Sarawak plans to replace the use of coal at the Sejingkat and Balingian power plants with biomass, in line with the state’s efforts to develop clean and sustainable energy, says Datuk Patinggi Tan Sri Abang Johari Openg.

Speaking to reporters after gracing the national-level World Water Day celebration at Kuching Waterfront yesterday, the Sarawak Premier said doing so would not only reduce carbon emission but also provide economic benefits.

He cited the Drax facility in the United Kingdom, which he visited recently during an official trip to the UK, as an example of a power plant successfully transitioning from coal to biomass as a source of energy.

“At Drax, they previously used coal but have now replaced it with biomass. The investment (to change) is not high because the system is very similar.

“This is what we want to use for Sejinkat and Balingian. We want to decommission coal. I have calculated that we can use our biomass to generate power,” he said.

Abang Johari explained that switching from coal to wood waste could generate power exceeding 500 megawatts.

“Now we only need to strengthen the boiler and also from the point of view of the motor machine, and this will enable Sejingkat (plant) to generate even up to one gigawatt,” he said.

Touching on his visit to the Drax power station, the Premier said the insight he gained has provided him a valuable framework in further developing the state’s renewable energy sector, adding he will discuss this with state utility company Sarawak Energy Berhad.

He also expressed happiness that the European community has recognised Sarawak’s role in addressing climate change.

“We will share the technology we have in renewable energy production including biomass,” he said.

Separately, Abang Johari said the implementation of cascading dams in the hinterland will be carried out elsewhere if the local population objected to it.

“If they disagree, the government will move (the project) to another area. If they feel suspicious, we will go to another place where the people want (the project to be implemented).

“Now we are implementing the project near Sungai Kanowit and Song. In Kapit, they want this cascading source, and we have a new technology that I mentioned as a tank elevator.

“This depends on the theory of gravity, which means that the flow of water can generate energy,” he said.

Also present at the event were Deputy Prime Minister Datuk Seri Fadillah Yusof, Deputy Premier Datuk Amar Dr Sim Kui Hian, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Minister of Utility and Telecommunication Datuk Sri Julaihi Narawi and his deputy minister Datuk Liwan Lagang, and Fadillah’s deputy minister Akmal Nasrullah Mohd Nasir.

Source: The Borneo Post

Premier: Sarawak to replace coal with biomass at Sejingkat, Balingian power plants

Majuperak Holdings Bhd (MHB) will collaborate with Shizen International Inc to explore the development of a solar photovoltaic (PV) project to expand Perak’s clean energy technology usage.

Menteri Besar Datuk Seri Saarani Mohamad said the project is likely to be developed on land and water.

“This collaboration is based on two objectives — to explore the development of solar PV projects on land, and to assess potential water sites for floating PV projects in Perak.

“This collaboration is also in line with Perak’s determination to develop green technology and efforts to attract investment through the Flagship Programme 12: Water Resources and Renewable Energy Resources,” he said in an MHB statement.

Earlier, MHB group chief executive officer Syed Agil Syed Hashim and Shizen International CEO Rei Ushikubo signed a memorandum of understanding (MOU).

Saarani and Perak State Development Corporation chief executive Datuk Redza Rafiq Abdul Razak, who is also MHB’s executive chairman, witnessed the signing.

The state government welcomes local or foreign companies interested to invest in Perak, Saarani said.

Meanwhile, Redza Rafiq said he welcomes Shizen International’s cooperation and international experience in the field.

“We anticipate great progress from the MOU, because we are prepared to intensify the generation of renewable energy in Perak,” he said.

He said the initiative is also in line with the National Energy Transition Roadmap, which seeks to increase sustainable energy generation in the country.

Source: Bernama

Majuperak, Shizen International to explore solar PV development in Perak

Daiso Malaysia Group Sdn Bhd’s new Global Distribution Centre in Malaysia is set to be its largest warehouse in the world and is projected to have a net positive on the country’s logistics sector.

According to Deputy Transport Minister Datuk Hasbi Habibollah, the centre is expected to handle an annual volume of 9,317 containers of outbound shipments in the future and the strategic location of Port Klang will enable the franchise to have better efficiency in its global supply chain, serving demand in Asia, the Americas, the Middle East, Australia,and New Zealand.

“Daiso will bring in the automated storage and retrieval systems in the new global distribution centre, and I believe the transfer will not only foster opportunities for local businesses but will also empower logistics services providers with advanced tools and methodologies, revolutionising their operations and optimising supply chain management,” Hasbi said at the site officiating ceremony today.

He added that the centre is expected to be built and start operations in January 2027, spanning about 1.7 million sq ft and will be even larger than any Daiso regional distribution centres in Japan.

With a substantial investment of RM1 billion, he said, the investment will enhance the country’s global logistics capabilities, aiming to serve 22 countries and regions strategically.

“With increased investment and job creation, we anticipate a surge in demand for goods and services, boosting sales and revenue to businesses. The growth of Daiso’s business will further stimulate local economic development by creating a demand for local suppliers, contractors, and service providers, fostering economic growth throughout the region,” he added.

Hasbi said the presence of the centre in Malaysia symbolises a partnership that will enhance the capabilities of local companies and open doors to new business opportunities as well as strengthen the bonds between the franchise and local businesses, forging relationships that will be mutually beneficial.

“As we look ahead, the government remains steadfast in its commitment to fostering a conducive business environment for the logistics services sector. By promoting innovation, investing in human capital development, and strengthening regulatory frameworks, we aim to elevate further Malaysia’s position as a premier logistics hub in the region,” he remarked.

The centre was developed in partnership with Daiso and Kajima-SunCon joint venture, represented by Kajima (Malaysia) Sdn Bhd and Sunway Construction Sdn Bhd.

The centre is set to handle a diverse range of products, including kitchen tools, cleaning supplies, personal care items, stationery, and more, totalling about 35,000 stock keeping units.

Source: The Sun

Daiso’s global distribution centre in Malaysia is its largest warehouse in the world

The Ministry of Investment, Trade and Industry (MITI) announced today that of the RM144.7 billion approved digital investments between 2021 and 2023, data centres make up RM114.7 billion, creating 39,231 job opportunities.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said that in 2021 the approved investments were RM3.4 billion, RM80.8 billion in 2022 and RM60.5 billion last year coming from various organisations including Amazon, GDS, YTL and ByteDance.

While approved investments are vital to build up the momentum, he said MITI also gives strong focus on realised investments.

He said that from 2021 to February 2023, there were 2,386 manufacturing projects approved by the National Committee on Investments. From the 1,802 or 75.5 per cent of the projects implemented, 1,597 projects were at the inception stage and 205 are at the construction of buildings or manufacturing facilities stage.

Out of the approved projects, 551 (23.1 per cent) were in the planning stage, while 33 or 1.4 per cent were not implemented due to a change in the respective companies’ strategy, said Tengku Zafrul at the press conference to announce MITI’s first quarter report card here today.

The ministry, he said, will continue to focus on both domestic and foreign direct investments.

As for the performance of the Project Implementation and Facilitation Office (TRACK), he said a total of 802 cases facilitated since its establishment with key issues linked to Customs, power supply, one stop centre -local council and immigration.

On the trade outlook, Tengku Zafrul said trade is set to improve in 2024, but challenges remain amid geopolitical uncertainties.

Source: Bernama

Data centres make up the bulk of RM144.7b in approved digital investments

Cypark Resources Bhd said on Tuesday that its 100MW Large Scale Solar 3 (LSS3) hybrid solar plant project in Merchang, Terengganu, will transition to full commercial operations by next month.

In a statement, the group said the plant consists of 83MWac (megawatt, alternating current) ground-mounted solar photovoltaics and 32MWac floating solar photovoltaics.

“The 100MW project has achieved initial operations as of April 21, 2024. With the initial operations completed, the plant will transition to full commercial operations over the next two weeks,” it said.

Cypark executive chair Datuk Ami Moris said in the statement that the group remains confident in becoming a leading Malaysian energy provider, especially with the next delivery of its LSS2 floating solar project of 60MWac in Kelantan.

In an interview with The Edge last year, she said both the LSS2 and LSS3 projects are 21-year concession assets that would generate recurring revenue streams for the group.

The LSS2 project’s completion date was previously postponed by nine months to September 2022 from end-2021, while the LSS3’s completion had been pushed to end-2022 from March 2022.

Last month, the group deferred a periodic distribution of coupon payments under a RM500 million perpetual sukuk programme to prioritise funds to complete the LSS2 and LSS3 projects. At the time, Cypark gave its assurance that the company had sufficient cash flow to achieve the delivery of its ongoing projects, following Jakel’s subscription of RM265 million sukuk, as well as available banking facilities from its principal bankers. 

“The Jakel group as the new major shareholder has successfully provided a needed boost of both capital and project management expertise, while our reconstituted board is doing the right things to ensure the long-term sustainability of Cypark,” Ami said in the statement on Tuesday.

The company’s perpetual sukuk stood at RM502.08 million as at Jan 31, according to its latest quarterly report. 

For the financial quarter ended Jan 31, 2024 (3QFY2024), the group reported a net loss of RM27.98 million, on the back of RM35.89 million in revenue. There is no year-on-year comparison, as Cypark changed its financial year in 2023 to April 30 from Oct 30. The net loss was due to a sharp rise in amortisation amounting to RM21 million, due to a policy revision by its new audit committee, which appeared to disagree with the extension of its waste-to-energy plant’s useful life.

At the time of writing on Tuesday, shares in Cypark were down one sen or 1% at 99 sen, with six million shares traded, giving the company a market capitalisation of RM810.53 million.

Source: The Edge Malaysia

Cypark’s LSS3 solar plant in Terengganu set for commercial operations next month

Japan’s Toyo Engineering Corporation, along with its subsidiary Toyo Engineering and Construction Sdn Bhd, have signed a memorandum of understanding (MOU) with InvestSarawak to facilitate Toyo in exploring potential investments in energy projects in Sarawak.

Toyo Engineering and InvestSarawak said in a joint statement on Monday that the MOU outlines the commitment of both parties to establish a cooperative framework that will foster collaboration on potential energy projects critical to the Sarawak government’s energy transition initiatives.

“Such initiatives include developing green hydrogen projects, carbon capture and storage (CCS), waste-to-energy projects that convert organic waste materials into energy, energy storage solutions such as battery storage or pumped hydro storage and smart grid technology to enhance the efficiency and reliability of the electrical grid,” they said.

InvestSarawak chief executive officer Timothy Ong said the partnership with Toyo is a testament to Sarawak’s commitment to embracing clean and sustainable energy sources that will propel the state economic and social development forward.

“This collaboration will leverage Toyo’s global insights and technological advancements to enhance our capabilities” he said.

InvestSarawak, an agency under the purview of Sarawak’s Ministry of International Trade, Industry and Investment (MINTRED), is a one-stop centre (OSC) dedicated to attracting investments to Sarawak while fostering trade and talent development, in alignment with Sarawak’s vision for 2030 and beyond.

Meanwhile, Toyo Engineering Corp senior executive officer, unit director of business development and marketing unit, Casey Takeshi Matsumuro, said Toyo was honoured to support Sarawak’s ambitious energy goals.

“This collaboration allows us to bring our expertise and technology to the forefront of Sarawak’s energy landscape, aligning with our mission to contribute to sustainable growth globally,” he said.

Toyo, with its track record and expertise in engineering, procurement, construction and technical services across various sectors, including oil and gas, petrochemicals and renewable energy, brings its global experience and innovative technologies to this partnership.

Source: Bernama

InvestSarawak, Toyo to explore potential investments in energy projects

Malaysia is poised to become a powerhouse in clean and renewable energy in the Southeast Asian region, especially with the emergence of high-tech industries ramping up electricity demand, said industry players.

Speaking at the KL20 Summit 2024 during a forum titled “The Future of Clean Energy,” OCI Holdings Ltd chairman Lee Woo-Hyun highlighted several factors making Malaysia an attractive destination for energy investments which include its strategic geographical location, abundance of potential human capital and the conducive policies adopted by the government.

Lee emphasised Malaysia’s stability amid geopolitical tensions, making it an appealing choice for industry players looking to secure their supply chain networks.

“Malaysia has proven to be beneficial due to its neutral stance in geopolitical tensions. This makes the country highly potential for clean energy investments,” he said.

However, Lee noted that for Malaysia to fully realise its potential, it needs to focus on developing the skill sets of its labour force, stressing the importance of training the workforce to meet the demands of clean energy and emerging high-tech industries.

“The problem is there is a strong mismatch between some graduates’ actual skills and the skill sets required by companies. There is still a learning curve to bridge this gap,” Lee said.

Meanwhile, Google’s Asia-Pacific head of clean energy and power Giorgio Fortunato, also a panellist in the forum, emphasised the importance of a stable energy landscape for the growth of the digital economy as tech companies rely on stable and reliable electricity to operate their data centres effectively.

“We are currently in a transition period where many markets across the Asia-Pacific are establishing new policy frameworks and mechanisms for energy users like us to procure carbon-free energy. There is no better way to operate data centres than using clean energy,” he said.

Fortunato added that the tech giant is committed to providing upskilling opportunities for 300,000 Malaysians by 2026. Additionally, they are exploring the potential establishment of a data centre for their digital services, accelerating artificial intelligence (AI) innovation to enhance economic competitiveness and developing cloud-first policies for the AI economy.

He said these initiatives are part of a collaboration outlined in a Memorandum of Understanding (MOU) signed with Malaysia last year which was part of Google’s broader initiative to foster growth in businesses of all sizes, empowering them to become more competitive in the digital economy.

Source: Bernama

Malaysia poised to become powerhouse in clean, renewable energy, industry players say

This scheme incentivises property owners to invest in solar energy systems by offsetting their electricity bills and potentially earning revenue from surplus energy generation

IN MALAYSIA, both commercial and residential properties have been increasingly adopting solar power installations. The Net Energy Metering (NEM) scheme allows property owners to install solar panels and generate electricity for their consumption while also selling excess energy back to the grid.

This scheme incentivises property owners to invest in solar energy systems by offsetting their electricity bills and potentially earning revenue from surplus energy generation. Additionally, there are various financing options and incentives available to encourage solar power adoption, making it accessible to a wider range of consumers. 

According to the Sustainable Energy Development Authority (SEDA), NEM was introduced in November 2016 to promote the adoption of renewable energy (RE), particularly solar energy. 

Initially, the scheme had a quota allocation of 500MW until 2020. To further incentivise NEM uptake, NEM 2.0 was introduced in January 2019, allowing for a true net energy metering concept where excess solar energy could be exported back to the grid on a one-to-one offset basis. 

The implementation of NEM was overseen by various authorities, including the Ministry of Energy and Natural Resources (KETSA), and the Energy Commission Malaysia (EC) SEDA Malaysia. 

Due to high demand and to promote solar energy usage, NEM 3.0 was launched in December 2020, offering more opportunities for consumers to install solar PV systems. The energy and natural resources minister introduced NEM 3.0 to accommodate the overwhelming response from the photovoltaic (PV) industry. 

The new programme offers an additional quota of 100MW for NEM Rakyat and 300MW for NOVA. The quota offer period extends until December 2024 or until all quotas are allocated, with the total quota allocation under NEM 3.0 being up to 1,450MW. 

In a statement to The Malaysian Reserve (TMR), SEDA stated that the NEM programme aims to encourage the installation of solar panels on rooftops that will encourage clean electricity generation for homeowners and businesses. 

“Since its inception, NEM has provided opportunities for individuals such as homeowners to contribute to the energy transition agenda. This is definitely a positive progress for Malaysia’s energy landscape as the energy transition agenda is a national agenda that requires a whole of nation approach from individuals to businesses,” it said. 

SEDA also stated that as of February 2024, the breakdown of its solar residential by programme is at 16.86%. 

Approval mandates obtaining a licence for systems exceeding 72kWp for three-phase and above 24kWp for single-phase. Consumers can purchase systems outright or opt for leasing arrangements, offering power purchase agreements or solar leasing. 

Tax incentives for homeowners are limited, while businesses can benefit. Options for financing include extended credit card payments or bank loans. This promotes both reduced bills and environmental sustainability. 

Homeowners’ Insight of Solar Panel Usage

In Malaysia, homeowners typically use solar panels to reduce their electricity bills and achieve long-term savings on energy costs. Additionally, many homeowners are motivated by environmental concerns and aim to reduce their carbon footprint by using RE sources like solar power. 

Going further into the consumer perspective, TMR had a brief conversation with several homeowners who have installed solar panels to gain insights into their experiences. 

43-year-old Mohd Ridzam Abdullah used his savings from the Employee Provident Fund to install an 8kW solar panel system which cost around RM30,000. 

He said using solar panels at home affected his monthly electric bill. 

“My monthly electricity bill, which was between RM800-RM1,300, has decreased significantly to RM50-RM90,” he said. 

Mohd Ridzam also emphasised that employing solar panels enables him to track his home’s electricity consumption via a smartphone app. Nonetheless, he highlighted Tenaga Nasional Bhd’s (TNB) monitoring of his residence due to the surplus electricity being resold to TNB. 

“The use of solar panels at home is indeed worthwhile. While it may require some time for it to become #nancially rewarding, the investment is still worth it,” he further added. 

On the other hand, 51-year-old Mohd Syamil Mohd Yusri recalled his encounter in employing a solar hybrid system as opposed to being connected directly to the grid. 

“If a solar panel is installed primarily for cost savings, the electricity bill reduction is not significant after factoring in the initial investment. However, if the goal is uninterrupted power supply, the investment is worthwhile,” he told TMR. 

According to him, installing solar panels at home requires a substantial upfront investment and it may take several years to recoup the costs through savings on electricity bills. 

Nevertheless, he highlighted one of the advantages is that during power outages, the house remains illuminated and Internet connectivity is maintained, except in cases of total blackouts. 

However, he said the inverter needs to be maintained and safeguarded by the owner. 

“If it is invaded by lizards, it will affect the metal-oxide-semiconductor field-effect transistor (MOSFET) and Insulated gate bipolar transistor (IGBT) inside the solar panel,” he said. 

Both the MOSFET and IGBT are types of semiconductor devices used to power electronics, including solar panel systems. 

MOSFET is a type of transistor that operates by controlling the $ow of current between the source and drain terminals using an electric field. 

In a solar panel system, MOSFETs are commonly used in charge controllers and inverters to regulate the $ow of electricity from the solar panels to the battery or grid. 

MOSFETs are known for their high switching speed, low on-resistance and efficiency, making them suitable for applications requiring high-frequency switching. 

Meanwhile, IGBT is a semiconductor device that combines the high-speed switching capability of a MOSFET with the high current-handling capability of a bipolar transistor. 

In solar panel systems, IGBTs are often used in inverters to convert the DC power generated by the solar panels into AC power suitable for use in homes or to feed into the electrical grid and preferred for high-power applications. 

Govt to Drive Solar Energy Adoption

The Green Technology tax incentives, effective from Jan 1, 2024, introduces new qualifying activities like green hydrogen, electric vehicle (EV) charging stations, and wind energy, encouraging sustainable practices. Businesses can apply for GITA projects and GITE Solar Leasing until Dec 31, 2026, through Malaysian Investment Development Authority (MIDA). 

The National Energy Transition Roadmap (NETR) aims for net-zero emissions by 2050, with targets of 31% RE by 2025, 40% by 2035, and 70% by 2050, fostering a gradual increase in RE shares. 

Flagship projects like PV are anticipated to draw over RM25 billion in investment, creating up to 23,000 jobs while reducing greenhouse gas emissions by over 10,000Gg CO2 equivalent annually.
NETR’s Responsible Transition (RT) Initiative fosters economic growth through green mobility, renewable energy, and emerging technologies, with projected investments of RM1.2 trillion to RM1.3 trillion by 2050 and an additional RM220 billion to GDP, creating 310,000 green jobs by 2050, benefitting medium to low-income households. 

Prime Minister Datuk Seri Anwar Ibrahim lauds NETR for job creation, boosting investment, and ensuring energy security, aiming for regional leadership in clean energy. 

The EN1 initiative launches the National Energy Transition Facility (NETF) to streamline investments for energy transition projects, with an allocated RM2 billion seed funds to support less bankable projects, crucial for Malaysia’s decarbonisation efforts. 

Delving deeper into the NETR, it highlighted some current statistics of energy emissions of Malaysia. Natural gas will not only be a transitional fuel, but also the main contributor of Total Primary Energy Source (TPES) at 57 megatonnes of oil equivalent (Mtoe) at 56% followed by renewables that include solar, hydro and bioenergy, which collectively contribute 23% of TPES in 2050 from a mere 4% in 2023. 

Since 2011, solar PV remains the most encouraging segment of the national RE landscape with an installed capacity compound annual growth rate (CAGR) of 48%, expanding from 0.1GW to 2.6GW. 

In short, based on past accomplishments and compliance with established benchmarks, the NETR report affirmed a high level of confidence that Malaysia can attain a 70% RE share of installed capacity by 2050, primarily propelled by the installation of solar PV systems. 

Nevertheless, the report underscored the imperative need for steadfast commitment to the expansion of solar capacity over the next three decades to reach a total installed capacity of 59GW by 2050. 

This commitment comes with some challenges, naturally. Large-scale-solar (LSS) development includes a variety of problems. The scattered development approach and lengthy permitting processes lead to higher development costs. This in turn limits the potential of LSS projects to be able to add to RE efforts. 

Furthermore, there are regulatory barriers and a technology-agnostic LSS bidding mechanism further slows the potential growth of innovative solar technologies like $oating solar and agrivoltaics. Such limitations shine a light on the need to be more streamlined and more supportive frameworks to foster broader adoption of RE solutions in the future. 

Currently, the estimated investment required by NETR anticipates that Malaysia needs an investment of up to RM1.3 trillion by 2050. In this decade alone, 18% of funding is required mainly in RE power generation and green mobility. High investment in RE power generation means high expansion of solar PV and hydropower as well as improving and strengthening of public infrastructure. 

Regarding green mobility, the investments call for the expansion of public transportation, amplification of domestic EV production capacities and increased manufacturing of EV charging infrastructure. 

Despite all the efforts, the adoption of solar panels in residential areas faces challenges such as high upfront costs, limited financing options and technical barriers. Additionally, some homeowners may lack awareness of the benefits of solar energy or may be hesitant to invest in solar panels due to concerns about reliability or maintenance. 

While the exact percentage of residential areas in Malaysia using solar panels may vary, it is generally considered to be a growing trend as awareness of RE increases and technology advances. However, the adoption rate is still relatively low compared to countries with more mature solar markets. 

Townships with Solar Panels Equipped 

Another contributor to the spreading of solar panel usage within Malaysia is the real estate developers who have decided to invest in housing projects that have solar power systems built in. 

In Malaysia, the integration of solar panels into residential developments is an emerging trend among forward-thinking property developers, especially with the growing emphasis on sustainability and energy efficiency. 

Some notable residential areas and developments that have been equipped with solar panels by developers in Malaysia include a township in Taman Bertam Heights (TBH) developed by Teladan Setia Group Bhd, a subsidiary of Teladan Setia Sdn Bhd. 

The project which is also Malacca’s first solar-powered ready homes is a collaboration with Micro Energy Holdings (M) Sdn Bhd (MEH). 

The project spans over 160 acres (64.75ha) of land all with homes that have solar power amenities built into them. These solar PV systems in its TBH are part of the Phase 2A gated and guarded housing development project in Malacca. 

These will be Malaysia’s first venture into readily-installed new homes powered by solar systems. 

According to a local news report by April 2023, Teladan will have pre-installed solar PV systems ranging from 2KWp to 4KWp for 352 housing units within the development. 

Teladan mentioned in a statement that these solar-ready homes are expected to drive down electricity costs for homeowners by up to 75% in savings. 

Barring extenuating circumstances, the green housing development project is expected to be launched in the third quarter of the financial 2023 (3Q23) and to be completed in 4Q26. It has an approximate gross development value of RM242 million. 

In addition to the solar PV systems saving homeowners up to 75% savings, Teladan also seems to be eyeing the addition of electric vehicle (EV) charging stations. 

Teladan MD Richard Teo Lay Ban, stated that the group also plans to incorporate EV charging stations in their future development prospects to facilitate and boost the adoption of EVs and will help in mitigating carbon emissions. 

This addition on top of the solar PV initiative, shows the dedication of pioneering companies that stays prudent and tailored to meet market needs, while also recognising the need and benefits of a greener, safer and more connected Malacca living experience. 

The strive towards being more eco-friendly however must not fall squarely on housing corporations, and while the market might be amicable towards green homes, there is still work to be done to spread this idea further in the public consciousness. 

Thus, it is also up to the government, as well as entities collaborating with the Malaysian government to be able to lead Malaysia into an eco-friendlier future with the help of massive initiatives such as pre-installed solar PV housing. 

Other than that, there is Sunway City, Selangor, which has pioneered efforts in sustainable living, evidenced by its certi!- cation as Malaysia’s first Green Building Index-certified township and a Low Carbon City recognised by the Malaysian Ministry of Environment and Water. 

Major developer, Sunway Property has been incorporating solar panels in various parts of the township, including residential units, to promote sustainable living. Sunway also stated its ambitious goal on its website to obtain 40% of its electricity from renewable sources by 2030, aligning with Malaysia’s national objective. 

To achieve this, the group plans to either locally generate renewable energy or purchase it from solar farms or green power stations. Besides that, the group is also intensifying efforts to upgrade the energy infrastructure in Sunway City Kuala Lumpur and fostering innovation to drive a widespread shift toward clean energy. 

Sunway City KL 

In 2022 alone, Sunway City Kuala Lumpur (KL) generated 3,210MWh of RE, sufficient to power around 443 homes annually, while the group as a whole produced nearly 10GWh, capable of powering over 850 homes yearly. 

Apart from that, the city prioritises preserving nature by dedicating 40% of its land to greenscapes and bluescapes, hosting over 30,000 trees and implementing eco-friendly initiatives like the use of NeuPave concrete material for pavements to reduce heat absorption and mitigate flooding. 

Additionally, the city boasts a comprehensive public transit system, including bus rapid transit services and elevated canopy walkways, which significantly reduce carbon emissions and vehicular traffic. 

Sunway Group’s commitment to sustainability extends to its Green Building Policy, aiming for all new buildings to be green-certified by 2025. These efforts align with the UN Sustainable Development Goals and exemplify Sunway’s dedication to leading the way in sustainable urban development. 

Another residential project present in Malaysia is located in the heart of Setia Eco Park in Shah Alam. This Eco Park boasts D’Network — a food and beverages (F&B) hub with many facilities that contain solar PV systems in many of its facilities. 

On the D’Network website, they mention that are the first solar-powered hybrid F&B hub. D’Network is powered by 207kWp of solar power system instead of the typical electrical grid supply which creates a sustainable dining experience for its patrons. 

In addition to that, they also have the world’s first solar-powered musical fountain at this hub. Named the Symphony of Sustainability, their iconic fountain charges during the day and lights up with many colours at night, where D’Network patrons can tune into the changing lights and tunes. 

An interesting benefit of the sustainable environment of D’Network is how the shade provided by the Cerekah Hill forest reserve creates an environment where it is one to two degrees cooler than the general surrounding area. This shows an additional benefit to developing residential areas that keep sustainability in mind. 

Finally for pet owners there they also boast the world’s first solar-powered pet-friendly park. This park has manicured greenery as well as waste disposal bins where owners and pets can interact with other owners and pets in this pet park. 

Other notable residential areas and developments that have been equipped with solar panels by developers in Malaysia include Setia Eco Glades, Cyberjaya. Developed by SP Setia, the project features homes with solar PV systems and other green technologies, aiming for energy-efficient living. The freehold town has built-up of 2,200 sq ft to 4,297 sq ft (399.2 sq m) for houses and was completed around 2015. 

Diamond City, Semenyih 

The development by Country Garden Malaysia which was launched in 2014, boasts of being the first Spanish villa township in Malaysia, with some homes equipped with solar panel systems. According to Diamond City website, the project is currently ongoing as of April 2024. From the project, unit 2A has been fully completed, while unit 2B is at 90%, unit 2C at 50% and unit 2D at 25% completion rate. 

Eco Ardence, Setia Alam, developed by Eco World Development Group Bhd project includes homes that are designed with sustainability in mind, featuring solar panels to reduce dependence on non-renewable energy. 

The project offers 999 units spanning over 533 acres and is a mixed residential development consisting of semi-Ds, link homes, bungalows, terrace homes and townhouses with various configurations within the compound. The properties in this estate range from 1,012 sq ft to 4,300 sq ft for houses, 1,540 sq ft to 1,650 sq ft for offices, and 3,300 sq ft for shop offices. 

Eden @ Jalil City located at Taman Puncak Jalil, Seri Kembanga which was developed by Eden Estates, focuses on sustainable homes with solar power and rainwater harvesting systems. The freehold terraced housing project was completed in 2014 and consists of a total of 64 units. 

Tropicana Aman, Kota Kemuning. Developed by Tropicana Corp, the township focuses on sustainable and eco-friendly features, including homes with solar panels. 

Bandar Rimbayu, Telok Panglima Garang by IJM Land, includes sustainable features like solar panel installations to create a green living environment. 

With developments readily equipped with solar panel systems, these developers are contributing to the trend of sustainable residential developments by incorporating solar energy systems, which not only help reduce the carbon footprint but also offer residents long-term savings on energy costs. As Malaysia continues to promote renewable energy, more developers are likely to include such eco-friendly initiatives in their future projects. 

To conclude, there seems to be large and continuously growing support for solar projects in Malaysia. With experts and a plethora of organisations, as well as the government, all striving towards a more eco-friendly and renewable energy-based future, Malaysia’s energy landscape will be bound to shift more sustainably over the next few decades.

Source: Malaysian Reserve

Driving Malaysia’s solar power adoption through commercial, residential properties

Sin-Kung Logistics Bhd aims to raise RM26mil from its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.

In a statement, the integrated logistics service provider said it will utilise RM10mil of the IPO proceeds to fund its warehousing and distribution services’ expansion to meet the future rising demand from manufacturing and e-commerce sectors.

A further RM2mil of the proceeds will be used to purchase 100 commercial vehicles by 2025, as part of its strategy to further expand its trucking and container haulage businesses.

The remainder of the proceeds will be used to repay bank borrowings amounting to RM9.6mil and working capital of RM1.1 mil, as well as defray the estimated listing expenses of RM3.3mil.

Managing director Alan Ong said the anticipated growth of the electrical and electronics (E&E) industry and the exports of E&E products will not only drive the logistics and warehousing industry as a whole, but will particularly benefit the air freight industry as E&E products are generally high-value items and commonly transported through air freight.

This will in turn create demand for trucking services, including airport-to-airport road feeder services and point-to-point trucking services, to facilitate the movement of E&E products between and to/from airports, he added.

“We are already preparing for the future with the acquisition of our Valdor Office and Warehouse that will add an additional annual capacity of 192,000 pallets, to cater to our customers in the northern region of Peninsular Malaysia when operations begin by the end of 2026.

“The Valdor Warehouse is a built-to-suit warehouse. The acquisition will provide us with more storage space in addition to our existing five warehouses to serve more and larger orders from both our existing customers and potential customers, which will lead us to an increase in revenue of our warehousing and distribution services moving forward,” said Ong.

The IPO is open for subscription until May 2, 2024.

Sin-Kung Logistics’ listing on the ACE Market of Bursa Securities is tentatively scheduled for May 15, 2024.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.

Source: The Star

ACE Market-bound Sin-Kung targets RM26mil in proceeds from IPO

South Korea-based energy and chemical company OCI Holdings has announced the official opening of its regional headquarters here, marking a significant milestone in its commitment to expand its presence in the region.

OCI Holdings chairman Lee Woo Hyun said the new OCI M Sdn Bhd office is located in a thriving economic hub in Southeast Asia and will serve as a pivotal centre for the company’s operations, facilitating closer collaborations with stakeholders, partners, and clients across the region.

“We are thrilled to inaugurate our OCI M regional headquarters office in Kuala Lumpur, a vibrant city known for its dynamic business environment and strategic location. This milestone underscores our commitment to deepening our roots in the region and strengthening our partnerships with stakeholders and clients,” he said in his speech during the opening ceremony here today.

The event was officiated by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In his speech, Tengku Zafrul called on OCI M to support local demand in the near future as Malaysia is moving aggressively in the front-end semiconductor value chain and green sectors such as electric vehicle development and renewable energy, among others.

There are also many South Korean companies that are working with the country on carbon capture, utilisation and storage (CCUS) which obviously require cutting edge technology products and services, he said.

“I think you (OCI) have a strong manufacturing base in Malaysia now, becoming a global exporter of chemical products. And I am very happy that you have made the decision to have your regional office or headquarters in Kuala Lumpur, which is really a major step ahead,” he said.

He noted that this headquarters will consolidate the functions of OCI in Japan, China, the Philippines and Malaysia in terms of the setting of financial budgets, development of business plans and establishment of a new growth investment initiative.

In addition, he said, the office will manage and support the network of OCI group of subsidiaries across mutiple countries, and be involved in investment ventures into chemicals and solutions not only in Southeast Asia but globally.

Tengku Zafrul said OCI’s move reaffirms the nation’s attractiveness as a preferred destination for foreign investment and underscores the confidence that global companies have in the economy, infrastructure, and skilled workforce.

“It demonstrates our country’s ability to provide a conducive environment for companies to thrive, innovate, and expand their operations,” he said.

Tengku Zafrul said the opening of the regional headquarters office reaffirms OCI’s long-term vision and commitment to driving sustainable growth and prosperity in the region.

By leveraging the diverse talent pool and business opportunities in Malaysia, OCI M aims to further enhance its position as a leading player in the energy and chemical sectors, he added.

Source: Bernama

South Korea-based OCI holdings opens regional HQ in Malaysia

The oil-rich Malaysian state of Sarawak in Borneo is aiming to transform itself into a centre for clean hydrogen energy, betting that its ability to harness an abundance of hydropower can help it defy challenges that are clouding the fuel’s prospects elsewhere.

In state capital Kuching, the gambit is well underway after Sarawak plowed US$3.4 billion (RM16.3 billion) into a network of power-to-transport projects. Three fuel-cell buses made in China that are free to ride ply the city’s roads, refuelling at multi-fuel stations that come with hydrogen bays. Officials travel around in Toyota Motor Corp’s Mirai, the world’s first mass-produced hydrogen fuel-cell vehicle.

Authorities in Sarawak “are in a way world leaders in hydrogen activities,” said Gniewomir Flis, a senior advisor at Washington-based climate policy advisory firm Kaya Partners specialising in hydrogen. “They are among the ones getting the ball rolling.”

Sarawak, a state the size of England with a population of 2.5 million, is blessed with the rivers and heavy rainfall needed to create hydropower that can generate clean electricity needed for emissions-free hydrogen. Kuching, meanwhile, is a city of over half a million people where the fuel can be much more easily adopted. The true test of Sarawak’s potential is whether it can help hydrogen commercialise on a larger scale overseas.

“We have the means to help cool down the world,” Sarawak Premier Tan Sri Abang Johari Tun Openg, who formulated the state’s hydrogen blueprint in 2019, said in an interview.

Taking Sarawak’s hydrogen global, however, remains a costly and complex task. For one, it requires the construction of whole new infrastructure to produce the gas, transport it to customers and then burn it. Hydrogen cannot be transported on its own due to its low density, and needs to be converted into another chemical liquid compound first.

Global hydrogen use rose to 95 million tonnes in 2022, and less than 1% of the total was low-emissions fuel, according to the International Energy Agency.

“The fundamental challenge with hydrogen lies in its transportation logistics, as most hydrogen currently used is situated near demand centres,” said Minh Khoi Le, head of hydrogen research at Rystad Energy.

Nonetheless, two Asian countries where hydrogen is seen as crucial to the green transition have already set their sights on Sarawak as a key provider of the fuel.

South Korea’s private sector has pledged to pour billions of dollars into creating a value chain for the clean fuel, while Japan, which created the world’s first hydrogen strategy in 2017, said in the latest update in June that it aims to increase consumption of the fuel to 20 million tonnes by 2050 from about two million tonnes now.

The countries’ biggest energy companies are partnering with Sarawak’s new state-backed entity, SEDC Energy, to build two hydrogen plants in the port city of Bintulu called H2ornbill and H2biscus, named for the state bird and Malaysia’s national flower. The Japan-backed plant, H2ornbill, aims to convert hydrogen into methylcyclohexane, a chemical also known as MCH, to be exported to Japan. H2biscus, meanwhile, plans to convert its hydrogen output into ammonia for export to South Korea.

The two projects, slated to start commercial production in 2028 at the earliest, together aim to produce 240,000 tonnes of hydrogen a year. The figure rivals the stated output of Saudi Arabia’s Neom plant, set to be the world’s biggest after announcing last year it would produce roughly 291,000 tonnes a year from 2026.

Malaysia is attractive mainly because of the low cost of production of green hydrogen, expected to be the cheapest among Southeast Asian countries by 2035, according to BloombergNEF forecasts, and roughly 20% less than in South Korea.

“A stable supply of electricity at a low cost are the most important points” for Japan’s hydrogen goals, said Shohei Yasuda, an official at the hydrogen promotion department of Eneos Corp, one of the Sarawak project’s partners.

Despite Malaysia’s low costs, green hydrogen still faces huge price hurdles against much cheaper fossil fuels — natural gas is currently about a quarter the price of green hydrogen produced with Western technology, according to BNEF. And that doesn’t include the cost to liquefy the hydrogen or convert it for export.

Liquefying hydrogen also requires vast amounts of energy — the process is expensive and consumes more than 30% of the energy content of the fuel, according to the US Department of Energy. It’s also less dense than liquefied natural gas, so transporting it at scale would require creating new fleets of ships, infrastructure and technology.

And the technology is still in the midst of proving itself. The world’s largest green hydrogen project, located in western China, is grappling with issues around efficiency and flexibility, according to an analysis by BNEF. Its electrolyzers — machines that strip hydrogen from water — are currently the cheapest in the market but struggle to manage fluctuations in power from sources like solar.

Sarawak touts its access to unfettered hydropower as the key to prevent such problems.

“Our advantage is of course hydropower,” said Robert Hardin, chief executive officer at SEDC Energy. “We don’t have that issue of intermittent supply.”

While hydrogen’s practical use still faces many hurdles, Sarawak is powering ahead at home. Its biggest undertaking yet is a planned autonomous, hydrogen-fuel tram line costing RM5.59 billion that is slated to start operations as early as next year. The trackless tram system, built by a unit of China’s CRRC Corp, has not been put into commercial operation anywhere in the world.

Other plans in the works in Sarawak include hydrogen-powered waste collection trucks and medium-sized boats, which are a common form of commuting in more rural areas, said Robert.

With more than enough water and hydrogen to power these ambitions, Sarawak could end up looking like a model state for hydrogen, but Kaya Partners’ Flis said there is also a risk of the investments not working out and becoming white elephant projects.

Abang Johari admits that the stakes are high.

“It is a risk, but it is a calculated risk,” he said. “There is no other option, we need alternative energy, and hydrogen, ultimately, is the cleanest.”

Source: Bloomberg / The Edge Malaysia

Sarawak aiming to transform itself into a centre for clean hydrogen energy

The setting up of the Energy Exchange Malaysia (Enegem) platform to facilitate cross-border trading of renewable energy (RE) is being viewed positively.

This is because RE exports are potentially a new revenue source and a driver of capacity growth for the industry, said analysts.

A pilot plan to export 100 megawatt (MW) of RE to Singapore was announced although details on a timeline and the source of RE supply were not disclosed by the Energy Transition and Water Transformation Ministry on Monday.

Interested RE bidders, who hold generation licences and/or retail electricity supply licences in Singapore, have been invited to register their interest on Malaysia’s Single Buyer website.

“The establishment of the Enegem platform represents another milestone achieved for the eventual cross-border trading of RE.

“We note that RE exports are potentially a new revenue source (via RE sales and other charges) and capacity-growth driver for Malaysia’s RE sector, which is currently reliant on domestic large-scale solar (LSS) and Corporate Green Power Programme (CGPP) schemes,” said Maybank Investment Bank Research (Maybank IB Research).

While the pilot 100MW export capacity is small, analysts noted that Singapore is looking to import up to 3.5 gigawatts (GW) of green electricity by 2035.

As for potential beneficiaries, Maybank IB Research said local solar players like Solarvest Holdings Bhd, Cypark Resources Bhd, Sunview Group Bhd, Pekat Group Bhd and Samaiden Group Bhd would benefit from increased job flows from RE-capacity growth.

The research house added that utility majors such as Tenaga Nasional Bhd (TNB) and YTL Power International Bhd could also benefit from RE exports via RE sales and “wheeling charges”, the amount charged by one electrical system to transmit energy to another system.

“Overall, we remain positive on the RE sector, for which engineering, procurement, construction and commissioning (EPCC) order book replenishment from the 800MW CGPP and 2GW of LSS5 projects.”

Meanwhile, CGS International Research (CGSI Research) said the establishment of Enegem adds to the good progress being made on initiatives under the National Energy Transition Roadmap (NETR), which was launched eight months ago, and this should help address investor qualms about its implementation.

“It also marks a key step towards realising the country’s energy-export potential.

“We see TNB, via grid upgrade requirements, and YTL Power via ownership of a generation/retail licence in Singapore as potential key beneficiaries,” said CGSI Research, which maintained an “overweight” rating on the Malaysian utilities space with the NETR having introduced a structural growth element to a sector that has traditionally been viewed as more defensive.

However, MIDF Research keeps its “neutral” stance on the sector. Although the development is positive, it said valuations are stretched, relative to the historical mean following the strong share price performances in the past year.

“But we still like the RE EPCC sub-sector, with Samaiden, Pekat and Sunview as key immediate-term beneficiaries of Malaysia’s RE initiatives.

“In the asset-owner space, we still like YTL Power for a potential earnings recovery at its British subsidiary Wessex Water Services Ltd, expansion into data centres and as a potential beneficiary of LSS5 and RE exports,” added MIDF Research.

The research firm added that the extent to which TNB will benefit from grid-upgrade requirements in the mid-term hinges on the approved capital expenditure under Regulatory Period 4, as well as allowable returns which will be determined towards end-2024.

Source: The Star

Renewable energy emerges as growth driver

Rising electricity demand from data centres (DC) projects and artificial intelligence (AI) will lift Tenaga Nasional Bhd’s (TNB) long-term profitability.

But they may have limited impact on TNB’s immediate earnings, according to Affin Hwang Investment Bank.

In Malaysia, TNB has received 74 supply applications from DC customers with total maximum demand in excess of 11,000MW (40.6 per cent of Peninsular Malaysia’s installed capacity). 

“We do not expect all the projects to be implemented. TNB added that the group delivered electricity for nine DC projects with a total energy demand of up to 635MW in 2023,” said Affin Hwang in a note today.

For 2024, TNB expects to connect to nine DC projects with 700MW of total energy demand.

In the long run, TNB sees potential maximum demand from DC in excess of 5,000MW by 2035 (18.5 per cent of Peninsular Malaysia’s installed capacity).

“We believe Malaysia will need to invest further in the power infrastructure and this should improve TNB’s long-term profitability (via higher capex under the Income-Based Repayment framework),” it said.

The International Energy Agency (IEA) estimates that DC, cryptocurrencies and AI consumed about 460 TWh of electricity worldwide in 2022, almost 2.0 per cent of total global electricity demand. 

IEA forecasts global electricity consumption of DC, crypto and AI to range between 620TWh and 1,050TWh in 2026 (up 35 per cent-128 per cent), with a base case of 800TWh (up 74 per cent from 2022).

The rising DC projects should also benefit TNB’s non-regulated business units such as Allo (fibre connectivity) and GSpark (rooftop solar). 

“We continue to like TNB – a direct beneficiary of Malaysia’s energy transition initiatives and indirect beneficiary of rising DC and AI demand,” Affin Hwang said..

It maintained a “Buy” call on TNB with an unchanged price target of RM12.80.

Source: NST

Data centres, AI initiatives to boost electricity demand & lift TNB’s earnings

Renewable energy solution provider G Capital Bhd has partnered with Hong Kong-based CCIAM Logistic Company Limited to raise RM325 million for its small hydropower projects in Pahang.

In a bourse filing on Monday, the group announced that its wholly-owned subsidiary Northern Star Hydropower Sdn Bhd has entered into a Memorandum of Understanding (MOU) with CCIAM Logistic to set forth mutual intentions for the project.

It said a full-term agreement is expected within 60 days from the effective date of the MOU, which will include the roles of the parties in the project and a success fee payable to CCIAM Logistic as capital-raising lead arranger.

CCIAM Logistic is fully owned by CCIAM Future Energy Limited, a public-listed company on the Hong Kong Stock Exchange primarily involved in the provision of energy-saving solutions and loan financing business.

In a statement, G Capital’s executive chairman Tan Sri Affendi Buang said the partnership would serve as a gateway for global green capital to invest in the company’s small hydropower portfolio.

“CCIAM Future Energy’s expertise and presence at HKEX bridge the gap between China and international markets. This strategic partnership is poised to accelerate Malaysia’s transition to clean energy by attracting foreign direct investment, fueling economic growth, and propelling the nation towards carbon neutrality,” he said in a statement.

G Capital has been in the red for the past two financial years ended on Dec 31. For FY2023, the company reported a net loss of RM9.76 million compared with a net loss of RM18.68 million in FY2022. Its revenue was down 2.3% to RM26.26 million from RM26.88 million.

According to its bourse filing, the loss was mainly attributable to provisions for foreseeable losses in its transportation and investment holding divisions. Its hydropower division, on the other hand, has yet to generate any revenue.

As at Dec 31, 2023, the group reported total cash and cash equivalents of RM2.23 million.

Shares of G Capital rose by half a sen or 1.35% to 37.5 sen at Monday’s close, valuing the group at RM121.96 million.

Source: The Edge Malaysia

G Capital partners with Hong Kong’s CCIAM Logistic to raise RM325 mil for hydropower projects

Malaysia witnessed a 326 per cent year-on-year (YoY) surge in green investments to US$1.03 billion last year, due to an increase in large-scale deals seen specifically under the building sector.

This accounted for 16 per cent of the total green investments in Southeast Asia, according to a report jointly published by Bain & Company, GenZero, Standard Chartered and Temasek.

The report highlighted that although power, especially renewables, continued to be the leading green investment focus in 2023, there was a notable rise in investments in green data centres, primarily driven by energy efficiency regulations implemented in Malaysia and Singapore.

Significant investments of US$280 million by GDS Holdings Bhd and US$250 million by YTL Power International Bhd were made in data centres in Nusajaya Tech Park and Kulai, both in Johor.

For Malaysia to accelerate the development of its green economy, the report recommended driving the deployment of blended finance, further developments in renewables regulations, and continuing the momentum within industrial parks.

It suggested that Malaysia enhance renewable targets beyond the existing 40 per cent to accelerate the scale of the energy transition, as well as facilitate the first successful cross-border renewable energy sale to demonstrate its feasibility.

Malaysia plans to invest roughly US$1.47 billion into increasing energy efficiency in government buildings, according to the National Energy Transition Roadmap (NETR) phase two.

In August 2023, the government announced an allocation of US$430 million in a catalytic fund for blended finance, with an emphasis on the growth of industrial clusters in the districts of Sarawak and Johor.

Malaysia also lifted bans on renewable energy exports in 2023.

The report suggested that the state governments of Sarawak and Johor should continue enabling policies to attract private investors.

“(They should) catalyse more eco-industrial park formation by identifying partners with a keen interest in decarbonising,” it added.

Meanwhile, the report, which covers 10 markets – Malaysia, Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam – stated that Southeast Asia requires US$1.5 trillion in cumulative investment in the energy and nature sectors to reach nationally determined contribution targets by 2030. 

However, only 1.5 per cent has been invested to date.

Last year saw a notable 21 per cent YoY uptick in green investments in the region to US$6.3 billion, reversing the downward trend in previous years. 

“As a growing economy, Southeast Asia needs to balance economic growth and the costs of the energy transition, as the region has legacy dependencies on fossil fuels for power generation.

“There is a reality gap between what many believe is happening and true progress on the ground. Despite Southeast Asia’s structural challenges, immense potential exists to accelerate the energy transition and build the green economy,” it said.

Source: NST

Malaysia’s “green” investments surge more than three-fold to over US$1bil: Survey

Malaysia can propel its economic engine and become a leading innovation hub in the region by embracing AI and addressing existing challenges.

Through fostering collaboration between public and private sectors, investing in talent development and prioritising AI implementation, Malaysia can unlock the true potential of this transformative technology and become more competitive.

Malaysia is at the forefront of AI with its policies and various initiatives. Its digital economy is on course to hit its goal of contributing more than 25.5% of the nation’s gross domestic product (GDP) by 2025.

Unlike in the past, these initiatives will synch with the implementation from its government-linked companies and timely actions from the private sector.

The benefits of AI to industries in Malaysia:

Innovation acceleration: AI can analyse vast amounts of data to identify patterns and trends humans may miss. This fuels innovation by helping companies develop new products, services and business models. Companies that do not leverage AI for innovation risk falling behind in the race to develop the next big thing.

Efficiency edge: AI automates repetitive tasks, analyses data faster and optimises processes. Companies that integrate AI can significantly increase productivity and reduce costs, thereby raising profits. Imagine a manufacturing plant using AI to optimise its processes and then using an e-commerce platform using AI to streamline order fulfilment. Those who lag will struggle to compete with the efficiency gains of AI-powered businesses.

Customer experience revolution: AI personalises customer experiences by understanding their needs and preferences. This translates to targeted marketing, custom recommendations and improved customer service. Imagine a travel agency using AI to curate personalised vacation packages or a retailer using AI to recommend products based on a customer’s past purchases. Companies that do not leverage AI risk losing ground to competitors who cater to individual customer needs.

Disruption from AI-first companies: Entirely new businesses built around AI can emerge, disrupting traditional industries. Think of companies like Grab that revolutionised transportation, food delivery and parcel courier services. Industries that do not adapt to the changing landscape with AI can be blindsided by entirely new competitors.

Grants

Below are some of the grants available for AI implementation and other industry innovations:

Science, Technology and Innovation Ministry (Mosti):

Mosti plays a central role in promoting AI development in Malaysia. They oversee the National AI Strategy, which includes initiatives that may provide indirect support for AI implementation. Keep an eye on Mosti’s website (https://www.mosti.gov.my/en/) for updates on funding programmes related to AI.

Malaysian Digital Economy Corporation (Mdec):

Mdec actively supports digital transformation across various industries. While they may not have specific grants solely for AI implementation, they offer programmes that can be relevant depending on your project’s focus. Explore Mdec’s website (https://mdec.my/) for funding opportunities under initiatives such as the Digital Transformation Grant or the Global Innovation and Tech Alliance.

Other research granting bodies:

Explore grant opportunities offered by other public research bodies such as:

Fundamental research grant scheme: Administered by the Higher Education Ministry (https://www.mohe.gov.my/en), this scheme supports fundamental research across various disciplines, potentially including AI-related projects within universities.

Science Fund: Managed by Mosti, the fund provides grants for research projects in various scientific fields, potentially aligning with some AI initiatives.

MyDigital Corporation

MyDigital Corporation was incorporated in September 2021 as a strategic change management office to drive the execution of initiatives under the Malaysian Digital Economic Blueprint and the National IR4.0 policy.

The Fourth Industrial Revolution (IR4.0)

Malaysia established Asean’s first centre for IR4.0, known as the Malaysian Centre 4IR. The role of this centre is to create a foundation to harness IR4.0 and:

Connect Malaysia to leading global 4IR practices to accelerate the adoption of emerging technologies.

Serve as the IR4.0 International Cooperation and Partnership Development.

Position Malaysia as an IR4.0 innovation hub.

Enable access to top experts, innovators and policy leaders.

Expose companies to cutting-edge technology governance and adoption

Act as a global platform that drives a multi-stakeholder ecosystem to facilitate the development of policy frameworks across centres around the world.

Act as a focal point between government agencies and the private sector to problem-solve issues.

Provide support for pilot projects, knowledge transfer and talent development.

MyAira

The Malaysian Autonomous Intelligence and Robotics Association (MyAira) is a non-profit association founded in 2021. Its main objectives are to accelerate innovation in the AI and Robotics sector, connect entrepreneurs and start-ups in their initial steps and be a catalyst toward better national policies, legislation and regulations in AI and robotics.

MyAira is an international collaboration platform based in Malaysia, nurturing related ecosystems by:

Providing a collective platform for expressing common industry concerns in promoting robotics, digital workforce, unmanned vehicles and artificial and autonomous intelligence.

Promoting research and development in autonomous intelligence, robotics, digital human workforce augmentation, unmanned vehicles and cybersecurity while giving a consultative voice in technical solutions and services.

Promoting and organising trade missions, events, exhibitions, conferences, virtual events and webinars to accelerate global trade and collaboration with industry associations globally.

Promoting awareness and education of AI in educational institutions and to the public at large.

Providing a collective voice of the related industries to contribute to governments on regulatory issues.

AI is not just a trend, it is a transformative force. While implementing AI comes with challenges, the benefits are undeniable.

Companies that embrace AI early stand to gain a competitive advantage. The longer an industry waits, the higher the risk of falling behind and becoming obsolete. The urgency for industries to adopt AI stems from the immense potential it offers to revolutionise efficiency, innovation and customer experience.

The writer is the Chief Mind Unzipper and founder of Mindbloom Consulting.

Source: The Sun

Embracing AI and IR4.0

Malaysian businesses can benefit from the immense potential of artificial intelligence (AI) by establishing comprehensive upskilling programmes and adopting advanced generative AI solutions, said Google’s global head of government affairs and public policy Karan Bhatia.

By doing so, they can position themselves as leaders in technology and drive economic growth, he said, adding that what makes generative AI different from other forms of AI that were introduced previously is user-friendliness, in terms of helping to solve everyday problems in people’s personal or professional lives.

People can use everyday language to interact with a generative AI chatbot or virtual agent as well as get it to answer questions, create content, produce images, and summarise documents, including conversations, stories, videos, and music.

“Even better, a single generative AI platform can deliver solutions for multiple use cases, creating a network effect.

“As the number of users and applications increases, the model is exposed to more data and becomes increasingly accurate and useful which in turn, encourages more users and, in a way, AI has the full potential to boost productivity and innovation in both the public and private sectors,” he told Bernama.

Karan said as a technology giant, Google is actively working with the leading businesses in Malaysia to adopt the latest technology in AI from Google Cloud.

For example, he said Maxis Bhd is leveraging Google Cloud’s enterprise-grade generative AI capabilities to unlock its data’s full potential, while Gamuda Bhd is embracing digitalisation and generative AI to drive innovation across its operations.

Bank Muamalat Malaysia Bhd, on the other hand, is tapping into Google Cloud’s capabilities in modern infrastructure, security, data analytics, and generative AI to enhance its operational efficiencies and customer experience.

Google contributes to building a safe and inclusive digital society

Recently, Google announced an initiative to equip Malaysian youth with future-ready skills focused on AI and enhance public service delivery with the help of cloud-native, AI-driven productivity tools, a move aligned with Malaysia’s MADANI Economy framework.

The initiative involves collaboration with the Ministry of Higher Education (MOHE) to upskill local youth from diverse backgrounds by providing 161 public universities, polytechnics, and community colleges in Malaysia with up to 500 Google Career Certificate scholarships each until the end of 2024.

This strategic initiative with MOHE marks a significant expansion of “Gemilang”, the digital training programme launched by Google in 2022 to help more Malaysians acquire digital skills – at no cost – for jobs in high-demand technology fields.

Karan said upskilling programmes like “Gemilang” and those offered by Google lead to benefits beyond just income level and higher revenues.

As AI technologies expand capabilities, new AI-related jobs such as prompt engineer and AI research scientist, among others, are emerging.

“We see AI as an opportunity to create new occupations, improve job quality, and generate significant benefits. In addition, the training programmes will enable organisations to get up-to-speed with the latest skills to help supercharge their productivity,” he said.

Karan elaborated that those organisations that use generative AI to speed up, automate, scale, and improve business processes stand to reap big benefits.

“Additionally, as the talent pool of highly skilled workers increases, homegrown companies are better positioned to innovate, develop cutting-edge products and services, and expand their reach. This contributes to the overall growth of employees and companies,” he said.

Since its launch, “Gemilang” has already provided 31,000 Google Career Certificate scholarships to benefit individuals in Malaysia, with 80 per cent of certificate graduates reporting a positive career outcome, such as a new job, promotion, or salary raise within six months of completion.

Importance of training programmes to bridge the digital talent gap

Karan noted that Malaysia has a fast-growing digital economy that is set to account for over 25 per cent of the country’s total economic output by 2025, with a potential to reach up to US$70 billion (US$1=RM4.738) in gross merchandise value by 2030.

“Training programmes that target the digital talent gap are critical to reaching this potential, ensuring businesses of all sizes are well equipped and prepared to fully capture growth opportunities,” he said.

In 2022, businesses and households in Malaysia unlocked RM51.5 billion in economic benefits from their use of Google’s AI-powered products and services.

Karan noted that Google is aware that more people want to learn new digital skills and get jobs in high-demand fields.

“That is why our ‘Gemilang’ programme aims to create opportunities for all Malaysians to do so at no cost,” he said, adding that Google is committed to supporting Malaysia’s digital growth ambitions.

AI is a once-in-a-generation opportunity to address some of the world’s most pressing challenges, like helping to reach climate goals, building sustainable growth, maintaining global competitiveness, and much more.

He explained that running generative AI at scale will require massive data storage and computing power, which requires investments in technical infrastructure like data centres.

“With the support of the Malaysian government, Google is now exploring the potential establishment of an in-country Google data centre to address not only growing demand for AI services but all the digital services that Google offers in Malaysia,” Karan added.

Source: Bernama

Google urges Malaysian businesses to embrace AI upskilling programmes

Universiti Malaya (UM) is the country’s most represented institution in the latest edition of the Quacquarelli Symonds (QS) World University Rankings by subject.

Malaysia’s premier institution saw 38 of its subjects ranked, with 21 of them appearing in the top 100 globally.

This includes its highest-ranked subject entry, Library and Information Management in 27th place.

UM is also home to Malaysia’s two most improved subject entries. It climbed 29 places for Pharmacy to 72nd due to gains in Academic and Employer Reputation.

Meanwhile, its Economics programme climbed into the top 100, gaining 18 positions to place 93rd due to improvements in research metrics, primarily Citations per Paper.

The 2024 instalment of the ranking also sees Malaysian universities in the world’s top 20 for two subjects, with Taylor’s University becoming Asia’s third-best entry for Hospitality (19th) and Universiti Teknologi PETRONAS (UTP) being the second best in Asia for Petroleum Engineering (20th).

The ranking offers independent data on the performance of 240 programmes at 25 Malaysian universities.

Overall, Malaysia’s performance rate is the third-highest in Asia and the sixth-highest in the world.

Of its total ranked programmes, 84 improved their ranking, 31 dropped and 87 remained stable within their rank or band, giving it an overall improvement rate of 22%.

Thirty-eight programmes also rank for the first time with two programmes debuting in the top 50 – Taylor’s University’s Marketing programme, which debuts in the 21-50 band and UM, which ranked 29th for its Data Science and Artificial Intelligence programme.

Universiti Putra Malaysia (UPM) is Malaysia’s most improved university. It ranks for 26 subjects, 12 of which climbed and only one dropped while eleven remained stable, giving it an overall improvement rate of 42%. Its highest-ranked entry is for Veterinary Science, which climbed six positions to place 40th.

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

In a statement on Wednesday (April 10), QS senior vice-president Ben Sowter said universities experiencing upward mobility have benefited from sustained, targeted investment, highlighting the importance of government support.

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

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

Source: The Star

Universiti Malaya is Malaysia’s most represented institution in QS World University Rankings

Melaka will continue to focus on high-tech countries and companies, to empower and improve the expertise and skills of youths graduating from Technical and Vocational Education and Training (TVET) in the state.

The state Investment, Industry, Technical and Vocational Education and Training (TVET) Development Committee deputy chairman Datuk Khaidhirah Abu Zahar said that it is in line with the 10 main industrial areas which are the focus of the state government to develop.

“Although Melaka has not set any target for countries to invest here, the state leadership always welcomes all investors from all corners of the world to come to Melaka, especially involving the 10 main fields, namely electricity and electronics, automotive, aerospace, oil and gas, renewable technology, halal manufacturing sector, biotechnology, machinery and equipment, pharmaceutical and maritime.

“We want to develop TVET, and of course, we have a high aspiration to bring the high-tech countries and companies, especially those with expertise in robotics, artificial intelligence technology (AI), Augmented Reality (AR), Fourth Industrial Revolution (IR 4.0), automation and Internet of Things (IoT), as well as other related technologies, to work together with institutions of higher learning, and technical and vocational schools,” she told Bernama.

Khaidhirah, who is also the state TVET Council chairperson, said that the move is a two-pronged approach, which not only helps to improve the economy of the state government, but also empowers TVET, and upgrades and improves the performance of graduates who are in the industry.

She said that, so far, as many as 23 public TVET institutions in Melaka have opened their doors in anticipation of the admission of the state’s youths, especially among the Sijil Pelajaran Malaysia (SPM) holders, with the opportunity being open to anyone who does not have the opportunity to continue their studies in the academic field.

The state government’s plans to set up the German Industrial Park, in Bandar Hijau, Hang Tuah Jaya, Ayer Keroh, on a site of approximately 424.11 hectares, is also seen as a stepping stone to increase the number of highly skilled Melaka youths in the field of TVET.

She said that the new technology park not only aims to attract more German investors to the state but also helps train the state’s youths, as it is expected that 20 to 30 German companies will be operating at the site.

In addition, she said that one of the measures to empower TVET is the establishment of the TVET Centre of Excellence, to complete the ecosystem of the industrial sector in Melaka.

As an investor-friendly state, she said that Melaka will also serve as a compass to develop industry in the state, through the New Industrial Master Plan 2030 (NIMP 2030).

“For the targeted seven-year period, we will emphasise the cooperation between the Melaka government and the private sector as a collective action, to drive the development of the state’s industry and investment.

“It is not only related to policy implementation, but also offers a clear vision for the industry to coordinate industrial and investment efforts in Melaka, where NIMP 2030 will serve as a reference for local and international investors, offering insight into the state’s industrial position, and the trajectory it is targeted to follow,” she said.

Source: Bernama

Melaka to focus on high-tech countries, companies to empower TVET – Deputy Exco

In 2018, the Penang government unveiled its Penang2030 vision for a family-focused, green and smart state. One of the foundational projects for achieving this is Digital Penang, a state government-linked agency whose aim is to create a connected, creative and competitive society. Central to this is its role as a catalyst for accelerating the state’s digital transformation plan, says Digital Penang CEO Ng Kwang Ming.

The transformation plan focuses on driving digital adoption among the community, more data-driven governance, a diverse talent pool for entrepreneurship and investment, and a resilient digital infrastructure to sustain a liveable environment.

The goal by 2030, says Ng, is for “Penang to be digitally engaged, the people use e-wallets, they interact with the state government via digital platforms, the industries are automated and have access to talent. We will have created a channel for skills from the people we’ve trained and those who have gone through the start-up process. These people who are skilled in public speaking and communication and can engage and share ideas will be the next generation of leaders”.

In line with its objective of accelerating efforts to capture opportunities in the digital economy and promote a digitally engaged society, Digital Penang’s initiatives broadly cover the community, industry, entrepreneurs and start-ups.

The start of the agency’s operations in April 2020 coincided with the onset of the Covid-19 pandemic and the beginning of the nationwide Movement Control Order. One of its first programmes was #DahDigital, which was geared towards educating the public on the use of digital tools, specifically e-wallets. The digital literacy programme continues to this day, with a variety of modules for the community, including senior citizens, on mobile security, e-hailing, social media and e-government.

To date, Digital Penang has organised 470 digital classes to train 10,000 participants on mobile technology and internet safety, reaching 42,000 members of the public through outreach programmes to raise awareness of the digital transformation in Penang.

“The pandemic created an environment where if you didn’t do it (get the e-wallet app), you’d lose out because a lot of the financial assistance from the federal government came via e-wallets. So that started the ball rolling. We taught senior citizens, for example, to install the e-wallet on their phones and get familiar with using it. We then raised awareness among retailers and went to the hawker centres, hypermarkets and other retailers to build acceptance for the e-wallet,” says Ng.

Today, cashless transactions are the norm. “If you go to any pasar malam in Penang, you don’t need to bring cash,” quips Ng. Along with Selangor, Penang is leading the way in cashless transactions, hitting a 90% penetration rate of digital payments as at October 2023, according to Payments Network Malaysia Sdn Bhd.

Catalysing digital transformation in industry

Besides the community, a focal point of the digital transformation plan is industry. “In Penang, there is manufacturing, which mainly covers the electrical and electronics (E&E) industry, and tourism and hospitality. In manufacturing, we’re trying to see how we can help the E&E companies and the supporting small and medium enterprises (SMEs) transform,” Ng says.

For instance, Digital Penang works with the Northern Corridor Implementation Authority in assisting SMEs to obtain grants for automation and education in the use of digital tools. “We also try to match start-ups grown in Penang with potential industry partners in manufacturing. We get the ball rolling and if there’s a natural need for industry then they will come and play,” he adds.

The agency is also catalysing digital transformation in the hospitality sector. “We’ve started a community group for tourism technology. We bring speakers, organise talks with the tourism operators and other players to help them understand the upcoming technology that they should be ready for.”

Last December, Digital Penang inked a memorandum of understanding (MoU) with the Malaysia Budget & Business Hotel Association (MyBHA) Penang to help accelerate digitalisation in the sector. With Penang positioning itself as a digital nomad hub in the region, members of the association, comprising mainly three-star hotels, have a key role to play. “A number of the members of the association are still operating with the old ledger system, so we want to get them on board to the digital environment where they can also sell and market their business to clients overseas,” Ng explains.

He adds that one of the priorities of the Penang transformation plan is improving the digital presence of micro entrepreneurs. “We currently have programmes with Lazada to encourage micro entrepreneurs to get on the bandwagon and start a business in the digital space. We see this as an extension of our work in teaching the community to digitise.”

Building and nurturing the start-up ecosystem

Its deep roots in the manufacturing sector aside, Penang in recent years has had its eye on growing the creative industries — art, culture and technology — which makes the incentivising of start-ups crucial. The state government has a target of cultivating 500 start-ups by 2030, and to date, 150 have been set up. These start-ups have gone through Digital Penang’s doors and were helped by the agency in myriad ways from funding to market access and training. The start-ups are in various verticals such as logistics and last mile, mobility and electric vehicle, e-commerce, smart manufacturing and industrial solutions, fintech, edtech and creative content.

“We’re creating an ecosystem for start-ups, one that can sustain and flourish in Penang. We want to see successful start-ups using Penang as their headquarters and hub for growth so that the state can enjoy the economic benefits and prosper from it.

“So, a large part of 2023 was spent looking at the fundamentals of building that start-up ecosystem, which is essentially funding or access to funding, venture capital or angel investors,” Ng says, adding that the MoU signed last year with the Malaysian Business Angel Network (MBAN) to establish a Penang chapter is a vital cog in creating a thriving start-up ecosystem. The collaboration covers identifying promising start-ups, providing mentorship and access to funding, and creating opportunities for networking. “So, start-ups see that there is that environment being created,” he adds.

At the same time, programmes are also developed to raise awareness among investors. Penang, Ng points out, is not short of high-net-worth individuals. “But investing in start-ups is a different concept compared to investing in traditional stocks where you hold equity. When you invest in a start-up, your equity dwindles as different rounds of investment are sought and secured, so these are among the things that we do with MBAN to educate investors.”

He says it helps that some of the high-net-worth individuals are themselves from the tech sector. “So, they understand and value the evolution of technology and the need to support the evolution. They see the value of investing at the early stage of a start-up to mentor and groom the next generation of business leaders.”

Market access is another key area of Digital Penang’s development of the start-up ecosystem. Through its Market Access Programme, 10 Penang start-ups — ADA Biotech, Certiify, Fulkrum, Re:Crave, Haroct, PeerHive, SpaceIn, Spots Logistics, Telebort and VeecoTech — participated in the Tech in Asia Conference in Jakarta, Indonesia, last year.

Digital Penang also inked an MoU with KUMPUL.ID, the premier digital entrepreneurship ecosystem builder in Indonesia. The collaboration paves the way for cross-border collaboration, fundraising and support for Penang start-ups that venture into Indonesia and vice versa.

This year, the Market Access Programme is funding five Penang start-ups to explore and establish business connections in Thailand. It is currently calling for applicants from the e-commerce, tourism tech, software as a service or SaaS, fintech and healthtech segments to participate in the Techsauce Global Summit 2024, to be held from Aug 7 to 9 in Bangkok. At the summit, start-ups can explore opportunities in new market penetration, technology licensing, venture partnerships, market collaboration and market exploration.

The agency also runs programmes and competitions to develop new ideas from universities and the academia. These ideas are then judged independently, and the winners go through accelerator programmes where they are taught how to build a business, work with mentors as well as have access to pitching sessions to venture capital funds and other potential investors. “There are many potential start-ups, and many are unsure about where to go with their ideas, so we’ve been having a few public workshops and interactive sessions, such as ‘ask me anything’ sessions with founders,” says Ng.

Other programmes such as IdeaPesta Hackathon, Penang Digital Creative Week and Digital Penang Hardtech Inculerator also contribute to the cultivation of a differentiated start-up ecosystem within the state. In recognition of its efforts, Digital Penang received the “Outstanding Ecosystem among Medium-Sized Population Cities in Southeast Asia 2023” award from StartupBlink, a leading start-up ecosystem map and research centre based in Switzerland.

Talent pipeline

For Ng, a career technologist with experience at multinational corporations such as IBM and Motorola as well as at Mimos Bhd, the country’s national applied research and development centre, the talent pipeline is crucial to the sustainability of Penang’s digital transformation plan.

Together with the state government, Digital Penang, Sunway Education Group and Khazanah Nasional Bhd last year announced plans to bring in globally renowned computer science school, 42, to Penang. Termed 42 Penang, it will be part of the network of campuses nationwide under 42 Malaysia, and provide an accessible and innovative learning experience in computer science based on the 42 learning model from France. With its peer-to-peer learning approach, 42 offers a unique and inclusive platform for students to acquire real-world skills through project-based learning, with zero fees.

Ng says 42 Penang fits into the agency’s lifelong learning ethos. “Targeted at school leavers, the school also accepts those who want to switch careers, so long as you meet the requirements and have the interest to learn coding. When they complete the programme, they can go on to become software engineers or establish a start-up themselves from the projects they developed at the school.”

In addition, the agency is also looking at a collaboration with the Malaysian Software Testing Board to train people as software testers. This, he says, is another way to attract talent to the IT world. By learning to test products, one learns the architecture of the product, how the coding is done and so, even without any STEM (science, technology, engineering and mathematics) qualifications, you get a leg in the IT world, Ng adds.

“It’s another way of getting supply, and for those without a technical background to join the technology industry. My priority is that no one is left behind in this digital transformation process. Penang has many structured, bottom-up programmes that are already doing very well, such as the Penang Science Cluster, but ours look at those who are already working and want to reskill. They see the excitement of jobs being created in the tech sector and they want to join the bandwagon, so I am creating the avenues to enable that,” he says.

In the near term, Ng and Digital Penang’s priorities are to get more companies in Penang on the digital platform. “For this year itself, we’re helped by the needs of the federal government such as e-invoicing. We see this as fires being started so we work with industry to provide the fire extinguishers,” he says, conceding that there are challenges.

“When you undertake industry automation, there are productivity improvements, so there is a return on investment (ROI) factor, but there is also digitisation work which has no upfront ROI. E-invoicing is one such example. But if you don’t comply, you cannot do business, so we try to explain and at the same time get partners to be ready to provide solutions for industry,” Ng says, adding that this approach is informed by his experience at Mimos.

“At Mimos, we did foresighting for things that were five to 10 years ahead, and although we knew no solutions existed for those trends then, the planning for those solutions happened concurrently so that by the time those future trends became a reality, the tech was there. These are the things we need to build in the ecosystem.” 

Source: The Edge Malaysia

Driving Penang’s digital transformation

Swedish-Swiss electrification and automation leader ABB Ltd is looking into expanding its footprint in Malaysia through partnerships in supporting key projects.

ABB’s Asia president for the energy industries, Anders Maltesen, said the multinational is supporting some key projects in Malaysia, including Batang Ai, the Petronas Liquefied Natural Gas floating liquefied natural gas facility, and Malaysia’s biggest crude oil refinery in Malacca, among others.

“We will continue to explore and nurture partnerships in Malaysia that will help accelerate net zero ambitions,” he told Bernama.

Maltesen noted that while there is a shift towards renewable energy, oil and gas will still be part of the energy mix by 2050, and it is important to continue to leverage existing and emerging technologies to ensure a balanced transition.

“Today, technology enables a progressive energy transition. Therefore, the transition is not an ‘either/or’ scenario but rather an ‘and’ situation – where we aim to minimise carbon emissions per kilowatt-hour from hydrocarbons and ensure that any new additions are net zero,” he said.

Maltesen said that achieving net zero requires significant investments and the question of funding will be critical.

“This is why efforts to facilitate and accelerate the energy transition journey require strong support from both central and state governments, given the evolving nature of technologies and concerns regarding implementation costs.

“This collaborative approach fosters a level-playing field in the renewable energy sector, stimulating competition and expanding job opportunities,” he said.

Maltesen also said that Malaysia is making significant strides toward its goal of achieving net zero emissions by 2050.

“The 12th Malaysia Plan reflects the government’s commitment to this target by announcing a halt to the construction of new coal-fired power plants. The introduction of the National Energy Transition Roadmap underscores Malaysia’s active effort towards this goal, aiming for 70% renewable energy (RE) usage within the next six years,” he said.

As of March last year, Malaysia had already reached a 25% RE capacity level, with projections indicating continued growth, supported by initiatives such as the Green Technology Financing Scheme which facilitates investments in green products.

“Ensuring sufficient green financing is crucial for expanding energy transition and RE development capacities, and Malaysia has implemented the necessary policies to achieve its 70% RE usage target by 2030,” he said.

Maltesen added that in terms of the future of energy, the most sustainable form of energy is the energy conserved.

“Malaysia possesses significant untapped potential in its ongoing energy transition efforts.

“Hence, we anticipate robust public-private partnerships in coming together to tackle challenges while collaborating on opportunities for a greener Malaysia,” he added.

Source: The Sun

ABB plans to expand footprint in Malaysia, support net zero ambitions

Data centre projects along with semiconductor factories and industrial warehouses are expected to drive orderbook replenishments for the construction sector in Malaysia.

The value of jobs from these projects will likely be massive, potentially filling the gap left by the lack of progress in certain proposed mega-projects such as the mass rapit transit three (MRT3).

According to CGS International Securities Research, the construction sector in Malaysia has of late seen a strong flow in new orders for data centres, semiconductor factories and industrial warehouses.

The brokerage estimated that the value of data centre projects in Johor alone could replace the value of MRT3.

Citing a March 2024 global data centre report by DC Byte, CGS Research noted Johor stood as the fastest growing market within South-East Asia, with over 1.6 gigawatt (GW) of total supply as of February 2024, while Cyberjaya continued to see interest, according to DC Byte and Knight Frank.

“Stripping out early-stage capacity, we estimate a potential cost of US$7mil-US$9mil per megawatt to construct a data centre, which could translate into construction works of RM26bil to RM33bil in Johor alone over the next few years,” it said.

The estimated amount was equivalent to the value of MRT3 civil works of around RM28bil. However, CGS Research cautioned that the simple calculation was still dependent on other factors.

“Based on our conversation with contractors, the key requirements from data centre owners are speed-to-market with minimal execution risk and expertise in building information systems while having a vertically integrated construction outfit,” it said.

According to CGS Research, Sunway Construction Group Bhd (SunCon), Gamuda Bhd and YTL Corp Bhd would stand out as data centre winners. Overall, the brokerage reiterated its “overweight” call on the construction sector.

“We believe the government’s development expenditure (DE) allocation of RM90bil for 2024 versus RM43bil-RM50bil per annum for the past three DE plans (2006-2020) is a demonstration of its commitment to the construction sector,” CGS Research said.

In addition, it noted the government expected construction to be the fastest-growing sector in 2024 at 6.8% in terms of gross domestic product growth.

“We are encouraged by the recent approval for the Penang light rail transit (LRT) and award of flood mitigation projects. However, awards for Pan Borneo Sabah Phase 1B have been slow while MRT3 may be retendered,” it said.

“The timeline for the KL-Singapore high speed rail (HSR) has largely been met, with three consortia shortlisted for the request for financial proposal. We do not discount the possibility of the KL-Singapore HSR taking precedence over MRT3 as the government may want to spread DE over more states,” it added.

Meanwhile, CGS Research said although the KL Construction Index had risen 38% over a 12-month period, the construction sector’s valuation remained undemanding at one-year 13.7 times forward price-to-earnings ratio and 1.4 times price-to-book-value, above negative one standard deviation from mean since 2005.

On its top picks, CGS Research pointed to Gamuda, SunCon and Econpile Holdings Bhd, saying it liked contractors with a strong execution track record and economic moat.

It said Gamuda’s strong MRT track record and tunnelling expertise had enabled it to successfully penetrate into Australia and Taiwan, while SunCon’s fully vertically integrated structure should enable it to bag more data centre projects.

Econpile, which had the largest fleet of piling machinery among listed piling companies, meanwhile, would benefit from both public and private-sector jobs.

Further, CGS Research said the government’s contracting of IJM Corp Bhd and SunCon for the Johor-to-Singapore rapid transit system in 2023 indicated it recognised the need for competent contractors with a strong execution track record to ensure timeliness.

Hence, the brokerage expected the Penang LRT, KL-Singapore HSR and MRT3 to involve such players, putting YTL, Gamuda, IJM, SunCon, Econpile and WCT Holdings Bhd as key beneficiaries.

Source: The Star

Huge orders forecast to drive building industry

Malaysia and China will engage in more collaborations in the field of technical and vocational education and training (TVET), said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said this was discussed during his meeting with Liu Jianchao, Minister of the International Department of the Central Committee of the Communist Party of China on Thursday

“China has also expressed its willingness to provide more training series, share experiences and educational opportunities in technology and vocational fields, particularly to students and workers in Malaysia,” he said in a post on his Facebook page.

In addition, Ahmad Zahid said the meeting also discussed the celebration of the 50th anniversary of Malaysia-China diplomatic relations on May 31.

He said in recent months, he had met with many top Chinese leaders who visited Malaysia, and they were all confident that the relationship between the two countries would grow to greater heights.

Ahmad Zahid said they also requested for more cooperation at both party and governmental levels for the benefit of the people of both countries.

Also present at the meeting were Minister of Higher Education Datuk Seri Dr Zambry Abdul Kadir, Deputy Foreign Minister Datuk Mohamad Alamin, and Majilis Amanah Rakyat (Mara) chairman Datuk Dr Asyraf Wajdi Dusuki.

Ahmad Zahid said Liu was accompanied by China’s Ambassador to Malaysia, Ouyang Yujing; and embassy officials.

Source: Bernama

Malaysia, China to enhance TVET collaboration — Ahmad Zahid

BATTLES are won with tactics. Wars are won with logistics, Tesla chief executive officer Elon Musk said. Indeed, improving performance of logistics helps organisations and economies further engage in local and international trade. This makes logistics a powerful driver for growth and development.

According to the World Bank, performance of a country’s logistics industry is a great deal for its competitiveness on export markets, and its ability to reliably, affordably secure importation of goods needed for production and consumption.

Hence, the development of the Logistics Performance Index (LPI) to help economies identify areas where logistics could be improved. The LPI measures the ease of establishing reliable supply chain connections and the structural factors such as quality of logistics services, trade and transport-related infrastructure, as well as border controls.

Malaysia scored well in the LPI 2023. It climbed 15 notches to the 26th place – emerging as the second-best performing Asean country after Singapore. This is due to significant contributions from entities such as the Investment, Trade and Industry Ministry (Miti), Malaysia External Trade Development Corporation (Matrade), Malaysian Investment Development Authority (MIDA), and more, in driving the environmental, social, and governance (ESG) agenda and fostering sustainable export practices.

However, there is still much to be done in driving ESG adoption among small and medium enterprises (SMEs). The Organisation for Economic Cooperation and Development (OECD) suggests there is an ESG scoring bias in favour of large-cap companies, and against SMEs. OECD notes that this burden, may be due in part to the ability of large firms to dedicate more resources to reporting and poses a market inefficiency to the extent it affects both relative cost of capital and corporate reputation.

All is not doom and gloom for SMEs, which are likely hovering at the adoption crossroads amid whirlwinds of an uncertain business landscape that is rapidly changing based on the latest ESG strategies and practices. This is an opportunity for SMEs to kickstart their sustainable journey and up their game in the business arena — ultimately through transforming operational procedures, increasing brand exposure and boosting trade locally and intentionally. Tackling logistics can be a starting point towards the net zero path, while boosting business.

A trade requirement

Saloodo! – the Carrier Management Portal for DHL, defines trade logistics as the management process that includes the entire flow of goods and information between suppliers and companies and between customers and companies. Trade logistics also includes the internal flow of goods.For trade logistics to be as efficient as possible, the use of computer-based merchandise management systems is indispensable, as they enable item-specific inventory tracking and disposition. Trade logistics’ aim is to ensure availability of goods at the point of sale. By continually refining and strengthening its logistics capabilities, countries can solidify their positions as great players in the global trade arena.

Furthermore, cost efficiency is paramount in a globalised world. Robust logistics infrastructure, including well-developed ports, airports, road networks, keep transportation costs down, giving any exporting nations a competitive edge in international markets. It is crucial to explore the importance of logistics and how it helps SMEs to venture further into the global market.

Describing logistics as the lifeline of international trade, PKT Logistics Group Sdn Bhd managing director and chief executive officer Datuk Seri Michael Tio notes that the logistics sector is a major contributor of carbon emissions and urged the industry to reduce carbon emissions by aligning with ESG ideals.

Sharing the same sentiment, DHL Express (Malaysia and Brunei) managing director Julian Neo says: “Logistics is inextricably linked to trade. In its very essence, it is the engine that drives the movement of goods and services across borders.

“Local and international supply chains are dependent on the efficiency of transit amidst multiple stakeholder, tax, customs, and regulatory considerations. High performing logistics operations increase countries’ ability to compete on an international scale, connect sectors across geographies, and ensure continued trade flows.”

Noting that the concept of ESG has long been woven into the fabric of logistics, Neo explains that the first and arguably most scrutinised facet for companies is environmental impact. He emphasises that companies are under increasing pressure to report and mitigate emissions — and will soon be mandatory.

“Europe’s Non-Financial Reporting Directive and Corporate Sustainability Reporting Directive; United States’ SEC Climate Disclosure Rule; and Japan’s endorsement of the Task Force on Climate-related Financial Disclosures all point to a rapid shift towards greater environmental transparency.

“Most relevant to the logistics sector, Scope 3 emissions, refers to the indirect greenhouse gases produced in each company’s value chain, including downstream transportation and distribution.

“This has given rise to alternative energy and mobility solutions as logistics providers seek to decarbonise while balancing market demand. For DHL, we have invested in the use of sustainable aviation fuel through contracts with BP, Neste, and World Energy, and are allowing customers to benefit via our GoGreen Plus insetting service as well,” shares Neo.

Securing a future

Many remain sceptical about ESG, the most famous one being Tesla’s Musk, who called ESG a “scam”.

Tio and Neo beg to differ. Given that the world population is projected to increase from the current 8.1 billion to 10 billion by 2050, Tio notes that ESG can preserve and nuture the planet for future generations but suggests governing ESG bodies, like the United Nations and governments, to set differing net zero timelines for countries according to their level of development.“The Paris Agreement called for the Race to Net Zero by 2050. However, differing net zero targets should be set for different parts of the world as third world countries are still struggling with basic economic, social and political stability. Perhaps, the deadline for developed countries should be 2050, developing countries by 2060, third world countries by 2070 and beyond,” says Tio.

Neo says: “ESG is simply a natural extension of efforts to invest and give back to people and the planet. It should not be discounted because it has become a key differentiator in business today, and one that serves a very positive purpose.

“We recognise sustainability as a nonnegotiable requirement to ensure the long-term viability of our company. A person’s most basic moral obligation is to do the right thing. This is a core value for DHL, extending across our company and informing how we conduct our business, treat our employees, and serve our communities.”

Meanwhile, DHL’s recent Global Connectedness Report 2024 found that globalisation reached a record high in 2022 and remained close to that level in 2023.

“The growth of international trade flows is keeping pace with and in some cases exceeding domestic trade activity. In the face of geopolitical crises, flows of trade, capital, information, and people between countries have proven resilient. At the same time, we must ensure that this growth does not come at the expense of our environmental, social, and governance responsibilities,” says Neo.

Emulating the how-to’s

Neo recommends SMEs to familiarise themselves with established ESG frameworks such as the Global Reporting Initiative, Sustainability Accounting Standards Board, and Task Force on Climate-related Financial Disclosures as they provide guidance on ESG reporting and materiality assessment.“Armed with this knowledge, SMEs should then be able to determine ESG issues that are most relevant to their business, industry, and stakeholders. This will help companies pivot their efforts and prioritise areas that leave the greatest impact.”

Neo also advises startups and smaller organisations to take an incremental approach to ESG tracking and monitoring by utilising available resources.

“Gradually build capabilities over time. This allows for flexibility and ease in managing costs effectively. Engaging logistics partners can help to jointly address ESG challenges and share best practices.”

It might seem that a company’s ESG compliance is limited to reporting frameworks, transparency, target monitoring, regulatory adherence, but Neo says there is much more beyond that and companies can consider compliance partnerships as an enabler of sustainability goals.“A benefit is the sharing of ESG priorities, which drives greater innovations if aligned between two parties. Some examples include transport fleet electrification, further strides in eco packaging, or enhanced facility energy management.”

Leveraging on AI

Neo shares that there are multiple subsets of interactive Artificial Intelligence (AI) that have seen varying trade applications ranging from geolocation and navigation, optical character recognition (OCR), chatbots, digital assistants, speech-to-text dictation, and e-payment, to name a few.

“Within the supply chain, this brings greater operational efficiency. Among use cases, the deployment of AI algorithms for trade data analysis to identify patterns, predict demand, and optimise inventory is most widespread.”

He also notes that OCR is growing in sophistication as companies extract and digitise information from trade documents, reducing manual data entry errors and improving documentation accuracy.

“Used together, they can produce more efficient Natural Language Processing (NLP) for ESG disclosures. Through analysis of textual data like ESG reports and non-financial reporting directives, alignment of disclosures with current frameworks and guidelines can be quickly assessed,” he says.

In PKT’s experience, AI has been harnessed to enable Machine Learning where it uses it in conjunction with Optical Character Recognition (OCR) for data entry, storage, analytics and manipulation using Robotics Process Automation.

“This improved data capture capability and reduced paper usage, greatly helping us to perform logistics-related administrative processes such as customs declarations, trade-compliance, analytics, reporting and more.”

Pointing out that the business of logistics is to be efficient and lean, Tio says PKT’s GAP #1 of LEAN before MEAN pushes this ideal.

“This means opting for measures that reduce costs through efficient planning and efficient practices before we consider ESG initiatives that incur additional costs to roll out. However, if it is consciously chosen — for example to use only certified sustainably sourced packaging materials which are more costly — then this will be jointly undertaken with our customers,” says Tio.

Pains of non-compliance

The ultimate pain SMEs would and are facing for not adopting ESG is to lose their respective market segment share, in addition to hindering their own development. Research by Xiamen University Malaysia and Universiti Teknologi Brunei found that investors prefer companies that share information about their ESG.

Fndings by the Sustainable Finance Institute Asia 2022 estimates that Malaysian SMEs risk losing RM292bil in revenue due to non-ESG compliance. SMEs without incorporating ESG principles in their business operations are losing out in the eyes of investors, customers, government tax incentive, and financing bodies.

The United Nations Global Compact Network Malaysia and Brunei also mentions that when companies do not provide enough ESG information, it is seen as a sign of business risks, like issues specific to that company, not the overall market. These risks can negatively affect a company’s image and decrease its brand value.

Overall, small businesses that do not follow ESG rules are seen as having bad management and not caring about the environment or long-term sustainability.

Reiterating that “If there is no ESG, there is no MSG (Multinational Sales Growth)”, Tio says planning out a roadmap to achieve net zero emissions by 2050 is a good start that would assist SMEs’ competitiveness as they scale their business to another level or work with multinational companies.

“Aligning production processes with ESG will appeal to conscientious stakeholders – customers, investors and partners who are more inclined to do business with reputable companies who place sustainability at the core of their operations.

“Akin to PKT’s Green Action Plan (GAP) #1, LEAN before MEAN – we believe in embedding lean principles before managing our environmental agenda needs, optimising production processes resulting in minimising waste, resource consumption and emissions.

“In addition, positively impacting our social practices by prioritising workplace safety, and increased operational efficiency for better governance and transparency, all attractive on the global front for enhanced trade partnerships.”

Another challenge of ESG adoption for SMEs and large-cap companies is that the rules of the ESG game are still being developed and there is no one clear path or paths towards ESG compliance, says Tio.

“However, the logistics industry is already playing its part by helping shippers make their supply chains more efficient e.g. the setting up of Regional Distribution Centres (RDCs) that place products storage closer to their intended consumption locations while shortening lead times and improving reaction times.

“This RDC model in itself reduces the carbon footprint by reducing cross border shipping compared to a disaggregated, criss-cross supply chain. Therefore, enabling our customers to pursue a lean supply chain is already an ESG initiative on its own.”

A helping hand

Although the industry is lacking in ESG experts, it certainly makes up for it in terms of other types of aid to help Malaysian SMEs get into the ESG space. Miti Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has urged businesses to “view ESG as an opportunity”, saying that ESG is not just as a risk management strategy against regulations and customer demand but also as an economic opportunity to tap new areas.

“Big companies are not in danger because they understand and they also have stakeholders who want them to meet ESG requirements. But targeting the whole supply chain means big companies also need their suppliers to be ESG-compliant.

“This is where SMEs in Malaysia need to realise the importance of ESG. There’s a timeline and they are not expected to adopt it overnight, but they need to start investing in knowledge and capacity building in both systems and processes,” said Zafrul on his social media platform.

The government and other entities have launched a slew of initiatives to ease businesses’ way towards sustainable development and trade.

Miti released the i-ESG Framework, which includes a free assessment tool, after which companies are given a guide on how to begin the sustainability journey. Clinic sessions and outreach programmes called KenalESG are being conducted by Miti across the country.

There is also the New Industrial Master Plan (NIMP2030), whereby funding is a key enabler. Budget 2024 allocated RM200mil for NIMP2030 activities, a portion of which is dedicated to helping companies implement ESG initiatives. The process of identifying qualified export-oriented companies is being done by Matrade and the grant allocation is starting this year.

Other incentives include RM20bil in guarantee funding by Syarikat Jaminan Pembiayaan Perniagaan Bhd for SMEs involved in the green economy, technology and halal fields, as well as tax deductions of up to RM50,000 for each year of assessment on ESG-related expenditure from 2024 to 2027.

Mida supports the growth of companies undertaking integrated logistics services (ILS) by offering the ILS incentive and International ILS (IILS) status. As of 2022, Mida had approved 257 ILS projects, of which the majority of the applicants were Malaysian-based companies.

ILS incentives include the Pioneer Status incentive on statutory income of five years and 60 per cent investment tax allowance on qualifying capital expenditure incurred within five years, which can be offset against 70% of the investor’s statutory income for each assessment year.

Besides the government, external parties are also lending a hand. The United Nations Global Compact Network Malaysia and Brunei has developed the SME ESG Hub, to provide SMEs with fundamental understanding and free practical tools needed to kickstart their ESG journey and incorporate ESG practices into their businesses.

To sum up, adoption of ESG is a must for efficient supply chain management and logistics, improving the resilience of value chains and adjusting them to trade patterns reshaped by climate change and digital technology is crucial to boost trade.

Source: The Star

Logistics, a magic bullet for sustainable trade?

Malaysia’s digital investment soared to RM46.22 billion last year, surpassing the targeted amount of RM30 billion by 54 per cent.

Malaysia Digital Economy Corporation (MDEC) chief executive officer Mahadhir Aziz said this was contributed by 256 companies, with 53 per cent in the information technology cluster.

He said this was followed by global business services (26 per cent), data centres and cloud (13 per cent), and technology and creative content (eight per cent).

“A total of 22,258 high-value jobs were created last year, with the global business services cluster contributing 51 per cent of the total,” he said at a media briefing recently.

“The number of jobs created represents a growth of 36 per cent compared to 2021.”

Mahadir said local digital companies also achieved remarkable financial results, generating revenue of RM8.87 billion, surpassing the target of RM7.5 billion by 18 per cent.

Furthermore, he said, the export value surged to RM3.18 billion, an increase of 181 per cent from 2021.

“Malaysia’s digital footprint has expanded globally, with companies now operating in 17 countries. Indonesia, the Philippines, and Vietnam are the top three countries where Malaysian digital companies have a strong presence,” he said.

Moving forward, Mahadir said MDEC would be introducing a new tax incentive in May for Malaysian companies with digital status and existing Multimedia Super Corridor-status companies.

“We have an amended tax incentive that will be announced in May. This is something that we want to be able to take on, and we will announce it together with the Finance Ministry,” he added.

Source: NST

‘Digital investments hit RM46.22b in 2023’