Senai Airport City Sdn Bhd, a wholly owned subsidiary of MMC Corporation Bhd (MMC), attracted RM7.5 billion in investments via 150 investors.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said the investors include Wiwynn Technology Service Malaysia Sdn Bhd, Hershey, Mercedes-Benz, DHL, Dyson, FedEx, Haitian, Fiffy and Supermicro. They are offering 28,000 job opportunities.

“This proves that Johor can attract investors, with increased job opportunities and competitive wages awaiting Bangsa Johor. This will further improve the socio-economy of the local community besides stimulating sustainable economic activities for Johor.

“With the Johor-Singapore Special Economic Zone (JS-SEZ) policy that will boost the state’s economic sector, I hope the results of this economic spillover will be felt by the entire Bangsar Johor and be able to improve the people’s living standards,“ he said on his Facebook page today.

Earlier, Onn Hafiz visited Wiwynn Technology Service’s factory. The cloud information technology (IT) infrastructure company recorded a profit of US$7.8 billion last year.

“Wiwynn Technology Service involves ​30 acres. The server rack integration factory is in the first phase. The second phase, the printed circuit board assembly server factory, is 81 per cent completed.

“Wiwynn Technology Service will offer up to 1,000 job opportunities by the end of this year, with almost 80 per cent of its workers being locals, especially from Johor,“ he said, adding that the company is located in Senai Airport City.

Source: Bernama

Senai Airport City attracts RM7.5 billion investments

As numerous listed companies and their financial advisers try to carve out investment themes of them being a beneficiary of the data centre (DC) boom in Malaysia, caution needs to be taken.

For one thing, DCs have been around for more than 20 years and so any company that is now saying it is able to do something for DCs, the question is, has it been doing it before?

“DCs typically have an established and global supply chain for their equipment and IT components. It doesn’t matter to them where you are based.

“So if you are now saying you can build a component for data centres just because a number of such facilities are being set up in Malaysia, the question is, have you been able to do that before?

“If not, then there is little chance of you being able to do it now, just because we have a DC boom in Malaysia,” explained Gary Goh, the chief executive of DC advisory firm Sprint DC Consulting.

Even so, Goh remains bullish on the prospects of the real beneficiaries of the DC boom in Malaysia.

These include land owners who are able to sell the land to the DC operators, the contractors being given jobs to construct parts of the DC buildings and even energy providers like Tenaga Nasional Bhd (TNB) and their subcontractors.

The local DC market, according to a report, is forecast to grow at a six-year compounded annual growth rate of 13.9% from US$1.8bil in 2023 to US$4bil by 2029.

The cost of constructing a DC in Malaysia ranges between US$6.7mil and US$10mil per megawatt (MW), which is lower as compared to Singapore and Indonesia’s capital Jakarta, but costlier than Thailand and the Philippines.

The big players in the construction sector, such as Gamuda Bhd and Sunway Construction Group Bhd, have secured a total of at least RM2bil worth of DC contracts.

Meanwhile, IJM Corp Bhd clinched its maiden DC job recently when it was awarded a RM332mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre for TM Technology Services.

In the property space, several property developers have sold their land for the development of DCs. These include low-profile Johor-based Crescendo Corp Bhd and government-linked companies like UEM Sunrise Bhd and Sime Darby Property Bhd.

Goh, who assists foreign DC operators looking to set up operations in Malaysia, also noted that there were a number of landowners thinking that their land can be suitable for a DC.

“But it is not so easy. There are many considerations to be looked into, such as the cost of ramping up energy and resource infrastructure there, the surrounding neighbourhood as residential ones could voice out their disapproval to be close to DCs.

“This is why a study needs to be done, and this is what we do,” he told StarBiz.

The DC theme, which has been playing out for the first half 2024, has also seen a spillover effect onto mid and small-cap stocks. Does the rally still have legs?

Research firms like JP Morgan think so but advocate staying selective in the DC space, preferring a pick-and-shovel strategy, which is investing in companies that provide necessary equipment and services for the industry.

CGS International (CGSI) said the DC ecosystem can be divided into four main categories – location or land; basic infrastructure comprising construction, materials, mechanical and electrical (M&E); hardware such as data storage systems and solutions, and lastly the power and connectivity factor.

“In our view, from a retail investor’s/trader’s perspective, these are the four key categories that are most relevant for selecting/screening potential beneficiaries of DC-related contracts and/or services,” the research firm said in its June 30 report.

It said while tech/hardware-related companies will remain as DC beneficiaries over the long run, the construction and property sectors are the earlier or direct beneficiaries of the DC value chain.

According to CGSI, the share prices of technology, M&E solutions, and cooling systems providers have surged about 144% year-to-date (y-t-d) on average, at a trailing price-earnings of 33.4 times.

On the other hand, it noted that valuations of construction/engineering services players with exposure to DC construction are at a more palatable average of 22.4 times price-earnings.

The current DC play is reminiscent of the glove mania following the Covid-19 outbreak.

Investor Ian Yoong Kah Yin reckons that when the DC theme implodes, and it will he believes, share prices of listed companies that profit from DCs will fall too.

He points to one rubber glove company that was profitable for the past five years but saw its share price fall sharply in tandem with loss-making rubber glove manufacturers. Investors, he said, tend to throw out the baby with the bath water.

He thinks many of the share price outperformance of these wanna-be companies jumping on the DC and artificial intelligence or AI bandwagon could fizzle out by 2025.

With DCs requiring tremendous amounts of electricity, Yoong is positive on TNB, Malakoff Corp Bhd and other listed electricity producers.

He said the preferred energy source for DCs is renewable energy and he expects more electricity supply agreements with DC companies to be signed over the next 12 months.

“DCs will drive electricity demand. Domestic demand for electricity recorded a new high of 20,028MW in April 2024 with strong commercial demand due to DCs coming on stream in the first quarter of 2024,” said Yoong, who thinks the share price outperformance of TNB and Telekom Malaysia Bhd, which is one of the largest DC operators in Malaysia, could see the FBM KLCI move up to 2,000 points by 2025.

Source: The Star

Deciphering the data centre thematic play

TVET, which stands for technical and vocational education and training, plays a key role in Malaysia, not only in terms of enhancing the labour market, but also in terms of fostering social integration and mobility for marginalised communities.

TVET provides individuals with the information and skills essential to making the transition from precarious livelihoods and informal employment to formal employment and better paying work. This helps improve lives and also contributes to the expansion of the nation’s economy as a whole.

Disadvantaged groups in Malaysia, such as those living in rural areas, low income families, persons with disabilities, and ethnic minorities sometimes face significant challenges in obtaining an education and finding work. Examples of these hurdles include limited access to quality education, difficulty associated with language, financial limitations, and the absence of infrastructure conducive to learning.

By emphasising the development of skills closely aligned with market requirements, TVET offers such people a realistic and achievable course of action. It promotes employability and encourages self-sufficiency and entrepreneurialism, both of which are vital for reducing poverty and inequality.

The goal is to increase the proportion of highly skilled workers to over 4.5% of the Malaysian workforce by 2030, and initiatives aiming to improve enrolment in TVET and STEM (science, technology, engineering, and mathematics) courses are being prioritised. However, there are a number of challenges that the TVET system in Malaysia must overcome to achieve genuine inclusion. A significant obstacle is the quality and relevance of the training provided.

Many TVET institutes do not have the necessary resources to be able to offer relevant opportunities for further education or secure employment. This issue is exacerbated by the fact that there is a scarcity of knowledgeable

nd trainers with expertise in the field that they can translate for the classroom.

Moreover, there is frequently a lack of strategic links among the formal, non-formal and informal sectors, which inhibits the possibility of students receiving realworld experience and intern placements. This in turn makes it difficult for them to gain employment.

When compared with other nations, the percentage of students enrolling in TVET in Malaysia is very low. Only 6.1% of eligible young people enrolled in TVET institutions in 2022, which is significantly lower than the percentages of 23.8% in Singapore, 14.2% in South Korea, and 12.8% in Indonesia.

The development of an inclusive TVET ecosystem in Malaysia has a number of different but interconnected requirements.

For one, we need novel approaches to delivery that can cater to a wide range of educational requirements, such as those of individuals with disabilities as well as refugees, and migrants. Creating individualised training programmes and using technological tools to improve educational experiences are two ways in which this might be accomplished.

Secondly, it is of the utmost importance to promote gender equality within TVET, allowing women to have the same opportunity as men to acquire skills and gain employment.

It is possible for TVET programmes to equip our young people with the skills necessary for gainful employment and social mobility if barriers to entry are removed and high-quality, relevant training is ensured.

Building a TVET ecosystem that really serves all members of society and creating an inclusive and equitable future for Malaysia requires the joint efforts of diverse stakeholders, guided by initiatives such as those outlined in UNESCO-UNEVOC (United Nations Educational, Scientific and Cultural Organisation’s vocational education agency at unevoc.unesco.org). This is vital if we want to construct a truly inclusive and equitable future for Malaysia.

Source: The Star

Make TVET more inclusive

By Kamarul Azhar / The Edge Malaysia

I am going to be honest with you. Data centres are not environmentally sustainable,” admits an investor, who is setting up a data centre in Selangor. “And the only reason people come to Malaysia to invest is that Singapore doesn’t want data centres anymore.”

Malaysia has seen an influx of data centre investments over the last three years, coinciding with Singapore’s moratorium on the energy-guzzling boxes between 2019 and 2022. The moratorium was lifted last year.

Between 2021 and 2023, data centre investments approved by the Ministry of Investment, Trade and Industry (Miti) totalled RM114.7 billion, making up 79% of total approved digital investments during that period.

The influx is pushing Malaysia into becoming the region’s new data centre hub, catching up with Singapore.

One factor that could throw a spanner in the works, however, is water.

According to Google, in 2021, its average data centre consumed about 450,000 gallons of water per day, or around 1.7 million litres per day (MLD). The company says this is roughly the same amount of water used to irrigate 17 acres of turf lawn grass once, or to grow the cotton for the manufacture of 160 pairs of jeans.

Considering that the entire state of Johor — where billions of ringgit in data centre investments have been committed — used 1,407MLD of water in 2022, 1.7MLD is not much. Still, 1.7MLD is only the average water usage for one data centre.

Over the last two years, Johor has attracted 50 data centre investments, according to its Menteri Besar Datuk Onn Hafiz Ghazi. The Global Data Centre Index 2024 report by DC Byte says Johor is the fastest-growing market in Southeast Asia, with more than 1.6gw of total supply.

For a typical 100mw data centre, water usage is around 1.1 million gallons per day, or 4.2MLD. Each data centre uses a different level of water, however, and has a different level of efficiency.

“When it comes to water usage, it is about using precision cooling,” says the data centre player whom The Edge spoke to. “But even with precision cooling, on average you can make your data centre [only] 30% green.”

Precision cooling uses cooling mediums that are more complex and that require greater attention to maintenance than comfort cooling in order for the data centre to deliver peak performance. These cooling methods include air, chilled water and refrigerants.

Essentially, data centres require a lot of water to cool their servers — and this is posing a problem for Johor, which has seen an influx of data centre investments in recent years.

According to Charles Santiago, chairman of industry regulator Suruhanjaya Perkhidmatan Air Negara (SPAN), normal annual demand growth for water in Johor is 2.5%, or about 50MLD. With the influx of data centres, however, the requests so far have been for an additional average of 26MLD each year until 2036.

“That’s an additional 1.3% per year above the normal organic growth,” Santiago says.

While Johor has no major water supply issues like Kedah and Kelantan, investments in water infrastructure will have to keep up with demand, especially now that the state is receiving huge investments in data centres and other industries.

According to SPAN’s Water and Sewerage Fact Book 2022, Johor’s reserve margin stood at 11.5% in 2022. Non-revenue water (NRW) — water produced by water treatment plants (WTPs) but not billed to customers, as it is lost during transfer and distribution — stood at 26.3%.

Ranhill SAJ Sdn Bhd (RSAJ), the state’s water operator, aims to increase its reserve margin to 25% in 2029. To achieve this, all the water supply infrastructure development projects in the state must be completed by RSAJ as planned.

It is not known how RSAJ intends to raise the water reserve margin to 25% in just five years. According to Santiago, Johor’s current reserve margin is already at 16.9%, an impressive jump of 5.4 percentage points in just three years.

“Development of infrastructure in Johor is carried out according to plan for the period of 2024 to 2030 to meet supply and demand. Feedback by RSAJ on the water supply situation is still manageable,” he says.

The question of whether there is enough water in Johor to cater for the demand by data centres, as well as the organic demand growth in the state, is being asked by not just the public and industry players, but by state officials as well.

On May 30, Johor Bahru City Council mayor Datuk Mohd Noorazam Osman said the supply of water and power continues to be a major challenge in Johor despite the boom in data centre investments. He said there should be greater collaboration between the government and private sector, including in the building of desalination plants to ensure adequate water supply and partnering with developers to build industrial parks equipped with enough power and water infrastructure for high-tech industries.

“People are too hyped up about data centres nowadays, but the issue in Johor is water and power. Areas with potential for power supply are Pasir Gudang and Kulai,” Mohd Noorazam said during a panel discussion at The Johor Conversations 2024 event in May.

“As a local authority, I believe that while promoting investments is important, it should not come at the expense of the local and domestic needs of the people.”

In June, the state’s Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said although the water supply in the state was currently sufficient, early preparations should be made for the long term. These include building new water treatment plants and installing new piping to connect water sources to new areas, as well as exploring new water sources through Johor Special Water, a body owned by Permodalan Darul Takzim.

Data from RSAJ shows that it has received applications for 439.67MLD of water between 2024 and 2035 from data centres. Of this amount, 316.38MLD have been supported, while the remaining 30.51MLD have yet to be supported by the water operator.

“Investors need to refer to RSAJ, which has also been appointed as a SPAN Water Supply Certifying Agency (CA). [A CA’s responsibility] is to check the adequacy of the water supply,” Santiago says.

Meanwhile, Pengurusan Air Selangor Sdn Bhd, the sole water operator in Selangor, Kuala Lumpur and Putrajaya, is aware of the increase in demand for water from data centres, and is planning accordingly to ensure that the water supply infrastructure can support the needs of these facilities without compromising on the overall water supply to consumers or other sectors.

Selangor’s 15.34% water reserve margin could be good enough to support the additional demand coming from the data centres, on top of the organic growth in the state as well as in Kuala Lumpur and Putrajaya.

In addition, Air Selangor is already working on major water resources and treatment projects. It is currently embarking on the second phase of the Langat 2 scheme, as well as the Rasau water supply scheme, in efforts to boost its water reserve margins to 17.7% by 2030.

As for Johor, the government intends to upgrade the functions of the Sembrong dam in Kluang. RSAJ recently awarded Ranhill Utilities Bhd (KL:RANHILL) a RM283.8 million contract to reduce the NRW levels in the state, between January 2024 and December 2026.

RSAJ is a joint venture between Ranhill and Syarikat Air Johor Sdn Bhd, a state-owned company that manages Johor’s water resources. Ranhill, which has 80% interest in RSAJ, is 53.19%-owned by YTL Power International Bhd (KL:YTLP).

YTL Power emerged as the new controlling shareholder of Ranhill after its 70%-owned subsidiary SIPP Power Sdn Bhd acquired the shares held by Tan Sri Hamdan Mohamad for RM405.2 million on May 28. Prior to that, YTL Power was Ranhill’s major shareholder, with a 21.77% stake.

The change in controlling shareholder at Ranhill could mark a new phase for the group. YTL Power is also a big player in data centres, having kicked off the trend in Johor in 2021 with a deal for a 500mw data centre with Sea Ltd.

Regulators playing catch-up with data centre boom

“Currently, there are no specific regulations on data centres in Malaysia, in terms of water and energy usage. However, we the players are taking things into our own hands, as customers are demanding that data centres be green,” says the data centre player whom The Edge spoke to.

An online search shows that the Malaysian Communications and Multimedia Commission is drafting a technical code for the specifications for green data centres. The technical code provides the minimum requirements for green data centres. These include areas such as environmental conditions, energy management, air management, cooling management, IT equipment and lighting, power chain management, space management, information management, governance and guidelines.

At the same time, Johor executive council member Lee said in June that the state government, in collaboration with the Department of Town and Country Planning (PLANMalaysia@Johor) was drawing up the Johor State Data Centre Development Planning Guidelines to coordinate and monitor data centre development planning.

The Johor State Data Centre Development Coordination Committee (JPPDNJ) has been set up, comprising state and federal agencies including the Johor Economic Planning Division, Invest Johor, Malaysia Investment Development Authority (Mida), Malaysia Digital Economy Corp, Iskandar Regional Development Authority, Tenaga Nasional Bhd (KL:TENAGA), RSAJ, the Land and Mines Office, Environment Department and PLANMalaysia.

Lee said the committee had decided that data centres in Johor should focus on the use of renewable technology in addition to saving electricity and water. He added that JPPDNJ would also take into account the efficient use of electricity and water, with reference to industry best practices and other countries’ experiences.

While Malaysian regulators are playing catch-up with the industry’s boom, industry players are already working to ensure that the data centres can attract business from demanding digital companies that require them to be green.

“There’s no way that customers are going to give the business if they don’t pass the audit,” says another data centre industry player.

“Data centres are not regulated; it is a private business. I don’t deal with the government. The government is just my customer. There is no benchmark in the world to regulate data centres. If you don’t sell cars in Europe, you don’t have to comply with their emission standards.”

Source: The Edge Malaysia

Investments in water need to keep pace with influx of data centres

Global technology giants have been actively announcing their investments in the Southeast Asian region, including in Malaysia, and this bodes well for infrastructure developers as well as for other sectors which could benefit from the spillovers from these tech developments.

In a report, the research team at RHB Investment Bank Bhd (RHB Investment) pointed out that Malaysia has benefited substantially from tech giants investing in Southeast Asia, largely due to its strategic location (being next to Singapore), as well as favourable infrastructure development.

Over the past three months, it noted that many developers have respectively announced their land disposals directly or indirectly to data centre (DC) players, as well as investments related to the DC business.

“We think the DC investment cycle is only at the initial stage, and we foresee much more industrial land transactions going forward.

“While some developers, especially those with solid balance sheet, may start to look at the viability of this DCrelated real estate investments, developers such as Sime Darby Property and Mah Sing may further expand their investments going forward,” it said.

It also pointed out that although new job creation is likely to be minimal, it believed that the entrance of these renowned technology companies into Iskandar Malaysia, Elmina Business Park, Southville City, and Cyberjaya will likely spur the re-rating of land prices in the surrounding areas, and more importanly, attract other technology or IT supporting industries into these industrial parks in the future.

“Interestingly, we learnt that residential property prices at City of Elmina are holding up well,” it added.

Of note, according to Prime Minister Datuk Seri Anwar

Ibrahim, Malaysia has approved RM114.7 billion worth of investments in DCs and cloud services between 2021 to 2023.

Malaysia also aims to attract RM500 billion investments in the semiconductor segment.

Meanwhile, the research team noted that recently, SD Guthrie (previously known as Sime Darby Plantation) also announced plans to work with Permodalan Nasional Bhd (PNB) to participate in the proposed Kerian Integrated Green Industrial Park (KIGIP), which is an initiative driven by the Federal Government in collaboration with the Perak State Government.

The development involves 404 ha of land in Kerian, including 267 ha of solar farms. While the project is intended to attract semiconductors and E&E investments, SD Guthrie is also exploring opportunities to develop DCs.

The government has agreed in principle to approve an allocation for a raw water distribution project from Sungai Perak to the Bukit Merah Dam to provide treated water supply to northern Perak and Penang, which is estimated to cost MYR4bn. Prime Minister Datuk Seri Anwar has also mentioned that it should only allow DCs that specialise in Artificial Intelligence.

“In our view, we welcome the upcoming infrastructure developments (utilities and water supply) that will take place in Kerian, as it should spur not only industrial, but also other residential and commercial developments over the longer term.

“However, the plan to develop DCs in KIGIP may take time, as infrastructure building for utiltiies supply typically takes at least one to two years to complete,” RHB Investment said.

Going into the second half of 2024 (2H24), the research team believe positive news flow on the potential incentives and initiatives on the JohorSingapore Special Economic

Zone (JS-SEZ), infrastructure development, as well as foreign and domestic direct investments will continue to buoy investor sentiment on the property sector.

“The incentives for the Special Financial Zone in Forest City are expected to be finalised in August, while the detailed announcement on the JS-SEZ is likely to take place in September/ October, possibly when Budget 2025 is tabled.

“The revival of the KLSingapore High Speed Rail is a wild card, which could spur further re-rating of many property stocks,” it said.

It is also upbeat on the recent official announcement on the new Malaysia My 2nd Home (MM2H) regulations.

“The new programme aims to attract high net worth individuals. The requirement for MM2H participants to own a property also means that the government targets to attract more serious long-term residents and investors.

“We think developers with exposure in the KL city centre, Mont’ Kiara, Penang and Iskandar Malaysia will likely benefit more.

“Iskandar Malaysia should see MM2H participants from Singapore given the ease of travelling with the upcoming completion of the Johor Bahru– Singapore Rapid Transit System (RTS) and cheaper living costs,” it explained.

All in, RHB Investment maintained its ‘overweight’ rating on Malaysia’s property sector as it believed that the current property market upcycle is much healthier as interest rates have reached a normalised level, and the market is adapting to the new norm for inflation.

“More importantly, the influx of foreign direct investments this round is primarily in the technology and semiconductor industries, which should help to drive the country’s GDP growth over the medium term,” it highlighted.

Source: Borneo Post

Multi-billion investments in tech sector to spur industrial development

Communications Minister Fahmi Fadzil said 5G technology is key to developing the digital economy by fostering entrepreneurship and expanding small and medium enterprises (SMEs).

He said the contribution of 5G to the national economy is expected to boost the gross domestic product by sparking new services, industries, and business models, and increasing productivity and efficiency across various touchpoints.

“The development of 5G aligns with the government’s goal of achieving inclusive growth and ensuring digitalisation benefits all segments of society,” he said.

He said this in his speech at a ceremony for the exchange of a memorandum of understanding (MoU) between the Malaysian Communications and Multimedia Commission (MCMC) and the Malaysian Investment Development Authority (Mida) here today.

Fahmi said the MoU aims to enable vertical sectors and SMEs to leverage the use of 5G technology.

He said under the MoU, the MCMC will provide technical support and training in preparation for the integration of 5G, while emphasising the importance of harnessing 5G technological advancements for the industries concerned.

Mida will identify potential companies that can utilise 5G to advance their businesses.

“This approach will ensure more efficient 5G adoption and meet the needs of various sectors. With this collective effort, the government will unlock the full potential of 5G, drive innovation, transform industries, and shape a more connected Malaysia.

“I hope the signing of this MoU will open a new chapter for vertical sectors and SMEs in the country, making them more competitive and enhancing productivity in business management,” he said.

Source: Bernama

5G tech key to developing digital economy — Fahmi

According to the Malaysia Investment Development Authority (MIDA), Malaysia’s renewable energy has contributed to about 5% to 6% of the country’s energy consumption in the past five years, with the government pushing multiple efforts to promote clean and renewable energy, from solar panel adoption to hydrogen energy.

There has been a significant increase in solar energy adoption in Klang Valley, Johor and Penang among homeowners but is renewable energy adoption feasible for refurbishment of existing buildings?

“There’s no point in having renewable energy if it’s not sustainable, not just ecologically or environmentally sustainable but financially sustainable,” Malaysian Institute of Architects (PAM) past president Sarly Adre Sarkum said during the Sustainable Refurbishment of Existing Buildings roundtable.

He pointed out that while renewable energy has been touted in Malaysia for years now, the only renewable energy readily available to the public is solar, due to the lack of wind and yet unproven
alternatives.

Sarly noted that as Malaysia’s largest power supplier, Tenaga Nasional Bhd (TNB) has significant power over the adoption of renewable energy The company has a renewable energy scheme, titled the Green Electricity Tariff (GET), which allows homeowners and businesses to subscribe to a low-carbon energy supply on a first-come, first-served basis. As of July, there have been 1,197 subscriptions.

“The implementation of the Energy Performance Certificate (EPC) in the UK serves as an excellent case study, demonstrating the significant role regulation plays in driving a holistic sustainability agenda. Establishing standards for building and space energy intensity is an effective starting point for managing and improving the performance of buildings and office spaces,” Knight Frank Malaysia ESG associate director Mohd Hafiz Zainuddin said when surveyed by StarProperty.

Knight Frank associate director Shaun Toh agreed that Malaysia should look into integrating advanced energy storage solutions, such as next-generation batteries and thermal storage systems. These technologies can significantly improve the sustainability of refurbished properties, enabling the storage of excess renewable energy generated on-site, such as from solar panels, and its use during peak demand times, reducing reliance on the grid and lowering energy costs.

“Green hydrogen, produced using renewable energy sources, and hydrogen fuel cells can provide a clean energy alternative for heating and powering buildings. Implementing these technologies in refurbished properties can reduce carbon emissions and dependency on fossil fuels. Hydrogen can be particularly effective for properties where electrification alone may not be sufficient or feasible,” he said.

The Malaysian government aims to be a hydrogen economy nation by 2050, as evidenced by the Hydrogen Economy and Technology Roadmap (HETR), however, as with solar, the technology is still in its early stages. Malaysia is not there yet in terms of large-scale production, Sarly said.

“Malaysia can only use solar panels, this is a technical constraint… the technology keeps evolving, who is going to spend now, maybe it’s not relevant five years down the road. And is it sustainable, being something long-term, but this technology keeps evolving,” Malaysian Institute of Architects (PAM) ESG committee chairman Axxu Hoi Jung Wai said.

According to Hoi, another technical issue building owners will face when installing solar panels is the roof only makes up 4% of the gross floor area for buildings over four stories.

“Even if you install the solar panels, it does not bring any impact. The point here is that there is too much greenwashing in projects. Because somehow we want to qualify green tools like the green building index (GBI) or GreenRE, we want to get a point, therefore we just put it there,” Hoi said.

He noted that top-down policies that enforce solar panels without considering the needs on the ground would inevitably fail.

Hoi pointed out that there was always the option to rent a building’s roof area, or any large redundant space, for those who would like to install solar.

“Imagine you can save via energy efficiency 20%, you are already doing better than installing that bit of small solar on your roof, and energy efficiency is usually far, far cheaper to do than installing on the high rise,” Sarly added.

“Nippon Paint has a particular paint that can be used to cool down buildings more significantly, and then you will use less aircon. When it comes to the solar panels on the roof… I think they should turn it into green roofs instead because that would be more beneficial than having solar panels up there,” StarProperty senior content manager and roundtable moderator Joseph Wong said.

It’s a lifestyle

However, with renewable energy a difficulty for most Malaysians, the next alternative moves to energy efficiency. According to a study on energy retrofitting strategies, buildings in Malaysia account for 48% of the country’s total electricity consumption.

“Even though I can give you passive design and nice green buildings, if your lifestyle doesn’t change, you can’t achieve energy efficiency. 60% of energy is consumed by the aircon and water heater. In Malaysia, our lifestyle is when we shower, we go for the heater and when we come out andgo to bed, we use the aircon,” Hoi said.

He noted that the public needed to track their lifestyle, which can involve ordering from Grab, and buying from online platforms like Shopee, culminating in paper wrap, plastic and increased carbon footprint.

“The lifestyle itself actually consumes a lot of energy despite talking about good products or good design, without changing our lifestyle, there is no way for us to do sustainability,” Hoi said.

“Continuous public awareness education is very important because, at the end of the day, it’s demand-driven. If they push and they want it, then the supply will come, and provide the solution. We must continue to highlight the financial and intangible benefits… in terms of green technology innovation, enhanced productivity, digitalising buildings and net zero carbon. Public awareness too will be a long-term way of talking about renewable energy,” Malaysian Institute of Property and Facility Managers (MIPFM) president Ishak Ismail said.

“It is a lot of awareness but it must start at a very young age. So things like that should be introduced into schools, into their programs, into their activities. In a way, it will build into us over a long time, but it must start from the very young,” Royal Institution of Surveyors Malaysia (RISM) past president Datuk Lau Wai Seang agreed.

Source: The Star

Energy efficiency or renewable energy?

Amid the global push to sustainability, the renewable energy (RE) sector will continue to grow rapidly, generating investor interest.

In Malaysia, the RE sector is expected to see further contract rollouts, the launch of a third-party-access model (TPA) and export refinements which could benefit companies operating in this sphere.

This led to Hong Leong Investment Bank (HLIB) Research to retain its “overweight” stance on the country’s RE sector.

“We like the sector riding on strong structural themes as well as positive earnings growth cycle. Key catalysts include contract rollout, TPA, fresh RE quotas and export news flow,” the brokerage wrote in its report yesterday.

Further, it said, the data centre pipeline could accelerate decarbonising goals under the National Energy Transition Roadmap (NETR), adding the sector would continue to benefit from large-scale solar projects, net energy metering and the low-carbon energy generation programme under the new enhanced dispatch agreement post corporate green power (CGPP) programme.

As such, HLIB Research noted that RE stocks under its coverage, namely Solarvest Holdings Bhd and Samaiden Group Bhd, were expected to chart positive earnings growth cycle.

Ascribing “buy” calls to both, HLIB Research puts its target prices at RM2 for Solarvest and RM1.44 for Samaiden.

It noted that both stocks had performed well during the first half of 2024, recording positive year-to-date returns of up to 32.2% for Solarvest and 22.7% for Samaiden.

HLIB Research attributed the share price performance gap to earnings execution, as Samaiden missed the second and third quarters earnings for its financial year ended June 30, 2024.

“This is against a backdrop of stronger replenishment performance in the first half of 2024 (1H24) by Samaiden, while Solarvest’s contract pipeline is 2H24 heavy,” it said. It said the 800MW CGPP programme was expected to produce RM2bil to RM3bil worth of engineering, procurement, construction and commissioning (EPCC) opportunities, though estimates could still vary due to fluctuating costs.

“Barring any extension of time granted, the Energy Commission has stipulated for CGPP projects to meet commercial operation date by end-2025 and we anticipate higher urgency on all parties to close the deal. We expect Solarvest to emerge as the biggest winner with its active involvement in 443.4MW of EPCC quotas, worth an estimated RM1bil,” it said.

It stated that the government would roll out the TPA in 2H24 to cater to the burgeoning data centre emissions offsetting needs.

Source: The Star

RE sector generating investor interest

Princeton Digital Group yesterday announced the delivery of Phase One of its state-of-the-art 150MW JH1 data centre (DC) campus in Sedenak Tech Park (STeP), Johor. 

One of the largest DC campuses in Southeast Asia, JH1 is Princeton Digital’s flagship AI-ready facility in Malaysia serving some of the world’s largest technology companies.

Delivered in just 12 months, Phase One comprising 52MW of the JH1 campus, represents further validation of Princeton Digital’s SG+ strategy that enables customers to seamlessly expand their infrastructure from Singapore to highly scalable DC campuses located in Singapore, Batam and Johor. 

The JH1 campus incorporates cutting edge sustainable technologies and next generation design.

The rooftop of the project will be utilised for generating renewable energy through the installation of solar panels. 

In May this year, the company secured its first RM1.28 billion (US$280 million) green loan for JH1. 

Johor Menteri Besar Datuk Onn Hafiz Ghazi said the campus has been one of the fastest projects to be launched in Johor. 

“It not only signifies a significant investment in our state’s infrastructure but also brings forth immense opportunities for technological advancement and economic growth.

“This initiative will undoubtedly bolster Johor’s position as a hub for innovation and attract further investment, ensuring a prosperous future for our state and its people.”

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the delivery reflects the speed of Malaysia’s investment facilitation. 

“Indeed, Malaysia’s growing stature as a regional leader in Asia’s digital economy, particularly for sustainable data centers, is evident from recent major investment announcements by global tech giants. 

“Through our clear policies and strong execution, RM161.97 billion in digital investments have been approved from 2021 to March 2024, and we are pleased to see many earlier commitments coming to fruition.”

Asher Ling, Princeton Digital chief technology officer and managing director of Singapore, emphasised the company’s commitment to expanding its presence in Malaysia.

“It is a proud moment for PDG, delivering Phase One of JH1 today. However, establishing a state-of-the-art green data center campus like this goes beyond economic growth; it’s also about our commitment to nurturing talent and creating jobs in this rapidly growing industry.”

Source: NST

Princeton Digital delivers Phase One of one of Southeast Asia’s largest DCs in Johor