The Investment, Trade and Industry Ministry (Miti), through the efforts of the Digital Investment Office, has recorded approved foreign investments in digital projects worth RM127 billion between 2021 and March this year.

Domestic investments accounted for RM34.9 billion of total approved investments, amounting to RM161.9 billion, in digital projects approved under the National Committee on Investment in that period, the ministry said.

“The investments approved were mainly in the data centre, cloud computing, data hosting, big data analytics and artificial intelligence sectors,” it said in a written reply on the Parliament website yesterday.

The ministry was responding to a query from Syed Ibrahim Syed Noh (PH-Ledang) about benefits to the nation from foreign direct investment in the digital sector.

Miti said investments secured in that sector will bring socio-economic benefits, including the potential creation of 49,108 skilled and high-paying jobs for data engineers, data scientists, big data analysts, cybersecurity engineers and information technology engineers.

It said the government emphasises more inclusive digital infrastructure investments at local and regional levels, the availability of high-speed internet, and technological solutions to generate low latency for data.

On the main economic spillover effect from these strategic digital investments, Miti cited an acceleration of digital transformation for micro, small and medium enterprises, which make up 97 per cent of the country’s business establishments, contributing 48 per cent of jobs and 38 per cent to economic growth.

In addition, it said, the investments facilitate the reorganisation of industrial clusters and value chains powered by digital technology towards the creation of 3,000 smart factories by 2030, as outlined in the New Industrial Master Plan 2030, while providing access to digital technology opportunities and usage and spurring industrial revolution in various sectors.

Source: Bernama

RM127 bln foreign investment in digital projects from 2021 to 2024 — MITI

Artificial intelligence (AI) could be the ideal catalyst for the Malaysian economy, which stands at the cusp of leapfrogging beyond the 5% growth target, says venture capital (VC) fund and co-creation studio The Hive.

In a report entitled “Generative AI: Cusp of a new era for the Malaysian economy”, the VC firm says AI has become a utility like energy or a telco while AI computing is a national resource, key to nation building.

For Malaysia, the Hive said the country has a favourable demography with massive global tech giants investing in R&D, coherent and state-level AI education policies with efficient implementation and a vibrant startup ecosystem focus on AI-driven innovation.

It noted also that Johor Bahru is the fastest-growing data centre market in Southeast Asia. While AI computing is projected to drive data centre energy demand of 5GW by 2035, Malaysia is in the global Top 5 most price-efficient energy markets, The HIve said in its report.

Meanwhile, Malaysia is also very favourably located in the global semiconductor and network bandwidth corridors.

“There is rapid growth in talent and infrastructure ecosystems timed alongside with the ongoing paradigm shift in AI technology.

“Malaysia also has a consistent and neutral foreign policy, making it a fertile ground for international AI innovation partnerships,” it added.

The Hive is organising a Catalyst Series summit in collaboration with the Securities Commission, entitled “Transforming the global digital economy with generative AI”, from 10am to 2.15pm on July 30, 2024 (Tuesday), at the SC building.

It said the summit, which brings together some of the brightest minds, aims to foster innovation with generative AI among corporations and establish Malaysia as the AI hub of Southeast Asia.

Source: The Star

AI to usher in a new era for Malaysian economy

Green hydrogen was previously sidelined as a source of renewable energy compared with solar and wind due to its high production cost. However, as the decarbonisation journey progresses, more alternatives are necessary, especially to tackle emissions from hard-to-abate sectors.

This is also recognised in Malaysia as seen with the National Energy Transition Roadmap (NETR) launched by the Ministry of Economy in July 2023 and the Hydrogen Economy Technology Roadmap (HETR) in October 2023.

“I see hydrogen as the way forward. [In] Malaysia, we have the edge or the advantage in becoming an exporter of green hydrogen, with Sarawak as an example,” Minister of Science, Technology and Innovation Malaysia Chang Lih Kang tells ESG.

The first hydrogen refuelling station in Peninsular Malaysia is in the works, while Sarawak has already introduced hydrogen buses and multiple hydrogen fuel stations, and struck up collaborations to build production facilities.

The real breakthrough lies in exploiting the full potential of green hydrogen to decarbonise supply chains in large-scale applications, the minister says.

Hydrogen is currently produced almost entirely from natural gas reformation and coal gasification, which are highly carbon-intensive processes.

Depending on production methods, hydrogen can be grey, blue or green, which are the most common classifications. There are also pink, yellow and turquoise hydrogen.

Grey hydrogen, produced through steam methane reforming, contributes to carbon emissions as it releases carbon dioxide and uses non-renewable energy (RE) for production. It is currently used in the chemical industry as a feedstock, in the steel industry as a reducing agent and for special applications in various industries.

Green hydrogen is the only type produced in a climate-neutral manner and would play an important role in the global efforts to reduce emissions to net zero by 2050, according to the World Economic Forum.

Blue hydrogen, produced from natural gas with carbon capture and storage, can also be considered “clean” if it meets strict carbon capture standards.

Though theoretically versatile, green hydrogen has not been widely adopted due to its high cost of production compared with fossil fuels and because the technology to produce it is not yet commercially mature, according to the Global Hydrogen Review 2023 by the International Energy Agency.

However, decarbonisation efforts are likely to drive hydrogen use in new applications, especially in sectors where reducing emissions is challenging and alternatives are limited.

Sarawak is aiming to become a frontrunner in green hydrogen energy by leveraging its hydropower resources. Kuching, the state capital, is a beneficiary of the US$3.4 billion (RM16 billion) investment for developing a network of power-to-transport projects, according to reports.

Initiatives in Kuching include a fleet of three free-to-ride, hydrogen-fuelled buses manufactured in China. These buses refuel at multi-fuel stations equipped with dedicated hydrogen bays. Since Sarawak is the only state in Malaysia to have a hydrogen production facility, UMW Toyota gifted five Toyota Mirai to state officials in 2023. The Toyota Mirai is the world’s first mass-produced hydrogen fuel-cell car.

One step at a time

The HETR sets out three phases of development. Phase 1 involves the initiation, foundation and demonstration of hydrogen use cases in the domestic market and for exports. This phase spans the years 2022 to 2030.

This phase focuses on competitive, small and commercial-scale projects to demonstrate feasibility. This includes deploying various carriers of hydrogen to determine which physical state is most suitable for use. Currently, hydrogen is widely used in its gaseous state, which is suitable for transportation and metal or glass manufacturing.

In its liquid state and as ammonia, hydrogen is used for the production of fertilisers and in shipping. In its solid state as sodium borohydride, it can be used for light-duty vehicles  according to the HETR.

“We have different phases, we do pilot projects, we showcase technologies that are already on the market to gain confidence from the public and also [to raise] public awareness. But of course, we cannot commercialise right away. For instance, we cannot import the Toyota Mirai to Malaysia [for public use yet] because we do not have [large-scale hydrogen] production,” says Chang.

“We have pilot production plants [in Sarawak], then slowly, we will scale up [to other levels of production]. So, that is the first phase from now until 2030, the second phase is 2031 to 2040, and we are anticipating that by the second phase we will have production [facilities] and we can start exporting.”

Notably, Petroliam Nasional Bhd (Petronas) and Sarawak Energy have teamed up to commercially generate green hydrogen.

The NETR identifies hydrogen as one of six key energy transition strategies for Malaysia. Under this initiative, the government has planned three catalytic green hydrogen projects including one in Kuching for domestic use set for completion by 2025 and two in Bintulu for export, due by 2027.

Navigating the roadblocks

Malaysia could be a hub for producing green hydrogen, not only for domestic use but also for export to other countries, observes Chang.

This vision is guided by a roadmap focused on commercialising a fuel that, despite being significantly more expensive than natural gas and presenting logistical challenges for bulk transport, is an important lever in Malaysia’s decarbonisation efforts.

According to the IEA, hydrogen plays an important role in sectors where reducing emissions is particularly challenging and where other mitigation methods may not be feasible, such as in heavy industry, long-distance transport, shipping and aviation.

“Now the problem we have is cost. Technology-wise, we are quite okay. Only now, how do we lower the costs? But also, if there is no demand and there is no supply, how to speak of costs?” says Chang.

According to the HETR, grey hydrogen produced with natural gas costs US$2 per kg in the US, while in Europe, Australia and Asia, it costs US$5 to US$6 per kg due to higher natural gas prices. Blue hydrogen produced from natural gas paired with carbon capture and storage costs between US$5 and US$7 per kg in the US and between US$7 and US$11 in Europe and Australia.

Among the many colours of hydrogen, green hydrogen is the most expensive to produce. Green hydrogen is produced through electrolysis and uses renewable power, costing US$10 to US$15 per kg, depending on availability.

With the economy of scale and maturity of the technology across the hydrogen value chain, some countries have developed the infrastructure to reduce the levelised cost of hydrogen (LCOH) to the range of US$1.5 to US$2 per kg.

Chang believes that to lower the cost of hydrogen, it has to be policy-driven. For instance, by subsidising clean energy, especially cost-intensive ones like hydrogen.

“I think this could be one of the ways to encourage more usage of hydrogen or other renewable energy. [Because] it doesn’t make sense if we say that by 2050, we are going to achieve net zero, but at the same time, we are still subsidising fossil fuels. It is contradictory. Slowly, we are going to move towards that direction. Instead of subsidising fossil fuel, we should be subsidising RE and maybe allowing tax rebates for hydrogen car buyers,” he adds.

Source: The Edge Malaysia

Energy: Can Malaysia be a hydrogen hub?

Prime Minister Datuk Seri Anwar Ibrahim hopes that continued investment and collaboration with telecommunications company, Ericsson, can position Malaysia as a leading 5G technology country on the global stage.

Anwar expressed this aspiration during a meeting with an Ericsson delegation led by the group’s president and chief executive officer Börje Ekholm yesterday.

The prime minister said the meeting discussed matters related to the implementation of the 5G network in Malaysia which has already exceeded 80 per cent of the Coverage of Populated Area (CoPA), recording among the best performance and experiences in the world.

“Following the success of 5G implementation in Malaysia, I welcome investment, strategic cooperation and the sharing of expertise in enhancing the capabilities of 5G network expansion which can benefit all sectors.

“I hope that this close cooperation can drive widespread 5G adoption and accelerate the growth of the digital economy in Malaysia,” Anwar said in a post on X today. 

Source: Bernama

PM Anwar hopes continued Ericsson partnership will establish Malaysia as 5G technology leader

Sarawak is committed to growing its clean energy generation sector following the vast opportunities for investors to collaborate with the state, says Sarawak Premier Tan Sri Abang Johari Tun Openg.

“The global economy has shifted towards green energy and in Sarawak, we have the resources to produce it. I believe that Sarawak will contribute towards the new economy that is faced by the world,” he said at the Mida Invest Series entitled “Sarawak: Unfolding its business potential” here, yesterday.

He added that the state would be prioritising several key areas as an effort to address the intermittency of variable renewable energy and more clean energy generation technologies that can be commercially deployed in Sarawak.

Among the key areas are large-scale solar, bio-energy (such as biomass and biogas), waste-to-energy and pump hydrogen storage.

Earlier this year, Abang Johari unveiled Sarawak’s vision of achieving 10 gigawatts of renewable energy by 2030.

Sarawak also planned to export renewable energy, especially hydrogen, by the end of 2027. However, it has no plans to build a nuclear plant as an alternative to generate electricity.

As Sarawak has a variety of resources to generate electricity he said: “Why do we need nuclear? We already have hydropower”.

On the lack of talents, he said many local talents had relocated to the state.

Additionally, he said the state also had plans to provide free education to an estimated 25,000 local students by 2026.

“This is so that they can be trained and be the talent that we need in this new economy”.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who was also at the event, said Sarawak’s ambitious green energy agenda, which aims to decarbonise its transport system and transition towards a low-carbon economy, is complementary to the national-level strategy on green investments, such as the New Industrial Master Plan and the National Energy Transition Roadmap.

“Sarawak’s effort is clearly gaining momentum, with great examples such as the Bintulu Port – a major deep-water port in the country’s maritime industry – that is leading the way in environmental, social and governance,”

In the first quarter of 2024 (1Q24), RM83.7bil worth of investments had been approved, with more than 56% being approved foreign investments.

“Sarawak has been a key part of that growth story, attracting RM4.2bil in approved investments for 1Q24. The total investments approved will create 29,000 new jobs for Malaysians, a 14.6% increase year-on-year,” he added.

Source: The Star

Sarawak has vast resources for green energy

There are a lot of opportunities for Australia and Sarawak to collaborate in, including the energy sector, said Australian High Commissioner to Malaysia Danielle Heinecke.

She said Australia is involved in many of the eight energy sectors Sarawak has been focusing on such as renewable energy, hydrogen, energy efficiency, green mobility, synthetic fuels, bioenergy, oil and gas, and carbon capture, utilisation and storage (CCUS).

“We have really good expertise in batteries and solar, wind and hydro, and we are starting to do a lot more in hydrogen and ethanol.

“Basically, in all of these areas, whether it’s foreign direct investments or whether through sharing technology, there are lots of collaboration opportunities for Australia and Sarawak,” she told The Borneo Post in a special interview here today.

She said there are also manufacturing opportunities particularly through the just-announced Future Made in Australia campaign which targets the green sector and critical minerals.

“We see that there’s opportunities for more manufacturing supply chains from that campaign into the region.

“For example, green metals is something that Australia is looking at producing more of. It will take time and won’t happen tomorrow, but we’re putting a lot of investments into that.

“Malaysia has an opportunity where there’s manufacturing capability to turn those products into green products so there’s definitely a lot in that space,” she added.

On current investments between Australia and Sarawak, Heinecke said at the moment, the country has around AUD1.87 billion trade with the state.

“That’s mostly in the aluminium ores concentrate and in education, namely through Swinburne University of Technology Sarawak Campus (Swinburne Sarawak) and Curtin University Malaysia that have set up campuses in Kuching and Miri respectively.

“We have around 4,000 students at Swinburne Sarawak and Curtin, and we are aiming to grow to 5,000 students within five years,” she said.

She also said that Australia is aiming to bring New Colombo Plan students to Sarawak, not only to Kuala Lumpur.

“We want to do more so Australian students can intern in Malaysian companies and that’s an important part of the New Colombo Plan and it really connects our future generations.

“That’s what we see as really important not just to our people-to-people but also business links into the future,” she pointed out.

According to the Australian government’s Department of Foreign Affairs and Trade, the New Colombo Plan is a signature initiative of the government which aims to uplift knowledge of the Indo-Pacific in Australia by supporting Australian undergraduates to undertake study, language training and internships in the region.

The New Colombo Plan involves a scholarship programme for study of up to one year, language training and internships or mentorships, as well as a flexible mobility programme for both short and longer-term study, language study, internships, practicums and research.

Heinecke is in Kuching on a two-day official visit starting Tuesday to learn more about opportunities for Australian companies to invest in renewable energy in Sarawak.

Source: Borneo Post

Energy sector among many opportunities for Australia-S’wak collab, says High Commissioner

Knight Frank Malaysia said major data centre investments in the Klang Valley has seen demand for high-quality, sustainable logistics spaces grow and help push up rent slightly.

The Real Estate Highlights 1st Half of 2024 (REH) report features insights into the performance of the property markets across Klang Valley, Penang, Johor, Sabah and Sarawak.

According to the report, Malaysia’s industrial property market is witnessing robust demand, particularly for high-quality sustainable developments.

Major investments in data centres, notably by Google in Klang Valley, underscore the sector’s growth.

The manufacturing sector is projected to grow by 3.5 per cent in 2024, supported by the recovery of export-oriented industries and sustained growth in domestic clusters.

It said the region has attracted significant data centre investments, including major projects like Google’s data centers.

Knight Frank Malaysia said the property market continues to show promising growth prospects, bolstered by strategic investments, infrastructure improvements, and evolving market dynamics.

Its group managing director Keith Ooi said this indicates a strengthening investment climate, driven by strategic government initiatives and a supportive regulatory environment.

“Knight Frank Malaysia’s mid-year review highlights a promising trajectory for the property sector, supported by robust economic growth, significant investments, and adaptive market trends,” he said in a statement today.

In terms of the office market, the report said there is growing demand for co-working and flexible office spaces, reflecting changing work patterns and preferences.

The office market continues to draw multinational corporations, buoyed by competitive rental rates, a skilled workforce, and robust government support for the digital economy.

The retail sector trends indicate a surge in digital integration and experiential offerings, with retailers adapting to changing consumer preferences and enhancing in-store technologies to boost engagement and sales.

On hospitality sector, the report said the luxury hotel segment is set for significant growth, with new developments dominated by international brands.

It noted that the average occupancy rates (AOR) and average daily rates (ADR) indicate a robust recovery in the hospitality sector.

Meanwhile, for the high-end high rise residential market, Kuala Lumpur showed strong activity, with a 19 per cent increase in transacted volume and value. The report stated that developer initiatives to promote homeownership through various campaigns and bank collaborations are enhancing the homebuying experience. 

Overall, Knight Frank said the findings from the report underscore the strategic importance of the industrial sector in the country’s economic landscape.

It added that key infrastructure projects such as the East Coast Rail Line (ECRL), Johor Bahru – Singapore Rapid Transit System (RTS), Pan Borneo Sabah, and MyDigital 5G are expected to further enhance connectivity and support the sector’s growth.

Source: NST

Knight Frank Malaysia says data centre investments have pushed up rent for industrial space in Klang Valley

The government will ensure the effective usage of water and electricity in line with the increase in data centre investments into the country.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said the effort was to ensure the security of electricity and water supply was controlled and used effectively.

He said the National Investment Council had in June agreed with the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) that the improvement of data centre investment acceptance policy should be done based on several factors.

“Among them is to provide guidelines for power usage effectiveness (PUE) and water usage effectiveness (WUE) as well as an adequate supply of renewable energy to facilitate the investment of artificial intelligence (AI) data centres in our country.

“MITI and MIDA were also directed to create a local vendor programme to develop the digital ecosystem as a whole,“ he said during a question and answer session at the Dewan Rakyat today.

He was replying to a supplementary question from Datuk Shamshulkahar Mohd Deli (BN-Jempol) about efforts made by MITI and other agencies to oversee investments in data centre.

Liew stressed that there is a positive trend on AI investments in the country with commitments from global technology giants such as Amazon Web Services (AWS), Nvidia, Microsoft and Google.

“Through AI-related investments, MITI and the government aim to develop a comprehensive digital economy ecosystem and promote the use of AI technology in a variety of fields, including in the smart manufacturing industry,“ he added.

Source: Bernama

Govt to ensure effective usage of water, electricity as data centre investment grows – MITI

The implementation of the Green Investment Strategy to attract green investments to Malaysia will be centred on seven key plans under the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR).

The Ministry of Investment, Trade, and Industry (MITI) stated that these core areas include Energy Efficiency; Renewable Energy; Hydrogen Bioenergy; Green Mobility (Land, Marine, Aviation); Carbon Capture, Utilisation and Storage (CCUS), and Circular Economy.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, said the implementation of this strategy would lead to a more effective, organised, and systematic energy transition and green investment for Malaysia.

“One of the main targets is to attract nearly eight times the amount of investment to Malaysia to achieve the objectives of NIMP 2030 and NETR, and ensure investments in the seven key low-carbon areas.

“(It also aims) to leverage foreign direct investment in the green technology sector and improve the green investment ecosystem,“ he said in a statement today.

Tengku Zafrul added that these measures could stimulate socio-economic growth in the green industry, as well as create new jobs and skill development in the industry.

“This will enhance Malaysia’s image and attractiveness as a preferred green investment destination and hub, and position Malaysia as a regional leader in the green technology sector,“ he said.

Source: Bernama

Green Investment Strategy centred on 7 key plans under NIMP 2030, NETR – MITI

Malaysia and China have joined hands once again for the development of the China-malaysia Digital and Green Technology Industrial Park.

A memorandum of understanding was signed between Menteri Besar Selangor (Incorporated) (MBI) and the China Association for International Science and Technology Cooperation and China Harbour Engineering Co Ltd.

It was witnessed by China’s Ambassador to Malaysia Ouyang Yujing (pic) and deputy Science and Technology and Innovation Minister Datuk Mohammad Yusof Apdal here at Sunway University.

Ouyang said during his opening address here that this year, both countries have agreed to collaborate on developing the digital economy, green development and artificial intelligence.

This was during the meeting between China’s Premier Li Qiang and Prime Minister Datuk Seri Anwar Ibrahim in June this year.

“Both countries agreed to explore cooperation to advance the manufacturing industry, science and tech innovation (STI),” he said.

He added that there are further collaborations for (STI) people to people exchange programmes.

Mohammad Yusof said that collaborations are important for scientific advancement so that no one is left behind.

“Disparities in access to cutting-edge technology, expertise and resources have become more pronounced, becoming a challenge to progress.

“However, through strategic partnership, we can bridge this gap by combining our resources and complementing each other’s strengths,” he said.

The technological park will be located in Pulau Indah, Selangor and the total area will be 1,000 acres, with the first phase covering 250 acres. The development will be in the Selangor Maritime Gateway Economic Development Zone, which covers 27,960ha.

It is the first economic development corridor in Malaysia that utilises the Klang River as a potential economic generator based on environmental, social and governance principles.

The area will create a conducive development zone to encourage business, attract new investments and increase sustainable development along the 56km stretch of the Klang River.

“This partnership marks a significant step towards a thriving green tech ecosystem in Selangor, fostering shared prosperity and environmental responsibility,” MBI Selangor said in a statement.

The project will upgrade infrastructure facilities and inject significant capital investments into the region. In addition, the collaboration with China unlocks access to cutting-edge technology and a vast market, it added.

Separately, on the same day, there was another memorandum of understanding inked between Sunway University and China Association for International Science and Technology Corp. This signing is for both parties to collaborate on research, innovation, education and talent development.

Source: The Star

Malaysia, China in tie-up to develop digital economy