Seal Incorporated Bhd has proposed to acquire a 20% equity interest in loss-making MSR Green Energy Sdn Bhd, a solar panel installer, for RM8.7mil.

The group also looks to subscribing about 1.06 million irredeemable convertible preference shares in MSR Green Energy for RM6.3mil. In total, Seal will be investing RM15mil.

In a filing with Bursa Malaysia, Seal said this investment offers an opportunity for the company to diversify its existing businesses into renewable energy, specifically focusing on engineering, procurement, construction and commissioning (EPCC) works for the solar and renewable energy segment.

This move also aligns with potential opportunities stemming from the government’s concerted efforts to decarbonise the power sector, it said.

“The venture into solar renewable energy will enable the group to develop a more resilient business model and diversify its income stream especially after witnessing the effects of the Covid-19 pandemic on global economies and businesses,” Seal noted.

Seal said the investment, which is expected to be completed by the second quarter of this year, will be funded through internally generated funds and a private placement exercise completed on July 20, 2023.

This involves the placement of 62.3 million new ordinary shares in Seal, representing around 20% of the total issued shares, valued at RM16.19mil extended to Chen Khai Voon at an issue price of 26 sen per share.

“The proposed investment will also provide an avenue for Seal to progressively transform into an environmental, social and governance (ESG) entity, which will accord Seal with greater recognition and support among investors, in particular among the larger institutional investors who invest based on ESG criteria,” it added.

Seal said MSR Green Energy is principally involved in the business of installation and servicing of solar photovoltaic (PV) systems, renewable energy projects management, consultancy and construction, electrical works and other ancillary business. It develops solar PV projects which include design and EPCC of solar PV system.For the financial year ended Dec 31, 2022 (FY22), MSR Green Energy recorded a loss after tax of RM14.3mil and a deficit net assets of RM8.3mil, respectively.

Source: The Star

Seal invests RM15mil in loss-making solar panel installer

Property developer Paragon Globe Bhd (PGB) and Solarvest Holdings Bhd are planning to develop a solar-ready factory and green industrial township in Johor.

Upon completion, the project is anticipated to yield some 12.5-megawatt peak (MWp) in total renewable energy capacity, making it one of Johor’s most energy-efficient industrial townships, said the companies in a joint statement today.

“We are keen for the project to attract additional foreign direct investment (FDI) into the state, which saw a total of RM70.6 billion FDI in 2022, the highest among all the states,” said PGB executive chairman Datuk Seri Edwin Tan Pei Seng.

Solarvest will be financing the project through its Powervest solar financing programme, which will enable PGB to adopt the solutions with zero initial capital outlays.

These include a combination of commercial and industrial, end-use energy, and electric vehicle charging facilities.

The statement noted that PGB has approximately 57.06 hectares of green industrial development, one of the largest in the state, complementing the vision of Yang di-Pertuan Agong Sultan Ibrahim Sultan Iskandar of Johor to make the state a major player in the solar and renewable energy space.

The project is also aligned with the state’s sustainable development and renewable energy aspirations, as espoused in the Johor Smart City Blueprint 2030, and is expected to provide significant economic benefits to the state. 

Source: Bernama

PGB, Solarvest to develop green industrial township in Johor

Renewable energy (RE) player Samaiden Group Bhd has received approval to construct and operate a biomass power plant in Tangkak, Johor, with an installed capacity of seven megawatts, as it aims to supply a net export capacity of six megawatts to Tenaga Nasional Bhd (TNB).

This is following the Feed-in Tariff (FiT) approval certificate received by the group’s indirect wholly-owned subsidiary Samaiden Biomass Energy Sdn Bhd from the Sustainable Energy Development Authority (SEDA) Malaysia in a letter dated Jan 22, 2024.

The agreement to supply the electricity to TNB spans 21 years and is scheduled to commence on Jan 22, 2027.

“This FiT approval is a testament to our team’s dedication and expertise in the RE sector. Our new biomass power plant in Johor is a key component of our strategy to enhance Malaysia’s RE capacity. This project not only signifies our growth but also our contribution to the nation’s commitment to a sustainable energy future,” said Chow Pui Hee, Samaiden’s group managing director in a statement on Tuesday.

Samaiden’s shares traded up eight sen, or 6.84%, to close at RM1.25 on Tuesday, giving the group a market capitalisation of RM515.64 million.

Source: The Edge Malaysia

Samaiden to build 7MW biomass power plant in Johor

Renewable energy (RE) developer Ditrolic Energy Holdings Sdn Bhd has inked an agreement with global asset management company BlackRock’s Climate Finance Partnership (CFP) to support the company’s expansion in developing commercial and industrial as well as utility-scale solar assets throughout emerging markets in Asia Pacific.

The collaboration aims to facilitate the realisation of Ditrolic Energy’s targeted 1GW+ pipeline of solar projects, raising the company’s targeted total capacity to 5GW+ pipeline of solar projects in Malaysia, Bangladesh, Indonesia and the Philippines.

In addition, the partnership includes investment and expansion of Ditrolic Energy’s flagship 360° Clean Energy Solution, EnerLoop as well as integration of technologies such as Carbon Tracking, Battery Energy Storage System, and Green Electricity Sales.

“With this new partnership, Ditrolic Energy intends to make Malaysia its investment hub to actively invest into key energy transition projects around its approved markets in the Asia Pacific region including Malaysia’s National Energy Transition Roadmap (NETR) programme where Ditrolic Energy plans to mobilise significant amounts of capital private investment with the aim to accelerate and reduce the associated cost of energy transition for the country,” said Ditrolic Energy in a statement.

BlackRock’s Climate Finance Partnership secured US$673 million (RM3.1 billion) in commitments from a global consortium of investors including governments, philanthropies, and institutional investors in an oversubscribed final fundraise, exceeding the initial target of US$500 million. BlackRock currently manages over US$50 billion of infrastructure client AUM, comprised of infrastructure equity, debt and solutions, and has grown both organically and inorganically since inception in 2011.

Founded in 2009, Ditrolic Energy is one of the largest renewable energy developers in Malaysia and Southeast Asia, running a fully-integrated value chain from project development, financing, engineering and construction through to operations and maintenance (O&M) and asset management.

To date, Ditrolic Energy is operating, constructing more than 450MW of solar assets in Malaysia, other Southeast Asia countries, Bangladesh and China.

Ditrolic Energy founder and group CEO Tham Chee Aun said the company is committed to playing a key role in Asia’s energy transition.

“We are grateful for BlackRock’s support, because the investment in Ditrolic Energy enables us to rapidly increase scale and maximise value to support transition to low carbon economies throughout multiple markets.

“With the capital raised and private investment to be mobilised, Ditrolic Energy would be in a prime position to undertake key energy transition projects in Malaysia and other Southeast Asia countries,” he added.

Source: The Edge Malaysia

RE developer Ditrolic Energy secures BlackRock’s investment to expand solar portfolio

OVER the years, property developer Sunsuria Bhd has been gradually diversifying into healthcare and education services. These two segments were initially intended to enhance the value of its property projects.

As Sunsuria’s teams in healthcare and education grow in size and maturity, however, the group’s founding executive chairman Tan Sri Ter Leong Yap wants both divisions to evolve from cost centres to profit centres in the future.

Ter tells The Edge in an interview: “In recent years, Sunsuria has undergone a transition period marked by strategic diversification into new business ventures, requiring resource allocation to these sectors. These ventures complement our core property business. As they mature and integrate into our diversified portfolio, we expect a positive impact on our overall financial performance.”

Sunsuria saw its net profit decline by 16% to RM13.86 million in the financial year ended Sept 30, 2023 (FY2023), down from RM16.55 million a year ago. As at Sept 30 last year, the group’s unbilled sales amounted to RM926.8 million.

Ter, 60, is hopeful that Sunsuria’s bottom line will bounce back soon. Moreover, he believes that the financial contributions of the healthcare and education divisions to the group will be as significant as that of property development in the coming years.

“While the prospects for the property industry are dynamic and evolving, Sunsuria has been strategically positioned to navigate these changes. As these new businesses gain traction and contribute to our overall revenue stream, we anticipate improved earnings performance,” he says.

“We are not only seeking continued growth of our core property business but also actively expanding into complementary sectors, such as healthcare and education, with the aim of becoming a diversified conglomerate.”

Ter is the controlling shareholder of Sunsuria, owning 60% of the property firm that he founded in 1989.

Interestingly, Ruby Technique Sdn Bhd — the private vehicle of QL Resources Bhd executive chairman Dr Chia Song Kun and his brothers-in-law Chia Seong Fatt and Chia Seong Pow — is also a substantial shareholder of Sunsuria with a 5% stake.

Meanwhile, Kossan Rubber Industries Bhd founder Tan Sri Lim Kuang Sia has a 1.08% stake in Sunsuria, and low-profile businessman Tan Sri Richard Koh Kin Lip owns 1.82%.

Another high-profile shareholder is Lion Group and Parkson Holdings Bhd chairman and managing director Tan Sri William Cheng Heng Jem with a 0.78% stake in Sunsuria, while his Lion-Parkson Foundation has a 0.36% interest.

It is worth noting that Sunsuria had on Aug 1 last year appointed Tan Wee Bee, former managing director of GuocoLand (M) Bhd, as its new group CEO.

Ter says Tan brings a forward-thinking approach that emphasises a comprehensive business strategy, positioning Sunsuria for sustainable growth.

“Tan’s seasoned experience in conglomerates aligns well with Sunsuria’s multifaceted business portfolio. Our expansion into various sectors presents both challenges and opportunities. His expertise in working within diversified groups equips him to navigate complexities and optimise Sunsuria’s expansion efforts,” he says.

Established in 2019, Sunsuria Healthcare Sdn Bhd operates primary care clinics, post-acute care and rehabilitation, and veterinary healthcare services.

In March last year, the company launched Sunsuria Care Hub at Sunsuria City, its flagship development in Sepang, in a move to improve healthcare and medical accessibility for its residents there.

“Managed by medical professionals, the Sunsuria Care Hub offers essential healthcare services and it is seamlessly integrated into Sunsuria City. We intend to replicate more of such elements in our future projects,” says Ter.

Sunsuria City is a 525-acre freehold integrated township development in Salak Tinggi, Putrajaya South, surrounding Xiamen University Malaysia, the first overseas university campus from China.

In October 2023, Sunsuria, through Icon Sunsuria Sdn Bhd, entered into a partnership with Island Hospital Sdn Bhd to set up its first cancer centre in Penang.

The centre, dubbed Icon Sunsuria Cancer Centre, commenced operations on Jan 2 and received “overwhelming response”, says Ter.

Icon Sunsuria, a joint venture (JV) between Icon Group — Australia’s largest cancer care provider — and Sunsuria Healthcare, aims to open more Icon Cancer Centres nationwide.

Ter points out that while Sunsuria Healthcare complements the group’s core property business, it is also charting its own path for development and growth. For instance, Icon Cancer Centre brings an international knowledge-sharing network of more than 300 oncologists and cancer industry partners, along with the latest approaches in clinical research, treatment techniques and drugs.

“Icon Sunsuria intends to tap into these resources to offer local hospitals and patients greater access to international clinical trials, as well as new proprietary drugs and technologies,” he says.

The healthcare segment is loss-making, turning in a consolidated loss before taxation of RM1.24 million for FY2023. Sunsuria’s profit contributor is the property development business, which made RM62.94 million in FY2023. Its two other business segments of construction and investment holding were in the red, with losses of RM859,000 and RM12.95 million respectively.

As at end-September 2023, Sunsuria’s net gearing stood at 0.31 times versus 0.17 times a year ago.

On the education front, Sunsuria had signed a collaboration agreement with Concord College International Ltd and Concord College, in the UK, as an exclusive partner in Asean to launch a new British international school for day and boarding students.

The group is now building Concord College Malaysia — the first Concord College International School in the region — in Sunsuria City. Occupying a 10-acre plot, it is slated to open in September this year.

Ter highlights that the new school will be led by Niel Hawkins, an accomplished Cambridge graduate and global principal of Concord College International, known for his inspirational teaching methods and creative leadership.

Notably, 83% of Concord’s 2021 graduates are currently enrolled in the UK’s top 10 universities, as ranked by the Times World Rankings.

“Our aim is to promote the school internationally and attract students from diverse backgrounds worldwide. This strategic initiative not only enhances the overall educational experience but also fosters a vibrant and inclusive environment,” Ter notes.

He says the expansion into healthcare and education aligns with Sunsuria’s vision for long-term sustainability and resilience.

“By diversifying our business portfolio, we can not only mitigate risks associated with market fluctuations but also create long-term stable income streams by tapping into opportunities in these sectors,” he adds.

Over the past 12 months, shares in Sunsuria had gained 44% to close at 50.5 sen last Wednesday, giving it a market capitalisation of RM452.4 million. The counter is currently trading at a historical price-earnings ratio (PER) of 32 times and a forward PER of 16.41 times.

In April last year, Sunsuria’s stock price jumped to its highest level since the Covid-19 pandemic, when Prime Minister Datuk Seri Anwar Ibrahim secured RM170 billion in investments from China.

Back then, it was announced that Sunsuria had inked a memorandum of understanding (MoU) with IAT Automobile Technology Co Ltd, China’s largest independent car design company, to set up an operation base in Malaysia for electric vehicle (EV) manufacturing.

At present, says Ter, the joint venture with IAT Automobile is progressing well, and the project development is ongoing.

“We’re involved in conducting an extensive market study and, at this stage, we are unable to provide precise details. We have conducted thorough financial assessments, and we maintain confidence that this collaboration aligns with our long-term strategic vision and sustainability goals,” he adds.

On the property market, Ter says Sunsuria remains vigilant and adaptive in launching new projects.

“When it comes to launching new property projects, obviously, we have not been very aggressive in recent years. In fact, some people may deem us a little bit too cautious. But we believe our strategic initiatives will contribute to Sunsuria’s overall prospects, bringing resilience and value to our stakeholders,” he says.

Sunsuria owns a total developable landbank of 2,052 acres, with a potential gross development value (GDV) of RM8 billion, including the remaining GDV for Sunsuria City of RM5 billion.

Its resort-living condominium project, Bangsar Hill Park, has a GDV of RM3 billion, of which about RM1 billion has been launched.

This year, says Ter, Sunsuria plans to launch RM200 million to RM300 million worth of new projects in Sunsuria City, and a new phase worth RM500 million in Bangsar Hill Park. 

Source: The Edge Malaysia

Sunsuria eyes healthcare and education as profit centres

Analysts generally expect Tasco Bhd to post stronger quarters ahead, in anticipation of a recovery in external trade activities and contribution from its new warehouse capacity.

This was despite the integrated logistic group’s latest results for the third quarter of financial year 2024 (3Q24), which missed most analysts’ expectations.

Tasco’s net profit dropped 32.37% to RM13.82mil in 3Q24 from RM20.44mil a year earlier, on the back of freight rate normalisation and weaker performance from its domestic business solutions (DBS) segment.

According to Apex Securities, Tasco is expected to benefit from the recovery in external trade momentum and resilience in the domestic economy, with the World Trade Organisation forecasting a higher pickup in global merchandise trade volume of 3.2% year-on-year in 2024.

Cautious optimism is placed over the recovery in the technology sector, manufacturing activities and the China economy, it added.

The research house said the Red Sea crisis will likely boost Tasco’s short-term outlook in the ocean freight forwarding (OFF) segment with higher rates.

The group’s international business solutions (IBS) segment is also expected to recover on improved external trade performance, while the DBS segment is poised for further improvement, supported by firm warehouse and cold supply chain demand, coupled with new warehouse capacity added in.

This is expected to start contributing to the group in 4Q24, Apex Securities said.

In terms of valuation, the research house has trimmed Tasco’s earnings forecast to RM62.9mil for financial year 2024 (FY24) from RM71.7mil earlier and its FY25 forecast to RM81.5mil from RM85.4mil previously, to account for weaker margin expectation on its OFF segment.

“Still, we reiterate our ‘buy’ recommendation on Tasco with a lower target price (TP) of RM1.12, post-earnings revision,” it added.

For RHB Research, Tasco is still a “buy” with a TP of RM1.35.

“We expect Tasco to book stronger numbers ahead, supported by a recovery in trade activities, sector tailwinds, contributions from new warehouses and recognition of tax incentives,” it said in a note to clients.

It added that Tasco’s valuation is attractive, given its diversified business segments, solid cash flow generation, healthy dividend yields and growth prospects.

“We maintain our earnings forecast for now, pending a post-results briefing and guidance,” it said.

RHB Research also expects Tasco to record a much better performance in 4Q24 and beyond. This is primarily supported by maiden contributions from its new warehouses, which should fetch wider margins, tax savings credits from integrated logistics services’ tax incentive that lowers the effective tax rate to between 10% and 14%, and further pick-up in trade activities within the intra-Asia region.

“The uptick in freight rates stemming from the ongoing Red Sea crisis should serve as a tailwind to support Tasco’s IBS segment, which would be reflected in 4Q24 onwards,” said RHB Research.

Similarly, MIDF Research expects stronger quarters ahead for Tasco. It has kept a “buy” call on the stock with an unchanged TP of RM1.30.

“The ocean freight rates are on the rise due to the Red Sea geopolitical crisis, where the Houthis have targeted commercial ships.

“While this circumstance is expected to benefit logistics players such as Tasco, the immediate impact remains limited as shipment volumes have not substantially picked up,” it noted.

Nonetheless, MIDF Research maintained its expectation of an increase in handling volume, anticipating a gradual recovery of trade activities throughout the year.

“We also expect improved performance in the contract logistics division from 4Q24 onwards, driven by the inaugural contributions from the two new warehouses, West Port Logistics Centre and Shah Alam Logistics Centre, which are expected to yield better rates,” it said.

MIDF Research has maintained its earnings estimates on Tasco, with a potential revision pending further insights from a scheduled management briefing on Feb 5.

Source: The Star

Tasco in for stronger quarters ahead

SARAWAK, the largest state in Malaysia, is emerging as a new destination for medical tourism, offering a unique blend of quality healthcare services, cultural richness, and natural beauty. This growth is part of Malaysia’s broader push to become a global healthcare hub, capitalising on its world-class medical facilities, well-trained professionals, and competitive pricing.

Medical tourism in Sarawak is not just about affordable treatment; it’s also about experiencing the warmth and hospitality of its people, along with the opportunity to recuperate amidst lush rainforests and serene beaches. Here are some key points that highlight Sarawak’s appeal as a medical tourism destination:

COST SAVINGS

Medical procedures in Sarawak can cost significantly less than in Western countries, making treatments like cardiac bypass surgery significantly more affordable. For example, while this surgery may cost upwards of RM200,000 in the US, in Sarawak, it’s around RM50,000, reflecting the cost-effective nature of healthcare in the region.

QUALITY CARE

Sarawak’s healthcare system is marked by its JCI-accredited hospitals equipped with the latest technology. The region boasts a cadre of medical professionals who are highly qualified and proficient in English, ensuring a smooth communication flow with international patients.

DIVERSE TREATMENTS

From cardiology to oncology and from orthopaedics to dentistry, Sarawak’s medical expertise is comprehensive. Patients have access to a wide array of treatments, including cutting-edge options like robotic surgery and stem cell therapy, catering to a range of medical needs.

TROPICAL PARADISE

Sarawak’s allure extends beyond its medical facilities. Known for its lush rainforests and majestic national parks, the region offers a tranquil environment ideal for recovery and relaxation. Post-treatment, patients can indulge in a myriad of activities, from orangutan watching and caving to serene river cruises, enhancing the healing journey (Sarawak Tourism Board).

ACCESSIBILITY AND SUPPORT

Reaching Sarawak is hassle-free, with international flights readily available to Kuching Airport. The local government’s robust support and stringent regulations ensure the highest standards of patient safety and care quality. Accommodation options are plentiful, offering choices for every budget. The region’s growing popularity among medical tourists, especially from neighbouring countries like Indonesia, Brunei, and Singapore, is a testament to its emerging prominence in the realm of medical tourism.

Source: NST

Healing in paradise: An introduction to medical tourism in Sarawak

The slew of renewable energy (RE) initiatives and programmes announced by the government last week has further brightened the outlook of the RE sector in Malaysia.

Analysts note the strong pipeline of RE projects will in particular be a significant boost for companies in the solar industry.

In their reports, analysts listed engineering, procurement, construction and commissioning (EPCC) solar players, namely Solarvest Holdings Bhd, Samaiden Group Bhd and Sunview Group Bhd, as well as Pekat Group Bhd, as main beneficiaries of the latest government initiative.

To recap, the Energy Transition and Public Utilities Ministry last week unveiled a cumulative 2.8 gigawatt (GW) of new RE quotas and 400 megawatt-hour of battery energy storage system (BESS) pilot project.

These included the continuation of the net energy metering (NEM) programme with additional quotas of 400 megawatt (MW); fifth bidding cycle of the Large Scale Solar (LSS) programme with quotas of 2GW; and low carbon energy generation programme of 400MW to be undertaken for non-solar energy such as wind, mini-hydro, biogas, biomass and hydrogen, among others.

RHB Research, which maintained its “overweight” stance on the overall power sector, noted it was full steam ahead for the RE industry.

“We are positive on the integrated clean energy programme 2024 as it continues to anchor the domestic RE ramp up, while providing sustainable job flows to contractors amid rising competition.

While the BESS pilot project’s rollout is essential for better RE integration, project returns remain unknown,” it said.

RHB Research said it had identified Solarvest, Samaiden, Sunview and Pekat as the main beneficiaries, as the programme would inject a potential RM5bil worth of contract opportunities.

It noted that Reservoir Link Energy Bhd would also stand to benefit from sub-contracting jobs and more mounting structure orders.

“With the allocation to a single developer up to 500MW, we believe this will attract more established players with strong war chests such as Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd’s green energy arm Gentari to participate more aggressively,” RHB Research said.

“Other potential winners will be asset owners of past LSS rounds, given their track records,” it added.

Hong Leong Investment Bank Research (HLIB Research) said the cumulative 2.8GW of new RE quotas through various programmes would significantly uplift the sector and stocks under its coverage.

“This sets in motion the government’s 2050 70% RE share target as outlined in the National Energy Transition Roadmap (that was) unveiled last year.

“In our view, the key highlight was the comeback of the LSS competitive bidding programme with a significantly larger quota size of 2GW,” the brokerage said.

“We are conservatively estimating solar EPCC opportunities of about RM7bil from the LSS5 programme. While granular details were by and large missing, quota awards for LSS5 could come in the first half of 2025 with EPCC contracts to be formalised thereafter,” it added.

HLIB Research maintained “overweight” on the power sector, citing strong structural themes as well as positive earnings growth cycle.

It said both Solarvest and Samaiden would be key winners from the slew of programmes announced last week.

MIDF Research noted the announcement last week signified a strong visibility of RE pipeline in the next 24 months.

It maintained a “positive” stance on power utilities premised on a firm policy layout on the energy transition which should drive improved growth and environment, social and governance profile for the sector.

MIDF Research’s top picks were Samaiden, Sunview and Pekat, viewing them as key immediate-term beneficiaries of the various RE programme rollouts.

It added that TNB would be one of the key beneficiaries in the asset ownership space, as it was the sole operator of the grid, which would likely see a step-up in capital expenditure to accommodate RE supply expansion.

Source: The Star

Sunny outlook for renewable energy

Malaysia’s power sector is flushed with a strong visibility of renewable energy (RE) pipeline under the latest large scale solar (LSS) and net energy metering (NEM) programmes over the next 12-24 months.

Analysts estimate that the latest large scale solar (LSS) and NEM programmes will translate into RM7.2 billion-RM8.4 billion worth of engineering, procurement, construction and commissioning (EPCC) jobs.

Last week, Energy Transition and Public Utilities Minister Datuk Seri Fadillah Yusof announced a cumulative 2.8 gigawatts (GW) of new RE quotas.

This included a 2GW allocation for Malaysia’s fifth LSS photovoltaic programme which will be open for bids soon. A developer can bid for up to 500MW.

Another initiative was Low Carbon Energy Generation boasting 400MW through the New Enhanced Dispatch Arrangement mechanism for non-solar energy such as wind, minihydro, biogas, biomass and hydrogen, among others.

The 400MW quota under the NEM mechanism, meanwhile, comprises 100MW for the household segment and another 300MW for the commercial and industrial segment.

“The 2.4GW combined solar quota under the latest LSS and NEM program translates into an estimated RM7.2-8.4b worth of EPCC jobs which we expect to be tendered out in the next 12-24 months,” MIDF Research said.

Big players within the utilities sector such as Tenaga Nasional Bhd and YTL Power International Bhd are likely to come in as anchors in their consortiums, especially for larger capacity bids, rthe firm added.

“One of the key changes in the latest LSS is the rise in capacity bid limit to 500MW which is five times the previous 100MW limit for LSS3 and 10 times the 50MW limit for LSS4.”

A project of such size could entail a huge capital expenditure of some RM2 billion-RM2.3 billion which requires fairly demanding balance sheet capacity, it said.

MIDF Research, however, noted that the prior LSS winners also included non-utilities players from the property, plantation and construction sectors.

Landowners could come in as strategic partners given the huge requirement for landbank as a 500MW solar farm is estimated to require at least 2,000 acres of total landbank.

“It is uncertain at this point if the regulators will allow multiple locations for each LSS bid pending official details of the program,” the firm said.

It highlighted that one of the key pain points in prior LSS programmes was the excessive competition to supply energy to a single buyer which has driven down returns to single-digit levels.

The Corporate Green Power Programme (CGPP) model is viewed to be a more liberalised model allowing players to seek their own offtaker, thereby allowing better price discovery in the market.

“Having said that, we also take note of the fact that the CGPP are essentially exclusive arrangements between solar power producers and their offtaker that requires a fair allocation of grid upgrade costs (to accommodate more injection of intermittent RE sources to the grid), which is currently absent.

“Once such fair cost allocations and third-party access to the grid (TPA) are established, we believe a more liberalised model for large scale RE could be expected,” MIDF Research said.

Hong Leong Investment Bank Bhd (HLIB) expects the cumulative RE quotas to uplift the sector and for stocks under its coverage namely Solarvest Holdings Bhd and Samaiden Group Bhd.

“This sets in motion the government’s 2050 70 per cent RE share target as outlined in the National Energy Transition Roadmap unveiled last year.

“In our view, the key highlight was the comeback of LSS5 with a significantly larger quota size of 2GW (2.4 times larger than LSS4 awards).

“We are conservatively estimating solar EPCC opportunities of  about RM7 billion from the LSS5 programme,” it said in a note.

Quota awards for LSS5 could come in the first half of 2025 with EPCC contracts to be formalised thereafter, HLIB said,

“It is unclear if foreign participation limits will still be in place as it was with LSS4 considering the increased scale. Nevertheless, we reckon with panel prices continuing to decline (US$11 cents per watt) bid tariffs could reach a new low,” it said.

Meanwhile, RHB Research identified EPCC solar players to benefit from the Integrated Clean Energy programme as it will inject a potential RM5 billion worth of contract opportunities.

Key beneficiaries included Solarvest, Samaiden, Sunway Group and Pekat Group.

Reservoir Link Energy Bhd stands to benefit from sub-contracting jobs and more mounting structure orders.

“With the allocation to a single developer of up to 500MW, we believe this will attract more established players with strong war chests such as TNB and Petroliam Nasional Bhd/Gentari to participate more aggressively.

“Other potential winners will be asset owners of past LSS rounds, given their track records. Previous winners include Advancecon Holdings Bhd, Ranhill Utilities Bhd, Uzma Bhd, JAKS Resources Bhd, Gopeng Bhd and TNB,” RHB Research.

Source: NST

Latest LSS, NEM programmes may translate into EPCC jobs worth up to RM8.4b, say analysts

The Maharani Energy Gateway project, with a total investment of US$2 billion, to be built in Muar, Johor, is set to promote Malaysia’s green energy initiatives further and boost the country’s trade and investment opportunities with Chinese companies, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The Maharani Energy Gateway project is a collaboration between Maharani Energy Gateway Sdn Bhd (MEG) and China Energy International Group (CEIG) Sdn Bhd to build a combined cycle gas turbine (CCGT) power plant and a green hydrogen and green ammonia plant.

Tengku Zafrul emphasised that the government is encouraging more world-renowned entities, such as CEIG, to invest in new ideas and businesses that could be Malaysia’s next big breakthroughs.

“This will help catalyst new wealth creation while promoting the nation’s sustainable development goals,” he said after witnessing the signing of two collaborative framework agreements between MEG and CEIG today.

Tengku Zafrul said policies such as the New Industrial Master Plan 2030 and the New Energy Transition Roadmap have resulted in many foreign parties forging collaborations with domestic players to drive the nation’s greener future.

“The signing between MEG and CEIG and their CCGT, green hydrogen and green ammonia facilities at the Maharani Energy Gateway will complement the surrounding oil and gas, petroleum and petrochemical industries in Johor, notably Pengerang, Tanjung Bin, Tanjung Langsat and Pasir Gudang.

“It will also help to position Malaysia as a renewable energy-focused and sustainable regional energy hub and ecosystem,” he added.

Meanwhile, MEG executive chairman Datuk Dr Daing A Malek Daing A Rahaman said the CCGT Power Plant would use natural gas and hydrogen to generate electricity, which can be exported to the national grid or neighbouring countries.

“The joint venture project will complement Malaysia’s Green Energy Initiative, which includes various programmes and policies to promote the development and adoption of renewable energy sources,” he said.

The Maharani Energy Gateway Project is a sea reclamation project off the coast of Muar, Johor.

The project aims to create an energy hub and deep-sea port by building three artificial islands covering an area of 1,295 square hectares and creating 45,000 job opportunities. 

Source: Bernama

Maharani Energy Gateway to promote national Green Energy initiatives

Property subsectors including logistic warehouses, data centres and Grade A premium offices are expected to have the most positive growth this year, following their positive trends in demand, rental rates and market sentiment in 2023, according to JLL Malaysia managing director Jamie Tan when presenting at the JLL Greater Kuala Lumpur Property Market Monitor 4Q2023 press conference on Jan 29.

JLL Malaysia logistics and industrial team member Derek Yap said warehouse absorption in Greater Kuala Lumpur remained robust last year, as demonstrated by the strong pre-commitment level from occupiers. “In 2023, the projects that were delivered had at least a 70% pre-let rate. Rental growth was also quite robust, reaching an annual rate of 7.4%.”

Yap also mentioned that changes in the supply chain and implementation of China Plus One Strategy continue to drive the demand for high-quality logistics space. “The overall vacancy rate has increased but still remains low as the market saw a lot of new supply coming. Most of the developers that jumped on the bandwagon to develop warehouses in 2021/2022 will see their projects complete this year, so we can expect a significant increase in supply this year,” Yap said.

Due to that, Yap is expecting a more moderate rental growth for logistic warehouses of around 2% to 3%, as he anticipated that the increase in new supply should be able to meet the demand in the market. He pointed out that some of the future supply of logistic warehouses have already managed to secure tenancies for the respective warehouses upon completion.

Data centres, on the other hand, have experienced significant growth in terms of supply over the past five years. JLL Malaysia data centre team member Kent Seet said the current supply of data centres stands at approximately 200+ megawatts (MW) and is projected to reach 750MW by 2025.

Seet added, “[Additionally,] the country could also potentially have a total capacity of 2,700+ MW by 2027. This is possible given the increasing prevalence of artificial intelligence (AI) applications that are anticipated to drive the next surge in demand for data centres in Malaysia.

“The demand for AI applications has a ripple effect throughout the supply chain, catalysing advancements in power supply, cooling infrastructure and specialised hardware. The need for more computing power drives improvements in power delivery systems, while the high computational requirements lead to innovations in cooling technologies.”

Seet also shared that the sector will enjoy more growth, and with more growth comes an increased demand for power. More power generates more heat, leading to rising demand for better cooling methods, including immersive cooling and direct-to-chip cooling, among others.

Hence, locations offering ample power supply and other critical infrastructure will attract data centre investments in the coming years.

Speaking on the office market, JLL Malaysia office leasing advisory team member Quiny Lee said the office market experienced a surge in demand as companies increasingly relocated to modern and environmentally sustainable spaces that align with environmental, social and governance (ESG) principles.

She reported that office rental rates continued to grow in the fourth quarter of 2023 (4Q2023) where overall rents increased by 1.3% compared to 3Q2023, reaching RM6.42 psf per month.

“So the office market saw a notable increase in its net absorption during the previous quarter. This has led to higher occupancy rates and enhanced investor confidence, indicating sustained growth and a strong demand for office spaces. There continues to be a strong preference among tenants for high-quality buildings, particularly newer properties or Grade A premium buildings.

“In terms of vacancy performance between older and newer stock, it is noteworthy that green-certified office buildings outperformed their non-certified counterparts. In 3Q and 4Q2023, green-certified buildings witnessed a significant decrease in vacancy rates by 500 basis points. In comparison, non-green-certified buildings saw an increase of 100 basis points in vacancy rates,” Lee shared.

While Grade A and Grade A premium office buildings are becoming more popular among tenants, Lee said the older buildings, grades B and below, are seeing an increase in vacancy rates and subsequent downward pressure on average rental rates.

In order to curb overhang among these older buildings, both Lee and Tan said many parties are now repurposing these buildings or tearing them down and building new ones with high-quality specifications.

Overall, Tan said the positive trends observed across all market segments in 2023 are expected to continue into the next 12 months. “We expect the overnight policy rate (OPR) to remain at 3%. The OPR or any interest rates for any country relies heavily on the interest rates of the US [Federal] Reserve. However, now we can see certain countries moving away slowly towards an alternative currency. Some countries are even trading using their currency. In Malaysia, manageable or low interest rates can help to spur the economy as well as create opportunities for investors and developers.”

Source: The Edge Malaysia

JLL Malaysia: Logistic warehouses, data centres, Grade A premium offices to have most positive growth this year

An investment worth US$80 milliion (RM378.8 million) promised by a stem cell scientist would position Sabah as a world-class medical wellness tourism hub, said Chief Minister Datuk Seri Hajiji Noor.

He was referring to the expansion plan by Professor Datuk Seri Dr Mike Chan to set up a biopharmaceutical manufacturing facility at Kota Kinabalu Industrial Park and European Wellness Centre Asia Pacific hub in Alam Mesra here.

During a recent meeting with Hajiji, Chan said that both his Sabah-born wife Professor Datuk Seri Dr Michelle Wong and himself plan to expand their operations in Sabah to cater to the Asean and BIMP-Eaga markets.

With the facilities in place, he added it would also help Sabah to gain a niche market in the medical wellness education tourism sector.

This is because many stem cell researchers from around the world will be coming to the state to do research in the bio-regenerative medicine and sciences.

Chan, renowned in the bio-regenerative medicine industry globally, has written more than 50 books and won several awards including the World Chinese Wellness Entrepreneurship Leadership Award from China last year.

European Wellness which was founded in 1991 has 46 hospitals and centres worldwide including in Germany, Switzerland, Santorini in Greece and across Asia with a wide range of clientele under its belt.

Source: NST

CM: US$80 million investment will position Sabah as world-class medical tourism hub

Telekom Malaysia Bhd (TM) is said to be exploring plans to build a new hyperscale data centre (HDC) in Malaysia, expanding its capacity from the existing Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC), according to CIMB Investment Bank. 

HDCs are large facilities offering at least 40 Megawatts (MW) of IT power capacity and often bigger, catering to large cloud service providers and internet companies, according to the research house.

Leveraging its extensive submarine and terrestrial networks, as well as strong local relationships, CIMB sees that TM may be able to attract strong strategic international partners to co-invest in such an HDC.  

“Besides helping to partly fund the investment required, a strong strategic international partner could also share expertise in the design and operation of DCs that cater to hyperscalers and AI workloads,” CIMB said in a note on Monday. 

“This could include the implementation of more efficient cooling solutions such as direct-to-chip liquid or immersive cooling, as well as advanced real-time server monitoring platforms, to ensure seamless management of expensive graphics-processing unit clusters to prevent overheating,” it added.  

Furthermore, CIMB posited that the strategic partners could also help secure tenants for the new HDC, by offering space for expansion to their existing DC tenants. 

If TM proceeds, CIMB expects the group to develop the HDC in phases. “If kicked off in 2H2024, the first phase could be ready for service by 1H2026.”

While there will be little boost to earnings in the financial year 2024 and 2025 due to the timing of project completion, CIMB believes investors “could get more excited about TM over the potential value creation from a more aggressive expansion of its DC business”.

“We value TM’s DC business at a net present value of RM2.53 billion (66 sen per share),” it added. 

As such, CIMB has raised its target price on TM to RM6.85 and maintained its “buy” call on the counter.

At Monday’s market close, TM’s shares were up three sen or 0.51% at RM5.96, giving the group a market capitalisation of RM22.87 billion. Year to date, the counter has grown by 6.43%, or 36 sen, from RM5.60 at the start of the year. 

Source: The Edge Markets

Telekom Malaysia said to be exploring plans to build new hyperscale data centre

Airai Global Corporation (AGC), backed by investors from Malaysia and Singapore, will invest a significant amount in the development of a massive integrated resort in Palau over the course of 10 to 15 years.

The state government of Airai and AGC have inked a cooperative agreement for the development of the integrated resort in Airai, one of the sixteen states of Palau, covering an area of 44 square kilometers (km).

The resort will include opulent resorts, waterfront villas, iconic buildings, a marina, a seaport, theme parks, and medical facilities spread across nearly 5,000 acres that will drive Palau’s economic development.

AGC is currently working on completing the project’s overall blueprint and settling on the plan’s associated costs.

According to Hayato Sugiyama, vice president and chief operating officer of AGC, Palau is anticipated to generate significant revenue from this development.

It will put Palau “on the map,” he said.

“It is going to be a huge investment, and this will be a game changer for Palau,” he said after witnessing the signing of the collaborative agreement between AGC and the Airai state government here recently.

The blueprint for the entire plan is still in preparation, and AGC is still calculating the costs involved. 

Palau, located in the western Pacific Ocean, consists of about 340 islands that make up an area of ​​​​459 square km. As of 2022, Palau has a gross domestic product (GDP) of US$230 million and a GDP per capita of US$14,530, with the services industry contributing about 80 per cent of the economy.

Alvin Lee, chief development officer of AGC, said that the company is optimistic about the tourism projects because of the island’s potential for new developments, health tourism, and cultural tourism.

He revealed that the company plans to use solar power and waste management initiatives on the island, in addition to promoting eco-friendly travel.

According to Lee, the massive resort project is expected to produce a gross development value in the multi-billion dollar range.

Governor Norman Ngiratecheboet of the Airai state government, meanwhile, believes that the resort project will have a big positive impact on the state.

“We are looking forward to this project as it will offer employment for the local population, and the locals will also be able to offer services to tourists,” he said.

He emphasised that Palau is safe and secure for any kind of cooperation and that it is now “open for business.”

There will also be a passport program available for migration to Palau in an effort to increase the number of high-net-worth foreign migrants, he said.

Source: NST

AGC to invest substantially in Palau Integrated Resort

The Net Energy Metering (NEM) programme will continue with an additional quota of 100 megawatts (MW) for NEM Rakyat and 300MW for NEM NOVA, as part of the implementation of the Integrated Clean Energy programme this year, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also Energy Transition and Public Utilities Minister, said that the quota offer period is set until December 2024 or until the allocated quota is exhausted, and applications can be submitted from Feb 5 through the eNEM system on the Sustainable Energy Development Authority (SEDA) website at www.seda.gov.my.

“This programme will enable at least 25,000 domestic users and 100 users in the commercial and industrial categories to utilise the roof space of their buildings for electricity generation for self-consumption through the installation of photovoltaic solar systems (PV),” he said in a statement issued in conjunction with the International Day of Clean Energy today.

Besides NEM, Fadillah said the Large Scale Solar (LSS) programme for the development of solar power plants with a quota offer of 2,000MW will be opened starting April 1, with the sale of Request for Proposal (RFP) documents by the Energy Commission (ST).

Several updates would be made to enhance the success of the LSS programme, including the creation of a special category for the development of floating solar power plants with a quota of 500MW and an increase in the participation limit for a company up to 500MW.

“The implementation of the LSS programme will be conducted through a bidding process and on a larger scale to ensure a transparent and fair developer selection process and to secure energy generation tariff offers at the most competitive rates.”

Fadillah said that the Low Carbon Energy Generation Programme through the New Enhanced Dispatched Arrangement (NEDA) mechanism would be implemented with a total quota of 400MW to open up opportunities for participation in the development of generation projects from non-solar sources such as wind, small hydro, biogas, biomass, hydrogen and so on.

Participation in this programme is based on a first come, first serve basis, and applications can be submitted from February 5 through the Single Buyer website at www.singlebuyer.com.my.

In addition, the Battery Energy Storage System (BESS) pilot project with a total capacity of 400MWj will commence in the first quarter of 2024 and will be implemented by Tenaga Nasional Berhad, operated by the Grid System Operator and supervised by ST.

“The implementation of this pilot project will support the nation’s energy transition aspirations through the strengthening of the elec

According to Fadillah, the ministry is also studying and developing new programmes and initiatives in the integrated clean energy field based on advancements in the renewable energy sector and the demand for green electricity supply.

“All these efforts aim to enhance the clean energy mix in the country’s electricity supply while opening up more opportunities and access to green electricity,” he said.

He further said that the implementation of the Integrated Clean Energy programme for this year would support the nation’s energy transition and carbon footprint reduction initiatives, in addition to generating economic overflow in the form of direct investment valued at RM12 billion in the renewable energy industry and creating at least 36,000 job opportunities for the people.

The International Day of Clean Energy serves to raise awareness and mobilise action for a just and inclusive transition to clean energy, based on Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable and modern energy supply.

Source: Bernama

NEM to continue this year with additional 100Mw quota for rakyat

Data centres (DCs) with an estimated IT power capacity of 827 megawatts (MW) are expected to come online from 2023 to 2026,  resulting in a quadrupling of DC capacity in the market, benefitting telecommunication operators, construction companies and property developers, according to CIMB Investment Bank and KAF Equities Sdn Bhd.

In a joint research note, the two houses said the capacity is expected to increase from around 200-250MW at the end of 2023 to over 1GW by the end of 2026, thanks to the initiatives by operators to expand capacities, particularly in Johor and Cyberjaya. 

Several Malaysian companies, including Telekom Malaysia Bhd (“Buy”, TP: RM6.20) , Time dotCom (“Buy”, TP: RM5.85) and YTL Power, are set to benefit from their development plans for DCs in the two regions. 

The firms in a note on Friday highlighted that YTL Power is in the early stage of developing its Green DC Park, which will initially provide 48MW of the total 500MW planned over the next decade, while Telekom Malaysia is constructing the second block of its Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC), adding around 18-20MW of IT power capacity.

Meanwhile, Time dotCom, which has a stake in the AIMS Group, is set to build the second block (8MW) of its Cyberjaya DC by January 2024, with an additional 15-20MW to be achieved in upcoming years.

Elsewhere, Sunway Construction secured construction jobs from Yondr Group worth RM1.7 billion and K2 worth RM193 million.

Gamuda, with its Industrialised Building System (IBS) plant in Klang Valley, won a contract from AIMS while IJM, another company with an IBS facility in Klang Valley, is reportedly in negotiations for a DC construction job.

Crescendo Corp sold three plots of land in Johor to STT GDC, Yu Ao Sdn Bhd as well as Microsoft for DC projects, while MN Holdings has secured substation engineering jobs from GDS and this year won a contract for high voltage horizontal directional drilling for an unnamed client in Johor.

Meanwhile, Powerwell Holdings bagged a RM16 million contract to supply electrical low voltage switchboards, active harmonic filter and uninterrupted power supply to AirTrunk’s JHB1 DC, said the research firms.

“The Malaysian DC market could go through a short-term digestion phase to absorb all the incoming capacity. However, we believe demand should ultimately be strong over the longer term, underpinned by fast-growing digital economies, continued cloud migration and soon, Artificial Intelligence (AI) developments. 

“Besides domestic demand, it is also worthy to note that the new DCs will serve global/China cloud service providers (CSPs) and Internet giants’ expansion in SEA/Asia (with Singapore unable to meet this demand due to supply constraints),” said the research firms.

They also noted that the power needs of the new DCs will be met by agreements signed by Tenaga Nasional Berhad with six operators and MRANTI Corp, with an aim to reduce the usual electricity supply timeframe from 36-48 months to just 12 months.

Source: The Edge Malaysia

Telcos, developers set to gain from data centre boom — CIMB, KAF

The Ministry of Investment, Trade and Industry (MITI) of Malaysia and the Ministry of Investment of the United Arab Emirates (UAE) have strengthened their commitment on advancing investment cooperation in the digital infrastructure sector.

MITI said both parties have signed a memorandum of understanding (MoU) today, marking a strategic partnership on the development of data centres in Malaysia, with potential projects anticipated to achieve a total capacity of 500 megawatts.

The MoU was signed by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz and Minister of Investment for the UAE, Mohamed Hassan Alsuwaidi.

MITI said in a statement today that the MoU represents a strong commitment towards robust collaboration on the exchange of knowledge and expertise in the digital infrastructure sector between Malaysia and the UAE, which is also aimed at fostering greater bilateral economic and investment relationships between the public and private sectors of both countries.

MITI said Malaysia has emerged as a preferred destination for data centres in Southeast Asia, thanks to its robust digital and physical infrastructure, rule of law, as well as compelling government-backed measures and initiatives on data centre investment.

The increasing demand from regional small and medium enterprises (SMEs), MITI said, will provide the impetus for Malaysia’s growing status as a significant regional player in digital economy.

Beyond data centre development, it noted that the MoU also illustrates Malaysia’s commitment to advancing artificial intelligence (AI), in alignment with the New Industrial Master Plan (NIMP) 2030, the aims of which include enhancing the capacity of industries, SMEs and start-ups in AI and developing AI solution providers.

“Malaysia’s digital infrastructure collaboration with the UAE, with a focus on data centres, will certainly help strengthen our position as a preferred destination for digital investments.

“By being a regional data centre hub, Malaysia is well positioned to capture a significant portion of Asean’s digital economy, forecast to reach US$1 trillion by 2030.

“MITI and its agencies are determined to speed up the implementation of all committed investments so that investors, businesses and our people can quickly reap the benefits of a more robust, thriving digital economy within Malaysia and Asean,” Tengku Zafrul said.

Meanwhile Mohamed Hassan Alsuwaidi said this collaboration not only enhances the existing bilateral ties between both nations but also seeks to harness Malaysia’s extensive potential as a top choice for data centre locations in the Asia-Pacific region.

“Being an emerging data hub in Southeast Asia, the arrangement aims to reinforce the nation’s digital infrastructure and accelerate the expansion of its Internet economy, aligning with shared priorities and interests,” he said.

MITI said the MoU stands as a testament to the strong trade relations between Malaysia and the UAE, with significant growth in non-oil trade volume.

Currently, the UAE is Malaysia’s second-largest trading partner in the Middle East, and Malaysia is a key player in UAE’s exports and re-exports in the Asean region.

Source: Bernama

Malaysia, UAE ink MoU on advancing cooperation in data centre investments

Malaysia is blessed with abundant energy sources such as solar, hydropower and hydrocarbons such as natural gas.

As the world moves towards net zero carbon emission, the country has now made progress to achieve the commitment as early as 2050 by diversifying into green energy while also introducing several policies such as the National Energy Transition Roadmap as a guideline towards that commitment.

The government has also launched the Sustainability Achieved Via Energy Efficiency (SAVE) 4.0 programme to boost the purchase of energy-efficient electrical appliances among Malaysians.

Currently, Malaysia’s energy sector is primarily reliant on fossil fuels, but there is a growing focus on renewable energy sources like hydropower and solar energy, which have contributed to about 5.0 per cent and 6.0 per cent of the country’s energy consumption in the past five years.

The government is targeting a 31 per cent share of the total installed capacity of sustainable energy by 2025, up from the current 23 per cent.

Under Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim also announced the extension of the net energy metering (NEM) programme until Dec 31, 2024, to promote solar panel adoption.

The government is also working on a programme for buying back solar energy from rooftop installations with minimal costs to the system. At the same time, the government encourages companies to offer a “Zero Capital Cost” subscription model, similar to what clean energy firm Gentari is offering for residential homes.

Putrajaya also will lead the way as a green city model for Malaysia. Solar panels will be added to government buildings in partnerships with Tenaga Nasional Bhd (TNB) and Gentari. The government will also use electric vehicles for official purposes.

MARKED RISE IN RESIDENTIAL SOLAR ADOPTION

Solarvest Holdings Bhd executive director and group chief executive officer Davis Chong has observed a substantial increase in residential solar panels in recent years, driven by a combination of supportive government policies, advancements in solar technology, and a growing commitment to sustainable energy practices.

He noted that the adoption of solar energy is massive in major cities like the Klang Valley, Johor and Penang as homeowners from these urban areas have demonstrated a heightened awareness of the economic and environmental benefits of solar energy systems.

In the northern region, where sunlight hours are more favourable, there is a correlating uptick in solar energy projects. Johor, meanwhile, is also witnessing a significant adoption in solar energy, with its expanding economy and accelerating development coupled with ample land and rooftop resources, said Chong.

“Additionally, we are seeing a consistent increase in interest from states like Kedah, Melaka, Perak and Negeri Sembilan, showcasing the nationwide appeal of solar energy. Malaysia’s residential solar presence is still growing, with mainly the T20 (top 20 per cent income) and M40 (middle 40 per cent income) groups generally more aware and are able to realistically consider rooftop installation,” he told Bernama.

Looking ahead, Solarvest is anticipating another cycle of heightened interest and eagerly awaiting the new round of quota allocations for NEM.

“In response to the increased demand, we revamped our residential business, Vestech Energy Sdn Bhd, to ensure that we are well-prepared to meet and exceed the expectations of homeowners seeking to adopt solar solutions under these progressive initiatives,” said Chong.

To date, Solarvest has powered more than 1,000 homes through its residential arm Vestech Energy. Additionally, the clean energy solutions provider also had a pipeline of over 3,000 houses in its tenderbook as of November 2023.

FOSTERING ENERGY EFFICIENCY IN MALAYSIA

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said programmes like SAVE 4.0 are certainly a step in the right direction to promote energy efficiency in Malaysia.

However, he pointed out that fostering a widespread culture of energy efficiency may require more comprehensive efforts and this includes continuous public education campaigns to raise awareness about energy-saving practices and the long-term benefits of energy efficiency.

“Additionally, incentivising both individuals and businesses through financial benefits, rebates, and recognition programmes can further motivate adoption. Collaborations with private sectors to innovate in energy-efficient technologies can also play a crucial role,” he said in an interview with Bernama.

While SAVE 4.0 is a positive initiative, he noted that a multi-layered approach is likely necessary to significantly shift energy usage behaviours across the country.

Association of Water and Energy Research Malaysia (AWER) president S. Piarapakaran said Malaysia lacks a proper transition plan by first optimising its alternative resources compared to some of its neighbours.

“For example, biomass and biogas developments are underdeveloped and plans to boost this sector’s potential have been more lip service for the past few decades.

“On the other hand, energy transition projects are backed by project proponents and not based on how we need to transit and adapt to new solutions for locally sourced alternatives. Finally, energy efficiency is moving very slowly in Malaysia and is two decades late,” he added.

Citing Indonesia and Singapore as examples, he said Indonesia has a coal deposit and the country is looking at optimising coal output to partly fund its energy transition process while Singapore would resort to importing alternative energy resources to fuel its energy transition process due to limited resources at its disposal.

FURTHER LIBERALISATION OF ELECTRICITY MARKET

Putrajaya has already begun work laying the foundation needed to liberalise Malaysia’s electricity market to pull in more renewable energy investments to fuel the nation’s energy transition agenda.

The government has identified three key agendas moving forward, namely amending the Electricity Supply Act 1990, reforming the electricity tariff structure, and carving out an independent Single Buyer from national utility giant TNB.

Mohd Afzanizam said various factors need to be considered in answering the question of whether Malaysia should further reform its electricity market by liberalising it.

While liberalisation can encourage competition, potentially leading to more efficient and innovative energy solutions, lower prices, and better services for consumers, it can also attract private investment and advanced technologies to the energy sector, he said.

“However, it’s important to balance these benefits with the need for regulatory oversight to ensure reliability, affordability, and environmental protection. The government must carefully weigh these aspects and consider the unique dynamics of Malaysia’s energy landscape and policy objectives before deciding on such reforms,” he added. 

Source: Bernama

Increased adoption of alternative energy sources for electricity generation

UEM Group Bhd, a wholly-owned subsidiary of Khazanah Nasional Bhd, will collaborate with Itramas Corp Sdn Bhd and Hexa Renewables on the first phase of the national flagship 1GW hybrid solar photovoltaic energy transition project — the development of a 500MW hybrid solar plant in Johor.

Towards the development of the 500MW hybrid solar plant, UEM Group’s wholly-owned green industry arm, UEM Lestra Bhd, has inked a shareholder agreement with Hexa Renewables Malaysia Sdn Bhd to form a joint venture (JV) company, Lestra Hexa JV Sdn Bhd — 51%-controlled by UEM Lestra and 49%-owned by Hexa Renewables. 

Concurrently, Lestra Hexa JV has inked a technical partnership agreement with Itramas, which will see Itramas providing technical services in developing a complete engineering, procurement, construction and commissioning (EPCC) package for the JV.  

According to UEM Group, Itramas is Malaysia’s largest vertically integrated solar plant developer, EPCC and service provider, while solar and wind project developer Hexa Renewables is a portfolio company of US-based infrastructure investor I Squared Capital. 

Besides formalising the partnerships, UEM Group managing director Datuk Mohd Izani Ghani said the trio has also secured suitable land in Segamat, Johor where the 500MW hybrid solar power plant will be housed. 

“I’m pleased to also share that engagements with potential off-takers for the first 500MW solar power plant have been positive and we will be firming up the details in the coming months. 

“In addition, we will be working with the government on the details of the Third Party Access (TPA) framework that will enable this project to go live,”said Mohd Izani, who is also the chairman of UEM Lestra, in a statement .

Itramas managing director Lee Choo Boo said the development and finalisation of the TPA framework, along with engagements with potential off-takers, are pivotal in shaping the project’s immediate impact, transitioning the trio’s plans into action.

“The team has been working relentlessly to come this far and will continue to leverage on our collective strengths and experience in developing and executing projects of this scale,” Hexa Renewables CEO Vince Choi added.

Touching on the remaining 500MW to be developed under the national flagship 1GW hybrid solar PV project, Mohd Izani said discussions with its other partners are ongoing and an update will be provided in the near future. 

The 1GW hybrid solar PV plant was announced under the government’s National Energy Transition Roadmap (NETR) launched back in July last year, which will be integrated with a renewable energy (RE) industrial park. 

Likewise, in July last year, UEM Group established a RM7 billion sustainable and responsible investment sukuk programme to finance investments to be undertaken by UEM Lestra. 

On the sukuk programme’s establishment, the group said it aims to grow its current assets organically and form strategic partnerships, such as JVs, to execute projects in four sectors, namely RE and storage, integrated energy solutions, green or electric mobility, and waste management and recycling. 

Source: The Edge Malaysia

UEM Group inks deal with Itramas, Hexa Renewables to develop 500MW hybrid solar plant in Johor

The Ministry of Energy Transition and Public Utilities via the Sustainable Energy Development Authority (SEDA) has approved the development for the implementation of 22 renewable energy (RE) projects from biogas and biomass with a capacity of 36.534 megawatts (MW).

In a statement today, the ministry said the green electricity under the Feed-in Tariff (FiT) mechanism would be supplied to Tenaga Nasional Bhd (TNB) as early as 2027.

“In support of the country’s energy transition aspiration of 70 per cent RE capacity mix in electricity supply by 2050, the government has announced the offer and opening of FiT applications through e-bidding for three RE sources namely, biogas, biomass and mini hydropower from July 5 until 26, 2023,” the ministry said, adding that 34 applications have been received.

It said the technical and financial evaluation has been conducted by SEDA Malaysia and 22 applications that fulfilled the technical and financial criteria have been approved.

The ministry said this encompassed 21 projects with a total quota of 29.534 MW for the generation of green electricity generation from biogas and one project with a quota of seven MW for electricity generation from biomass.

It said the approval for the implementation of the new RE projects under the FiT mechanism would diversify RE generation sources other than solar and further increase the reliability of the nation’s electricity supply.

“At the same time, the development of these approved RE projects is expected to create new investment value in the RE industry of up to RM372 million,” it added. 

Source: Bernama

Govt approves 22 RE projects with a total capacity of 36.534 MW

Plantation and healthcare outfit TDM Bhd, a subsidiary of the Terengganu state government, has invested RM29.1 million to build two hospitals this year. 

Its executive director Najman Kamaruddin said the group’s healthcare sector contributes more than 50% to the overall profits and the two new hospitals are expected to increase the profits considerably.

“An investment of RM14.1 million is allocated for the construction of the 100-bed KMI Chukai Medical Centre in Kemaman, while Razif Hospital in Klang, Selangor involves an investment of RM15 million for the takeover process.

“Both of these hospitals will be managed by TDM’s subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare),” he said during a press conference after presenting RM2.9 million to the Terengganu State Heritage Trust Fund Board, which is part of the company’s joint venture profit agreement for 2022, at Wisma Darul Iman here on Wednesday.

Najman also said the group plans to expand its medical network on the East Coast in the next five years, as an effort to meet the increasing demand for the health services offered by TDM.

“So far, there are five hospitals under the KMI Healthcare network, namely the KMI Kuala Terengganu Medical Centre in Terengganu; the KMI Kuantan Medical Centre in Pahang; the KMI Kelana Jaya Medical Centre in Selangor, the KMI Taman Desa Medical Centre in Kuala Lumpur, and the KMI Tawau Medical Centre in Sabah.

“We do not have a branch in Kelantan. So, we plan to create an ‘East Coast Belt’ within the next five years to meet customer demand and continue to compete in the healthcare sector in Malaysia,” he said.

Najman said that in addition to healthcare, TDM will maintain its focus on plantations, which is the company’s second focus sector.

“The company will continue to focus on increasing sales of Certified Sustainable Palm Oil (CSPO) and Certified Sustainable Palm Kernels (CSPK) to take advantage of its high premium rate.

“In 2022, the plantation sector was the main contributor to the company’s profits, but the low price of palm oil last year caused income from the plantation sector to decrease compared to healthcare,” he said.

Source: Bernama

TDM expands healthcare network, invests RM29.1 mil for two new hospitals

JOHOR Medical Tourism Council (JMTC) will maximise its efforts to attract medical tourists from around the world this year, says Johor tourism, environment, heritage and culture committee chairman K. Raven Kumar.

He said the council, which was set up less than two years ago, would hold a meeting soon to outline strategies for 2024.

“We will consider the views of representatives from hospitals and other industry players,” he said.

He added that the recent move to give visitors from China and India 30-day visa-free travel would further boost the sector.

“A majority of our medical tourists are from Indonesia but we also want to promote our services to other Asian countries this year.

“We will reach out to other regions too in the near future,” said Raven.

He said the council was looking into visiting other countries to promote Johor as a medical tourism hub.

“Last year, we visited Batam in Indonesia for this purpose.

“For 2024, we will look into exploring other places,” he said.

Meanwhile, Tourism Johor director Sharil Nizam Abdul Rahim said the state’s excellent hospitals and accommodation options were among the reasons attracting medical tourists to the state.

“The cost of medical services in Johor is also significantly lower compared to the cost in other countries.

“On top of that, we have a wide variety of hotels and homestays that fit the budgets of tourists from all walks of life.

“It is also easy for them to travel around the state with the availability of public transport and ehailing services,” he said.

Source: The Star

State to strengthen medical tourism sector

BDB Land Sdn Bhd, a wholly owned subsidiary of Bina Darulaman Bhd (BDB), has forged a cooperation with Enfiniti Escapes (M) Sdn Bhd with the signing of a memorandum of understanding (MoU) to undertake developments for the eco-tourism sector in Langkawi.

BDB executive director Raja Shahreen Raja Othman said that under the MoU, both parties plan to form a joint venture to develop forest chalets or eco-tourism-concept developments at Darulaman Sanctuary, Lubuk Semilang, in Langkawi.

“The development plan is on a 4.04-hectare plot at Darulaman Sanctuary whereby BDB Land will carry out a detailed study to identify the area that will be developed while Enfiniti Escapes will focus on the overall concept as well as design development based on research implemented by BDB Land.

“To ensure that the development is in line with the objectives of conservation and sustainable environment, BDB Land will work with FRIM Incorporated Sdn Bhd to get its advisory services and expertise,” he told a press conference after the MoU signing ceremony here today.

Raja Shahreen signed on behalf of BDB Land while Enfiniti Escapes was represented by Enfiniti Group of Companies president Puan Sri Tiara Jacquelina.

Also present were Enspire Ventures chairman Tan Sri Mohd Effendi Norwawi, Langkawi district officer Mohamad Subhi Abdullah and Kedah State Development Corporation chief executive officer Datuk Isahak Murat.

Raja Shahreen said the joint-venture development is another continuing effort carried out by BDB through BDB Land to create new attractions in Langkawi which indirectly would help the state government develop the resort island.

“Hopefully, this latest joint-venture will propel the name and give value-add to Darulaman Sanctuary and Langkawi particularly involving the eco-tourism sector to local and foreign tourists,” he said.

Meanwhile, Tiara Jacquelina said the areas surrounding Darulaman Sanctuary, Lubuk Semilang could become the new attraction to offer to the public, similar to Tiarasa Escapes, Janda Baik in Pahang.

“My observation is that Langkawi still doesn’t have forest chalets like in Tiarasa Escapes, hence, this is a good opportunity and the concept is also different. We will study to see what eco-tourism products are suitable to be developed here,” she said.

Source: Bernama

BDB, Enfiniti Escapes to develop eco-tourism projects in Langkawi

Malaysia and China will sign a memorandum of cooperation (MoC) to enhance smart city and smart home capabilities.

Housing and Local Government Minister Nga Kor Ming said that during his recent visit to Beijing, he met with China’s Housing and Urban-Rural Development Minister Ni Hong.

“Both countries have agreed to sign a MoC in terms of smart home features and smart cities because China has a lot of leading technology in this respect. So, it is good for us if we can get some transfer of technology, whereby it will help and improve our housing quality,” he told reporters after the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) Power Chat 2.0 yesterday.

In conjunction with the 50th anniversary of diplomatic relations between Malaysia and China recently, Prime Minister Datuk Seri Anwar Ibrahim has sent a letter inviting China president Xi Jinping to visit Malaysia.

Nga disclosed that details on the MoC “are almost completed” and hoped to ink the proposed memorandum during the proposed official visit by the Chinese president.

When asked on the expected date of the visit, Nga said this matter has to be referred to the Ministry of Foreign Affairs but hoped that it would occur within the year.

Commenting on the Cabinet retreat today and tomorrow in Cyberjaya involving all ministries, he said every ministry must submit at least six new initiatives aimed to benefit the citizens and to focus on the economic development as “2024 is a very crucial and important year for the nation”.

Nga said his ministry has prepared a list consisting of 12 new initiatives involving affordable housing, circular economy, reurbanisation and renewal of dilapidated public housing, among others.

He also disclosed that China has invited Malaysia to organise and host the China-Asean housing ministerial meeting to be held in Kuala Lumpur Convention Centre. He added that “details will be announced soon”.

Meanwhile, ACCCIM president Tan Sri Low Kian Chuan said the chamber is working closely with government agencies and policy makers to tackle unnecessary bureaucracy and create conducive business environment for both domestic direct investment and foreign direct investments, to improve the ease of doing business, particularly crucial now, given the intensifying competition from the regional economies and Regional Comprehensive Economic Partnership member countries.

“In this connection, all ministries and government agencies, particularly the local authorities in various states, should act in a concerted and coordinated manner to ensure that the policies and programmes laid out at the federal government level could be implemented speedily on the ground to produce wider economic impact and benefits for the people. States, especially local authorities, must play an effective role in facilitating efforts and macro policy direction set by the federal government,” he said.

Source: The Sun

Malaysia, China to sign pact on enhancing smart city, smart home capabilities

IJM Corporation Bhd (IJM Corp) today announced that it is taking a 25 per cent interest in the developer of Shah Alam International Logistics Hub (SAILH) and buying a 11 acre freehold site in Hertfordshire County, England for redevelopment.

IJM’s wholly-owned subsidiary, IJM RE Sdn. Bhd., signed a share sale agreement with fully-integrated logistics provider, Swift Haulage Bhd, and Hartamas Mentari Sdn Bhd, acquiring a 25 per cent stake in Global Vision Logistics Sdn. Bhd. (GVL) which is developing SAILH.

The acquisition follows the RM653.6 million construction contract win by its construction arm, IJM Construction, in June last year, and is part of its strategy to expand into the industrial property sector.

“Our investment in GVL and SAILH is a strategic move to address the increasing demands of the logistics sector, spurred by e-commerce growth and supply chain diversification. This decision not only expands IJM’s industrial property portfolio, focusing on high-value assets that generate recurring income, but also reflects our expertise in infrastructure and construction. By integrating our investment strategies with hands-on project execution, we are enhancing our ability to meet diverse industry demands, further establishing IJM as a versatile solutions provider across diverse industries,”  IJM Corp Group CEO and managing director Lee Chun Fai said in statement.

SAILH, set to be one of ASEAN’s largest and Malaysia’s first green-certified logistics hub, located on a 71-acre site in Shah Alam.

It complements IJM’s other investments in Exio Logistics Sdn. Bhd for two logistics hubs in the City of Elmina, Shah Alam and in the Malaysia China-Kuantan Industrial Logistics Park.

The first phase of SAILH, which commenced construction in September last year, includes a four-storey warehouse complex, multi-level parking and office space with ancillary buildings.

Set for completion in 2025, it will offer 2.8 million square feet of space.

Plans for the second phase are underway, bringing the total warehouse space to about six million square feet when all phases are completed.

Meanwhile, IJM’s property arm IJM Land has bought an 11-acre brownfield site, known as The Wheat Quarter (North Site), that has been approved for 811 homes and 150,000 square feet of mixed-use space.

This development follows its Royal Mint Gardens project in Central London and partnership with Network Rail.

“These investments in Malaysia and the UK reflect our strategic vision to strengthen IJM’s footprint in the logistics sector and international property development. We are committed to delivering innovative and sustainable solutions in these key markets,” Lee said.

Source: NST

IJM Corp takes 25pc interest in Shah Alam International Logistics Hub, buys 11-acre property site in England