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

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

ATPC eyes Sabah’s solar farming

More developers entering the segment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Strong appeal

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

Data centre appeal

Track record, IBS make group a strong contender

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

IJM likely to win more data centre jobs

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

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

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

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

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

Source: Bernama

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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

Malaysian businesses, especially small and medium enterprises (SMEs), should invest in cloud infrastructure and adopt a digital mindset to compete globally, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said the adoption of cloud technologies had led to improvements in productivity and creation of high-skilled jobs in the country.

“We have seen a surge in efficiency and innovation as industries leverage cloud-based solutions to streamline their operations, automate tasks and gain valuable insights from data,” he said at Google’s Cloud Day Malaysia yesterday.

For instance, the manufacturing sector is using cloud technologies to optimise supply chains, monitor equipment performance and enhance production efficiency.

Similarly, the healthcare industry is using them to manage electronic medical records and facilitate telemedicine services, among others.

Zafrul said these advancements not only boosted productivity through data-driven insights but also created job opportunities in fields such as data analytics, software development and cloud architecture.

On the cloud’s scalability and agility, he said it enabled homegrown startups to scale up and expand their business’ reach beyond Malaysia.

“Smaller enterprises can now leverage resources previously available only to larger corporations.”

Zafrul said Malaysia had started various projects to create 3,000 smart factories and establish Malaysia as a hub for generative artificial intelligence.

These projects will require a strong cloud-based enabler and this was where Google, as one of the global companies developing and promoting cutting-edge cloud-based technologies, could play a big role.

“Google is helping Malaysia realise key missions under its industrial transformation agenda, including helping businesses and industries tech up, automate, digitalise and robotise their operations.

“From the ministry’s perspective, the tech investments that we target and particularly favour are the ones that will promote inclusive socio-economic development.”

He said Google’s recent announcement of a US$2 billion data centre investment was a testament to Malaysia’s competitiveness, ease of doing business and growing importance as a regional hub for digital innovation.

“There are only 11 countries in the world where Google has data centre investments of this scale. Regardless of how Malaysia’s global competitiveness was ranked, which was based on a snapshot of time, the proof of the pudding is in the eating,” he added.

Cloud Day Malaysia saw 479 participants coming together to exchange ideas, forge new partnerships and experience first-hand the transformational potential of Cloud and AI technology.

At the event, companies such as AirAsia Move, Gamuda Bhd and Bank Muamalat showcased their involvement in AI innovation.

Source: NST

Zafrul: Invest in cloud infrastructure, adopt digital mindset

ENERtec Asia 2024, a threeday conference commencing today, aims to foster collaboration and knowledge exchange to address escalating air pollution and climate change caused by fossil fuel use, to meet the region’s rising energy demands.

Chairman of ENERtec Asia Tan Sri Abd Rahman Mamat said attendees will have unique opportunities to gain actionable insights, explore cutting-edge innovations and forge valuable partnerships to propel their organisations towards a low-carbon future.

“With over 300 exhibitors showcasing the most advanced solutions in renewable energy, cleantech, energy efficiency, and electric mobility, this is a true celebration of innovation and progress,” he said in his keynote address at the opening ceremony of ENERtec Asia 2024.

ENERtec Asia is organised by Informa Markets Malaysia Sdn Bhd, co-hosted by The Electrical and Electronics Association of Malaysia and in partnership with the Energy Industries Council.

Meanwhile, Sarawak’s Deputy Minister of Energy and Environmental Sustainability, Datuk Hazland Abang Hipni in his keynote address stated that ENERtec Asia provided a comprehensive platform to unite industry leaders, policymakers and stakeholders in pursuing a sustainable and secure energy landscape.

In support of the government’s commitment to the Paris Agreement, Hazland said the Sarawak state government is actively striving for a 45 per cent reduction in greenhouse gas emissions intensity relative to GDP by 2030.

“Our Ministry wholeheartedly embraces the government’s goal of achieving 31 per cent renewable energy in the national installed capacity mix by 2025, and 40 per cent by 2035.

“We are implementing a range of policies and initiatives to meet these targets, including expanding large-scale solar projects, promoting biomass and biogas energy generation, developing new hydroelectric capacity and exploring emerging technologies, such as wind and ocean energy,” he said.

He also emphasised that his ministry is implementing the National Energy Efficiency Action Plan in alignment with the government’s focus on energy efficiency.

“This plan aims to reduce electricity consumption by eight per cent across the commercial, industrial, and domestic sectors by 2025.

“We are working closely with other ministries to achieve the National Automotive Policy 2020 target of 15 per cent total industry volume for electric vehicles by 2030,” he added.

Source: Bernama

ENERtec Asia 2024 drives regional push for sustainable energy future

The investment commitment for the flagship National Energy Transition Roadmap (NETR) projects and initiatives have reached RM60.7 billion, exceeding the initial RM25 billion target, said Deputy Economy Minister Datuk Hanifah Hajar Taib.

The commitment is based on the implementation level of 10 projects and flagship initiatives on six energy transition drivers which have been introduced.

“With the level of implementation of the flagship projects and initiatives, the government also expects 84,544 employment opportunities compared to the initial target of 23,000.

“There is also a reduction of greenhouse gas emissions of 24,264 gigagrams (Gg) of carbon dioxide equivalent every year compared to the initial target of 10,000 Gg of carbon dioxide equivalent every year,” she said in the Dewan Rakyat today.

Hanifah was responding to Rompin MP Datuk Abdul Khalib Abdullah, who wanted to know about the status of the NETR Phase One in meeting the net zero carbon emissions target, including the amount of investment identified and the number of job opportunities generated to date.

She added that the 10 flagship projects and initiatives based on the six energy transition drivers involve energy efficiency (one flagship project); renewable energy (three flagship projects); hydrogen (two flagship projects); bioenergy (a flagship project); green mobility (two flagship projects) and carbon capture, utilisation and storage (one flagship project).

“Each of these projects and initiatives has a different level of maturity, and most are still in the pre-implementation stage and on schedule,” Hanifah said.

Source: Bernama

NETR projects investment, initiatives at over RM60 bln — Deputy minister

Economy Minister Rafizi Ramli said governments must adopt a holistic approach to policy and infrastructure to bolster renewable energy (RE) supply and ensure sustainable development.

He said that Malaysia plans to significantly ramp up its RE capacity over the next two to three years, paving the way for a more integrated regional approach within the Asean community.

“We need to establish comprehensive policies and robust infrastructure to support RE expansion.

“Our goal is to significantly increase our RE supply in the next few years, moving towards a cohesive regional strategy,” Rafizi said.

The minister said this during a panel session at the Annual Meeting of the New Champions, themed “The Opportunity of Managing Energy Demand”, organised by the World Economic Forum in China Tuesday.

He also said as Malaysia prepares to take over the chairmanship of Asean, it is set to champion a flagship project aimed at advancing integrated green growth across the region.

The initiative seeks to bridge the gap between RE capacities in different economies, with excess capacity in the north and higher energy demand in the south.

“Malaysia is committed to leading Asean towards integrated green growth. Our goal is to create a cohesive regional approach that facilitates the transition to sustainable energy, connecting through the peninsula to Singapore and Indonesia,” Rafizi said.

Addressing the complexities of energy demand, the minister said the critical importance of ensuring that the entire energy system is sustainable, including grid, supply, policies and incentives.

He noted that governments must be willing to invest in infrastructure and enact policy and regulatory changes, particularly concerning pricing.

“A successful public-private sector engagement (PPE) model involves the government doing everything necessary to build infrastructure and adjust policies and regulations.

“When it comes to policy and incentives, they must create a cost structure where alternatives are viable and sustainable,” Rafizi said.

Source: Bernama

Malaysia to lead push for integrated green growth across Asean — Rafizi

The Digital Ministry sees the latest US$2.2 billion investment by Microsoft as an aspiration and a benchmark for other industries in driving national innovation.

This commitment encourages the development of digital talent and drives Malaysia towards becoming a global digital hub, the ministry said in response to Dr Richard Rapu @ Aman Anak Begri (GPS-Betong).

Rapu had asked the Digital Ministry to explain how it views Microsoft’s latest investment vis-à-vis Malaysia’s digital potential.

The ministry explained that the investment will enable Microsoft to develop cloud infrastructure and artificial intelligence (AI) in the country.

Microsoft also plans to strengthen collaboration with the government to establish a national AI centre, improve the country’s cyber security capabilities, train more than 300,000 workers in the digital sector by 2025 and support Malaysia’s target to produce a million digital talents by 2030.

The multinational computer technology company also aims to create more high-skilled job opportunities in areas such as AI, cloud computing and cyber security and support the growth of Malaysia’s software ecosystem.

The investment will also help more than 200 local companies integrate AI into their operations by 2025 to improve efficiency and innovation.

Source: Bernama

Microsoft investment sets benchmark for industry players to drive national innovation

Malaysia has the potential to greatly improve productivity through the adoption of artificial intelligence (AI), surpassing the benefits of digitalisation, said Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said AI’s potential to simplify complex and mundane tasks boosts productivity and opens doors to creativity and strategic thinking.

Alongside AI is the move to enhance research and development (R&D) to increase economic complexity by producing and delivering competitive products and services, enabling companies and economies to participate in higher-value global chains, he said.

“In R&D, process innovation is as important as product innovation and critical to boosting productivity. Our competitors are fast catching up to us, we cannot afford to be unproductive,” he said in his speech at the launch of the Productivity Report 2024 by the Malaysia Productivity Corporation (MPC) here today.

The text of his speech was read out by MITI secretary-general Datuk Hairil Yahri Yaacob.

Tengku Zafrul highlighted that technology, regulation, and talent are critical drivers of productivity which is the essence of the Productivity Report 2024.

He noted that the report recommends governments at all levels embrace good regulatory practice (GRP) and have the ease of doing business mindset, minimising shocks and unpredictability in regulatory compliance.

“Businesses must embrace modern management and technology to reduce fixed and marginal costs.

“At the same time, they must value and reward employees who continuously upskill or reskill, ensuring their competencies stay relevant in our rapidly evolving landscape,” said the minister.

Meanwhile, Tengku Zafrul stressed that a comprehensive, whole-of-government approach is essential to address the multifaceted factors influencing competitiveness.

These include talent management, public service delivery, digitalisation improvements, and the management of both the domestic economy and international trade, he said.

Themed “Driving Malaysia’s Productivity”, the report noted that the country’s 2023 labour productivity per employee was positive, moderated to 0.9 per cent compared with 2022’s jump of 5.4 per cent.

It said the country’s productivity level increased to RM96,692 per employee in 2023, rising slightly from RM95,858 in 2022.

Source: Bernama

Embrace AI to achieve significant productivity improvements – Tengku Zafrul

Malaysia’s Solarvest, a company specialising in clean energy solutions, has partnered with GreenRock Energy, a Taiwanese firm focused on renewable energy, to expedite the advancement of green energy solutions in Taiwan and Malaysia.

The collaboration makes GreenRock Energy the first Taiwanese company to participate in Malaysian government green energy projects.

GreenRock Energy is entering the Malaysian renewable energy market with a goal of achieving 1GW (gigawatt) of renewable energy projects within the next five years.

This regional partnership enables both companies to access each other’s established markets and expertise to navigate the complexities in the region.

The Malaysian energy market is actively transforming to achieve green energy development goals. Earlier this year, the government launched the LSS5 large-scale solar programme with a total of 2GW renewable energy capacity, marking the largest solar project in history.

This initiative complements the National Energy Transformation Policy , which encompasses a variety of green energy developments such as energy efficiency, renewable energy zones, and green hydrogen, all aimed at reducing carbon emissions and achieving a low-carbon nation by 2040.

To further support the nation’s ambition of becoming a regional renewable energy hub, the government also plans to adopt a Third Party Access mechanism and establish a renewable energy trading centre.

These initiatives will enable the export of cross-border renewable energy and accelerate the energy transition in Southeast Asia.

Despite the complexity and intense competition of local green energy policies, GreenRock is confident that its collaboration with Solarvest will overcome these challenges through its combined expertise and technological advantages.

As of March 2024, Solarvest has achieved a 1.2GW project track record regionally, with 440MW of projects under construction and 348MW of solar assets, representing its leadership position and extensive experience in the region.

Solarvest provides comprehensive services, including solar development, design, applications, construction, operation, maintenance, and asset management. Besides Malaysia, Solarvest

has developed renewable energy businesses in six other Asian markets including Taiwan, Singapore, the Philippines, Vietnam, Thailand and Indonesia.

In Taiwan specifically, Solarvest is collaborating with GreenRock Energy on large-scale agrivoltaic and aquavoltaic projects, targeting a total of 500MW projects.

Source: The Sun

Solarvest team up with Taiwan’s GreenRock Energy to advance green energy solutions

Axrail, an Amazon Web Services (AWS) advanced tier services partner in Malaysia, has opened Southeast Asia’s first of its kind Generative AI (Gen AI) lab to support the growing demand for AI solutions and the nation’s digital economy aspirations.

The Gen AI lab pools the expertise of AWS, Phison and Axrail in one collaborative hub.

Axrail said it showcases cutting-edge cloud solutions powered by AWS, including those built on Amazon Bedrock, alongside on-premise innovation with Phison’s innovative aiDAPTIV+ technology.

Located within Axrail’s 3,000 square foot centre of excellence (CoE) for AI solutions, the lab is designed to accelerate businesses’ AI readiness by helping them to build capabilities to extract value from data and increase operational efficiency across various functions.

“It aims to cater the evolving needs of businesses seeking a fast-tracked and scalable path to AI adoption, and positions Axrail at the forefront of delivering comprehensive, end-to-end generative AI solutions for both cloud and on-premise environments,” it said.

Axrail founder and chief executive officer Kelvin Kok said the innovative sandbox will empower businesses to reimagine operations through AI, delivering measurable outcomes and future-proofing their approach. 

“Our goal is to accelerate AI adoption, especially among Malaysian small and medium enterprises, leveraging the upcoming AWS Region in Malaysia for data residency, low latency and robust cloud services across Southeast Asia,” he said in a statement.

AWS Malaysia country manager Pete Murray highlighted that the lab offers business solutions that boost productivity and efficiency for industries like retail, manufacturing, healthcare and entertainment for SME customers of all sizes. 

“Partners like Axrail can help customers make the most of the opportunity advanced technologies like generative AI can offer business owners,” he added.

Axrail, a subsidiary of QL Resources Bhd, has a track record of helping over 50 businesses across Malaysia and Singapore.

Source: NST

QL Resources’s unit Axrail unveils Southeast Asia’s first generative AI lab in Malaysia

Johor’s potential as a data centre hub is largely driven by its strategic location near Singapore and the resources it offers in terms of energy, water, transportation and suitable land, according to Malaysia Digital Economy Corp (MDEC).

MDEC digital industry acceleration head Wan Murdani Wan Mohamad said when demand for more data centre capacity exceeded the neighbouring region’s resources, global companies started looking beyond – to Batam and Jakarta in Indonesia, the Philippines, Bangkok in Thailand, and Malaysia.

He said Johor offers the perfect solution due to its geographical closeness, allowing companies to leverage Singapore’s established digital ecosystem while benefiting from the ability to expand and grow in the region.

“This proximity ensures minimal latency and high-speed connectivity, which are essential for data centre operations.

“These factors collectively create a favourable environment for the establishment and growth of data centre operations, positioning Johor as a key player in the regional data centre landscape,” he told Bernama.

Wan Murdani opined that the increasing demand for artificial intelligence (AI), cloud computing and data storage presents significant opportunities for Malaysia to advance in the digital economy.

“As more businesses transition to cloudbased services and leverage AI, the need for scalable compute and data storage solutions will drive further investments in data centres, particularly in strategic locations like Johor.

“These investments will enhance Malaysia’s digital infrastructure and attract global companies seeking cost-effective and well-connected hubs,” he said.

In attracting more investments, MDEC has established close collaborations with various federal and state agencies such as Iskandar Regional Development Authority, Invest Johor, Jcorp, Plan Malaysia Johor, and Koridor Utiliti Johor to streamline and enhance the experience for both current and potential investors.

“By working closely together, MDEC and these agencies ensure that investors’ requests and requirements are promptly addressed and effectively met,” said Wan Murdani.

Establishing data centres in Johor will significantly increase demand for commercial real estate, including new facilities and the retrofitting of existing buildings.

Another key attraction for Johor potentially becoming a data centre hub is the state’s power and water infrastructure readiness to handle large-scale data centres.

According to Wan Murdani, MDEC has been providing technical advice and assistance to state governments, Tenaga Nasional Bhd (TNB) and investment promotion agencies since 2010 in preparation for these data centre investments.

“The availability of locations with ready infrastructure in Johor, such as Sedenak Technology Park (STEP), Nusajaya Tech Park (NTP) and SILC (Southern Industrial and Logistics Clusters) allowed for the rapid development of expansive data centre facilities without the prohibitive costs seen in more densely populated areas.

“Additionally, while Malaysia’s energy costs are competitive, it was TNB’S infrastructure readiness for hyperscale data centres that enabled companies to expedite their construction plans, which played a major role,” he noted.

As data centres and digital infrastructure consume significant energy, there will be an increasing emphasis on developing eco-friendly renewable energy solutions.

Investments in renewable energy sources, energy-efficient technologies and sustainable practices will ensure that the growth of the digital economy aligns with environmental goals, positioning Malaysia as a leader in both technological and sustainable development.

Wan Murdani said Malaysia has passed the Energy Efficiency and Conservation Act, which aims to ensure energy-intensive industries, including data centres, are operated to maximise energy efficiency as much as possible.

He said MDEC has facilitated engagements between the Energy Commission and the industry.

Source: The Star

Demand boom, resources make Johor fit as data centre hub

The state government in collaboration with the Town and Country Planning Department (Plan Malaysia Johor) is drawing up the Johor State Data Centre Development Planning Guidelines to coordinate and monitor data centre development planning.

Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said the initiative is aimed at having a uniform guide and reference for local councils and agencies involved.

Lee, who is also the Paloh assemblyman, chaired the first meeting of the Johor State Data Centre Development Coordination Committee yesterday.

“Committee members are made up of state and Federal agencies including the Johor Economic Planning Division, Invest Johor, Malaysian Investment Development Authority (Mida), Malaysian Digital Economy Corporation (MDEC), Iskandar Regional Development Authority (IRDA), Tenaga Nasional Berhad (TNB) , Ranhill SAJ, Land and Mines Office, Environment Department and Plan Malaysia which acts as the secretariat.

“Among the functions of the committee include assisting the state government and councils to coordinate the development of data centres, providing advice on matters related to data centre development before applications are considered by the councils, considering and making recommendations for the development of data centres in existing or abandoned buildings and submitting reports related to data centre development to the State Planning Committee (if necessary),” he said in a post on his Facebook page.

Lee said the committee has decided that data centers in Johor should focus on the use of renewable technology in addition to saving electricity and water.

“In this regard, the state government will continue its investment-friendly policy since the development of data centres is one of the main requirements in increasing the use of technology and digital as a result of the development of Industrial Revolution 4.0 and Artificial Intelligence, which can increase productivity and competitiveness.

“Furthermore, the state government will work with Federal agencies such as Mida and MDEC to realise the potential of developing a wider digital ecosystem as well as attracting related and AI-based technology companies to Johor, while also creating job opportunities in the fields of technology, engineering, data management, infrastructure support for the people of Johor,” he said.

A total of nine data centre projects have been successfully implemented with a total capacity of nearly 1,280 megawatts so far.

Six projects are currently under construction with a projected capacity of nearly 1,490 megawatts in addition to more than 30 projects that are at various stages of discussion and approval.

Source: Bernama

Johor to streamline coordination of data centres for local councils and agencies

The opening of Penang’s Asia Design Centre is a significant step forward for Malaysia’s tech ecosystem to develop next-generation precision digital instruments, leveraging custom integrated circuit (IC) designs.

Digital Minister Gobind Singh Deo said this enables the delivery of high-performance and high-quality semiconductors, propelling Malaysia’s technological capabilities.

The Asia Design Centre is a RM71 million investment by LTX-Credence Sdn Bhd, part of US-based global tech company Cohu.

“The investment is a testament to LTX-Credence’s commitment to Malaysia’s growth. This is projected to generate an impressive RM1.6 billion in indirect economic value over the next five years, significantly boosting the local economy,” Gobind said at Asia Design Centre’s inauguration today.

“As part of Cohu, LTX Credence has established itself as a leader specialising in semiconductor test solutions. Ranked third globally in the semiconductor test industry, its expertise and innovation continue to set new benchmarks,” he said.

Gobind said Cohu has a presence with operations and customer support centres across key markets in Asia, Europe, and North America with more than 500 highly skilled field engineers.

He said the Asia Design Centre’s recruitment drive will attract up to 60 skilled research engineers, paving the way for a rise in highly trained workforce. The investment also aligns with Prime Minister Datuk Seri Anwar Ibrahim’s vision to upscale Malaysia’a semiconductor industry.

He also said LTX-Credence’s Malaysia Digital status in May 2024 underscores government support and commitment to the sector.

“Malaysia commands an impressive seven per cent share of the global semiconductor market with companies increasingly diversifying operations beyond a single location to mitigate risk and ensure continuity.

“More will be done to enhance the nation’s capabilities and infrastructure because the ultimate goal is to see Malaysia play a role in the global semiconductor industry,“ he said.

Collaborations between the centre and local universities and research institutions are a possibility, he said.

Source: Bernama

LTX-Credence’s RM71m investment in Asia Design Centre to generate economic value, jobs

A total of nine data centre projects have been completed in Johor, while six others are in the process of completion, says Lee Ting Han.

The Johor investment, trade, consumer affairs and human resources committee chairman said that the state has become a key player in the development of data centres in the region due to several key advantages.

“Among the factors that have made Johor ideal for the development of data centres include its strategic location, the availability of utilities, infrastructure and human resources, as well as the investor-friendly approach of the state and federal governments.

“As of June this year, nine data centre projects with a combined capacity of 1,280 megawatts have been completed in the state, while six other projects with an estimated capacity of almost 1,490 megawatts are in the process of being completed.

“On top of that, there are 30 other projects that are in discussion and approval level,” he said in a statement here on Thursday (June 20).

Lee added that in view of the rapid growth, the state government has taken some steps to ensure that the development of data centres is being properly planned and that it will benefit the locals.

“As such, the state government and the Johor Town and Country Planning Department (PLANMalaysia) have come out with guidelines.

“This will act as a guide for local councils and agencies involved in the coordination and monitoring of data centres,” he said.

He added that he had chaired the first meeting of the Johor data centres coordination and development committee on Wednesday (June 19), where several key matters were discussed.

“The committee has decided that data centres in Johor should focus on the use of renewable technology capable of saving electricity and water,” he said, adding that the state government will continue sticking to its investor-friendly policy.

Source: The Star

Nine data centres in Johor completed, six others in progress, says exco rep

Johor is rapidly becoming a key player in the data centre industry in Southeast Asia, driven by its strategic location, robust infrastructure and investment-friendly policies from both state and federal governments.

As of June this year, nine data centre projects with a combined capacity of nearly 1,280 megawatts have been completed in Johor, while six more projects are currently under construction, expected to add about 1,490 megawatts.

Trade Investment and Consumer Affairs Committee Chairman Lee Ting Han said approximately 30 other projects are in various stages of planning and approval, reflecting Johor’s growing appeal as a data centre hub.

He said Johor’s proximity to major regional economic centres enhances its appeal for data storage and processing, while its robust utilities and infrastructure offer reliable power and water supply, essential for data centre operations.

“The favourable investment climate provided by the state and federal government policies offers the needed support and incentives for data centre development.

“With the rapid growth of data centres, we are also ensuring that the benefits extend to local communities.

“Guidelines and coordinating committees have been developed to ensure that the data centres prioritise the use of renewable energy and technologies that enhance energy and water efficiency,” he said in a statement today.

Lee said provisions in the formulated guidelines aim to serve as a standardised reference point for local authorities and agencies to coordinate and oversee data centre projects.

“We want to ensure that the data centres adhere to best practices in power usage effectiveness and water usage effectiveness, aligning with international industry standards.

“With the guidelines, local authorities will also recommend that data centre operators use existing or vacant buildings,” he added.

Source: NST

Johor emerges as data centre hub powerhouse in Southeast Asia

The Batang Ai power plant is set to be the first in Malaysia to produce up to 158 megawatts (MW) of energy from the combination of hydro and solar, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said this would be achievable after Sarawak’s first floating solar farm project is fully completed, supplementing the existing hydroelectric plant (HEP).

“I was made to understand that the floating solar farm project will be fully completed soon. At the moment it is more than 30 per cent complete.

“The floating solar farm has the potential to produce at least 50 MW of power and adding to the existing 108 MW from the hydro dam, would mean that Batang Ai could be producing 158 MW of electricity in total soon,” he told a press conference during a working visit to Sarawak Energy Berhad’s (SEB) floating solar farm at Batang Ai in Lubok Antu, Sri Aman today.

Among those present were Minister of Utility and Telecommunication Dato Sri Julaihi Narawi; Deputy Minister of Energy and Environment Sustainability Datuk Dr Hazland Hipni; Deputy Minister of International Trade, Industry and Investment Datuk Malcolm Mussen Lamoh, who is also Batang Ai assemblyman; Lubok Antu MP Roy Angau Gingkoi; SEB Chief Executive Officer Datuk Sharbini Suhaili and Sri Aman Resident Mahra Salleh.

In view of the fact that Batang Ai dam is 8,500 hectares in size, Abang Johari said the capacity generated from such combined methods could be increased in the future.

At the moment, he said, only 86 hectares were covered for the floating solar farm.

He said if 60 per cent of this 8,500 hectares are to be used, Batang Ai has the potential to produce around 2,000 MW of solar power.

“I have shared with SEB on this matter, that Batang Ai dam development can be intensified with foreign investment pouring in, now that we have laws allowing foreigners to invest in power generation in Sarawak. This means that there is indeed room for increasing our power capacity to 2,500 MW, just from Batang Ai alone,” he said.

He pointed out that the state government, too, has identified the HEP in Bakun and Murum for foreign investment, where Bakun would be able to produce 500 MW whereas Murum 600 MW, adding that the state government had signed a memorandum of understanding (MoU) with Abu Dhabi Future Energy Company (Masdar) for the purpose of developing these two HEPs.

Source: Borneo Post

Premier: Batang Ai to be first in M’sia to produce 158 MW energy after completion of floating solar farm

The Johor Sustainability Centre (JSC) would collaborate with Sarawak on the state’s renewable energy capacity (TBB) initiatives, especially through the use of hydrogen technology, said chairman Datuk Seri Hasni Mohammad.

He said Johor Menteri Besar Datuk Onn Hafiz Ghazi will lead a state government delegation to Sarawak this month to explore this.

“Among other things, the visit also aims to strengthen cooperation and exchange expertise to consolidate efforts towards development and the state’s TBB initiatives.

“It is one of the state government’s strategies to form a collaboration, either with the private or public sectors to strengthen Johor’s renewable energy initiatives,” he told reporters at a signing ceremony between Paragon Globe Berhad (PGB) and UOB Malaysia here today.

Present at the event were PGB executive chairman Datuk Seri Edwin Tan Pei Seng and UOB Malaysia’s head of banking Andy Cheah Shu Kheem.

Hasni, who is also a former menteri besar, said it was important for the state government to forge a close cooperation with its Sarawak counterpart to better understand hydrogen technology as a renewable energy source.

“We learnt that Sarawak intends to export the TBB to Singapore. If the initiative employs hydrogen technology, then Johor has the potential to use it as a renewable energy source,” he said.

On June 10, Sarawak unveiled an energy transition policy incorporating renewable energy sources and technology to ensure a clean and sustainable future for the state.

The policy, known as SET-P, was the state’s roadmap towards green energy.

Premier Tan Sri Abang Johari Openg reportedly said Sarawak will become the largest producer and supplier of hydrogen fuel in the South-east Asian region from 2023.

He said Sarawak has the ability to produce and supply hydrogen because it has many rivers, and the water sources can be processed to be used as hydrogen for vehicles.

Source: Malay Mail

Hasni: Johor keen to work with Sarawak on green energy initiatives

Foreign countries showing keen interest in the renewable energy sector

Renewable energy (RE) investments will be a key focus area under Sarawak’s Post Covid-19 Development Strategy (PCDS) 2030 to position the state on a sustainable growth trajectory.

According to Investsarawak chief executive officer Timothy Ong, one of the immediate goals to be undertaken for the rest of 2024 involved firming up the strategic direction of the agency in terms of focus investment areas.

Investsarawak is the Investment Promotion, Industry Development and International Trade agency that operates under the purview of the International Trade, Industry and Investment Ministry of Sarawak.

It was incorporated with the aim to serve as a one-stop centre for investors. “We have had interest from investors from quite a balanced pipeline of countries including the United States, China, Singapore, South Korea and members of the European Union,” Ong said during the Sarawak Corporate Day here yesterday.

He noted that high-quality foreign and domestic investments must be nurtured correctly into a climate where both the private and public sector can flourish.

“Our mission is to transform and position Sarawak into the preferred location for sustainable investments while remaining reliable to investors providing sustained growth, anchored on strong economic and investment policies,” added Ong.

The state welcomes investments into priority areas such as high-tech industries, a highly skilled workforce and sustainability efforts which will drive its growth, according to Ong.

As such, Sarawak aims to become a developed state by 2030 and achieve Rm282bil in gross domestic product (GDP) with a monthly household income median of RM15,000.

The World Bank had recognised Sarawak as a high-income state last year.

“Achieving Rm282bil will mean an 8% annual growth under PCDS 2030. We foresee a 3% growth if we continue with business as usual.

“PCDS is a common target for all, one that would help rally the troops and galvanise us towards a concrete goal.

“I’m hopeful to be able to achieve that. Let’s say we fall short of achieving Rm282bil, but achieve Rm250bil, I don’t think anyone would fault us for an additional Rm110bil to Sarawak’s GDP,” he said.

Leveraging on Sarawak’s inherent strengths such as having 56.5% of forest, four million ha of land used for agriculture, and 1.4 million ha for settlement and water bodies, Ong said the state’s abundant natural resources will further elevate its potential.

“In terms of RE, it is important to become self-sufficient, if we are not producing enough power for our own, then we will be held hostage to those who are. We must try our best to do this,” he said.

While hydro is a good option to generate clean electricity, it also takes a long time to develop.

“Hydro takes up to 10 years for it to be fully functional, as we have seen in the Batang Ai hydro dam, as well Bakun, Murum and the anticipated Baleh dam. The goal is to have produced 60% of RE mix by 2030 so it’s vital we look at other means of producing clean energy,” he said.

The mix will include biomass, floating solar, solar and wave.

For now, the state has been utilising hydro particularly in its hydrogen buses as well as Petroleum Sarawak Bhd’s multi-fuel station with electric charging and a hydrogen pump.

The hydrogen bus is currently able to travel up to 300km using a single refill, and gives out zero emissions.

Its transportation system, also known as the Kuching Urban Transportation System has adopted the green hydrogen methods in its decarbonisation efforts.

“Green hydrogen provides a higher efficiency range of 40% to 60% compared with a combustion engine which has 30% to 40% in efficiency. It also has a cleaner output,” Ong said.

The transit system that will span 70km is expected to be fully completed by 2027.

He said four units of the official cars used by the Sarawak premier Tan Sri Abang Johari Tun Openg and deputy premier Datuk Amar Douglas Uggah utilised hydrogen.

“We are either looking into or already producing RE. These include carbon capture and storage, cultivating renewable sustainable feedstock like algae and renewable oil for sustainable aviation fuel,” he said.

Meanwhile, Ong also said some of the other plans under the PCDS 2030 would include revamping their education system, whereby a free tertiary-level education policy would be implemented in 2026.

“We expect some 25,000 students to be able to access free education. This will include free education in international schools for the bottom 40 segment. Science and Mathematics will also be taught in English,” he said.

A good education system will go hand in hand with good talent, which has been a part of their efforts in bringing back skilled Sarawakians to grow the economy, according to Ong.

Additionally, the Sarawak Digital Economy Blueprint 2030 will act as a framework and guide in helping the state realise its goals.

“This will include creating 39,000 to 48,750 new skilled jobs, 50% growth in investment and partnerships, 96% highspeed connectivity and 20% contribution to Malaysia’s GDP.

“We also want to cultivate 500 high-tech startups. We need a strong digital infrastructure, talent, data governance, research and development as well as digital inclusivity,” he added.

“Achieving RM282bil will mean an 8% annual growth under PCDS 2030.” Timothy Ong

Source: The Star

Sarawak on sustainable growth trajectory

Analysts at MIDF Amanah Investment Bank Bhd (MIDF Research) see a potential rise in foreign direct investments (FDI) for data centres as demand in the tech sector continues to surge.

In a report, it said: “We opine the robust FDI growth in ICT is highly related to data center and 5G rollout projects.”

It predicted the electrical and electronics (E&E) sector would likely remain in radar and in fact contribute higher following the New Industrial Master plan (NIMP) 2030 agenda.

“The blueprint aims to expand Malaysia’s semiconductor industry to Integrated Circuit Design and Wafer Fabrication.

“According to MITI, Malaysia’s strengths for semiconductor are the back-end segments; electronics manufacturing services and assembly and testing. Apart from that, the blueprint targets to deepen the specialty chemical vertical and launch locally made electric vehicles,” it said.

The research team also opined that Malaysia’s industrial landscape is on a promising trajectory, with significant developments across key states.

“Selangor stands out with ambitious projects such as the Selangor IC Design Park, Selangor International Aeropark and the Green Industrial Park. Johor is experiencing robust growth with ventures like the Johor-Shenzen Industrial Park and Eco Business Park VI.

“Negeri Sembilan is positioning itself for long-term success with initiatives like the SPD Tech Valley and Malaysia Vision Valley. Also, Pulau Pinang is enhancing its high-tech sector with the Penang Science Park South and Batu Kawan Industrial Park.

“In East Malaysia, Sabah’s

20,000-acre International Industrial Park and Sarawak’s Bintulu Industrial Park reflect substantial regional advancements.

“These strategic developments underscore Malaysia’s dynamic and forward-looking industrial future,” it highlighted.

Meanwhile, the global trade war between China and US is also expected to be beneficial to exporting countries such as Malaysia.

MIDF Research noted that prior to 2012, the re-exports to total exports ratio stayed below 10.0 per cent.

After one year under former US President Donald Trump, Malaysia’s re-exports ratio hit above 20.0 per cent for the first time in January 2018.

The re-exports grew by 25.3 per cent y-o-y in 2017 and +39.5 per cent y-o-y in 2018. In comparison, domestic exports only expanded by +17.7 per cent y-o-y and +1.5 per cent y-o-y respectively.

“Looking ahead, if there is a change of leadership in the US by end of this year, we expect greater intensity of existing global trade war.

“As for Malaysia, re-exports are poised to rise strongly benefiting from potential increase of global and regional distribution hubs,” MIDF Research opined.

By product, it noted that there are four products that make about 90.0 per cent of the reexports namely Machinery & Transport Equipment, Mineral Fuels, Manufactured Goods and (iv) Chemicals.

Among the four, it pointed out that Mineral Fuels and Machinery & Transport Equipment have the large re-exports rate of 36.5 per cent and 27.8 per cent in 2023 respectively.

“We may see re-exports activity improve above 10.0 per cent for Manufactured Goods if global trade war intensified,” it said.

All in, MIDF Research opined that looking ahead, we might see a stronger pick-up in export-oriented sectors such as manufacturing, mining and agriculture in 2H24 amid improving global trade activities and stable global commodity prices.

It also foresee a stronger pickup in export-oriented sectors such as manufacturing, mining and agriculture in 2H24 amid improving global trade activities and stable global commodity prices.

Source: Borneo Post

Data centres, external trade revival key FDI supporters

SD Guthrie Bhd is in a favourable position to ramp up its future renewable energy (RE) business, partly thanks to the recently launched Kerian Integrated Green Industrial Park (Kigip) master plan in Perak.

Maybank Investment Bank Research said besides Kigip, Penang could also be a potential buyer of RE from SD Guthrie’s solar farm at Kigip to offset carbon dioxide generated at its Silicon Island project.

“While the master plan has been launched, it is still unclear what SD Guthrie’s final equity structure in Kigip will be. What we know is Kigip will provide SD Guthrie with land disposal gains (when it opens up in stages) while its solar farm (likely 100% owned) will provide future recurring income.

“The project could house 157MW to 178MW of solar capacity, and form part of the company’s ambition to grow its RE capacity to 1,000MW in the next three to five years,” the research house added.

Kigip borders the states of Penang and Kedah. The master plan would be developed through the collaboration of the federal government, Perak state government, SD Guthrie, and Permodalan Nasional Bhd.

Solar will be Kigip’s main source of power, and the project aims to attracting high quality investments especially in sectors such as electrical and electronics.

This 1,000-acre Kigip site, to be developed in stages, would be supported by SD Guthrie’s 660 acre solar farm that would be built adjacent to the site.

Besides Kigip, there are other opportunities and potential projects in line with federal and state governments’ initiatives.

The brokerage said its earnings forecasts have yet to incorporate contributions from Kigip or large scale solar farms, noting that it is maintaining its “buy” call on the stock with a target price of RM4.96 per share.

Source: The Star

Potential for SD Guthrie to ramp up its RE business

Telekom Malaysia Bhd (TM) is partnering Nxera, the regional data centre arm of Singapore’s Singtel’s Digital InfraCo unit, to develop data centres in Malaysia starting with a sustainable, hyper-connected artificial intelligence (AI)-ready data centre campus in Johor.

The data centre campus in Iskandar Puteri – 16 kilometres from Singapore – would be the largest to date for both TM and Nxera.

The initial phase of the data centre is planned for 64 megawatts (MW) and could be scaled up to 200MW in response to market demand, the telecommunications service providers (telcos) said in a statement today.

According to the statement, the strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers, and enterprises pursuing accelerated digitalisation and cloud in the region.

“This high-power density campus will be able to host large computing and AI capabilities such as requirements by cloud hyperscalers, graphics processing units (GPU)-as-a-service providers and features advanced technologies such as liquid cooling to support high-power density workloads and operations efficiently.

“The data centre will be a Leadership in Energy and Environmental Design (LEED)-certified green building, emphasising its commitment to greater energy efficiency and sustainable practices,” it said.

TM group chief executive officer (CEO) Amar Huzaimi Md Deris said the collaboration of two main telcos in the region is unique and has a positive impact on the development of a digital ecosystem that not only benefits businesses but also nurtures future talent.

“Establishing a hyperconnected AI-ready data centre marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination.

“TM brings the largest domestic network infrastructure, extensive international subsea cable systems, and the largest interconnected data centre in Malaysia, a solid backbone for this project,” he said.

Amar Huzaimi noted that the data centre would catalyse high-performance computing and lay a solid foundation for the future advancement of cloud and AI applications.

He also said that through the partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in its aspiration to become a digital powerhouse by 2030.

Meanwhile, CEO of Nxera and Singtel’s Digital InfraCo unit Bill Chang said the collaboration advances its vision to be the region’s leading sustainable, hyperconnected AI-ready data centre platform, supporting businesses with the digital infrastructure needed for the growing demand for cloud, digitalisation and AI.

“The first data centre campus development in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in markets that are important to our customers.

“With our joint industry expertise and strong track record, we will build and operate one of the most efficient, sustainable and connectivity-rich data centres in Malaysia,” he said.

In addition to data centres, Chang said the company would be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity.

He said the joint venture would also partner with institutes of higher learning in Malaysia to nurture talent for projects and the industry.

Source: Bernama

TM, Singtel’s Nxera form joint venture to develop next-gen data centres