The need for renewable energy (RE) in the country is increasing in line with the confidence of foreign investors, especially in establishing data centres.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the situation presents a challenge to the government in ensuring that the demand can be met apart from the need for water supply to draw investors.

“Right now in Johor alone, the demand for renewable energy is approximately 8,000 megawatts, as it is with the (amount of) water supply to cool the data centre.

“It means that if we are not ready, then these investors will not come. That’s why we have to find a way to ensure that we can supply the energy needed by the investors,” he said.

He was speaking at Majlis Jamuan Jalinan Perpaduan Ahli Dewan Undangan Negeri Sidam, Badan Bukan Kerajaan Siam dan Ketua-Ketua Agensi here tonight.

Fadillah, who is also the Minister of Energy Transition and Water Transformation, said the situation also required the necessary human resources, especially the working class with upskilled knowledge to meet the needs of investors.

He said in that regard, Technical and Vocational Education and Training (TVET) plays a pivotal role in producing a local technical workforce in accordance with foreign investor demands.

“This is precisely what is being implemented under the leadership of our Prime Minister (Datuk Seri Anwar Ibrahim). That is why TVET is being focused on for us to train, now under (Deputy Prime Minister) Datuk Seri Dr Ahmad Zahid Hamidi, to focus on how we want to ensure that this TVET (education) is widespread,” he also said.

Fadillah emphasised the responsibility of ensuring that Malaysians are equipped with new technical knowledge and skills, which must be supported by all quarters so that foreign investment can materialise here.

Also present at the event were Sungai Petani Member of Parliament Dr Mohammed Taufiq Johari and Sidam state assemblyman Bau Wong Bau Ek.

Source: Bernama

Malaysia must meet rising demand of RE to woo investors – Fadillah

Despite facing challenges, the port remains dedicated to serving the local community and boosting the regional economy

MMC Corp Bhd’s Penang Port Bhd plans to invest up to RM150 million over the next 24 months in capital expenditures (capex) to improve its infrastructure and purchase environmentally friendly equipment. 

CEO Datuk Sashedaran Vasudevan said as part of its green efforts, the company has acquired two batches of Hybrid Rubber-tyred Gantry (RTG). 

Each RTG cost about RM4 million to RM5 million, and the company has purchased eight units, with a combined total of RM40 million. 

Moreover, the port operator has set aside a capex of about RM15 million for the conventional cargo, to improve its existing substations and other facilities. 

Penang Port has recently concluded a project valued at RM20 million, which involves equipping 20 RTGs with battery packs. 

In addition, the company has committed about RM40 million to RM50 million for infrastructure upgrading. 

Solar and Shore Powers 

Currently, it is undertaking a feasibility study for a solar energy project with a proposed capacity of two megawatts, via the self-consumption (Selco) initiative by Tenaga Nasional Bhd (TNB). 

Selco is an option to generate electricity from a company’s own solar photovoltaic system, to offset or reduce its electricity bills. 

It would allow companies to consume all the electricity generated by its solar system but will not allow any excess to flow into the utility network. 

“Capex is not known yet, we are still doing a feasibility study,” Sashedaran said during a recent media visit. 

He added that Penang Port is exploring the possibility of setting up solar panels on stilts on shallow water pockets in its premises, “like a solar farm”. 

On the other hand, he said the global cruise business is expected to “go fully shore-power” by 2030. 

Shore power refers to the practice of supplying electricity from the shore to a docked cruise ship (or other vessels) instead of using the ship’s onboard generators. 

This allows the ship to turn off its engines and reduce emissions, noise and fuel consumption while in port. 

Sashedaran explained that when a cruise ship ports at a berth, it is equivalent to 10,000 cars switched on, despite it being equipped with the most advanced technology to contain black smoke. 

“That is underway. We are 18 to 24 months away from providing shore power, which will give competitive fuel advantage. 

“When we were in Miami, Florida, earlier this year, the sea trade business said that by 2030, the cruise ships will only port in ports with shore power, hence that is very crucial to stay in business,” he said. 

Sashedaran hoped that the infrastructure could be completed as early as 2026, upon approval from the government. 

The power supply could be charged back to the cruise ships that utilise the potential facilities, and the proposed shore power project has received support from relevant ministries. 

Furthermore, the port operator has invested up to RM100 million to upgrade the Swettenham Pier Cruise Terminal and aims to be a major cruise hub in South-East Asia. 

The company is also hoping to upgrade its homeporting capabilities, referring to the port that a ship returns to after it has finished travelling or transporting goods somewhere. 

Providing enhanced capabilities will boost Penang’s local economy as it would attract more vessels and tourists, resulting in more revenue for the businesses in Penang. 

The time spent onshore during intervals usually allows tourists ample time to buy souvenirs or source for other supplies from businesses nearby. 

“We need a holistic home porting ecosystem, which includes seamless coordination between the airport, port and authorities like customs and immigration,” he said. 

Ferry Service 

Penang Port is working closely with the Malaysia Cruise Council to promote the state as an international cruise operator. 

It aims to achieve 1.2 million passengers for its cruise ship business by year-end, similar to its record set last year. 

Sashedaran said it is slightly below track, as the Red Sea Crisis had impacted the segment which resulted in loss of an estimated 280,000 passengers or 24 cancellations. 

Post-Covid-19, Indian tourists made up the bulk of its passengers, compared to before the pandemic, when Chinese tourists held the top spot, in terms of customer demographics. 

The growth was attributed to the weak ringgit recorded previously as well as the visa-free scheme for Chinese and Indian tourists, announced by the government which commenced from Dec 1, 2023, and will run until Dec 31, 2024. 

Sashedaran noted that the port operator incurs annual losses of up to RM14 million Penang Port is working closely with the Malaysia Cruise Council to promote the state as an international cruise operator. 

It aims to achieve 1.2 million passengers for its cruise ship business by year-end, similar to its record set last year. 

Sashedaran said it is slightly below track, as the Red Sea Crisis had impacted the segment which resulted in loss of an estimated 280,000 passengers or 24 cancellations. 

Post-Covid-19, Indian tourists made up the bulk of its passengers, compared to before the pandemic, when Chinese tourists held the top spot, in terms of customer demographics. 

The growth was attributed to the weak ringgit recorded previously as well as the visa-free scheme for Chinese and Indian tourists, announced by the government which commenced from Dec 1, 2023, and will run until Dec 31, 2024. Sashedaran noted that the port operator incurs annual losses of up to RM14 million while striving to provide affordable and reliable transport for the bottom 40% (B40) and middle 40% income groups (M40) who are the regular commuters using its service. These losses are largely attributed to the ferry business. 

Despite operating at a loss, it was understood at the time of the government concession to operate the Penang ferry service, that the service would require significant subsidies from the company. 

The ferry service is an important staple in the state, which connects the city of Georgetown on the island and Butterworth on the mainland. 

The cross-strait transit has been in operation since 1894, making it the longest-running ferry service in Malaysia. 

The ferry service is heavily utilised and relied upon by the B40 and M40 commuters of the community. Furthermore, it helps to minimise the traffic congestion between both parts of Penang. 

The company had voiced its concerns, to which the government in response while striving to provide affordable and reliable transport for the bottom  40% (B40) and middle 40% income groups (M40) who are the regular commuters using its service. These losses are largely attributed to the ferry business. 

Despite operating at a loss, it was understood at the time of the government concession to operate the Penang ferry service, that the service would require significant subsidies from the company. 

The ferry service is an important staple in the state, which connects the city of Georgetown on the island and Butterworth on the mainland. 

The cross-strait transit has been in operation since 1894, making it the longest-running ferry service in Malaysia. 

The ferry service is heavily utilised and relied upon by the B40 and M40 commuters of the community. Furthermore, it helps 

to minimise the traffic congestion between both parts of Penang. 

The company had voiced its concerns, to which the government in response implemented a higher tariff to RM2 per way. Previously the price was RM1.20 two-way. 

Despite the higher tariff, the company continues to register a loss, albeit at an improved figure. 

“It used to be a RM20 million loss, because of the tariff increase, it has decreased to RM14 million. 

“To alleviate that situation, we also rent out our ferries for private functions. That helps to lighten the burden, but not entirely,” he said. 

Fuel Subsidy 

Sashedaran hoped the rental service provided will gain more traction among the public and private businesses in order to supplement and sustain the company’s operations. 

Its ferry chartering service is currently priced at RM1,500 per hour and is usually booked by private corporations, for company functions, or even for wedding events by individuals. 

At the same time, the company has requested additional support from the government in the form of subsidies to help lower its operational costs, specifically for fuel. 

Fuel subsidies are provided to transport companies, such as bus operators, with government approval. 

Sashedaran said there are no plans to increase the ferries’ capacity at the moment, as ridership is sporadic throughout the day. 

“Ferry ridership is very unique. The ferry is highly utilised from 6.30am until about 9am, then there are not a lot of people on it, with sometimes only about 10 people (on board). But it still has to run according to schedule,” he said. 

Each ferry has the capacity to carry up to 150 passengers and 50 two-wheeled vehicles, such as motorcycles and rickshaws, operating at speeds between nine and 11 knots (20.37kph). 

Based on its schedule, it makes 70 trips per day at 30-minute intervals. 

As part of Penang Port’s commitment to the government and the public, Sashedaran stressed that operations need to be continued as per its schedule, regardless of uncontrollable factors such as weather. 

Sashedaran said, for example, even during a storm that occurred recently, the company did not cancel any of the trips but rather delayed it out of necessity. 

Going above and beyond the call of duty, it added extra ferries to cope with the situation in order to clear the crowd at its terminals.

Regarding maintenance, he said the existing ferries are new and that they have received a waiver from the government for two years, after which they will be docked.

The first docking activity is scheduled to be completed by next year, during which the vessel will be taken out of the water for cleaning and routine maintenance, which is a costly endeavour. 

Budget 2025 Wishlist

For the upcoming Budget 2025, Penang Port hoped to receive additional assistance from the government, through incentives on areas of concern such as port tariffs, taxes, as well as human capital development. 

Sashedaran disclosed that the company hopes that the budget will include incentives for employee upskilling. 

“When you talk about expansion, ports are still a labour-intensive business. So, when you expand the port, you also need to expand the number of manpower,” he said.

Currently, Penang Port has a total workforce of about 1,470 employees. 

Sashedaran pointed out that the port tariffs set by the government generates revenue for the company, which in turn will be used to reinvest and expand its ports.

Thus far, the government has been supportive and the ministries listen to the company, and take ideas from it. 

“We have a government that listens to the operators and the users, which is a good thing. Let us see how the Budget 2025 turns out,” he said. 

Penang Port expects to hit 1.5 million twenty-equivalent units (TEUs) by year-end. The target is set slightly higher compared to its record of 1.44 million TEUs handled in 2023. 

However, the forecast is set lower from its initial target of 1.55 million TEUs earlier in the year, due to the geopolitical crisis and shortage of containers. 

“The Red Sea crisis came to light only post-April. That is when it made a huge impact on us,” he added, mentioning that the port had lost up to 70,000 TEUs due to the Red Sea crisis. 

To increase its TEUs, Sashedaran said the company is shifting its focus towards the Bay of Bengals transhipment market. 

“If you put together all these four nations, (Bangladesh, Indonesia, India and Myanmar) there are about eight million containers sitting in the Bay of Bengal,” he said.

Source: The Malaysian Reserve

Penang Port to invest up to RM150m for green efforts

The International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM) is expected to attract 48,000 participants and 480 exhibitors from 48 countries, generating business leads estimated at RM4.8 billion.

Organised by the Natural Resources and Environmental Sustainability Ministry with co-organiser Malaysian Green Technology and Climate Change Corporation (MGTC), a statement from MGTC said the Malaysian Investment Development Authority (MIDA) is its strategic partner for the Oct 9-11 2024 event.

“The theme ‘Race Towards Net Zero: Regional Leadership for Climate Urgency’ reflects the pressing need for collective action against climate change,” the statement said.

“As global efforts intensify to curb greenhouse gas emissions, IGEM will be at the forefront of critical discussions around sustainability and green technology solutions for the region’s future,” it said.

MGTC group chief executive officer Shamsul Bahar Mohd Nor said IGEM’s role is to position Malaysia on the global stage as the country prepares for the ASEAN chairmanship in 2025 and the 29th Conference of the Parties (COP29) in Azerbaijan.

“IGEM is a global nexus for innovation and collaboration where ideas evolve into tangible solutions. Bringing together international leaders, green businesses, and policymakers catalyses crossborder cooperation, knowledge exchange, and technological advancements that is crucial in addressing the climate crisis.

“This platform amplifies Malaysia’s leadership on the world stage and creates the opportunity for meaningful partnerships that can drive impactful change globally,” Shamsul said.

A key highlight of IGEM 2024 will be the Clean Energy Transition Asia (CETA) summit, which will unite ministers, policymakers, and private sector leaders to guide Asia’s shift towards clean energy.

The summit is designed to offer participants practical insights and strategies, focusing on public-private collaboration to boost clean energy efforts across the region.

Source: Bernama

IGEM 2024 expects to generate RM4.8 bln business leads

The government is optimistic that Kuala Lumpur International Airport (KLIA) has the potential to become the region’s cargo hub, said Transport Minister Anthony Loke Siew Fook.

He said KLIA has all the necessary factors to continue to grow and become the cargo hub for the ASEAN region.

Loke pointed out that over the past few years, significant developments have taken place in this area of KLIA, with many new cargo warehousing complexes being established.

“KLIA is a huge airport, and it is not just about the passenger terminal. The cargo is a very important component of KLIA.

“As you have seen over the last few years, major developments have taken place in this part of KLIA,” he told reporters after witnessing the strategic partnership between MMAG Aviation Consortium Sdn Bhd (MAC) and Unilode Aviation Solutions, here today.

Loke said KLIA has the potential to become a central hub for ASEAN due to its extensive network.

“We have advantages that many may not have noticed. In terms of connectivity within ASEAN, KLIA is one of the best in the region.

“Through our airlines, especially our low-cost carriers, we serve numerous secondary cities in ASEAN, such as those in Indonesia, Thailand, and Cambodia.

“With our strong network at KLIA, we must fully utilise our resources, and I’m confident that all airlines are considering this as well,” he said.

Meanwhile, Loke said that as the transport minister, he will continue his role to ensure that the transportation and logistics sectors remain competitive, efficient, and aligned with international standards.

He said the government, through the Ministry of Transport, has been working diligently to create a conducive environment that encourages innovation, growth, and sustainable development in these sectors.

“Through the National Transport Policy 2019 – 2030, we have made a priority to strengthen governance and build institutional frameworks that are robust and adaptable to the fast-evolving demands of the logistics industry.

“With new and disruptive technologies on the rise, we must ensure that these frameworks allow industry players to operate effectively in a competitive environment while ensuring users receive integrated and efficient logistics services,” he added.

Source: Bernama

Govt optimistic KLIA can become regional cargo hub – Loke

In the excitement brought about by the surge of foreign investments in Malaysia’s digital economy, the government wants to see more homegrown technology companies “jump on the bandwagon” and expand their businesses in the country, Digital Minister Gobind Singh Deo said.

He said one of the many efforts undertaken by the government to make that aspiration a reality was the Gateway, Amplify, Invest & Nurture (GAIN) initiative by the Malaysia Digital Economy Corporation (MDEC).

GAIN aims to drive market access programmes for Malaysian tech companies via business-to-business matching and networking activities with global tech ecosystem players.

“Since 2017, GAIN has accessed the markets of over 26 nations. It has seen the involvement of over 150 Malaysian tech companies and organised over 1,000 one-to-one business meetings.

“Thanks to the direct facilitation under GAIN, we have seen revenues of RM31.9 billion from 2017 till to date, and exports worth RM11.2 billion,” he said in his speech at the DIGERATI50 Networking Cocktail event in Cyberjaya here Friday.

Gobind said the digital economy was expected to play a crucial part in Malaysia’s overall economy, as it was projected to contribute 25.5% to the country’s gross domestic product by the end of next year.

He said Malaysia was on the right path in achieving that target, as indicated by the rise in digital investment to RM66.22 billion in the first half of this year, surpassing the RM46.2 billion recorded in 2023.

“These investments hinge on the resilience of our digital sphere. While generative artificial intelligence (AI), for example, can bring a whole lot of benefits to our economy and society, we must also ensure such technology is soundly implemented,” he noted.

On another note, Gobind said Cyberjaya, over the years, had been successful in putting in place a tech ecosystem where companies involved could flourish under the Multimedia Super Corridor (MSC) project.

“The advancement in technology and innovation that we experience today started 28 years ago. The MSC project launched in 1996 was the starting point of our country’s journey in technology and Cyberjaya was the nucleus of the MSC,” he said.

Cyberview Sdn Bhd is mandated to drive the growth of a holistic global tech hub ecosystem in Cyberjaya.

Picking up on Gobind’s acknowledgement of Cyberjaya’s success, Cyberview chief executive officer Kamarul Ariffin Abdul Samad said the city had nurtured over 100 startups, raised RM255 million in total investment, generated RM792 million in cumulative revenue and created 1,450 jobs.

He said Cyberjaya would continue to be the preferred investment destination of the “big boys” in the digital tech landscape, especially with the increasing demands from those companies to set up data centres for the region, here in Malaysia.

“With the key digital infrastructure as backbone to the digital economy — the data centres — firmly in place, we foresee further development in digitisation across industries, especially in the areas of emerging technologies like big data, robotics and generative AI.

“Enterprises and businesses, for example, are already integrating AI into their operations and workflows. We are excited to see how AI will soon change industries, services and the society at large,” he added.

Source: Bernama

Govt wants more local tech companies to expand their business in Malaysia — Gobind

Inflow of RM27bil poised to nurture the country’s next-generation digital talent

United States-based Oracle Corp’s investment of over Us$6.5bil (Rm27bil) in Malaysia is expected to nurture the country’s next-generation digital talent and strengthen its digital economy.

The multi-billion-dollar investment will be used to establish a new cloud region aimed at harnessing the power of artificial intelligence (AI) and modernising local businesses.

Oracle Malaysia managing director Fitri Abdullah said Oracle understands the importance of developing Malaysia’s talent pool to ensure a skilled and ready workforce as the country’s digital economy grows.

“We have made great strides with Oracle Academy in Malaysia that has worked with more than 80 educational institutions to help them prepare students for successful technology careers with knowledge, handson practice and career-relevant skills. Our investment of more than Us$6.5bil continues to build on nurturing Malaysia’s next generation of digital talent,” Fitri told Starbiz.

Yesterday, Oracle said it plans to invest more than Us$6.5bil to set up its first public cloud region in Malaysia.

Oracle’s investment in Malaysia marks one of the largest technology commitments in the country, driving the total investment by global tech giants to Us$16.9bil to-date.

This follows Microsoft Corp’s Us$2.2bil push to expand cloud and AI services, Google’s Us$2bil for its first data centre and cloud region, and Amazon Web Services’ Us$6.2bil commitment through 2038, underscoring Malaysia’s growing importance as a digital hub in South-east Asia.

Although Oracle did not specify the timeframes for the investment, Fitri said the investment underscored the company’s long-term commitment to the country, where it has operated for over 35 years.

“With Oracle’s cloud region in Malaysia, organisations in the country will be able to migrate mission-critical workloads to the Oracle Cloud Infrastructure (OCI) and leverage cloud and AI infrastructure and services,” he added.

It will enable businesses to modernise their applications, innovate with data and analytics, and capitalise on advanced AI capabilities.

The firm said the new cloud region will offer access to more than 150 services, further driving Ai-fuelled innovation and supporting Malaysia’s digital economy.

It will also extend OCI’S footprint in Asiapacific to a total of 12 public cloud regions.

Oracle Japan and Asia-pacific executive vice-president and general manager Garrett Ilg said Malaysia offered unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies.

“Our multi-billion-dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure

“With Oracle’s cloud region in Malaysia, organisations in the country will be able to migrate mission-critical workloads to the Oracle Cloud Infrastructure and leverage cloud and AI infrastructure and services.” Fitri Abdullah.

Source: The Star

Oracle investment to boost digital economy

RHB Research said Wednesday that Malaysia is set to emerge as the largest data centre hub in the Association of Southeast Asian Nations (ASEAN) region with about 4 gigawatts (GW) of inventories projected to come on stream over the next four to five years, Xinhua News Agency reported.

The research house said in a note that approximately 2 GW of inventories are under construction and committed for, largely in Johor state, with close to 3 GW in developmental stages.

“This capacity is in the developmental stages, and will be added progressively over the next three to five years,” it noted.

According to RHB, potential data centre inventory by 2028 would be 10 times more than what it took the industry to build over the last two decades.

This would put Malaysia ahead of Singapore, Asia’s largest data centre metro where capacity is projected to stabilize at 1.4 GW due to land scarcity and stricter conditions imposed on new builds, it added.

RHB also noted approvals for data centre investments in Malaysia are expected to hit another high in 2024, ahead of the guidelines to be enacted on new builds with the investment pipeline looking strong going into 2025.

“We continue to see data centre-related news flow shaping market sentiment on the back of structural demand, the lower interest rate environment and multi-year investments by hyper scalers,” it said.

The investments act as a strong funnel for growth, adding to the investments by wholesale co-location providers, said the research house.

“We see the strong commercial proposition of data centres spawning more mergers and acquisitions and strategic partnerships across multiple stakeholders, fueling an expansion in transaction multiples,” it noted.

It also opined that agricultural landowners are warming to diversification opportunities in light of declining yields from traditional crops.

RHB sees accelerated adoption of artificial intelligence (AI) catalyzing demand for scalable data center infrastructure.

“The prolific cycle of investments should downplay growing concerns over an inventory oversupply, in our view,” it said.

It noted the risks of a supply glut should also be mitigated by data compliance and residency requirements, modular expansion undertaken by data centre owners and the need for older facilities
to be retrofitted to meet current needs.

RHB also sees data centre investments as a catalytic enabler to raise Malaysia’s economic complexity and move up the technology ladder.

Source: Bernama

Analyst Sees Malaysia To Emerge As Largest Data Center Hub In ASEAN

Data centre (DC) investments are a catalytic enabler for raising Malaysia’s economic complexity and advancing its position on the technology ladder, said RHB Investment Bank Bhd (RHB IB).

In a research note, RHB IB highlighted that the timely development of the Johor-Singapore Special Economic Zone (JS-SEZ) serves as a potent stimulus, creating fecund ground for DCs to flourish.

“We continue to see DC-related news shaping market sentiment, driven by structural demand, a lower interest rate environment and multi-year investments by hyperscalers.

“DC investment approvals are expected to reach new highs in 2024, ahead of the enactment of guidelines for new builds. The investment pipeline remains robust, extending into 2025,” it said.

Additionally, Malaysia’s domestic DC landscape has received a significant boost from hyperscalers committed to establishing cloud regions.

“The multi-billion ringgit investments provide a strong foundation for growth, complementing investments from wholesale colocation providers,” it added.

According to DC Byte, more than 1.0 gigawatt (GW) of supply is expected to come online within the next two years, compared to the current installed capacity of less than 400 megawatts (MW).

“Approximately 3.0 GW of capacity is in the developmental stages and will be added progressively over the next three to five years.

“By 2028, potential DC inventory could be 10 times greater than what the industry has built over the past two decades.

“This would position Malaysia ahead of Singapore, Asia’s largest DC hub, where capacity is expected to stabilise at 1.4 GW due to land constraints and stricter conditions on new developments,” it noted.

RHB IB also anticipates accelerated adoption of artificial intelligence (AI) driving demand for scalable DC infrastructure.

“More complex AI models will lead to exponential growth in DC workloads, with increased investments in graphics processing units needed to manage and process vast datasets required to train AI models,” it said.

RHB IB’s preferred DC stock picks include Telekom Malaysia Bhd, Tenaga Nasional Bhd, IJM Corp Bhd and Mah Sing Group Bhd.

Source: Bernama

RHB IB: Data Centres A Catalyst For Malaysia’s Economic Growth

Google’s hyperscale data centre at Elmina Business Park is being built by Sime Darby Property Bhd (SD Property) according to Google’s customised specifications and infrastructure requirements.

SD Property said the lease arrangement with Google marked the first and only of its kind to-date by a developer in Malaysia.

The hyperscale data centre broke grounds today, and upon completion, the developer said it will be operated by Google.

SD Property expects to roll out more projects under this business model with high-calibre clients in technology-driven manufacturing and logistics businesses, in addition to the data centre space.

“SD Property  is proud to establish Google’s first hyperscale data centre in Malaysia at our Elmina Business Park and would like to thank Google for the trust placed in us.

“Our venture into this new economy asset class with a leading tech giant positions Elmina Business Park as a top destination for global tech firms,” said SD Property group managing director Datuk Seri Azmir Merican.

He added that the Elmina Business Park represented SD Property’s efforts as a responsible developer to the nation from both an economic and societal contribution perspective.

“It serves as a blueprint for our future business parks throughout Malaysia,” he said.

The park is designed to support the digital economy with critical infrastructure, including large-scale water and energy solutions.

The development is expected to attract additional data centres, large-scale manufacturers, and small and medium-sized enterprises (SMEs).

Upon full development of Elmina Business Park in 2035, the broader business ecosystem is projected to create 35,000 job opportunities to meet operational demands.

Google global director of data centre energy and location strategy Gary Demasi said it is pleased to have broken ground on its first data centre and cloud region campus in Malaysia at Elmina Business Park.

“We look forward to further potential collaboration with SD Property as part of our continued efforts to advance the country’s goals of boosting its digital competitiveness and establishing itself as a regional hub for artificial intelligence innovation,” Demasi added.

Source: NST

Google’s hyperscale data centre at Elmina Business Park breaks ground

Oracle today announced that it plans to invest more than US$6.5 billion (US$1 = RM4.15) to open a public cloud region in Malaysia to meet the rapidly growing demand for its artificial intelligence (AI) and cloud services here.

In a statement today, Oracle said that the upcoming cloud region will enable its customers and partners in Malaysia to leverage AI infrastructure and services and migrate mission-critical workloads to Oracle Cloud Infrastructure (OCI).

It quoted Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, who said, “We warmly welcome Oracle’s US$6.5 billion investment in Malaysia, which represents yet another expansion of their 36-year footprint in Malaysia.

“This investment will empower Malaysian entities, especially small and medium-sized enterprises, with innovative and cutting-edge AI and cloud technologies to enhance their global competitiveness.

Zafrul said the investment is also a significant step towards realising the country’s New Industrial Master Plan’s ambitious vision of creating 3,000 smart factories by 2030.

“Oracle’s decision to establish a public cloud region in Malaysia underscores Malaysia’s infrastructure readiness and its growing position as a premier Southeast Asian destination for digital investments,” he added.

Meanwhile, Oracle executive vice-president and general manager of Japan and Asia Pacific, Garrett Ilg, said Malaysia offers unique growth opportunities for organisations looking to accelerate their expansion with the latest digital technologies.

“Our multi-billion dollar investment affirms our commitment to Malaysia as a regional gateway for cloud infrastructure as well as a comprehensive suite of SaaS applications deployed within Malaysia,” he said.

IDC vice-president of cloud, data centre and future digital infrastructure, Asia Pacific, Franco Chiam, said the upcoming Oracle cloud region in Malaysia signals the country’s potential to become a hub for technological innovation and growth in Southeast Asia.

Oracle said the planned public cloud region will help organisations in Malaysia modernise their applications, migrate all types of workloads to the cloud, and innovate with data, analytics, and AI.

It said customers could have access to, among others, Oracle’s OCI Generative AI Agents with retrieval-augmented generation (RAG) capabilities as well as accelerated computing and generative AI services to help keep sovereign AI models within country borders.

“Additionally, over 150 services, including Oracle Autonomous Database and Oracle Cloud VMware Solution, will also be available, offering customers infrastructure, platform, or software as a service (SaaS) services,” Oracle added.

Source: Bernama

Oracle to invest more than US$6.5 billion in AI and cloud computing in Malaysia

Prime Minister Datuk Seri Anwar Ibrahim said Oracle’s investment decision reflects the confidence and commitment of global technology companies in Malaysia’s potential as a regional gateway for cloud infrastructure and supporting the growth of the regional artificial intelligence (AI) ecosystem.

Anwar, who is also the Finance Minister, welcomed Oracle’s announcement today that it will open its first public cloud centre in Malaysia with an investment amounting to US$6.5 billion (US$1=RM4.15).

“The clarity of policies and strategic cooperation approach implemented by the MADANI Government has successfully attracted investment from the world’s leading technology companies such as Amazon Web Services, Microsoft, Google and most recently, Oracle.

“The entire project announced by these companies so far involves an estimated investment worth US$16.9 billion,“ he said in his official X.com account today.

According to the prime minister, it is important for the local workforce and companies to seize the best opportunities from these investments.

“In a series of discussions with investors, including the top management of these companies, I emphasised the importance of expanding long-term benefits to Malaysia, including the development of centres of excellence, AI faculty and the empowerment of community groups.

“I am confident that with the support of all parties, the goals and targets of MADANI Economy will be achieved,“ he added.

Earlier today, Oracle said the upcoming cloud region will enable its customers and partners in Malaysia to leverage AI infrastructure and services and migrate mission-critical workloads to Oracle Cloud Infrastructure (OCI).

It said that the planned public cloud region will help organisations in Malaysia modernise their applications, migrate all types of workloads to the cloud, and innovate with data, analytics, and AI.

Source: Bernama

Oracle’s investment reflects global tech companies’ confidence in Malaysia – PM

Malaysia is poised to become the largest data centre (DC) hub in the region with about four gigawatt (GW) of inventories projected to come on stream over the next four to five years, said RHB Research.

According to DC Byte, more than 1.0GW of supply is expected to come on stream over the next two years versus the current installed capacity of under 400 megawatts (MW).

About 3.0GW of capacity is in the developmental stages, and will be added progressively over the next three to five years.

RHB Research said potential DC inventory by 2028 would be 10 times more than what it took the industry to build over the last two decades.

“This would put Malaysia ahead of Singapore, Asia’s largest DC metro where capacity is projected to stabilise at 1.4GW due to land scarcity and stricter conditions imposed on new builds,” it said in a note.

RHB Research sees accelerated adoption of artificial intelligence (AI) catalysing demand for scalable DC infrastructure.

The firm noted that more complex AI models will translate into exponential growth in DC workloads with greater investments in graphics processing units (GPUs) to handle and process the enormous datasets to train AI models.

“The prolific cycle of investments should downplay growing concerns over an inventory oversupply, in our view,” it said.

RHB Research continues to see DC-related news flow shaping market sentiment on the back of structural demand, the lower interest rate environment and multi-year investments by hyperscalers.

The firm said approvals for DC investments are expected to hit another high in 2024, ahead of the guidelines to be enacted on new builds with the investment pipeline looking strong going into 2025.

“Our preferred DC stock picks are Telekom Malaysia Bhd, Singapore Telecommunications Ltd, Tenaga Nasional Bhd, YTL Power International Bhd, Gamuda Bhd, Sunway Construction Group Bhd, IJM Corp Bhd, Sime Darby Property Bhd and Mah Sing Group Bhd,” it added.

Source: NST

Malaysia to be Asia’s largest data centre hub ahead of Singapore by 2028?