Johor’s infrastructure and ample power capacity have seen the state attract more than 50 data centres in the past two years, said Menteri Besar Datuk Onn Hafiz Ghazi.

He pointed out that the Sedenak Tech Park (STeP), in Kulai, alone boasts a capacity of over one gigawatt (GW) and provides the necessary power infrastructure to support data centre operations.

“Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 GW. In contrast, Johor has attracted more than 50 data centres in just the past two years,” he said.

Onn Hafiz said the rapid growth in the data centre industry shows Johor’s capability to become a new data centre hub in Asia.

“Johor’s rapid growth in the data centre industry suggests that it is well on its way to becoming a new data centre hub in Asia,” he said in his speech at the launch of Princeton Digital Group JH1 Campus here today.

Also present was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Johor State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han.

Onn Hafiz said Johor is one of the fastest-growing states that is becoming well known for its strong push towards a digital economy with robust government policies, strong connectivity and infrastructure.

“(Therefore) moving forward for data centres, the state government will also be more selective, emphasising the use of green technology and renewable energy,” he said

Meanwhile, Onn Hafiz said the Johor-Singapore Special Economic Zone (JS-SEZ) will offer special economic regulations and incentives, creating an appealing environment for investors.

“While economic and digital growth is vital, community engagement ensures that progress benefits everyone and promotes inclusive development,” he added.

Source: Bernama

Johor attracted 50 data centres in the past two years — Onn Hafiz

Johor has emerged as the largest data centre (DC) hub in Malaysia. 

But recent comments by the Johor Bahru city council on the availability of water called into question the viability of the state for data center build out. 

Investors revently raised similar questions. 

In contrast, JP Morgan’s analysis shows that Malaysia has ample planned water treatment plant additions to accommodate expected DC builds. 

The US investment bank does not see the availability of water as a near-term barrier for continued DC deployment given Malaysia’s natural endowment and low water stress status. 

However, the supply of treated water could prove an issue should capacity additions not materialise, or water supply interruptions exacerbate variability in the system, which could introduce an element of competition with the high domestic water user base in Johor.

JP Morgan noted that from 2018-2022, Johor maintained an average water reserve margin of about 10 per cent, highlighting existing excess capacity. 

Over the next five years, it calculates about 61,000 million litres of annual water treatment capacity (up 33 per cent versus 2023) will be added.

Assuming about 1,500MW of DC capacity additions at a WUE (water usage effectiveness) of 2.0, JP Morgan projects 27,700 million litres of annual associated incremental water demand by 2028 (4.0 per cent of current water consumption in Johor). 

Taking account of general water consumption growth of 3.0 per cent per annum, it expects total annual water demand of 851,000 million litres by 2028, compared to about 1,000,000 million litres of forecast annual water treatment capacity. 

“On our calculations, water is not a limiting factor for data centres in Johor, at the state level, over the next five years. 

“Our analysis shows similar result for Selangor, the other data centre hub in Malaysia.”

Johor could accommodate three times the current planned DC additions out to 2028, it added. 

“On our numbers, the water reserve margin actually expands to 19 per cent by 2028, higher than Malaysia’s 15 per cent target, even taking account of data centre growth, suggesting additional headroom for data centre builds.”

JP Morgan said should water reserve margins remain stable at 10 per cent, Johor could accommodate up to 5,500MW of DC capacity by 2028.

Overall, it said Malaysia is well positioned as a DC host in Asia given low water stress and ample power. 

“Malaysia is one of the least water stressed countries In Asia, with low projected baseline water stress under every climate scenario.”

Source: NST

Water supply in Johor ample for next five years of data centre builds: JP Morgan

Johor has attracted more than 50 data centres within the last two years, putting it on track to become a new data centre hub in South-East Asia, says Mentri Besar Datuk Onn Hafiz Ghazi.

He said this was a very exciting time for Johor thanks to its strong push towards a digital economy, enabled by robust government policies, as well as good connectivity and infrastructure.

“Our vision is to develop Johor… and make it a global destination for the world’s largest technology companies.

“At Invest Johor, we are considering establishing the Johor Data Centre to streamline efforts in talent development, green technology and renewable energy,” he said at the launch of Princeton Digital Group’s (PDG) phase one JH1 campus at Sedenak Tech Park (StEP) here on Wednesday (July 3).

Onn Hafiz, who is also the Machap assemblyman, said Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 gigawatts of power capacity.

Onn Hafiz said in comparison, Johor has attracted more than 50 data centres in just the past two years, with STeP 1 alone boasting a power capacity of over 1 gigawatt.

“Moving forward for data centres, the state government will be more selective, emphasising the use of green technology and renewable energy.

“Johor’s rapid growth in the industry suggests that it is well on its way to becoming a new data centre hub in Asean,” he added.

Source: The Star

Johor poised to become regional data centre hub, says MB

Johor’s infrastructure and ample power capacity have seen the state attract more than 50 data centres in the past two years, said Menteri Besar Datuk Onn Hafiz Ghazi.

He pointed out that Kulai’s Sedenak Tech Park (STeP) alone boasts a capacity of over one gigawatt (GW) and provides the necessary power infrastructure to support data centre operations.

“Singapore took over 15 years to establish itself as a data hub with more than 70 data centres, totalling a capacity of 1.4 GW. In contrast, Johor has attracted more than 50 data centres in just the past two years,” he said.

Onn Hafiz said the rapid growth in the data centre industry shows Johor’s capability to become a new data centre hub in Asia.

“Johor’s rapid growth in the data centre industry suggests that it is well on its way to becoming a new data centre hub in Asia,” he said in his speech at the launch of Princeton Digital Group JH1 Campus here on Wednesday.

Also present was Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz and Johor State Investment, Trade, Consumer Affairs and Human Resources committee chairman Lee Ting Han.

Onn Hafiz said Johor is one of the fastest-growing states that is becoming known for its push towards a digital economy with robust government policies, strong connectivity and infrastructure.

“(Therefore) moving forward for data centres, the state government will also be more selective, emphasising the use of green technology and renewable energy,” he said.

Meanwhile, Onn Hafiz said the Johor-Singapore Special Economic Zone (JS-SEZ) will offer special economic regulations and incentives, creating an appealing environment for investors.

“While economic and digital growth is vital, community engagement ensures that progress benefits everyone and promotes inclusive development,” he added.

Source: Bernama

Johor MB touts state as Asia’s new data centre hub

Several companies have shown interest in taking part in the development of data centres through the Kerian Integrated Green Industrial Park (KIGIP) project.

Prime Minister Datuk Seri Anwar Ibrahim said the companies had expressed interest when the project was announced by the Investment, Trade and Industry Ministry (Miti) previously.

“Based on Miti’s plans when announcing the project, there were several companies that expressed interest as several (other) companies involved in data centres are limited now.

“We also do not encourage a new data centre industry unless they specialise in Artificial Intelligence as data centres require high energy and water consumption.

“(Hence,) this is why several companies have been identified (for the development of data centres),” he said during prime minister’s question time in the Dewan Rakyat, today (July 2).

Anwar said this in response to Howard Lee Chuan How (PH-Ipoh Timor) who enquired about the government’s strategy to attract major investments in the development of KIGIP.

He also said the government’s only challenge now was to complete proper infrastructure in the green energy and water industry, as well as to ensure a sufficient pool of talent to meet the current needs of the industry to lure more investors.

Anwar had previously announced the KIGIP project which will boost the growth of the semiconductor industry and attract more global players to set up their business in the country.

First introduced during the 2024 Budget, KIGIP aims to draw green Electrical and Electronics (E&E) investments, while addressing water limitations in Penang.

Through the project, Anwar said the government had also 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, estimated to cost RM4 billion.

Meanwhile, it was announced that Sime Darby Plantation Bhd (SD Plantation) will work with major shareholder Permodalan Nasional Bhd (PNB) to develop 404 hectares of KIGIP land in Perak.

The plan involves the establishment of 267 hectares of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest-growing sectors in the global economy.

Separately, the group is also exploring opportunities with partners to develop data centres, which typically consume large amounts of energy.

Source: NST

Firms keen on data centres in KIGIP, Dewan Rakyat told

After three straight years of growth, domestic consumption for steel is expected to grow further this year, to between 8.3 million tonnes and nine million tonnes this year, according to a forecast by the Malaysian Iron and Steel Industry Federation (Misif).

Misif president Datuk Lim Hong Thye said demand for the commodity will mainly be driven by investment in data centres and the expansion of the semiconductor industry.

“We still see positive growth this year for steel consumption, to grow to 8.3 million tonnes this year, mainly driven by construction of data centres. If infrastructure projects such as the Penang light rail transit kicks in, the demand for steel will go up to near nine million tonnes,” Lim told a press conference after launching the federation’s report on the status and outlook for the local iron and steel industry on Monday.

Tech companies like Google had previously announced plans to invest US$2 billion (RM9.4 billion) to house the first Google data centre and Google Cloud region in Malaysia.

Malaysia’ steel consumption, as measured by apparent steel consumption (ASC), fell 26% to 6.8 million tonnes in 2020, from 9.2 million tonnes in 2019, before climbing to seven million tonnes in 2021, 7.5 million tonnes in 2022 and 7.9 million tonnes in 2023 amid steady recovery in the construction sector.

Domestic crude steel production in 2023 exceeded pre-pandemic levels, hitting 7.5 million tonnes, up 4.5% from 7.2 tonnes in 2022, and 8.7% more than the 6.9 million tonnes produced in 2019.

Imports of iron and steel rose 17.3% to 7.3 million tonnes in 2023, from 6.2 million tonnes in 2022. China is Malaysia’s largest source of imports, accounting for 27.9% of total imports, followed by Taiwan, Vietnam, Japan and South Korea.

Exports of iron and steel grew 14.5% to 8.2 million tonnes in 2023, from 7.2 million tonnes in 2022.

Nevertheless, Lim said the local steel industry is still challenging as it is grappling with overcapacity issues, which led to low capacity utilisation at an average of 39.1% last year — significantly lower than the world’s average of 75.7%.

The overcapacity problem is not only in Malaysia but throughout Asean, due to China exporting its excess production capacity, Lim said.

“We are requesting the government to assist us to fight against these unfair imports. This is not only particular to China as their steel mills are also in other countries. We have had a discussion with the government and are still waiting for a directive from them,” Lim said.

Meanwhile, Lim said Misif is also hoping that the government can provide incentives to encourage steel mills to move up the value chain.

It can do so by attracting foreign steel players to invest in steel products that are not being produced locally, which will also allow knowledge transfer that will benefit the local steel industry.

Steel products produced locally are now mainly used for the construction sector.

Source: The Edge Malaysia

Data centre boom, chip industry expansion expected to boost local steel demand

ViTrox Corp Bhd (KL:VITROX) will begin construction of the first block of its planned five-block ViTrox Institute of Technology (VIT) on July 8 after it had appointed South Island Building Sdn Bhd (SIB) as the contractor for the project in a deal worth RM45.99 million.

The proposed construction is expected to be completed within 18 months, which is by Jan 7, 2026.

In a filing with Bursa Malaysia on Monday, Vitrox said its wholly-owned subsidiary ViTrox Technologies Sdn Bhd had awarded the contract to SIB for the earthwork, piling and main building works for the construction of a five-storey training and industrial research center.

The facility will have a floor area of 166,300 square feet and will be located beside the current ViTrox Campus 3.0 in Batu Kawan Industrial Park (BKIP), Penang, and is on part of the 21-acre piece of land acquired by the company in June 2021.

“It is aligned with ViTrox’s 10-year expansion master plan (2021-2030), centered around the idea of building a local high-technology ecosystem at the BKIP through collaborative efforts between the private sector, the government and institutions of higher learning,” ViTrox said.

ViTrox said the entire ecosystem will include a high-tech automation, robotics, and AI innovation park, ViTrox’s Innovation Park, comprising large local companies with research and development facilities, centers of excellence, advanced manufacturing facilities, tech startups, and an institute of technologies.

“In addition to attending lectures, a pool of 3,000 to 4,000 talents will work alongside engineers to solve real-world engineering problems and address the talent shortage, particularly in engineering and computer sciences, where there is a clear mismatch between the training and skills acquired by graduates and industry requirements,” it said.

Furthermore, ViTrox said the VIT represents a significant step towards addressing the talent shortage in the STEM fields, particularly for the semiconductor industry. “This expansion will increase ViTrox’s current capacity from an annual intake of 200 students to 450 students, significantly enhancing the ability to grow the local talent pool,” it added.

As it stands, ViTrox has already established its own college in 2020, dubbed ViTrox College, which has obtained the Malaysian Qualifications Agency (MQA) accreditation to offer diploma courses in electronics, mechatronics and machine vision engineering.

ViTrox College offers work-based learning diploma and Technical and Vocational Education and Training (TVET) courses.

At Monday’s market close, Vitrox shares were down three sen or 0.73% at RM4.09, giving the group a market capitalisation of RM7.74 billion. Year to date, the counter has risen 14.25%.

Source: The Edge Malaysia

ViTrox to begin construction of training and industrial research center after RM46 mil contract award to SIB

The implementation of investor-friendly policy by the State Government has brought positive development, including gaining attention from of one of the world’s economy leading nations, China.

Chairman of a government-linked company (GLC) in China, Chen Pengyu, said the policy was timely and will have a major impact in the development in the Asian region.

He said the policy had attracted more investors from his home country to engage in various industries in Sabah, particularly in the renewable and green energy sectors.

“Companies from China will be more interested in investing in Sabah and help the state move towards utilising green energy.

“I also hope that more companies from China and from around the world will invest in Sabah in the future … Sabah is a state worth investing in,” he said.

Chen said this after the Memorandum of Understanding (MoU) signing ceremony between the company he represents, Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training, which will see both parties collaborate in the development of green energy in Sabah.

The MoU is part of the ‘business matching’ agenda witnessed at the 11th Sabah Oil, Gas and Energy Exhibition and Conference (SOGCE) 2024, which took place over two days starting Friday at the Sabah International Convention Centre (SICC).

Meanwhile, the managing Director of Bumi Borneo consultant and Training, Mohd Suffry Abdul Rahman, said the opportunity to collaborate with foreign companies was an ideal platform to fulfill the state government’s aspirations as a catalyst for green energy industry in Sabah.

“After the Sabah state government, through the Energy Commission of Sabah (ECoS), took over power in early January, we have been very positive.

“There have been changes in terms of energy procurement. Although it has only been five to six months, we are already seeing results.

“Last May, an open tender for solar was launched for all industry players to participate,” he added.

Earlier at the same event, an MoU was signed between Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training thus establishing cooperation between both parties for the development of green energy in Sabah.

Source: Borneo Post

Investor-friendly policy a catalyst of green energy industry in Sabah

NASDAQ-listed AGAPE ATP Corporation (ATPC) has set its eyes on Sabah’s solar farming industry as its next venture.

Prof Datuk Seri Dr How Kok Choong, the founder and global group chief executive officer of ATPC, incorporated the group back in 2016 with the aim of providing health and wellness solutions for today’s world.

It originally began with a focus on preventing diseases caused by pollution, poor diets, and unhealthy lifestyles through scientific and technological innovations.

“As we grew, we went for a listing on Nasdaq, which was a big milestone for us,” he said in an exclusive interview with The Borneo Post.

“Now, we are continuing our commitment to caring for the environment by venturing into green energy. It is an exciting journey, and we’re dedicated to making a positive impact on both health and the planet.”

How believed the power supply issues in Sabah are quite challenging, especially with the increasing demand from new businesses and investors.

“It is clear that we need to find sustainable solutions to support the region’s growth and ensure reliable energy for everyone,” he said.

When asked why they chose Sabah for their solar farm projects instead of other states, How said it was due to the state’s high potential for solar energy thanks to its sunny climate.

“Additionally, the current energy challenges in Sabah provide us with an opportunity to make a real difference and support the local community.

“The inspiration came from seeing the urgent need for sustainable energy solutions in Sabah. Solar energy is a clean and renewable option that can help address power shortages and support the region’s development in an environmentally friendly way.”

Some of the challenges include logistical issues due to remote locations, regulatory hurdles, and the need for significant upfront investment.

However, How said he and his team are working through these challenges with careful planning and collaboration with local stakeholders.

“We set up ATPC Green Energy as a subsidiary of Agape ATP Corporation for a few reasons. First off, it allows us to really focus on our renewable energy projects in Sabah,” he enthused.

“Having a dedicated company helps us streamline our efforts and bring in specialised talent to push these green energy projects forward.

“But, we are not stopping with just the project in Sabah. This new company is also a big part of our commitment to the UN Sustainable Development Goals.

“We are aiming to build a comprehensive renewable energy ecosystem across the Asean region. This includes everything from energy-saving solutions to solar projects and other renewable technologies.

“Our goal is to develop a diverse portfolio, expand our energy-saving offerings, foster great partnerships, and capture a significant market share in the region.”

ATPC Green Energy’s main plan for helping Sabah reach its renewable energy goals is to build solar farms that will provide a reliable and sustainable energy source, which is exactly what the region needs to meet its growing energy demands.

“We’re really excited about these projects because they have the potential to make a big impact and support Sabah’s target of 80 per cent renewable energy capacity by 2050.

“Where solar farms will also significantly reduce greenhouse gas emissions by replacing fossil fuel-based power generation with clean, renewable energy. This will help mitigate climate change and promote a healthier environment for the people of Sabah.”

Source: Borneo Post

ATPC eyes Sabah’s solar farming

More developers entering the segment

WITH demand for data centres “hotting up” as of late, it’s not surprising to see more property developers getting in on the action.

Earlier this month, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia had approved Rm114.7bil worth of investments in data centres and cloud services between 2021 and 2023.

The past few weeks have seen several real estate players announcing land deals for data centre-related ventures.

Just this month, Mah Sing Group Bhd announced its maiden entry into the data centre sector, launching Mah Sing DC Hub@southville City with Bridge Data Centres Malaysia V Sdn Bhd.

The tie-up will jointly develop data centre facilities and infrastructure on a 17.55acre freehold land within the Southville City township in Bangi, Selangor.

Earlier this month as well, Eco World Development Group Bhd (Ecoworld Malaysia) struck a deal to dispose of 123.14 acres of industrial land in Eco Business Park VI in Kulai, Iskandar Malaysia, to Microsoft Payments (M) Sdn Bhd for Rm402.3mil cash, to expand its data centre hub down south.

This month also saw UEM Sunrise Bhd selling two land parcels in Iskandar Puteri, Johor to an undisclosed global data centre player for Rm144.9mil.

Last month, Sime Darby Property Bhd announced its partnership with Pearl Computing Malaysia Sdn Bhd to develop a hyperscale data centre at Elmina Business Park, Selangor.

The 20-year lease, valued at up to Rm2bil, will see the parties developing the data centre on 49 acres within the 1,500 acres Elmina Business Park.

Zerin Properties chief executive officer Previn Singhe acknowledges that the interest in data centres is growing, adding that it was no surprise that numerous developers are “joining in.”

“Data centres are crucial for storing and managing the increasing amount of digital information.

“Yes, I do see more developers getting involved in this trend. It’s a smart move because data centres are becoming an essential part of our digital world.

“As technology continues to grow, the demand for data centres will also rise, offering great opportunities for developers,” he tells Starbizweek.

With the growing popularity in demand for data centres, KGV International Property Consultants executive director Samuel Tan says it’s no surprise that developers are keen to jump on the bandwagon to ride on the “data centre hype.”

“This is especially so for land owners or developers that have huge landbank or newly developed industrial parks.”

Meanwhile, KGV International Property Consultants research head Tan Wee Tiam says the data centre-related land deals are a good way to monetise land and kickstart a development.

“There are practically new transactions every week involving investors looking towards Malaysia, particularly Johor Baru, as a regional data centre hub.”

Strong appeal

For property developers, Previn says the data centre segment offers revenue diversification and steady income streams.

“Data centres offer stable, long-term revenue through leasing agreements with tech companies and other enterprises.”

The high demand for data centres will help ensure steady income streams, says Previn.

“With the surge in cloud computing, ecommerce and big data, there’s a growing and consistent demand for data centre space.”

As technology advances, Previn says data becomes increasingly central to operations across various industries.

“Developers investing in data centres position themselves at the forefront of this technological shift.”

Going into data centre development is also part of a growing sustainability trend, Previn adds.

“Many companies are focusing on sustainable practices and green data centres are in demand. This aligns well with future-focused investment strategies.”

Noteworthy also is that data centre-related deals will offer collaboration opportunities to developers, Previn says.

“Developers can partner with tech giants, telecommunications companies and cloud service providers, fostering strong business relationships and new growth opportunities.

“Moreover, governments often provide incentives for tech infrastructure development, enhancing business prospects.”

Meanwhile, RHB Investment Bank analyst Loong Kok Wen says developers with sizable landbank will mostly benefit from the rising data centre wave.

“We think players with a vast landbank will likely be able to capture opportunities, especially those with land that comes equipped with ready infrastructure and located not far from major cities,” she says in a recent research note.

Loong believes that UEM Sunrise, Sime Darby Property, S P Setia, Mah Sing, Ecoworld Malaysia and AME Elite Consortium Bhd are potential developers that may benefit from demand for data centres, given the location, amenities and infrastructure of their existing landbank.

“As data centres have to be distant from residential and commercial property areas due to strict security reasons, developers may choose to have them set up in their existing industrial parks.”

Loong says recent land transactions by data centre players have certainly set a new pricing benchmark for industrial land nearby.

“We gather that more are entering the fray. More developers may consider co-investing with data centre users or building and leasing shell and core data centre facilities for recurring income.

“Developers may also form a joint venture with a data centre operator for co-location facilities.”

Loong says a stable of data centre facilities would provide monetisation opportunities in the future, given the long-term nature of data centre operations.

Going forward, Previn says the future of the data centre market in Malaysia looks bright.

“Our strategic location in South-east Asia, combined with our advanced infrastructure and growing digital economy, makes Malaysia an attractive place for data centre investments.

“We can expect to see continued growth, with more local and international companies setting up their data centres here.

“This will also create more job opportunities and boost our economy. So, overall, the outlook is very positive.”

Source: The Star

Data centre appeal

Track record, IBS make group a strong contender

“With the RM1bil total new wins for an industrial warehouse and semiconductor factory announced on June 21, this data centre project brings year-to-date FY25 wins to RM1.3bil.” CGS International Research

IJM Corp Bhd is the latest construction outfit to win a data centre job and it may play catch up to other contractors such as Sunway Construction Group Bhd (Suncon) and Gamuda Bhd, which have been winning more jobs in the data centre space.

IJM announced on Wednesday that it has been awarded its first data centre win, a Rm331.7mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre in Johor, for TM Technology Services Sdn Bhd.

Construction begins from July this year and the project is slated for completion in the third quarter of 2025.

CGS International Research (CGSI Research) said IJM is likely to win more jobs in the data centre sector due to its strong track record in building projects and also its industrialised building system (IBS) plant in Bestari Jaya, Selangor.

The research house added that Suncon may be more selective in its tenders, given the urgency to complete the Sedenak data centre in Johor, while Gamuda’s strategy is to target hyperscalers that value speed of construction.

According to CGSI Research, IJM’S latest contract win is different from Telekom Malaysia Bhd and Singapore Telecommunications Ltd’s announcement on June 18, which was to develop a hyper-connected artificial intelligence-ready data centre campus in Johor with an initial capacity of 64 megawatt (MW) – potentially to be scaled up to 200MW.

The research house said IJM appears to be on track to achieve its RM5bil new order target for the financial year ending March 31, 2025 versus Rm3.7bil in the financial year 2024 (FY24), with a total order book of Rm7.3bil as at June.

“With the Rm1bil total new wins for an industrial warehouse and semiconductor factory announced on June 21, this data centre project brings year-to-date FY25 wins to RM1.3bil.

“Other potential wins include the North Pantai Expressway extension (Rm1bil), civil servant housing project in Nusantara Indonesia (Rm1bil), Penang light rail transit, ART Blue Line in Sarawak and other industrial buildings, data centres and semiconductor factories,” it added.

The research house reiterates its “add” call on the counter with a target price (TP) of RM3.66 as it continues to like IJM as a diversified infrastructure proxy in Malaysia.

Meanwhile, RHB Research estimates around 20% to 30% of IJM’S construction order book comes from industrial jobs.

“In fact, IJM stands to be the contractor with the highest number of industrial job wins (excluding data centres) in the past 12 months compared to other Malaysian large-cap contractors.

“IJM has two factories for industrial concrete piles in Ulu Choh and Senai, Johor, which we view may be utilised for providing concrete piles for the latest data centre job.”

Source: The Star

IJM likely to win more data centre jobs

The Digital Ministry said 5,331 companies have been granted Malaysia Digital (MD) status as of March 31, with over 73 per cent of them local firms.

The ministry said these local companies explore and conduct activities in the provision of high-value digital products and services using the latest technologies such as artificial intelligence, blockchain technology, internet of things, cybersecurity, financial technology, and drones.

“Various incentives and benefits are also offered to MD companies to accelerate growth and increase spillover effects to the economy as well as strengthening the country’s digital ecosystem,” the Digital Ministry said in the Dewan Rakyat today in a written reply to V. Ganabatirau (PH-Klang), who asked about the statistics with regard to local companies in the field of information technology from 2020 to 2023, and if there are plans to increase them.

The Digital Ministry, through the Malaysia Digital Economy Corporation, is working to increase the potential and competitiveness of local companies in providing hi-tech products and services that can penetrate global markets via the Gateway Amplify Invest Nurture programme.

“As of March 2024, 300 companies have participated in this programme, recording a cumulative export total of RM11.265 billion,” it said.

Source: Bernama

Over 5,000 firms granted Malaysia Digital status as of March 31

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz today expressed hope that German Vocational Education and Training (TVET), or German Dual Vocational Training, will be intensified to address the talent shortage in the semiconductor sector.

He said the government has agreed to provide RM25 billion in fiscal support to operationalise the National Semiconductor Strategy (NSS).

This includes a RM1.2 billion allocation to train and upskill 60,000 high-skilled Malaysian engineers to tackle the talent shortage in the sector.

“Apart from the Ministry of Investment, Trade and Industry’s joint efforts with the Ministries of Human Resources and Higher Education, we welcome the Malaysia-German Chamber of Commerce and Industry’s (MGCC) tireless efforts in coordinating German TVET or German Dual Vocational Training.

“Given the hundreds of German companies in Malaysia, I hope this highly regarded programme can be intensified to continue upskilling the next generation of Malaysian workers within your organisations, particularly in the semiconductor industry,” he said at the MGCC annual general meeting today.

Also present were the Ambassador of Germany to Malaysia Dr Peter Blomeyer, MGCC executive director Jan Noether, MGCC president Tim Groth, and MGCC vice president Geetha Kandiah.

Tengku Zafrul also proposed a Malaysian-German partnership in digitalisation.

“One exciting area is digitising the halal ecosystem and halal economy. Although Malaysia has made significant strides and built its leadership in the halal industry, there is still much more we can do beyond innovating the next award-winning sukuk model,” he said.

He said while German companies that are strong in digitalisation can support Malaysia in using technologies such as blockchain to secure the integrity of the halal supply chain, Malaysia can offer its expertise, infrastructure, and robust halal regulatory framework to serve the global halal market, which is estimated to reach US$5 trillion by 2030.

He mentioned that the European Union-Malaysia Free Trade Agreement (FTA) is still under consideration, saying, “We are looking at the terms.”

Furthermore, Malaysia has ratified and implemented two of the world’s largest regional free trade agreements: the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“Both present expanded prospects not only for our key trading partners under the agreements but also for foreign investors, including German companies, in Malaysia,” he said, adding that being part of these trade pacts allows Malaysia to explore new levels of trade cooperation.

In addition to several FTAs in the pipeline to be concluded this year, he said, “Malaysia is always ready to collaborate with Germany on high-quality projects that will mutually benefit both our countries and industries.”

Source: Bernama

German TVET, RM1.2b NSS funding to address industrial, semiconductor talent crunch, says Tengku Zafrul