as well as multinational companies with their import and export activities in Malaysia,“ he said in his welcoming speech at the opening ceremony of the DHL Express Kuala Lumpur Gateway today.

The launch was attended by Transport Minister Anthony Loke Siew Fook, DHL Express Asia-Pacific chief executive officer Ken Lee and Raya Airways Group managing director Mohamad Najib Ishak.

Neo highlighted that the new facility is DHL Express’s first gateway facility in Southeast Asia with a fully automated sorting system. “This facility can process up to 10,000 shipments per hour, speeding up transit and delivery times compared to the previous capacity of 2,400 shipments,“ he said.

Neo said DHL Express aims to leverage Malaysia’s position as a regional logistics leader, adding that enhancing the nation’s role in global trade is part of KL Gateway’s planning strategy.

“Alongside four other gateways forming our local network, this facility enables seamless connectivity with major global trade flows, including the United States, China, Hong Kong, Japan, Singapore, Australia, Germany and the United Kingdom.

“It represents a critical component in our international network, spanning over 220 countries and territories,“ he said.

Neo noted that the facility’s development comes at an opportune time amid Malaysia’s positive trade outlook, with KL Gateway expected to become the main trade operations hub for DHL Express in central Malaysia.

“Kuala Lumpur and Selangor collectively contributed RM3.3 billion in export value and RM7 billion in import value as of August this year. Malaysia is a key player in the electronics and electrical manufacturing sectors, and the industry’s shift toward omni-sourcing is expected to drive continuous growth,“ he added.

Located at KLIA’s Terminal 1 Air Cargo Facility, L Gateway is one of five similar facilities in DHL Express Malaysia’s air and ground network. KL Gateway serves as a critical link for facilitating goods movement between the Klang Valley and international markets, with two flights connecting it to the Central Asia Hub in Hong Kong and the South Asia Hub in Singapore.

DHL Express has 20 service centres, approximately 170 retail locations, over 300 delivery vehicles, more than 60 weekly flights, four aircraft, and a workforce of 1,300 people.

Source: Bernama

DHL Express launches RM300m KL Gateway – its largest investment in Malaysia to date

Malaysia continues to serve as a logistics hub for solar panels amid the United States’ (US) tariff hike on solar equipment from Southeast Asia, said Transport Minister Anthony Loke.

He assured that several major US companies based in Malaysia are re-exporting solar panel equipment, including microchips, semiconductors and electronics, among other products, back to the US.

“I am not that pessimistic when it comes to this. As far as our policy is concerned, we want to continue improving and encouraging trade within Asean… inter-Asean trade is important. That’s why I believe the logistics hub is essential for Malaysia,” he said.

Loke was speaking to the press on the sidelines of the new DHL Express Kuala Lumpur Gateway’s opening ceremony today.

He emphasised that Malaysia should not rely solely on a single market and should continuously seek new opportunities.

Commenting on Malaysia’s recent inclusion as a BRICS partner country, Loke said this development opens up new market opportunities for Malaysia.

“I also believe that all relevant ministries, including the Ministry of Investment, Trade, and Industry, are taking the necessary steps to ensure that Malaysia’s exports and businesses are not affected,” he said.

The minister emphasised that besides solar panel exports, Malaysia is also strong in the E&E sector and should consider expanding into other consumer products.

Previously, the US announced a tariff hike on solar equipment exported from Southeast Asia to protect its domestic industry.

Its Commerce Department announced increased duties on solar equipment exported by Cambodia, Malaysia, Thailand, and Vietnam, following its initial findings of unfair government subsidies used to produce solar equipment sold by companies in these four countries.

Source: Bernama

Malaysia continues serving as solar panels’ logistics hub amid US tariff hike

Johor’s economy is expected to experience a boost following GDS Holdings’ announcement of a RM1 billion investment and 5,000 potential job openings.

This was after it signed a memorandum of understanding (MoU) with five notable companies from China and Japan during the GDS Data Centre Supply Chain Ecosystem Summit in Johor Baru.

Johor Menteri Besar Datuk Onn Hafiz Ghazi, in a post on his Facebook page, said he attended the GDS Data Centre Supply Chain Ecosystem Summit and witnessed the signing ceremony himself.

“I am pleased to learn that through GDS’s supply chain, more than 5,000 new job opportunities — both direct and indirect — will be created for the people of Johor and Malaysia, with total investments reaching up to RM1 billion,” he said.

Onn Hafiz said he hoped the collaboration among the state government, federal government, and industries in Johor will continue to strengthen, supporting the state’s economic development and ultimately benefiting the people of Johor as a whole.

The companies which signed MoUs with GDS were EPG Data Center Module, Longmotive, CoolTech Solution, Wasion Energy, and Morimatsu Dialog.

These partnerships signify GDS’ commitment to establishing its supply chain in Johor.

GDS Holdings, a leader in the data centre industry, has already invested RM14.33 billion in local tech parks, Nusajaya and Kempas, generating over 300 jobs predominantly for Malaysians.

The new partnerships are expected to significantly expand this impact, providing ample employment opportunities and fostering economic growth in the region.

Source: NST

Johor economy set for boost with RM1bil data centre investment

Demand for green buildings in Malaysia is projected to surge significantly in the coming years, potentially reaching around 10 million square feet annually.

However, this demand is currently unmet, according to JLL Appraisal & Property Services Sdn Bhd (JLL Malaysia).

JLL Malaysia’s head of research and consultancy, Yulia Nikulicheva said that an adequate supply of green buildings could be achieved either by upgrading the existing inventory or by constructing new structures.

“I believe this is a complex issue because many older buildings have the potential to be upgraded with green features.

“However, currently, the financial aspects are quite challenging, and some buildings may also be repurposed for other uses,” she said at a press conference for the third-quarter (3Q) 2024 Office Market Dynamics Report.

JLL Malaysia is a unit of Jones Lang LaSalle IP Inc, a global commercial real estate and investment management company listed on the New York Stock Exchange.

Nikulicheva noted that the green building market in Malaysia is performing well, although it still lags behind Singapore, which has a higher proportion of green space.

“Compared to Hong Kong, where the ratio of green space is relatively low, we are performing quite well,” she said.

Nikulicheva pointed out that some older office markets, such as those in Japan and Hong Kong, face greater challenges in transformation.

“In Malaysia, we are quite well-positioned because many of the buildings have been constructed recently. Even though they may not have green features, we see that the landlords of these buildings can implement green transformations.

“Starting this year, we have seen more landlords undertaking customer initiatives in green practices, and next year will probably be significant for these developments. I believe that in the coming years, we will see considerable progress,” she added.

Source: Bernama

Malaysia’s green building demand to reach 10mil sq ft annually: JLL Malaysia