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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Budget 2025 to accelerate Malaysia’s digitalisation, AI adoption

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Pahang to focus on wooing data centre industry investors

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Issues and Challenges

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Way Forward

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

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

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

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

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

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

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

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

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

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

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

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

Source: NST

NETR to energise Malaysia, power the future

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

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

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

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

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

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

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

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

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

Source: The Malaysian Reserve

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

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

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

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

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

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

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

Source: Borneo Post

US ambassador meets Sarawak Premier to strengthen renewable energy ties

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

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

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

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

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

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

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

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

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

Source: Bernama

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