Malaysia has strengthened its position as Southeast Asia’s leading digital hub, attracting a total of RM141.72 billion in digital investments during the first 10 months of the year.

This was a threefold increase from RM46.2 billion achieved in 2023.

These investments are expected to create 41,078 job opportunities, Knight Frank Malaysia said after releasing its Data Centre Research Report 2024 today.

The report said Malaysia has once again rank first in its SEA-5 Data Centre Opportunity Index, having recorded a significant annual take-up of 429 megawatt (MW) to outperform regional peers.

The strong demand can be attributed to the significant take-up recorded in Johor and the improved take-up in Klang Valley.

As of end 2024, the country hosts 54 operational data centres offering a 504.8 MW capacity, with Johor leading in IT capacity and Klang Valley remaining a core market. Emerging hubs include Sarawak, Negri Sembilan and Kedah.

Malaysia’s sustained leadership in the SEA-5 market is attributed to its efforts to enhance digital infrastructure, investor-friendly policies, and substantial investments from global tech giants, driven by strategic investments from tech giants like Microsoft, Amazon Web Services (AWS), Google, and Oracle, totaling US$23.3 billion (RM104 billion).

Knight Frank Malaysia group managing director Keith Ooi said the nation’s strategic efforts in digital infrastructure are a blueprint for the region and also a call for global players to seize this unparalleled opportunity.

“The country’s commitment to technological innovation and sustainability makes it a preferred destination for data centre investments and a model for economic resilience,” he said in a statement.

Executive director of research and consultancy Amy Wong said the country’s position at the top of the index for two consecutive years underscores its regional leadership in the data centre industry.

“With an impressive annual take-up of 429 MW and a gross domestic product (GDP) growth forecast of 5.5 per cent for 2025, Malaysia’s robust infrastructure, strategic investments, and forward-looking policies continue to set it apart.

“This dominance not only reinforces its competitive edge in Southeast Asia but also signals the nation’s readiness to sustain long-term growth in the digital economy,” she said.

According to Knight Frank Malaysia, the government’s proactive measures, including the Green Lane Pathway and the Corporate Renewable Energy Supply Scheme (CRESS), are instrumental in shaping a resilient data centre ecosystem.

By significantly reducing timelines for electricity supply and promoting renewable energy adoption, these initiatives enhanced infrastructure readiness and reflect the country’s commitment to sustainability and technological advancement.

Meanwhile, Juwai IQI co-founder and group chief executive officer Kashif Ansari said the influx of RM141.72 billion data centre investments in 2024 has boosted demand for land zoned for industrial and commercial uses in Johor and the Klang Valley where prices have climbed by as much as 20 per cent in the most suitable locations.

“The construction of data centers created a ripple effect and boosted demand for local contractors, suppliers, and skilled labor, which has further energized the property and construction sectors,” he told Business Times.

In 2025, Kashif said further growth in the data centre market will push land prices higher.

Beyond the demand for the land the data centres actually sit on, he said this influx of capital and the 40,000 jobs will also drive indirect demand in the office and residential markets.

“Data centres are a golden opportunity for Malaysia. They create good jobs, boost asset values, cause a boom in related businesses, and deliver income to the government via taxes.

“Once operational, the typical large data centre pays annual wages of RM35 million and supports RM146 million of annual economic activities, and pays RM4.9 million in government taxes and fees,” he added.

Source: NST

Malaysia ranked first in SEA-5 Data Centre Opportunity Index

Malaysia’s membership of BRICS will allow the country to tap into new markets, increase trade and investment opportunities and enhance its global standing, said experts.

Universiti Teknologi Mara’s SME Development and Entrepreneurship Academy coordinator Mohamad Idham Md Razak said Malaysia would also benefit from access to resources, knowledge sharing and collaboration in the bloc.

“The collaboration can help Malaysia reduce its reliance on traditional markets and mitigate the impact of global economic downturns,” he told the New Straits Times.

This in turn could contribute to economic stability, he said when commenting on Malaysia’s application to join BRICS.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had applied to join BRICS.

Anwar said the country’s potential membership in BRICS held “substantial promise” and underscored Malaysia’s commitment to fostering robust international collaboration.

Idham added that Malaysia’s alignment with BRICS members presented a promising avenue for expanded trade and economic cooperation.

“The bloc’s collective economic might and diverse resource base offer substantial opportunities for Malaysian businesses.

“Sectors — such as palm oil, rubber, and electronics, where Malaysia holds a competitive advantage — could benefit significantly from increased market access to BRICS nations.”

BRICS comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.

It is considered the foremost geopolitical rival of the G7
bloc, with member countries accounting for around 45 per cent of the world’s population and 28 per cent of the global gross domestic product.

Idham said the growing middle class in countries like China and India presented a lucrative market for Malaysian consumer goods and services.

He said that to capitalise
on these opportunities fully, Malaysia should focus on boosting its trade infrastructure, reducing bureaucratic hurdles, and promoting digital trade platforms.

Putra Business School economic analyst Dr Ida Md Yasin said Malaysia could expect indirect economic growth from countries with which it had yet to sign trade investment deals.

“This is an opportunity for us to align with them.

“Indonesia and Thailand have also expressed their intentions to join BRICS, so more and more countries are becoming involved.”

Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said BRICS would allow Malaysia to amplify its voice on the global stage.

“By joining this bloc, Malaysia aims to participate more actively in global decision-making processes, ensuring that the perspectives and policies of smaller nations are considered alongside those of more powerful Western countries.

“This move aligns with Malaysia’s strategy of seeking diverse platforms to voice its opinions and influence international policies.”

Source: NST

‘BRICS will allow Malaysia to tap into new markets’

The Putrajaya government plans to establish a task force to boost Malaysia’s standing to become the world’s top 12 most competitive country by 2033, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Zafrul said he will co-chair the task force with Finance Minister II Datuk Seri Amir Hamzah Azizan.

The decision came following the seven-spot decline in Malaysia’s competitiveness ranking to the 34th place in 2024, out of 67 countries, marking its worst ranking on record after its previous low of 32nd place in 2022, based on data available since 1997.

The country also dropped four places to 10th out of 14 countries in the Asia-Pacific region, marking the first time it has ranked lower than Thailand and Indonesia, according to the International Institute for Management Development (IMD) World Competitiveness Ranking.

The drop in ranking was due to Malaysia experiencing a decline in nearly all factors, including economic performance, government efficiency and business efficiency, with the only exception being infrastructure, where it maintained its position.

“It requires a whole-of-government approach, involving everyone, each playing their respective roles, towards achieving our Madani economy target of reaching the top 12 in the ranking.

“(So), a detailed update will be provided to the Cabinet in the near future regarding what needs to be done following discussions with everyone involved,” Zafrul told a press conference after unveiling the ministry’s second quarter 2024 (2Q2024) report card.

Source: The Edge Malaysia

After its competitiveness ranking hits record low, Malaysia plans task force to boost it to top 12

Malaysia is projected to rank 16th among the world’s 30 largest economies by 2075, says Insider Monkey.

The finance website said Malaysia has experienced significant economic growth, making it a key player in South-East Asia and the global economy, attracting investments and driving development.

According to an analysis by the website, by

2075, Malaysia is projected to account for 1.25% of the world’s GDP, reaching US$4.05 trillion (around RM16.89 trillion), with an estimated population of 41.93 million with its economy known for export strengths in electronics,palm oil and natural gas.

Meanwhile, Malaysia neighbour Indonesia is ahead at fifth place with an expectation of having 2.59% share of the global economy by 2075.

It reported that Indonesia’s GDP is forecasted to reach US$8.39 trillion (approximately RM35.4 trillion), while its population is expected to grow to 315.82 million by 2075.

The analysis also states that other South-East Asia countries that ranked in the top 30 include the Philippines at 14th, Vietnam at 22nd and Myanmar at the last place.

In the analysis, China will become the world’s largest economy, powered by manufacturing, exports, technology, and infrastructure investments by 2075.

China, with a projected GDP of US$66.16 trillion (approximately RM278.95 trillion) accounting for 20.39% of the global economy, has already surpassed the United States in terms of purchasing power parity (PPP).

However, it will experience population decrease,expected to reach 1.02billion in the said period.

The analysis said India falls to second place followed by the United States, and Russia.

Using “Economics in the Year 2100” by Fathom Consulting, as the methodology in their analysis, Insider Monkey acquires the estimated share of global GDP in 2100 and GDP PPP for the top 10 economies.

From the information gathered in the analysis, it was used to compile the list of the world’s 30 largest economies projected for 2075.

It also used population projections from the United Nations for 2075 and the list ranks these economies by their projected GDP from smallest to largest.

Source: The Star

Malaysia projected to rank 16th in world’s 30 largest economies by 2075, says finance website

The government is confident that Malaysia’s position in the IMD’s World Competitiveness Ranking 2025 will improve compared to this year, driven by the increase in high-technology product exports.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the reduction in the country’s high-technology exports had influenced Malaysia’s lower positioning in the IMD list last year, and this was a short-term situation that is expected to improve this year.

The minister said this is following the many new investments from electrical and electronics companies in Malaysia as well as those from multinational corporations.

“All of these (investments) will begin to have an effect in the next 12 to 18 months, and they will improve our position,” he said in a post on social media.

High-technology exports are products with extensive research and development components, such as those in the aerospace, computer, pharmaceutical, scientific instruments, chemical, and electrical machinery sectors.

Tengku Zaful said Malaysia’s lower position in the IMD competitiveness ranking resulted from a fall in electronic communications exports due to lower global demand and increased global competition for electronic communications products last year.

“For example, China’s high-technology exports in the first 10 months of 2023 fell 11.4 per cent year-on-year to US$728.2 billion, while South Korea’s (high-technology exports) plummeted 28 per cent to US$110 billion, and Japan was 10 per cent lower to US$76.9 billion,” he said. (US$1 = RM4.71)

However, Tengku Zafrul said the global sales of semiconductors are projected to increase 16 per cent in 2024 and 12.5 per cent in 2025, benefiting Malaysia as the world’s sixth largest semiconductor exporter.

“When demand for semiconductors increases, it is automatic for a country’s high-technology exports to increase too,” he explained.

Tengku Zafrul added that stable economic growth, low unemployment and an inflation rate that remains under control will improve Malaysia’s position in the near future.

Source: Bernama

Malaysia’s position in IMD Competitiveness Ranking 2025 set to improve – Tengku Zafrul

Malaysia’s decline in the IMD World Competitiveness Rankings 2024 was due to the weak ringgit last year, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said based on the ministry’s preliminary study of the report, the reason for the country’s drop in the index from 27th place in 2023 to 34th spot in 2024, was the reliance on 2023 data to measure national competitiveness.

“(The report) was based on data from last year, 2023, compared with 2022, so there was a one-year lag. The factor that had the most significant impact is the stability of the ringgit, as highlighted in the rankings,” he said after launching the Centralised Sustainability Intelligence Solution at Bursa Malaysia today.

Tengku Zafrul said the weak ringgit last year had various implications, including the valuation of investments, productivity, and efficiency, which is closely related to the currency’s value, consequently reflecting concerns about economic stability.

“As you know, the ringgit was affected in 2023, and that had an effect on our competitiveness, but now the ringgit has strengthened, and if the same momentum continues, the ranking should improve,” he said.

He said low contribution from the electrical and electronic (E&E) export sector last year also affected the country’s ranking.

The minister noted that exports of high-end manufacturing products, especially E&E, had declined last year, which affected its weightage.

“This was in tandem with the slowdown in trade worldwide, but this year we can see that the sector has improved.

“Trade numbers have gone up quite considerably, by more than 10 per cent in May 2024,” he said.

Malaysia slipped by seven places to 34th place out of 67 in the IMD World Competitiveness Ranking 2024, after ranking 27th in the index last year.

In the Asia-Pacific region, out of 14 countries, Malaysia slid by four spots to 10th place.

Source: Bernama

Weak ringgit in 2023 downed Malaysia’s competitiveness ranking — Tengku Zafrul

MALAYSIA was recently ranked as the 43rd most prosperous country, according to the 2023 Legatum Prosperity Index.

According to the international think tank, which has researched various nations’ prosperity for the last 15 years, the 2023 index has researched 167 territories – referred to as ‘country’ and ‘nation’.

The study has included several elements which are divided into 12 “pillars” in determining the prosperity index in every country listed which are:

1. Safety & security (Measures the degree to which war, conflict, terror and crime have destabilised the security of individuals, both immediately and through longer lasting effects)

2. Personal freedom (Progress towards basic legal rights, individual liberties, and social tolerance)

3. Governance (The extent to which there are checks and restraints on power and whether governments operate effectively and without corruption)

4. Social capital (The strength of personal and social relationships, institutional trust, social norms, and civic participation in a country)

5. Investment environment (The extent to which investments are adequately protected and are readily accessible)

6. Enterprise conditions (Measures the degree to which regulations enable businesses to start, compete, and expand)

7. Infrastructure and market access (Measures the quality of the infrastructure that enables trade and distortions in the market for goods and services)

8. Economic quality (How well an economy is equipped to generate wealth sustainably and with the full engagement of the workforce)

9. Living conditions (A reasonable quality of life is experienced by all, including material resources, shelter, basic service and connectivity)

10. Health (Measures the extent to which people are healthy and have access to the necessary services to maintain good health, including health outcomes, health systems, illness and risk factors, and mortality rates)

11. Education (Measures enrolment, outcomes, and quality across four stages of education [pre-primary, primary, secondary, and tertiary education], as well as the skills in the adult population)

12. Natural environment (measures the aspects of the physical environment that have a direct effect on people in their daily lives and changes that might impact the prosperity of future generations)

According to the index, Malaysia placed 73rd worldwide (70.81%) in safety and security, 113th (46.9%) in personal freedom, 50th (57.23%) in governance, 63rd for social capital (57.9%), 27th (73.49%) place for investment environment and 29th (69.24%) for enterprise conditions.

Meanwhile, Malaysia came in 37th (70.62%) place in infrastructure and market access, 34th (64.98%) in economic quality, 64th (79.52%) for living conditions and 42nd (77.35%) in health while education (72.94%) and natural environment (61.07%) both came in 46th place.

“Malaysia performs most strongly in investment environments and enterprise conditions but is weakest in personal freedom,” the index wrote.

The study added that Malaysia has climbed up two places since 2011 and indicated the “biggest improvement”, as quoted from the report, in the social capital pillar from a decade ago.

Globally the index ranked Denmark in first place while Sweden was placed second and Norway in third place.

In terms of rankings between Asian nations, Malaysia came in 6th in the prosperity index while Japan took the top spot while Singapore was placed second and Taiwan in third place.

In the study conducted by Legatum Institute, prosperity is defined as being “far more than wealth”, as quoted, and when everyone has the freedom and opportunity to thrive in their surroundings.

The grading system in the international prosperity index indicates the higher the percentage a country obtains, the higher the ranking. Additionally, each pillar was also colour graded from green to red (green – positive; red – negative).

Source: The Sun

Malaysia ranked the 43rd prosperous nation globally: Legatum Institute

Kuala Lumpur has been ranked the second most outstanding city in Southeast Asia, behind Singapore, in the Oxford Economics Global Cities Index 2024.

The latest list shows that the city is positioned at 135 out of 1,000 cities worldwide.

Singapore emerged as the top city in Southeast Asia, ranking 42nd in the index.

Other major Southeast Asian cities include Bangkok at 192nd place, followed by Manila at 256th and Jakarta at 284th.

Globally, New York City secured the top spot in the index, followed by London, and San Jose in California.

Oxford Economics said that the index covered 1,000 major cities across 163 countries.

It comprises five categories: economy, human capital, quality of life, environment, and governance, which are aggregated to create an overall score for each city.

According to the Oxford Economics Global Cities Index, Kuala Lumpur is ranked 106th in terms of economy, which is measured by the size, structure, and growth of each city’s economy, assessing historical performance and future potential.

In terms of human capital, which measures the educational and business climate of each city in line with demographic trends, Kuala Lumpur is ranked 21st.

The index indicates that Kuala Lumpur ranks 391st for quality of life, which considers the benefits of living in each city and the well-being of its residents, including financial and health outcomes, as well as access to amenities.

In the categories of environment and governance, Kuala Lumpur is ranked 526th and 334th out of 1,000 cities worldwide, respectively.

Besides Kuala Lumpur, other Malaysian cities on the index include George Town, at 351st, followed by Melaka at 359th and Johor Baru at 376th.

Oxford Economics City Services director Mark Britton, said cities are the centres of human civilisation where innovation, diversity, and progress converge.

However, he said that the complex dynamics of cities often reduce the general understanding of the factors that make a city successful.

“The Oxford Economics Global Cities Index provides a consistent framework for assessing the strengths and weaknesses of the world’s 1,000 greatest cities. Combined with our projections, it enables organisations and policymakers to make more informed strategic decisions.

“While the index scores are based on current performance, there is significant potential for movement in the rankings in the coming years as these 1,000 global cities navigate various global trends.

“These include economic uncertainty, political instability, high debt levels, globalisation trends, pressures on health and housing, and the impacts of climate change. These are among the global trends that could potentially alter the rankings,” he said.

Source: NST

KL rated second most outstanding city in Southeast Asia

Showcasing an improved performance in the latest Quacquarelli Symonds (QS) World University Rankings by Subject 2024, Malaysia is now ranked the third highest in Asia and the sixth highest in the world.

The country charted a 22% improvement rate in the rankings, which offer independent data on the performance of 240 programmes at 25 Malaysian universities.

Among the country’s ranked programmes, 84 improved and 38 were ranked for the first time.

Taylor’s University is the highest ranked Malaysian higher education institution, according to a QS press release dated April 10.

This year, the institution achieved a record-breaking feat with 17 subjects ranked globally and four subjects in the world’s Top 100. Taylor’s placed 19th for Hospitality and Leisure Management, making it Asia’s third best entry for the subject.

It was the first time the varsity’s Marketing programme appeared in the rankings, debuting in the 21-50 band. Other fields which recorded significant achievements were Data Science and Artificial Intelligence in the 51-70 band and Art and Design in the 51–100 band.

Both Accounting and Finance, and Architecture and Built Environment, were in the 101–150 band, while Economics and Econometrics, and Sociology, were in the 151-200 band.

Taylor’s University vice-chancellor and president Prof Barry Winn said the rankings are a testament to the institution’s commitment to teaching excellence and its supportive learning community.

“The inclusion of 17 subjects in the rankings highlights the breadth and depth of excellence across our academic offerings.

“This achievement not only demonstrates our ability to excel in a diverse range of disciplines, but also underscores our commitment to providing a holistic and top-tier education to our students,” he said.

Universiti Malaya (UM) is the country’s most represented institution in the rankings with 38 of its subjects ranked – 21 of which were in the global top 100, including its highest performing entry, Library and Information Management, in 28th place.

The country’s oldest varsity is also home to Malaysia’s two most improved subject entries, with its Pharmacy programme climbing 29 rungs to 72nd spot, and its Economics programme in the top 100, placing 93rd, due to improvements in research metrics, primarily Citations per Paper.

Attributing its success to “hard work and great tenacity”, UM vice-chancellor Prof Datuk Seri Dr Noor Azuan Abu Osman said the entire campus community, particularly the academic and research talent pool and non-academic workforce, has been striving to meet the varsity’s key performance indicators.

He described the rankings as a “push factor” that will drive UM to carry out necessary improvements to face the challenges ahead.

“There is no time for complacency. This feat will inspire us to work even harder for the benefit of the country and the world,” he said.

Universiti Teknologi PETRONAS (UTP) ranked 20th for Petroleum Engineering, making it the second best in Asia, while its Mineral and Mining Engineering programme moved up from 49th to 41st this year.

The varsity is now ranked under two broad subjects – Engineering and Technology, and Natural Sciences – and has eight subjects that climbed in rankings compared to last year.

The most notable improvement is the broad subject Engineering and Technology, which jumped 25 spots from 200th in 2023 to 175th in 2024.

Natural Sciences, said UTP vice-chancellor Prof Datuk Dr Mohamed Ibrahim Abdul Mutalib, is a new entrant and a significant milestone for the varsity.

Describing the achievement as a “significant advancement across multiple areas”, he said the varsity was “thrilled” with its progress in the rankings.

“This recognition acknowledges our growing strength and paves the way for future scientific advancements,” he said, adding that the rankings underscore UTP’s unwavering commitment to providing world-class education.

With 26 of its subjects ranked, Universiti Putra Malaysia (UPM) showed the most improvement in Malaysia.

Its overall improvement rate was 42%, and its highest ranked entry was Veterinary Science, which climbed six positions to place at 40th spot.

Management and Science University (MSU) rose from 46th last year to 29th for Hospitality and Leisure Management.

International Islamic University Malaysia (IIUM) remained in the top 50 for Theology, Divinity and Religious Studies, and UCSI University ranked 42nd for Performing Arts.

“UCSI University is glad to maintain its long-standing tradition of excellence in music and performing arts.

“We are also encouraged to improve our subject ranking in Art and Design by more than 100 positions over the past two years,” its vice-chancellor Prof Datuk Dr Siti Hamisah Tapsir said, adding that the varsity will continue striving to enhance learning experiences, research and graduate outcomes for its students.

QS senior vice president Ben Sowter said universities experiencing upward mobility have benefited from sustained, targeted investment, highlighting the importance of government support.

“Meanwhile, the development of partnerships with industry correlates with improved performance in employment and research,” he added.

The full rankings can be found at https://www.topuniversities.com/subject-rankings/2024.

Source: The Star

Malaysia among Asia’s top three in world rankings

Malaysia has been listed in the top 20 as one of the fastest growing economies in Asia.

A detailed analysis by Insider Monkey said Asia’s regional economic growth has improved, projected at 4.5 per cent as opposed to prior expectations of 4.2 per cent.

The report was quoted saying that Asia is expected to contribute two-thirds to the global growth.

In the list, Malaysia came in 14th place recording the country’s real GDP growing at 4.3 per cent and GDP per capita growing at 6.75 per cent.

However, Malaysia’s real GDP growth was recorded at four per cent in 2023 and 8.7 per cent in 2022.

An analysis by the International Monetary Fund also showed the country’s inflation rate was recorded at 2.7 per cent compared to last year’s rate at 2.9 per cent.

In the list, Thailand took the 20th spot with the country’s real GDP growth rate at 3.2 per cent and GDP per capita at 5.94 per cent.

Meanwhile, the top five Asian countries listed as the fastest-growing economies are:

1. Macao (2024 real GDP growth rate (2024) at 27.2 per cent and 2024 GDP Per Capita Growth Rate at 29.16 per cent)

2. India (2024 real GDP growth rate at 6.3 per cent and 2024 GDP per capita growth rate at 9.00 per cent)

3. Cambodia (2024 real GDP growth rate at 6.1 per cent and 2024 GDP per capita growth rate at 6.34 per cent).

4. Bangladesh (2024 real GDP growth rate at 6 per cent and 2024 GDP per capita growth rate at 0.94 per cent)

Source: The Sun

Malaysia ranked 14th as fastest growing economy in Asia

Malaysia stands as one of the top four countries identified as prime offshore locations in the Asia-Pacific region, according to a study conducted by Knight Frank.

The research indicates a significant expansion in the Asia-Pacific outsourcing market, with Malaysia, India, the Philippines, and Vietnam recognised as established players in the global offshore landscape.

Malaysia has consistently been ranked as the third-best global outsourcing location since 2014. The study further highlighted Malaysia’s substantial contribution, with an estimated share of over eight per cent in the Asia-Pacific offshoring market.

The report indicated that Penang is emerging to be a major offshoring hub that has built up offices catering to these facilities in Bayan Lepas. This is in line with the state government’s plans to drive the economy by making Penang a prime investment destination for global business services activities, research and development, and technology hubs.

Prime office rent in Penang is about 25 per cent lower than those in the country’s capital, it noted.

“Companies today face a multitude of challenges, including cost management, sustainability, talent retention, and attraction. At a time when companies worldwide are looking to increase performance, efficiency, and innovation while also prioritising cost control, Asia-Pacific offers considerably lower operating costs, at nearly 70 per cent less than the United States, based on Knight Frank research. 

  “For every square foot of office space, occupiers can expect to save on average US$70.86 in the four cities compared with mature markets. This translates to a staggering 54 per cent cutback in occupancy costs annually,” said Knight Frank global head of occupier strategy and solutions Tim Armstrong.

He said that globally, the office sector is going through a generational shift, with three distinct flights to quality taking place: a flight to sustainable buildings, a flight to amenity-rich offices, and a flight to offices that can provide greater flexibility.

“With the decline in confidence in the office sector, most pronounced in the US, occupiers are turning to the Asia-Pacific. High-quality premium office space in city centres and ESG-compliant buildings remain highly sought after by occupiers in this region as they prioritise 2030 net-zero targets. 

  “Moreover, the highly educated, versatile, and multilingual talent pool in the region’s developing markets is well-equipped to deliver high-quality customer service, positioning them ahead of the curve,” he added. 

Knight Frank Asia Pacific research head Christine Li said cost savings factors are expected to encourage offshoring activities, as evident in India, whereby the country’s leasing transactions involving the Global Compatibility Centre’s proportion rose by 10 per cent, accounting for 35 per cent of the total market share.

  “This trend was similarly observed in the other three key markets, the Philippines, Malaysia, and Vietnam, where offshoring is playing an increasingly significant role in driving demand for office spaces,” said Li.

  She added that occupiers are still cost-conscious due to the challenging macro environment. The silver lining is that corporate occupiers continue to prioritise offshoring functions, fuelling headcount growth in regions that offer growth and innovation at a lower cost while maintaining efficiency in pricier locations. 

  “As such, occupiers concentrate on boosting office demand in these strategic locations while reducing real estate needs elsewhere. 

  “This strategic resource allocation helps mitigate rental declines in markets such as Vietnam and the Philippines, while rents have even strengthened in Malaysia and India despite higher vacancies,” she said. 

She said that with higher demand, rental prices in Malaysia may increase for prime office markets as the flight-to-quality trend grows. 

Source: NST

Malaysia among four prime offshore locations in Asia-Pacific: Knight Frank study

Malaysia has shown significant progress in information and communication technology (ICT) development in recent years as the government and private sector collaborate to invest in digital technology and infrastructure.

As a result, Malaysia has quickly risen to the 15th position globally and third in the Asean region in the 2023 ICT Development Index (IDI) published by the International Telecommunication Union (ITU).

For comparison, Malaysia was reported to be in the eighth position in the Asia Pacific Region in the 2015 IDI. Globally, Malaysia was ranked 64th out of 167 economies.

IT analyst Mohd Fazli Azran Abd Malek said this is evidence of the government’s continuous commitment to lead progressive changes in technology innovation and digital transformation, especially in high-speed internet connectivity and other advances in telecommunications technology.

This achievement is also attributed to the establishment of Digital Nasional Bhd (DNB), which offers 5G network services in Malaysia in line with the Malaysia Digital Economy Blueprint (MyDigital), he said.

“This places Malaysia at the forefront of the digital economy by 2030 and ensures the country remains competitive in the era of digitalisation.

“I believe, with the government’s comprehensive support and collaboration from various parties, these factors have contributed to Malaysia’s improved ranking last year,” he told Bernama.

Mohd Fazli Azran, who is also the chief digital innovation officer of Yayasan Digital Malaysia (MyDigital) said the progress achieved will enable the government to implement communication infrastructure plans to foster digital economic growth and help Malaysia produce more technology leaders without relying on external expertise.

Similarly, Universiti Teknologi Malaysia (UTM) Razak Faculty of Technology and Informatics Perdana Centre lecturer Associate Professor Dr. Mazlan Ali said the latest recognition is related to the improvement in digital infrastructure that has been steadily increasing.

Overall, he said, Malaysia’s progress is encouraging for the continued path towards a digital economy, and the government, through the relevant agencies, needs to remain committed to ensuring the communication and multimedia industry remains resilient.

“Despite the political power fluctuations in Malaysia, democracy is good. In fact, our country does not have many digital restrictions as seen in some neighbouring countries.

“So I believe that with continuous investment in infrastructure and policies, Malaysia has the potential to emerge as a major leader in the digital landscape in this region,” he said.

Yesterday, Communications Minister Fahmi Fadzil announced that Malaysia scored 94.5 out of a total of 100 points, surpassing the global average score of 72.8 points, thus demonstrating outstanding achievements towards achieving universal and meaningful connectivity goals.

The IDI 2023, which measured 10 indicators, reported that Malaysia has, among others, achieved near-universal coverage of 4G or LTE mobile networks, high mobile-broadband subscriptions and affordable prices for mobile and fixed-broadband services as well as high rates of Internet usage, mobile phone ownership and Internet traffic. 

Source: Bernama

Malaysia rises to 15th position globally and third in Asean 2023 ICT Development Index