Hyperscale data centre specialist AirTrunk plans to make another multi-billion ringgit investment to develop its second cloud and AI-ready data centre in Iskandar Puteri, Johor.

The new data centre, named JHB2, will be capable of exceeding 270 megawatts (MW) to support the growing demand from global public cloud and technology companies in the region.

This announcement follows the launch of AirTrunk’s first Johor data centre, JHB1, in July last year, which has a capacity of 150MW.

The two facilities will provide more than 420MW of IT load and are expected to cost a combined RM9.7 billion (A$3.5 billion).

“Strategically located in a major availability zone, JHB2 offers an end-to-end cross border connectivity strategy for customers and the ability to scale their operations to match demand,” it said today.

The additional capacity will support Malaysia’s fast-growing digital economy and aligns with the establishment of the Johor-Singapore Special Economic Zone (JS-SEZ), AirTrunk added.  

The new data centre will feature AirTrunk’s cutting-edge liquid cooling technology to manage the high-density demands of AI while ensuring significant energy savings.  

JHB2 is designed to meet the highest standards of efficiency and security, with a low design Power Usage Effectiveness (PUE) of 1.25 and offer multiple renewable energy options.

In line with the Johor state government’s efforts to diversify water sources, AirTrunk is exploring the use of treated greywater as a sustainable water supply for its campus operations.

AirTrunk founder and chief executive officer Robin Khuda said Malaysia’s emergence as a digital powerhouse is a privilege the company to contribute to this growth over the long term and deliver shared benefit for the locals.

He said the data centres serve as essential infrastructure that will help boost productivity and enable new products and services that can drive economic growth.  

“We are committed to helping realise the potential of cloud and AI in Malaysia and prioritising circularity for the benefit of society and the environment.

“AirTrunk is supporting local digital literacy and STEM initiatives, driving the energy transition and working to embed a sustainable water supply to make a positive impact,” he said.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said AirTrunk’s efforts in providing high-value employment, training opportunities and digital infrastructure will leave a lasting positive impact on Johor.

“We welcome the announcement from AirTrunk of further investment as well as social and environmental initiatives that demonstrate a commitment to being a responsible and positive contributor in Johor.

“Ensuring high value employment and training opportunities, like those offered by AirTrunk, alongside the economic contribution of digital infrastructure also ensures a positive legacy for Johor,” he added.

JHB2 is AirTrunk’s 12th data centre across five Asia Pacific and Japan markets – Australia, Hong Kong, Japan, Malaysia and Singapore.

It adds to the company’s hyperscale data centre platform which now offers nearly 1.8 gigawatts of total capacity.

Source: NST

AirTrunk to build second data centre in Johor, combined cost of two facilities at RM9.7bil

The Klang Valley has overtaken Penang as Malaysia’s top medical tourism hub by attracting roughly 560,700 international patients and generating the highest regional revenue of about RM886 million, based on data recorded by the Malaysian Healthcare Travel Council (MHTC) from January to November last year.

In 2019, the Klang Valley states of KL and Selangor had reported 490,000 foreign patients.

“The central region leads, contributing 41.6 per cent of total revenue and handling 44.5 per cent of the total healthcare traveller volume,” MHTC said.

The increase in medical tourists was highest in the fields of gastroenterology; obstetrics and gynaecology; orthopaedic surgery; oncology; ear, nose, and throat (ENT); and cardiology.

In 2019, health screenings, gastroenterology, cancer and neoplasm, and obstetrics and gynaecology were the top treatments sought after by medical tourists, as listed in MHTC’s Healthcare Travel Industry Blueprint 2021-2025.

Despite a decline in patients — from 500,000 in 2019 to around 453,600 in 2024 — Penang still saw a significant income hike from RM750 million to around RM866 million, which accounted for 40.7 per cent of the total national revenue.

Last year, the northern region managed 36 per cent of medical tourists in Malaysia.

The southern region comprising Melaka and Johor also grew from RM185 million in 2019 to RM253 million in 2024.

Out of over 99,000 international patients, 90 per cent of medical tourists in Melaka were Indonesians particularly from Batam, Pekan Baru and Bengkalis, Riau. Bernama reported that it was the result of regular promotions to attract Indonesians to cross the strait for medical treatment.

Similarly, the eastern region previously only comprising Sabah and Sarawak in 2019 also saw a rise in income reaching around RM123.5 million (5.8 per cent of national revenue) after including Peninsular Malaysia’s east coast in 2024. This is despite declining patient volume – from 70,000 in 2019 to around 66,700 last year.

Source: Malay Mail

Klang Valley takes medical tourism crown from Penang

Recent RE initiatives present compelling opportunities for players in the sector However, policy clarity and investor confidence are needed to attract long-term capital for RE projects

MALAYSIA is moving in the right direction when it comes to its renewable energy (RE) initiatives but to fully realise its RE potential, it must improve on policy clarity and investor confidence to attract long-term capital for RE projects.

The country also needs to modernise the grid to accommodate decentralised solar and largescale renewables, expand regional energy interconnectivity and enhance local energy storage and digital grid solutions to ensure reliability and efficiency.

Professor Lee Poh Seng, executive director of the Energy Studies Institute at the National University of Singapore (NUS), says Malaysia can become a key player in South-east Asia’s clean energy transition if it addresses all these matters.

The Energy Transition and Water Transformation Ministry announced a slew of initiatives recently, including the Community Renewable Energy Aggregation Mechanism (Cream), large-scale solar six (LSS6), as well as an upcoming Energy

Storage Systems (ESS) bidding round.

These initiatives are in line with the country’s overall aim of achieving 70% RE capacity by 2050.

Datuk Chow Pui Hee, the group managing director of clean energy services and solutions provider Samaiden Group Bhd, says the government’s commitment towards 70% net-zero emissions is evident in the series of initiatives rolled out in recent years.

These include an expanded Net Energy Metering quota, the Cross Border Electricity Supply programme, the Corporate Renewable Energy Supply Scheme, and key LSS programmes such as LSS5, LSS5+, FIT 2.0, and Battery Energy Storage Systems (Bess).

“Together, these initiatives present compelling opportunities for players in the renewable energy sector,” she says.

Chow says the company’s involvement in LSS projects positions it for “solid growth” in the years ahead.

“The upcoming LSS6, with a bidding round set for the second quarter of 2025, is poised to further expand solar capacity, and

Samaiden stands to benefit, given our track record,” she adds.

Challenges aplenty

NUS’ Lee reckons Malaysia is making commendable progress in its RE transition, and these new programmes reflect a well-structured approach.

The Cream initiative, for instance, promotes rooftop solar aggregation, while LSS6 continues to expand Malaysia’s largescale solar capacity, he notes.

Samaiden’s Chow says Cream offers “new opportunities for renewable energy access”.

“We are actively collaborating with property developers to leverage rooftop spaces for solar energy generation, offering both investment and installation opportunities,” she says.

The ESS bidding round is also a vital step in addressing grid intermittency and enhancing energy resilience.

Lee reckons Malaysia’s approach towards RE is slightly different from Singapore’s.

Malaysia benefits from vast land availability and natural resources, allowing it to scale up solar, hydro and biomass energy projects, while Singapore has significant constraints due to land scarcity.

Consequently, Singapore relies on regional RE imports, whereby it is developing cross-border electricity trading with Malaysia, Indonesia and Laos, and floating solar farms where it already has a 60MWP floating solar farm at Tengeh Reservoir.

Singapore also has green data centres and battery storage and smart grids with the Singapore Energy Market Authority heavily investing in energy storage solutions and digital grid management, Lee says.

“In contrast, Malaysia has the potential to become a regional

RE leader, especially with its LSS and hydro resources. However, its ability to scale up RE will depend on grid modernisation, policy stability and investments in energy storage.”

Under the LSS initiatives, for instance, there will be continuous cost reduction through economies of scale.

As seen in LSS5, competitive bidding lowers solar power generation costs.

There is also the scalability, Lee says with LSS6 being able to add substantial capacity to the grid, helping Malaysia reach its RE targets.

Nevertheless, there are pitfalls.

Lee says identifying large tracts of land for solar projects may conflict with agriculture and conservation efforts.

There are also project delays and financing risks in each project as large-scale infrastructure projects often face bureaucratic hurdles, delays and financing challenges.

Likewise, for ESS, he says there is also the high capital cost to consider as such investments require significant funding, which may deter smaller investors.

Additionally, there will likely be technology maturity and lifecycle issues such as battery degradation, recycling concerns and evolving storage technologies that can pose uncertainties.

Cream, he notes, is a novel approach to aggregating residential rooftop solar for corporate and local consumers, but coordinating leasing agreements between homeowners and developers may be challenging.

Another challenge may involve grid integration as managing multiple small-scale distributed solar producers may require enhanced grid infrastructure.

Source: The Star

Stepping up the RE push

Malaysia is positively aligning with the global trend towards digitalisation, which is driving demand for data centres, cloud computing, blockchain and artificial intelligence (AI).

With this shift, Malaysia is focusing on these technologies to strengthen its leading position in the region.

Furthermore, the country is already a leading player in Asean’s data centre industry, supported by a robust ecosystem that fosters growth and investment.

Tenaga Nasional Bhd (TNB) president and CEO Datuk Megat Jalaluddin Megat Hassan said Malaysia’s current infrastructure is well-equipped to meet the power needs of data centres, ensuring stable operations.

“The global demand for AI, e-commerce, the Internet of Things, and cloud computing is driving the growth of data centres. This trend is a key focus for many countries, including Malaysia.

“While demand is expected to rise, the existing power capacity remains sufficient. It will take a few years before data centre power requirements reach their peak, allowing time for further expansion and optimisation,” he told delegates at the Siemens Data Centre Conference today.

Megat Jalaluddin said TNB prioritises power generation, focusing strongly on reserve operations and reserve generation to ensure a stable supply. It has sufficient capacity margins to support the growing power demands of new data centres, reinforcing Malaysia’s position as a key player in the digital economy.

“TNB is also expanding its power generation through renewable energy sources in line with global sustainability efforts. This shift aligns with Malaysia’s commitment to reducing carbon emissions while maintaining a reliable electricity supply for critical industries like data centres.

“Furthermore, TNB is exploring solar energy as a key solution to meet the power needs of data centres. By integrating solar power into its energy mix, the company aims to enhance sustainability while ensuring long-term energy security for the sector,” he added.

Megat Jalaluddin said Malaysia is well-positioned to provide a strong ecosystem for data centres, supported by policies that encourage investment and this is evident from the growing presence of major global players choosing Malaysia as a hub for their data centre operations.

Digital Minister Gobind Singh, who delivered a keynote address at the conference, said the government aims to build Malaysia into a leading data hub.

“We understand that data centres will greatly impact how we decide. We want to shape our digital economy moving ahead. Technology is key to future success, and we must build the right structures to support sustainable growth. This includes infrastructure and strong governance to ensure long-term progress.”

Gobind said the Digital Ministry plays a crucial role in developing the necessary infrastructure to build a sustainable technology ecosystem.

“When it comes to data centres, it is essential to follow established guidelines, including the recently approved Data Centre Planning Guidelines by the Cabinet,” he added.

In addition to ongoing efforts, he said, guidelines on power usage effectiveness and water usage effectiveness are being developed to set minimum sustainability standards for future data centres.

Expected to be implemented in 2025, these guidelines are created under the guidance of Sirim Bhd to ensure facilities meet local demands, address future challenges and align with global standards for managing high power and water consumption.

“I have been informed that around 17 new data centres are expected to come online in Selangor, a figure that highlights the region’s rapid growth. This expansion will drive significant demand for water and energy, making strategic planning and industry collaboration essential to ensuring sustainable infrastructure.

“As we move forward, we must consider this opportunity from multiple perspectives to support long-term development,” Gobind said.

Malaysia Digital Economy Corporation CEO Anuar Fariz reaffirmed the agency’s commitment to positioning Malaysia as a leading data centre hub.

“We offer strong incentives, business-friendly policies and access to more affordable energy. Data centres play a crucial role in data control and innovation, and with the AI boom driving demand, we must position ourselves to attract investment and maximise the benefits for Malaysia,” he said.

Anuar said Prime Minister Datuk Seri Anwar Ibrahim has raised concerns about data centre investments, particularly whether the return on investment justifies the number of jobs created.

“While Malaysia is prepared for this growth, it is crucial to establish clear safeguards to ensure sustainable development. This includes protecting the environment and facilitating the transition from a manufacturing-based economy to one that offers high-quality, high-paying jobs,” he added.

Source: The Sun

Malaysia well-equipped to meet power needs of data centres, says TNB president/CEO

DeepSeek presents new opportunities for financial investors looking to support the next wave of artificial intelligence (AI)-driven businesses in Malaysia that go beyond just technology, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

DeepSeek is a Chinese AI company that has rapidly gained prominence for developing advanced AI language models and enterprise solutions.

“By lowering barriers to AI adoption, DeepSeek empowers small and medium enterprises (SMEs) to integrate AI solutions into their operations, increasing productivity and global competitiveness,” Fadillah said in his keynote address at the Pan-Pacific AI Forum Malaysia — Investment and AI in a Changing World, here on Thursday.

He emphasised that while technology is the engine of progress, capital is the fuel that drives it forward.

“Malaysia has long been a preferred destination for international investors and we are committed to strengthening our position as a global investment hub.

“Our digitalisation agenda has attracted major global tech giants, with Oracle, Microsoft, Google, and Amazon collectively committing US$14.7 billion in investments. These strategic partnerships are a testament to Malaysia’s potential as a leading digital economy in Southeast Asia,” Fadillah said.

The Pan-Pacific AI Forum Malaysia brings together governments, businesses, civil societies and leaders across agencies, businesses, and enterprises in the AI industry.

The forum discusses emerging markets, legal and policy issues, political and economic trends, emerging technologies, ICT user perspectives, and business opportunities in the global marketplace.

This year, it focuses on AI discussions and matters.

Source: Bernama

DeepSeek can drive AI adoption in Malaysia, attracting global investors — Fadillah

NCT Group of Companies has signed a Memorandum of Understanding (MOU) with OM Charge Sdn Bhd to establish electric vehicle (EV) charging infrastructure at NCT Smart Industrial Park (NSIP) in Sepang, Selangor.

Under the MOU, OM Charge will provide customised EV charging solutions tailored to NSIP’s operational and environmental needs. The initiative includes the deployment of a network of chargers to serve tenants, workers and visitors, ensuring seamless access to EV charging facilities.

“Our collaboration with OM Charge marks an important step in advancing our vision of NSIP as a beacon of sustainable industrial innovation. By integrating an advanced EV infrastructure, we are creating an ecosystem where technology, efficiency, and sustainability converge,” said NCT Group founder and group managing director Datuk Seri Yap Ngan Choy in a press statement issued on Wednesday.

Beyond infrastructure development, the partnership also involves expertise-sharing and strategic planning to integrate EV solutions into NSIP’s smart systems. This collaboration aligns with NSIP’s vision of fostering a future-ready, tech-driven industrial ecosystem while supporting Malaysia’s broader sustainability goals.

Meanwhile, OM Charge CEO Moses Ong Leng Keong said the partnership is an opportunity to redefine sustainability and green technology adoption in industrial parks. “Together, we are laying the foundation for an industrial ecosystem that not only meets the demands of today but is also prepared for the challenges of tomorrow, creating lasting value for businesses and communities.”

Located within the Integrated Development Region in South Selangor (IDRISS), NSIP is designed to be a leading industrial hub, integrating smart technologies and green solutions to meet evolving industry needs. The master developer aims to set the standard of NSIP as Malaysia’s first tech-centric industrial park with a zero-emissions target by 2050.

Source: The Edge Malaysia

NCT Group partners OM Charge for EV charging project at NCT Smart Industrial Park

IJM Corp Bhd, through its joint-venture (JV) company Exio Logistics Sdn Bhd, will invest RM460 million in a new logistics hub in Sungai Buloh to support Malaysia’s supply chain and e-commerce.

The business will provide IJM Corp with recurring income once operations commence in the first quarter of 2027, said its chief executive officer Datuk Lee Chun Fai. The recurring income will help IJM Corp balance the cyclical nature of its main businesses in construction and property development, he noted.

“Regardless of the economic environment, or the government’s fiscal position, this business will continue to operate,” said Lee. “Our goal is to generate at least a third of our income from recurring sources.”

Lee was speaking to The Edge on the sidelines of the groundbreaking ceremony for Exio’s logistics hub in the City of Elmina. Exio Logistics is a JV between IJM’s wholly owned subsidiary IJM RE Sdn Bhd and FMM Elmina Sdn Bhd.

Spanning 22 acres, the hub will be fully leased to Storio Sdn Bhd, which will operate the facility as its master tenant.

Storio is owned by the shareholders of FMM Elmina: Tan Sri Teo Chiang Hong of Bandar Utama City Corp Sdn Bhd, Datuk Michael Tang of Mettiz Capital Sdn Bhd, and Choong Kar Weng of Minlon Sdn Bhd.

The facility, comprising two logistics hubs with a combined 500,000 square feet of floor space, features an advanced automated storage and retrieval system that could handle 117,000 pallet positions, with a throughput capacity of 240 pallets per hour.

The investment in the logistics hub is in line with IJM’s long-term strategy to diversify into high-growth sectors and capitalise on the increasing demand for modern, technology-driven logistics services, said Lee.

IJM plans to expand further in the logistics sector, but with varied models to avoid internal competition, he said. “For instance, this facility in Elmina is automated, while our other investment in Shah Alam focuses on a conventional cold room warehouse.”

In addition to Exio Logistics, IJM has also invested in Global Vision Logistics Sdn Bhd, developing the six-million-square-foot Shah Alam International Logistics Hub.

Smooth trade flows

Transport Minister Anthony Loke Siew Fook, who officiated the event, highlighted that facilities like Exio’s hub will be instrumental in streamlining trade flows and alleviating supply chain bottlenecks.

The logistics hub boasts connectivity to Port Klang, Kuala Lumpur International Airport, and major transport networks. Exio’s hub will strengthen Malaysia’s role as a logistics gateway in the region, while supporting the expansion of trade routes with Asean partners, he said.

“With the recent Malaysia-Singapore Johor Special Economic Zone (SEZ) announcement, we are seeing increased opportunities for cross-border logistics and investment,” Loke said. “Exio’s logistics hub is an example of how the private sector plays a crucial role in advancing national logistics capabilities.”

Source: The Edge Malaysia

IJM to invest RM460m in new logistics hub in City of Elmina, eyes boost in recurring income

Hong Leong Investment Bank (HLIB) Research is positively surprised about the country’s large scale solar 6 (LSS6) programme, which is expected to be open for bidding in the second quarter of this year (2Q25).

The research house is expecting to see between RM15bil and RM18bil worth of solar engineering, procurement, construction and commissioning (EPCC) contracts to be formalised over the next 24 months.

This is assuming the LSS6 is of similar size to LSS5 and the recent 2GW LSS5+ announcement by the Energy Transition and Water Transformation Ministry (Petra).

“There are no details on its quota yet, but we think LSS5 (2GW) and LSS5+ (2GW) could be a reasonable indication,” HLIB Research said.

It added that cumulative quotas from just LSS5 and LSS5+ of 4GW is about 28% larger than total quotas awarded from LSS1 to LSS4 programmes and Corporate Green Power Programme.

The research house said the upcoming transmission and distribution upgrades during regulatory period 4 (2025 to 2027) – enabled by record allowable capital expenditure of RM42.8bil – should prepare the grid for new renewable energy (RE) capacity.

Petra announced new RE programmes last Friday to further accelerate developments, including a Community Renewable Energy Aggregation Mechanism which will enable home owners to lease rooftop spaces to third parties (RE developers), creating additional income streams.

“Guidelines are being finalised and we think take-up will rest on potentially critical parameters such as System Access Charge rates and storage requirements, if any. Difficulties on aggregation will also pose a challenge to developers,” HLIB Research added.

It said the second round of bidding for battery energy storage system development is slated for 3Q25, following the first bidding in November last year.

The research house maintained its “overweight” rating on the sector, with “buy” calls for Solarvest Holdings Bhd, target price (TP) of RM2 per share, and Samaiden Group Bhd (TP: RM1.44).

“Both stocks under coverage, Solarvest and Samaiden, are major beneficiaries from an extended upcycle.

“We flag upside risks to our longer dated earnings forecasts from this development,” it said.

Similarly, Phillip Capital Research has maintained its “overweight” stance on the sector, underpinned by ongoing national energy transition initiatives and a strong contract pipeline driving robust activity.

“Government-led green initiatives and growing RE demand is set to benefit companies like BM Greentech Bhd (“buy”; TP: RM2.65), Solarvest (“buy”; TP: RM2), and Pekat Group Bhd (“buy”; TP: RM1.15),” the research house said.

It pointed out that Pekat should see limited upside from the current levels, having surged some 29% over the past three months, driven by optimism on EPE Switchgear (M) Sdn Bhd synergies.

Last August, Pekat announced the acquisition of a 60% stake in the Nilai-based switchgear manufacturer RM96mil.

In addition, Phillip Capital Research expects power utility infrastructure engineering companies such as MN Holdings Bhd and CBH Engineering Holding Bhd, which offer interconnection solutions, to gain from the expansion of RE programmes, which support solar EPCC contractors.

The research house said key risks included government RE policy changes, project execution delays, intense market competition and volatility in solar module prices amidst the ongoing supply chain capacity consolidation.

Source: The Star

Solar sector set for RM18bil boost

The rise of different types of artificial intelligence (AI) technologies such as DeepSeek can reduce Malaysia’s reliance on a single product, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the emergence of diverse AI technologies also enables Malaysia to become a neutral centre for AI companies from the west as well as those from the east, such as China.

“Although this more efficient (type of) AI technology reduces the need for large data centres, its lower cost is expected to drive more widespread use, driving the demand for data centre services,” he said.

Tengku Zafrul was responding to Datuk Seri Wee Jeck Seng’s (BN-Tanjung Piai) question on the impact of the rise of new AI technologies from China on data centre investors in Johor.

Tengku Zafrul said increasing AI efficiency does not reduce demand for data centres. Instead, they may increase AI use, stimulating investment concerning data.

“The semiconductor supply chain will be diversified. If we look at Johor, Penang and Kedah, these strategic locations for AI infrastructure and data centres will not be affected,” he said.

Hence, the next step is to ensure that Malaysia’s data centres have the cutting edge by introducing more enticing green investment incentives.

“We want to further encourage the AI ​​and digital workforce and raise Malaysia’s competitiveness as an AI processing centre by attracting more investment from AI companies, not only from the west but also from other countries.

“We also need to maintain diplomatic relations with the United States (US) and China to ensure our position as a neutral technology investment hub,” he said.

Source: Bernama

Diverse AI technologies like DeepSeek reduces Malaysia’s reliance on a single product – Tengku Zafrul

Malaysia, as the Asean chair this year, will continue its strategic efforts to ensure member states are prepared to finalise the Digital Economy Framework Agreement (DEFA).

Deputy Investment, Trade and Industry Minister Liew Chin Tong said these efforts are crucial to keeping Asean, including Malaysia, globally competitive while securing sustainable economic and socioeconomic benefits.

He noted that under Malaysia’s Asean 2025 chairmanship, DEFA is one of the key economic achievements identified by the ministry, with negotiations targeted for completion by the end of this year.

“As Asean chair, Malaysia plays a key role in advancing regional economic integration under the Asean Community Vision 2025, which prioritises equitable development and narrowing the development gap.

“To achieve this, Malaysia is focusing on two main approaches to facilitate the DEFA negotiation,” he said during the question-and-answer session in the Dewan Rakyat today.

Liew was responding to a question from Syerleena Abdul Rashid (PH-Bukit Bendera) on the government’s plans to ensure DEFA negotiations concluded by 2026, given the varying levels of digital readiness across Asean.

He shared that the first approach involves basic capacity-building programs among Asean member states.

“In 2024, over ten technical workshops, training sessions, and dialogues were conducted for the DEFA Advisory Committee in collaboration with experts in the digital economy and international organisations such as the United Nations Conference on Trade and Development, World Economic Forum, and Organisation for Economic Co-operation and Development.

“This year, the program will expand to more advanced areas of digitalisation, focusing on digital technology adoption, data management, and cybersecurity in trade,” he said.

Liew added that the second approach is the phased implementation of DEFA, similar to Asean’s Economic Community and Free Trade Agreements.

According to him, this approach includes grace periods or flexible timelines to allow certain member states to develop relevant legislation or policies before full implementation.

He also emphasised that DEFA aligns with Malaysia’s national agenda to position the country as a regional leader in the digital economy.

“It supports key national policies such as the Malaysia Digital Economy Action Plan as well as sectoral policies managed by the ministry, namely the National Trade Action Plan and the New Industrial Master Plan 2030,” he said.

Source: Bernama

Malaysia drives efforts to finalise Digital Economy Framework Agreement under Asean chairmanship

Malaysia continues to attract data centre investments due to its cost advantages in land, labour, electricity, and proximity to Singapore, said analysts at RHB Investment Bank Bhd (RHB Research).

In a note, the research house said the demand for data centre infrastructure is expected to grow alongside the increasing adoption of artificial intelligence (AI)-enabled services, driven by improved affordability and efficiency.

“Hence, data centre investments may continue coming on the assumption that Jevons paradox materialises in light of potential AI democratisation,” it said.

Jevons paradox suggests that as technological advancements improve efficiency, overall consumption of a resource tends to increase. In this case, if demand for AI is elastic, falling costs due to efficiency gains may drive higher AI adoption.

RHB Research added that the outlook for data centre developers is expected to remain intact.

“With tech giants staying put on AI investments, we think Gamuda and Sunway Construction’s DC orderbook and tenderbook will not face substantial scale-downs, as most of their clients are multinational corporations from Tier-1 countries (the US, the UK, Netherlands) that are eligible for the universal validated end-user status,” it said.

The research firm also highlighted that the continued expansion of AI adoption through democratisation could benefit contractors involved in data centre construction, as more data centre providers may enter Malaysia, creating additional job opportunities for contractors.

“Notwithstanding the above, we acknowledge the risks stemming from the lingering uncertainty with US President Donald Trump having a 120-day window to comment on the AI chip restrictions,” it said.

Source: The Borneo Post

Analysis: Malaysia still attractive for data centre investments

The surging property and data centre sectors in Malaysia, along with a strong housing pipeline in Singapore, are set to drive the earnings growth of AWC Bhd’s environment segment, according to Hong Leong Investment Bank (HLIB Research).

HLIB Research noted that AWC is entering an earnings upcycle, supported by its four core business pillars, with the environment segment emerging as a key growth driver.

The strategic move to increase its stake in Stream Group to 100 per cent is expected to be earnings-accretive, positioning AWC to capitalise on the rising demand for modern waste collection solutions, the investment bank said.

Stream, which holds roughly 90 per cent market share in Malaysia, stands to benefit from the country’s strengthening property market and the anticipated increase in new project launches. Additionally, Singapore’s robust pipeline of residential, office, and HDB developments further enhances Stream’s growth prospects.

AWC’s engineering segment is also set to benefit from the positive outlook for Malaysia and Singapore’s property markets, with data centre projects acting as a potential catalyst, HLIB Research said.

“Separately, with its plumbing segment recently securing a prestigious MNC data centre project, AWC is well positioned to ride the DC wave in Malaysia. Based on our estimates, the 4.7GW DC pipeline translates into an opportunity worth RM1.6 billion to RM2.9 billion for the plumbing sector. Notably, DC projects are fast-tracked, offering higher margins vs. property-related jobs. Also, the rapid project turnover further enhances the performance and profitability of this segment.”

Meanwhile, the integrated facility management  and rail segments are expected to experience strong earnings growth by FY27, driven by the renewal of existing contracts and the upcoming Penang LRT project.

Overall, HLIB Research projects AWC’s core net profit to grow at a robust compounded annual growth rate (CAGR) of 44 per cent from FY24 to FY27.

The investment bank has initiated coverage on AWC with a BUY rating and a target price of 41 sen.

Looking beyond Malaysia and Singapore, HLIB Research highlighted that the Middle East’s booming infrastructure sector offers significant opportunities for AWC to secure high-value contracts.

“Notably, the value of projects in the Middle East is typically much higher than those in Malaysia and Singapore due to their large-scale nature,” it added.

Additionally, AWC’s rail segment is well-positioned to secure a portion of the upcoming systems contract for the Penang LRT, which management estimates to be worth approximately RM400 million.

Looking ahead, HLIB Research noted that potential rollouts of the MRT3 and Kuala Lumpur-Singapore High-Speed Rail (HSR) projects present further opportunities for AWC to expand its footprint in the infrastructure sector.

Source: NST

AWC set for robust earnings growth amid surging property, data centre markets

Instead of disruption or distraction, the arrival of “cheaper” Chinese artificial intelligence (AI) model DeepSeek may drive demand for data centres in Malaysia, industry experts said.

The country, they added, remains in a strong position to capitalise on sustained regional data processing due to its geographic location that is deemed as attractive.

BMI Research head of technology and telecoms research Andrew Kitson said Malaysia already recorded above-average mobile and wireline data traffic volumes at 13.21 exabytes (EB) and 13.25 EB respectively in 2023.

The data for the first nine months of 2024 showed further robust increases in data traffic over these channels and BMI forecasts robust annual increases in the traffic over the next 10 years.

“Malaysia remains in a particularly strong position to capitalise on sustained regional data processing, storage and transfer demands,” Kitson told Business Times.

“This is given its attractive geographic location as a hub for submarine cable connectivity, its strong relationships with key US allies, its proximity to Singapore as a leading financial services hub, and its remarkable progress with regards to digital transformation that cannot be matched by neighbours such as Indonesia and Vietnam.”

He, however, said DeepSeek’s ability to match or outperform existing AIs built on larger and costlier computing stacks will give investors and developers of digital infrastructure pause for thought.

“We believe that countries currently positioning themselves as regional data processing hubs including Malaysia will want to take stock with regards to current and planned data centre developments.

“This may include downsizing compute capacity at data centre sites still at the planning stage or even deferring making firm commitments to data centre projects that have only been mooted so far,” said Kitson.

Despite that, he said there will not be one single AI used in every country.

There will be considerable demand for high-performance computing in all countries that exceed current and planned capacity as AI applications and use cases become broadly embedded across all layers of the digital economy.

“Basically, the more that people and companies use AI, the more computing power is going to be needed,” added Kitson.

Juwai IQI co-founder and group chief executive officer Kashif Ansari said the firm foresees continued and increased demand for data centres in Malaysia and the Asia Pacific region instead of disruption from DeepSeek.

“Any efficiencies DeepSeek can deliver compared to other large language models will drive growth in the use of AI services that will far outpace efficiency gains. When you make something cheaper, people consume more of it.

“The tech industry even has a term for this, the ‘Jevons paradox,’ which states that increasing the efficiency of a resource usually leads to its greater consumption.”

Kashif added that the local companies should be happy that DeepSeek offers a more affordable large language model as expensive AI models will not be accessible to all Malaysian companies.

A more affordable AI enables local companies to compete with global players.

“All the factors that have made Malaysia into Southeast Asia’s fastest growing data centre market still apply. There is still growing demand for data centres, and Malaysia is still one of the best locations in the Asia Pacific for those data centres.

“We have relatively inexpensive land, skilled labour, water and energy. We have a supportive government. We have a large domestic market and another important one next door, in Singapore. And we have a strategic location with excellent connectivity to the rest of Asia,” he added.

Meanwhile, RHB Investment Bank Bhd (RHB Research) said although DeepSeek’s large language model claimed to have been trained at just US$5.6 million, it does not necessarily translate into a significant reduction in the need for data centres.

“Instead, it means that the AI model gets 30 per cent more power. Certain companies have lamented that AI is not able to deliver targeted return on investments and, hence, a more efficient AI model could enable such aimed returns to be met,” it said in a note.

The firm said Jevons paradox could come into play, where technological progress makes using a resource more efficient, and overall consumption of that resource tends to increase.

“Assuming demand for AI is relatively elastic, falling prices due to efficiency improvements create higher AI adoption. We understand that one factor that slowed AI adoption within big organisations so far has been how expensive the AI models are to run,” it added.

Additionally, it said Meta Platforms Inc and Microsoft Corporation have not changed their plans to invest heavily in AI hardware in data centres for this year.

It added that the tech companies have defended their AI-related investments for the current fiscal year, saying it is crucial to remain strategically competitive in AI over time.

DeepSeek recently took centre stage in the tech world as it claims to operate on a fraction of the resources used by its competitors.

Its performance against industry leaders such as Google and OpenAI has unsettled big technology stocks, particularly in the semiconductor sector.

Digital Minister Gobind Singh Deo recently said the  government was studying the impact of the platform on Malaysia.

He said the government was giving serious consideration to DeepSeek and its model before it can be adapted for local use to keep pace with the rapid development of the AI landscape.

Source: NST

DeepSeek may fuel data centre growth in Malaysia

The Capricorn Investment Group from the United States is the latest international investor exploring opportunities in Sarawak, especially in the renewable energy and technology sectors.

According to a Sarawak Public Communications Unit report, Capricorn officials were here yesterday to pay a courtesy call on Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at Wisma Bapa Malaysia.

InvestSarawak chief executive officer Timothy Ong, who accompanied the group, told the media after the meeting that both parties discussed how Capricorn could support the state’s development in the new energy, battery, and space industries.

The delegation was led by Capricorn partner and strategic advisor Jérome de Bontin.

“Capricorn is not an unknown name in the world of technology investment. They were previously among the early investors in giant companies such as Tesla and SpaceX.

“With extensive experience in the field of innovation, they see Sarawak as a strategic destination for investments related to green energy and digital technology,” said Ong in the report.

Adding that Abang Johari welcomed the ideas brought by the delegation, Ong said among the main agenda discussed were the development of a prosperity action plan, new energy, as well as potential collaboration in the semiconductor sector and digital parks in Sarawak.

He said Abang Johari also ordered a follow-up meeting to be held to detail the form of collaboration that could be established with Capricorn.

Source: The Borneo Post

US investment group eyes renewable energy, tech opportunities

The Penang Silicon Design @5km+ initiative launched by Prime Minister Datuk Seri Anwar Ibrahim in December can further strengthen Penang’s position as a regional technology hub and drive economic growth by developing the IC design industry in the state.

Collaborative Microelectronic Design Excellence Center (Cedec), Universiti Sains Malaysia director associate professor Dr Asrulnizam Abd Manaf said the initiative is a strategic step to enhance the commercial and research ecosystem in integrated circuit (IC) design.

He said the initiative also supports the aspirations of the National Semiconductor Strategy (NSS) in driving Malaysia as a global research and development (R&D) hub while strengthening collaboration between universities and industries as well as developing talent in the field of intellectual property (IP).

“The three components in Penang Silicon Design @5km+ – the IC and Digital Design Park, Penang Chip Design Academy, and Silicon Research and Incubation Center – will be able to form a complete ecosystem that provides infrastructure, talent support, and subsidy incentives to attract domestic and foreign investments in the IC design sector,” he said.

According to Asrulnizam, development in the semiconductor industry, particularly in IC design leading to IP development, requires significant investment, such as servers, electronic design automation (EDA) software tools like Cadence, Synopsys, and Mentor, as well as access to process design kits (PDK) from chip fabrication companies, in addition to facilities for post-silicon verification of chips after fabrication.

He said Cedec will support Penang Silicon Design @5km+ as a technology collaborator by providing access and consultancy for the multi-project wafer (MPW) project with Silterra Malaysia Sdn Bhd, enabling startups to develop IP prototypes using Silterra’s PDK.

“The collaboration between Cedec and Silterra in MPW has been ongoing for 18 years, involving 18 universities with access to PDK for teaching and research purposes.

“Therefore, Penang Silicon Design @5km+ will become a one-stop centre platform where startups and multinational companies (MNCs) can access shared facilities within a radius of 5km+,” he added.

Meanwhile, Asrulnizam said that Penang Silicon Design @5km+ indirectly supports the aspiration of NSS to enhance the competitiveness of Malaysia’s semiconductor industry.

He said that the provision of shared facilities such as office space, servers, EDA software (Cadence, Synopsys, and Mentor), as well as fabrication and post-silicon verification facilities, can attract investors from both domestic and international markets to invest in IC design, especially in Penang.

“Additionally, initiatives through subsidy schemes can reduce the cost for startups to be active in the development of IPs and prototyping facilities. This, in turn, drives the capability of startups to compete globally in developing high-impact IPs,” he said.

Asrulnizam said that this complete ecosystem would also indirectly attract the interest of involvement from multinational companies such as Intel and AMD, as well as startups and R&D centres like Cedec to collaborate more closely in an academia-industry consortium towards completing the development of IC design up to advanced packaging technology.

He said this could further unlock the potential of Penang Silicon Design @5km+ to become a regional research hub that attracts industry players from Southeast Asia in line with the globalisation aspirations of NSS.

“Additionally, Cedec is also involved in the Structured Industrial Apprenticeship Programme (SIAP), which provides industrial training modules such as analogue IC design, digital front-end, and back-end design to 1,500 to 1,600 students each year, involving universities such as USM, Universiti Teknologi Mara, Universiti Malaysia Perlis, Universiti Teknologi Petronas, and Universiti Tunku Abdul Rahman.”

In addition to nurturing new talents, Asrulnizam said this initiative also provides opportunities for engineers to upskill or reskill their areas of expertise to meet the increasingly challenging demands of the industry.

He added that Penang Silicon Design @5km+ is a strategic move that not only develops the country’s high-tech economy but also strengthens Malaysia’s position as a key player in the global semiconductor industry.

On Dec 7, Anwar, who is also the Finance Minister, launched and announced an RM50 million allocation for the Penang Silicon Design @5km+ initiative.

Penang Silicon Design @5km+ is spearheaded by the Penang government through its agency, InvestPenang, to revolutionise Malaysia’s semiconductor industry in line with the NSS.

Source: Bernama

Penang Silicon Design @5km+ to boost its position as tech hub

Malaysia remains a key data centre hub due to its strategic location, abundant resources, cost advantages, and established infrastructure, with industry feedback suggesting no major disruptions to upcoming projects, according to MIDF Amanah Investment Bank Bhd.

In a research note, the bank said this is despite recent volatility in Malaysia’s construction sector, particularly in stocks like Gamuda Bhd and Sunway Construction Group Bhd that stemmed from concerns over the artificial intelligence (AI) chip restriction implemented by the Biden administration.

“This policy restricts United States (US) data operators from deploying more than seven per cent of their processing power in Tier 2 countries like Malaysia and caps the usage of graphics processing units (GPUs) to 50,000 per facility. This has sparked fears that large-scale data centre investments in Malaysia could slow,” it said.

The bank noted that these concerns were compounded by Donald Trump’s Stargate initiative, a US$500 billion plan backed by Microsoft and Meta to expand data centres in the US, which further shook market confidence in Malaysia’s role as a global data centre hub.

However, MIDF believes that these fears may be overstated, and argues that Malaysia remains a prime location for data centres, especially considering that the feasibility of consolidating all data centres in the US is highly questionable, given the massive energy and cooling requirements.

Moreover, the rise of DeepSeek — a Chinese AI model reportedly achieving ChatGPT-level performance using only 2,000 H-800 Nvidia chips (compared to ChatGPT’s approximate 11,000 H-100 chips, which are more advanced) — could nullify the impact of the AI chip ban.

If DeepSeek’s efficiency claims hold, US firms would achieve the same processing power using far fewer GPUs, meaning the 50,000 GPU limit would allow for multiple data centres in Malaysia or an expansion of current data centres.

“Overall, we opine that the sharp selloff in Malaysian construction stocks may be overdone. If DeepSeek’s efficiency claims are valid, the AI chip restriction will be moderated, reaffirming Malaysia’s role as a cost-effective, strategically located DC hub,” it said.

As clarity emerges, the bank expects confidence in construction stocks to rebound in the coming months, reinforcing the sector’s long-term strength.

MIDF also noted that if efficiency increases, Malaysia may see a shift towards lower-value yet higher-frequency data centre projects, potentially impacting revenue projections for major contractors.

The bank added that as clarity emerges, it anticipates a recovery in construction stocks, supported by strong job flows, mega infrastructure projects, and sustained private sector investments in data centres and other government-related infrastructure projects.

Source: Bernama

Malaysia remains key data centre hub despite global concerns — MIDF

Forest City has garnered significant interest from both domestic and international investors following Prime Minister Datuk Seri Anwar Ibrahim’s announcement on August 25, 2023, designating the area as a Special Financial Zone (SFZ).

With the official signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement, Forest City, as Flagship G, has been formally incorporated into the JS-SEZ. This milestone is expected to further bolster international investment.

Deputy President of Country Garden Pacificview Sdn Bhd, Syarul Izam Sarifudin, said that the project has attracted attention from 11 companies expressing interest in establishing operations within the Forest City SFZ.

“We have observed growing interest in Forest City from investors both locally and globally. As the project developer, we are committed to ensuring the successful implementation of this initiative,” he said in a statement on Wednesday (Jan 29).

Syarul Izam is also optimistic that 2025 will bring further economic and developmental impact to Forest City, which was designated a Tax-Free Zone on Nov 15 last year.

He added that the announcements regarding Forest City’s SFZ, its duty-free status, and the JS-SEZ are expected to position the area as a key driver of economic growth, not only for Johor but for Malaysia as a whole.

“We will work closely with both state and federal governments to ensure smooth planning and mutual benefits,” he said.

To address investor concerns and provide insights, Forest City has planned a series of seminars. On Jan 18, a seminar was held focusing on Malaysia’s only 0% tax single-family office, providing investors with an understanding of policies and available incentives.

On the same day, Forest City launched pre-bookings for the first phase of commercial units in the new year. The flexible office and shopfront small office flexible office (SOFO) commercial spaces, located in Cerulean Bay, will soon be introduced to the market.

Meanwhile, Syarul Izam highlighted that Forest City’s development and its designation as an SFZ have drawn international interest, particularly from financial institutions. This was evident during a recent visit by a Johor delegation, led by Johor Mentri Besar Datuk Onn Hafiz Ghazi, to the Dubai International Financial Centre (DIFC).

“The visit to Dubai’s international financial centre was a valuable learning and expertise-sharing session, especially for Forest City. Our goal is not to compete with them but to identify key insights that can be applied here.

“These initiatives will not only benefit industry players investing in Forest City but also create job opportunities and economic spillover effects for other downstream sectors,” he said.

As a result of the visit, several parties have expressed interest in investing and establishing businesses in Forest City SFZ, particularly in the field of Artificial Intelligence (AI).

Syarul Izam also reaffirmed Forest City’s commitment to supporting economic growth and infrastructure development in the surrounding area, further increasing its long-term appeal.

“In the future, Gelang Patah will be a preferred destination due to the various facilities available, including ports, access to Singapore, industrial areas, and recreational amenities,” he said.

To enhance transportation connectivity, Forest City, following the successful launch of its bus service to and from the Malaysia-Singapore Second Link, is set to collaborate with Causeway Link once again. The partnership will introduce weekend and holiday bus services between Forest City and Kuala Lumpur.

Additionally, plans are underway to upgrade the island’s cycle lanes and transportation links, integrating them with Johor Baru’s public transit system. This initiative aims to provide residents and visitors with a more efficient and convenient travel experience.

With its combination of incentive policies and global vision, Forest City is emerging as a benchmark project in the Asean region. The establishment of the Special Financial Zone, Duty-Free Island, and Special Economic Zone positions it as a key hub for attracting investments, creating employment opportunities, and driving economic growth.

Source: The Star

Forest City draws increased investment interest following special financial zone status

The demand for both low-powered and high-powered chips in the development of artificial intelligence (AI) systems will lead to a significant increase in advanced data centre infrastructure, says Mah Sing Group Bhd.

Commenting on DeepSeek’s recent launch of its AI model using lower-powered chips, the group said this reflects growing demand for high-performance computing and AI adoption.

“This is a promising development for Mah Sing’s data centre venture,” it said in a statement issued on Tuesday.

Mah Sing said land near energy hubs will become increasingly valuable.

Its Southville City development, with its strategic suitability as an AI hub, is ideally positioned to leverage this trend, it said.

It added that the Southville Data Centre, with its immediate access to reliable and higher capacity energy, offers a competitive edge in accelerating market deployment for its data centre partners.

“This, coupled with DeepSeek’s innovative approach, positions AI-driven data centres as the future backbone of the digital economy, ensuring they can meet the ever-growing demand for computing power and energy reliability in this transformative era.”

Source: The Star

DeepSeek’s AI breakthrough to spur AI adoption, data centre infrastructure – Mah Sing

The Communications Ministry has identified 67 industrial areas nationwide to be equipped with 5G internet services, said its minister Fahmi Fadzil.

He said the locations of these industrial areas were identified through cooperation with the Investment, Trade, and Industry Ministry (MITI).

“Our aim is to prioritise these areas because the benefits of 5G for micro, small, and medium enterprises (MSMEs) are significant.

“We want to ensure that factories can take advantage of fast connectivity through 5G,” he told Bernama after attending the ministry’s Strategic Working Direction Meeting 2025 here today.

Also present were the ministry’s secretary-general Datuk Mohamad Fauzi Md Isa, Malaysian National News Agency (Bernama) Chief Executive Officer Datin Paduka Nur-ul Afida Kamaludin, and Bernama Editor-in-Chief Arul Rajoo Durar Raj.

Meanwhile, Fahmi said the penetration rate of 5G usage among the public is also increasing by two to three percent each month and is nearing 53.3 percent nationwide.

He stressed that the Communications Ministry is also committed to ensuring that communities in rural areas receive at least 4G coverage before being upgraded to 5G.

“Previously, we had the National Digital Network (Jendela) Phase One initiative, which should see the completion of 1,661 towers by June this year, marking the first step.

“Second, I expect that between the two 5G networks, they may see strategic collaboration to ensure that the towers in rural areas can be utilised for 5G purposes,” he said.

He added that Jendela Phase Two will involve between 2,500 and 3,000 locations in rural areas that lack internet access.

Source: Bernama

67 industrial areas identified for 5G connectivity, says Fahmi

Australia’s global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the agreement was reached through a meeting with the company’s leadership team led by executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Investment, Trade and Industry Ministry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Anwar said through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the Federal Government.

“Sabah will have a relatively large port in the region when DP World comes in. The Federal Government has informed Chief Minister Datuk Seri Hajiji Noor and the state government to provide full support and cooperation,” he said.

In addition, the Prime Minister said Google would continue implementing major programmes in Malaysia, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

He said issues related to artificial intelligence, including in the fields of medicine and education were also discussed in the meetings with global companies.

On another matter, Anwar said Asean region’s great potential was his main message at the WEF, adding that as the regional grouping’s chair for the year, Malaysia has highlighted the region’s special features including in the field of economy and trade.

“It trades intra (Asean) and is also a trading force with the United States, China, Europe and BRICS.

“With nearly 700 million people, the fastest economic growth and a peaceful region, Asean has great potential,” he said at the closing press conference in conjunction with his working visit to WEF 2025, Bernama reported.

He said apart from trade and economic potential, Asean also wants to focus on energy transition issues, education, food technology, connectivity and digital.

Anwar attended the summit at the invitation of WEF founder and chairman of the board of trustees, Prof Klaus Schwab – his first since assuming office in 2022.

“We are grateful that as it is the first time I attended as Prime Minister, I think the treatment and recognition of (WEF) for the country is very good.”

Among the leaders Anwar met on the sidelines of the WEF were Dutch Prime Minister Dick Schoof and Somalia President Hassan Sheikh Mohamud.

Source: The Star

Green hydrogen hub coming to Bintulu

The declaration of the Port of Sipitang Oil and Gas Industrial Park (SOGIP Port) marks a strategic milestone with significant potential to drive Sabah’s economic growth, Deputy Chief Minister III Datuk Shahelmey Yahya said. 

Shahelmey, who serves as the state’s works minister, said the new port, located in Sipitang approximately 140 kilometres from Kota Kinabalu, will provide a major boost to local economic sectors such as transport, shipping, and logistics. 

“The economic potential of this area is undeniable. Its strategic location on the west coast of Sabah, facing the South China Sea, positions Sipitang as a new gateway for maritime trade in the region. 

“This port will create job opportunities for local residents, enhance household income, and promote sustainable economic growth,” he said during the official declaration ceremony of the SOGIP Port here today. 

He emphasised that the initiative aligns with the Sabah Maju Jaya (SMJ) roadmap spearheaded by Chief Minister Datuk Seri Hajiji Noor to strengthen the state’s economic and infrastructure development. 

“As a new port area, Sipitang not only enhances Sabah’s capacity to handle international cargo but also broadens access for businesses to the global market. 

“This development represents a key step towards bolstering trade ties between Malaysia and its neighbours, as well as the wider region. We are confident this will significantly boost both bilateral and multilateral trade growth,” he said. 

At the event, Shahelmey also represented the Chief Minister to witness the signing of the port concession agreement between the Sabah Port Authority, Sabah Oil and Gas Development Corporation Sdn Bhd, and SOGIP Port Sdn Bhd. 

He added that with the infrastructure in place, Sipitang is set to become a vital logistics hub for the region, further supporting trade and industrial activities. 

“Through the provision of modern facilities, we are confident this project will enhance Sabah’s standing as a key player in international trade and logistics, while accelerating integration with the global economy. 

“I believe the SOGIP Port project will not only benefit the immediate area but will also serve as a catalyst for more sustainable and balanced economic development across Sabah,” he added. 

Source: Bernama

SOGIP port launch boosts Sabah’s economic prospects

AUSTRALIA’S global metal mining company Fortescue has agreed to invest in green hydrogen alternative energy in Bintulu, Sarawak, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said the agreement was reached through a meeting with the company’s leadership team led by Fortescue executive chairman and founder Andrew Forrest AO on the sidelines of the World Economic Forum (WEF) Annual Summit 2025 here.

“The Sarawak government has agreed in principle, and I have guaranteed several incentives and support so that Bintulu will become a hub,” he said at the closing press conference in conjunction with his working visit to WEF 2025.

On Tuesday, Anwar led a Malaysian delegation to attend face-to-face business meetings organised by the Ministry of Investment, Trade and Industry with corporate leaders representing Fortescue, AstraZeneca, DP World, Medtronics, Nestle and Google.

Commenting further, the prime minister explained that through meetings with companies investing in Malaysia, the large port company from Dubai, DP World, which comes into Sepanggar, Sabah, has received the support of the federal government.

“As for Sabah, which will have a relatively large port in the region when Dubai Ports comes in, the federal government has informed Chief Minister Datuk Seri Hajiji Noor and the Sabah government to provide full support and cooperation,” he added.

In addition, the prime minister said Google would continue implementing major programmes such as the one established in Selangor, namely data centres that would benefit Peninsular Malaysia, particularly Johor, Penang and Perak.

Furthermore, he said that issues related to artificial intelligence, including in the fields of medicine and education, were also discussed in the meetings with global companies.

Anwar attended the WEF 2025 for the first time as prime minister since taking office in 2022 at the invitation of WEF founder and chairman of the board of trustees Klaus Schwab from Jan 20-22.

Throughout the three-day visit, Anwar was accompanied by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir and Digital Minister Gobind Singh Deo.

Source: Bernama

Australian metal mining firm to invest in Sarawak’s green energy sector

Malaysia’s political stability and clear policy prescriptions in the MADANI Economy framework have encouraged big players in the artificial intelligence (AI) industry, including semiconductor companies, to invest in the country.

Prime Minister Datuk Seri Anwar Ibrahim said the government has provided enough incentives to attract big players from the United States, Europe and China to make huge investments in Malaysia.

Along with the progress of AI, he called for a comprehensive approach to integrating AI into Malaysia’s national framework, emphasising the urgency of establishing robust AI legislation, a national AI office, and data protection measures.

“We have to navigate — (through) the National AI Office, legislation, data protection, and whatever it takes to make sure that we are fully equipped,” he said during a special one-on-one exclusive dialogue entitled “A Conversation with Anwar Ibrahim’’ moderated by WEF founder and executive chairman of the board of trustees Prof Klaus Schwab here today.

“AI means changing the education system, health services, blockchain. It will have to come about, and we are pushing it at a faster pace, partly because of my age. I don’t have time to wait,” the 77-year-old leader added.

Source: Bernama

Malaysia secures AI industry investments with clear MADANI economy policies – PM Anwar

Penang is expected to strengthen its position as a top medical tourism hub in South-east Asia with an upcoming multibillion-ringgit Penang Medi-City project in Batu Kawan.

The mega-project, spread out over 235.8 acres, will take about 15 years to complete and is expected to feature mixed development of at least four hospitals, various health and wellness facilities, technology parks, commercial centres, serviced apartments, schools and residential areas.

“This is one of the largest private investments we are receiving in Penang, at RM2 billion for phase one and a few more billions in the other phases, in a sector outside of the manufacturing sector,” said Penang chief minister Chow Kon Yeow at a press conference after the official signing ceremony of a master sale and purchase and development agreement between Penang Development Corporation (PDC) and Fajarbaru Builder Group (FBG).

He said PDC has been working on the idea for a medical city for more than five years and have discussed it with various companies.

“We have also called for Request for Proposal for this,” he said.

He added that the project will be a catalyst project for Batu Kawan as it is expected to feature more than 1,000 hospital beds and become a one-stop medical hub for Penang, the northern region and Asean.

“Penang is now dominating the medical tourism industry in the country, with a 45 per cent market share,” he said.

He said the medical tourism industry in the state has continued to expand in recent years that the state is one of the main destinations for medical tourists seeking high quality medical services at affordable rates.

He said the Penang Medi-City development in Batu Kawan will strengthen the state’s position as a main medical tourism hub in South-east Asia.

He also said the project is expected to create thousands of job opportunities during construction and upon completion, it could create even more high-value jobs in the medical and services industry.

“This project proves that Seberang Perai and Batu Kawan is set to be the future of Penang,” he said.

FBG group executive chairman Tan Sri Chan Kong Choy said Phase One of the project, which covers about 51 acres, will have a gross development value of RM2 billion.

“There will be one hospital first but we are also in discussions with several other medical operators, local and international,” he said.

He said the overall project, which is in four phases, will have not less than four hospitals of various disciplines.

“There will also be related healthcare and wellness service operators,” he said.

He said they will also consider traditional Chinese medicine and alternative medicines operators as these are also huge growing markets.

Phase one of the project is expected to launch in the fourth quarter of next year and will take about eight years to complete.

Source: Malay Mail

Penang cements position as medical tourism hub with RM2b Penang Medi-City project

Malaysian companies, especially those in the logistics sector, should go regional with a whole-of-government approach to create Malaysian global champions in services, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said transport services continue to be a significant contributor to Malaysia’s trade deficit, reflecting reliance on foreign shipping and logistics providers to support Malaysia’s export-driven economy.

Liew said this is a cause for concern and calls for more effort to transform the situation.

“We should build a Malaysian brand image of trustworthiness and friendliness for Malaysian global service providers to thrive in the export of services,” he said in his opening speech at the Service Conference 2025 (SERV25) here on Monday.

Liew also suggested that Malaysia should do more to make itself a hub for regional headquarters, tourism, higher education, research and development (R&D) activities, legal and arbitration services, and finances, especially Islamic finance.

He said emerging sectors such as digital trade, and sustainable and green services are areas Malaysia can make a global difference.

“The linkage between services, manufacturing and technology should be firmly established,” he said, a sign that Malaysia is seeing an upsurge in manufacturing activities, thanks in part to supply chain relocation, with manufacturing-related services being core to the development of a robust services sector.

“We must do more to link the two sectors together, and more importantly, connect manufacturing and services with Malaysian technology,” he said.

He said the service sector linkage to supplement “Made in Malaysia” with “Made by Malaysians” is crucial.

SERV25 brought together speakers and thought leaders to explore cutting-edge digital transformation strategies to reshape Malaysia’s economic landscape.

Source: Bernama

Chin Tong urges Malaysian logistics companies to go regional