The Malaysia Digital Investment Strategy (MDIS) (formerly Digital Investments Future5 Strategy or DIF5) has attracted investments totalling RM224.72 billion since its launch in 2021 until the third quarter of this year.

Digital Minister Gobind Singh Deo said MDIS, implemented by his ministry through Malaysia Digital Economy Corporation (MDEC), has created 95,879 new job opportunities up to the last quarter.

“The achievement reflects investors’ confidence in Malaysia as an investment destination for digital technology companies,” he said during the question-and-answer session in Dewan Negara on Monday.

He was replying to Senator Rita Sarimah Anak Patrick Insol, who wanted to know the ministry’s achievement to date through the DIF5 Strategy aimed at creating 50,000 high-value jobs as well as the challenges faced in implementing this strategy.

Gobind said the Digital Ministry, through MDEC, provides several programmes to tackle the digitalisation challenges.

He said that as of November 2024, the Malaysia Digital (MD) Workforce Training Directory offered 219 well-received courses and certification programmes which were specially created and recognised by digital industry experts, including on artificial intelligence (AI), data science, cyber security, animation and cloud computing.

“The MD Workforce Training initiative, which has attracted a total of 4,644 participants as of November, is aimed at encouraging local workers to enhance their skills as well as providing retraining in courses or certification programmes related to technology such as AI, cloud storage, data science and animation.

“(Meanwhile,) the MD Workforce Place & Train programme has seen 2,481 participants up to November this year. It is aimed at empowering unemployed individuals with advanced digital skills such as digital marketing, cyber security and data centre aspects in collaboration with selected industry partners,” he added.

Meanwhile, Deputy Investment, Trade and Industry Minister Liew Chin Tong told Dewan Negara that the government has approved total investments of RM1.1 trillion in the manufacturing, services and primary sectors in the 2020-2023 period.

This involved 18,945 projects that are expected to create 487,648 new job opportunities, he said.

Liew disclosed that of the approved investments, foreign investments amounted to RM624.6 billion (58.1%) while domestic investments totalled RM449.5 billion (41.9%).

“The five states that attracted the highest investments during 2020-2023 were Penang (RM187.8 billion or 17.5%), Selangor (RM183.7 billion or 17.1%), the Federal Territory of Kuala Lumpur (RM138.1 billion or 12.9%), Johor (RM137.9 billion or 12.8%) and Kedah (RM115.2 billion or 10.7%).

“They (collectively) accounted for 71% of the overall approved investments for the period,” he said in response to a query from Senator Manolan Mohamad who wanted to know the total foreign direct investment and domestic direct investment from 2020 to 2023 as well as investments for each state.

Source: Bernama

Malaysia’s digital investment strategy attracted RM224.7b in investments since 2021, created nearly 96,000 jobs — Gobind

SOUTH-EAST Asia is a data centre goldmine, and Malaysia is poised to seize a significant share. But to truly compete with regional rivals like Singapore, we need to refine our strategies and double down on our strengths.

Singapore’s established Green Data Centre Standard has set a high bar for the region, attracting environmentally conscious companies with its clear focus on energy efficiency.

While Malaysia is developing its own Power Usage Effectiveness guidelines, we have a unique opportunity to leapfrog ahead by incorporating cutting-edge sustainability practices from the outset. This could position Malaysia as a leader in green data centre development.

On cybersecurity, both nations recognise the critical importance of protecting sensitive data. Malaysia’s newly enacted Cyber Security Act 2024 provides a foundation, but its effectiveness remains to be seen. Given its recent implementation, it’s crucial to ensure robust enforcement and proactive engagement with industry.

This will not only address potential vulnerabilities but also build confidence that Malaysia is committed to creating a secure and trustworthy environment for data centre operations. A clear demonstration of this commitment will be essential for attracting global players and investors in the data centre sector.

Both countries require environmental impact assessments (EIA) for large-scale data centres. Malaysia’s EIA process, however, is based on legislation from 1974 – long before the data centre boom. While this provides a general framework, we need to develop more tailored assessment criteria that addresses the specific environmental challenges posed by data centres, including energy consumption, water usage and waste management.

Singapore’s Call-forapplication scheme streamlines planning and aligns growth with sustainability goals. Malaysia can create an equally effective system, tailored to our unique context, providing clarity and efficiency in the development process to attract greater investment.

Malaysia has all the ingredients for success in the data centre arena: strategic location, robust infrastructure and a growing tech talent pool. By strategically refining our regulatory landscape and showcasing our commitment to sustainability and security, we can unlock our full potential and become a global data centre leader.

Source: The Star

Malaysia’s data centre potential

Denmark is deeply committed to supporting Malaysia’s green transition through knowledge, strong public-private partnerships, and investments, said Danish Foreign Minister Lars Løkke Rasmussen.

He said Danish companies are eager to contribute Danish solutions to Malaysia through the newly established Green Transition Alliance, which will be a part of Denmark’s future strategic activities in this country.

“The Alliance aims to support Malaysia’s green transition by bringing together green thought leaders, expertise from Denmark’s green transition journey, and key local stakeholders to explore joint public-private opportunities,” he said during the reception at the official reopening of the Royal Danish Embassy in Malaysia here on Wednesday night.

According to Rasmussen, there is already a strong Danish commercial presence in Malaysia, particularly in the renewable energy, green fuels, energy efficiency, and water and waste management sectors.

The Embassy of Denmark in Kuala Lumpur, in a posting on its Facebook page, said Rasmussen launched the Green Transition Alliance – a partnership to foster even closer cooperation within green transition – during his two-day visit here.

The Alliance will provide a strong platform for Danish companies to showcase solutions that can help fulfil Malaysia’s ambitious goal of carbon neutrality by 2050, the posting added.

Rasmussen noted that Malaysia and Denmark have a longstanding partnership on sustainable development – from the Danida Environment Programmes which started in the 1990s and ran until 2010 – to the current Memorandum of Understanding on Food and Agriculture.

On the reopening of the Royal Danish Embassy here, the Foreign Minister said it demonstrates Denmark’s strong wish to strengthen bilateral ties, seize upcoming opportunities, and build on the great potential of both countries’ growing collaboration.

“Malaysia is too important for us not to be here,” he added.

The Royal Danish Embassy here was closed in 2021 before resuming in August this year.

Between January and October 2024, Malaysia’s total trade with Denmark has increased by 12.9 percent to RM2.19 billion (US$1=RM4.45), compared with the corresponding period in 2023.

As of June 2024, there are more than 100 Danish companies in Malaysia, with investments in the manufacturing sector valued at over RM2.2 billion, creating 5,024 job opportunities, according to Malaysia’s Foreign Ministry.

Source: Bernama

Denmark pledges support for Malaysia’s green transition initiatives

Penang has attracted patients from across the globe, particularly from Indonesia, Singapore and China as the state has emerged as a leading hub for medical tourism in Southest Asia over the last 10 years.

Chief Minister Chow Kon Yeow said it is because Penang is renowned for its world-class healthcare facilities, skilled medical professionals and competitive pricing besides offering a blend of high-quality medical care and the allure of vibrant tourist destinations.

“It’s attracting patients from across the globe and the numbers are growing exponentially. Over the years, this has triggered ripple effect in both incoming foreign direct investment (FDI) and (DDI) for the MedTech sector in Penang.

“As a result, we have seen rapid growth of a new industrial cluster,” he said in the Penang Adventist Hospital 100th Anniversary Celebration here on Thursday night.

Chow pointed out that Penang Adventist Hospital’s reputation, particularly in specialised treatments and surgical procedures, has helped position the state as one of the leading medical service providers in the region.

Meanwhile, the Adventist College of Nursing and Health Sciences has created opportunities for youth, contributing to Penang’s talent pool while ensuring the healthcare sector remains competitive, he said.

Penang generates 45% of Malaysia’s revenue in the medical tourism sector and is the number one in the sector.

Source: Bernama

Penang has emerged as leading hub for medical tourism in Southeast Asia — Chow

Malaysia has experienced a transformative shift in its technology (tech) landscape this year marked by historic investments, visionary initiatives, and forward-thinking policies that are reshaping the nation’s digital and tech ecosystem.

Malaysia has emerged as a regional leader in the digital economy, attracting global attention and reaffirming investor confidence in its potential.

In a landmark year, global technology powerhouses including Amazon Web Services (AWS), Google, and Microsoft committed or expanded investments amounting to a staggering US$16.9 billion (RM74.80 billion), further cementing Malaysia’s position as a prime destination for tech-driven growth.

Unprecedented Investments in Malaysia’s Tech Ecosystem

AWS has announced its commitment of US$6.2 billion (RM29.2 billion) to establish the AWS Asia Pacific (Malaysia) Region as part of its long-term commitment until 2038.

This investment is expected to contribute US$12.1 billion (RM57.3 billion) to Malaysia’s gross domestic product (GDP) by 2038 and create 3,500 full-time jobs annually.

This follows several other investments announced since December 2023 by global tech leaders such as Nvidia, Google, Microsoft, Infineon and many more.

Among others, Microsoft announced an investment of US$2.2 billion (RM10.5 billion) in the country’s cloud and artificial intelligence (AI) segment over the next four years.

Its chief executive officer Satya Nadella said Malaysia is a rapidly growing market on GitHub, the Microsoft-owned software development, collaboration and innovation platform, with almost 680,000 of the nation’s developers using GitHub in 2023, representing 28 per cent year-on-year growth.

Four weeks after Microsoft announced its investment in Malaysia, the tech giant Google is also set to invest US$2 billion (RM9.4 billion), including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, and Al literacy programmes for students and educators.

Its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030, with the data centre powering its popular digital services, such as Search, Maps, and Workspace, which are used daily by billions of people and organisations worldwide, including in Malaysia.

Additionally, the United States-based Enovix Corporation, which inaugurated its first high-volume battery manufacturing facility (Fab2) in Malaysia on Aug 8, plans to invest a total of US$1.2 billion (RM5.8 billion) in Malaysia over the next 15 years.

Collectively, proposed investments from US tech firms, including Google, AWS, Microsoft, and Enovix Corp, amounted to US$14.7 billion (RM63.02 billion).

At the recent APEC CEO Summit in Peru, Google and Microsoft commended Malaysia’s efforts in developing its AI infrastructure and roadmap.

Google vice-president of government affairs and public policy Karan Bhatia highlighted that Malaysia’s strategic approach to AI infrastructure was a key factor behind Google’s decision to invest in a data centre in the country

Similarly, Microsoft vice-president of data and AI Zia Mansoor lauded Malaysia’s progress, particularly in creating the national artificial intelligence roadmap.

Record-breaking Digital Investment Milestones

Malaysia’s digital economy is poised to reach US$31 billion (RM138.4 billion) in gross merchandise value in 2024, an increase of 16 per cent from 2023.

In the first half of 2024, the Malaysia Digital initiative, led by the Malaysia Digital Economy Corporation (MDEC), achieved unprecedented success.

Approved digital investments reached RM66.22 billion, surpassing the total recorded in the financial year of 2023, created 25,498 high-skilled jobs and generated RM1.94 billion in export opportunities, representing a 43 per cent increase from the previous year.

As for digital export, as of June 2024, MDEC’s partnerships and business matching programmes have garnered export opportunities worth more than RM1.94 billion, involving 228 companies in 11 countries.

This is an increase of over 43 per cent from the export opportunities value for the first half of 2023 (RM1.35 billion).

Major Frameworks Developments On Jan 2, the government launched the Central Database Hub (PADU) as a part of the effort towards “govtech” (government tech) via the provision of a safe, comprehensive, and “near real-time” national main database, allowing the production of more accurate data analytics.

Meanwhile, on May 28, Prime Minister Datuk Seri Anwar Ibrahim unveiled the National Semiconductor Strategy to realise the country’s aspiration to become a major global player in technology powered by the semiconductor industry.

Under the strategy, Malaysia is set to woo at least RM500 billion of investments during the plan’s first phase. In addition, the National Cloud Policy is expected to fuel economic expansion by enabling businesses, strengthening user trust and data security, and empowering citizens through digital inclusivity.

The government also aims to position Malaysia as a hub for generative AI.

Thus, AI and investments from tech partners will be critical in building a robust and secure digital infrastructure.

Looking ahead, the MADANI government has proposed an allocation of RM10 million for the National AI Office and an increase in research and development funding to RM600 million under Budget 2025.

Additionally, RM50 million has been earmarked to enhance AI-related education at research universities, while RM20 million will go to Universiti Teknologi Mara to train more electrical and electronics engineers.

These initiatives underscore the government’s commitment to strengthening participation in critical growth sectors like the semiconductor sector.

With Malaysia continuing to attract significant investments, the Ministry of Digital remains confident that the digital economy will achieve, or even surpass, its target of contributing 25.5 per cent to Malaysia’s GDP by the end of 2025.

Source: Bernama

Malaysia’s tech sector powered up with unprecedented investments in 2024

Prime Minister Datuk Seri Anwar Ibrahim stressed on Thursday that building a strong digital ecosystem through the establishment of the National Artificial Intelligence Office (NAIO) is a must in a bid to elevate Malaysia to a high-income nation status.

Speaking at the NAIO launch on Thursday, Anwar said this is because the status of a high-income nation can only be achieved if driven by digital use.

“Some 20, 30 years ago, when I helmed the Ministry of Finance, these things were only considered an initiative, a beginning, but it has now become a must that is called empowerment.

“That is why I once again emphasise why we (Malaysia) are among the first few countries in the world to have a Digital Ministry, because this will determine the success of our country,” he said.

Anwar also described the establishment of the NAIO as a historic moment, and a testament to the country’s determination and commitment to implement digital transformation, thus driving Malaysia to the level of an innovative country.

Anwar, however, said the effort should start with increasing digital literacy among all segments of society, starting from basic education, universities and the public service.

He said that early digital exposure can bring a paradigm shift to national management and avoid bureaucracy, especially in the public service.

“Of course, we accept the fact that the old ways and methods of doing work must undergo a transition or paradigm shift, which requires approach and systemic change.

“We cannot, for example, aspire to make Malaysia a digital country but be bound by the old, outdated framework of thought; what more, if we want to involve, for example, large companies.

“This is because large companies will not bring good to the country, if they do not integrate with civil servants, SMEs (small and medium enterprises) and MSMEs (micro, small and medium enterprises), which must also be encouraged (to go digital), so as to provide and implement innovative solutions that require them to bring about change,” he said.

Meanwhile, the prime minister also expressed hope that 50,000 students can be trained in the field of AI, programming and data analysis, through the MyMahir platform by the end of 2025.

He said that training the capabilities of local children is important in shaping the country’s AI values ​​and ethics, based on the true Malaysian identity.

“That is why we must train local children to provide input (in the programming and data analysis), so that whatever is generated by AI will also include our input, not just based on the input from the West, or the East, or any other systems, but something specific from us,” he said.

Source: Bernama

PM: Strong digital ecosystem via National AI Office will help Malaysia become high-income nation

Solarvest Holdings Bhd is partnering with Singapore-based renewable energy (RE) company, Vista Contracting and Investment Global Pte Ltd, to jointly develop rooftop and utility-scale solar projects in Malaysia, Brunei, Taiwan and Cambodia.

In an exchange filing on Thursday, Solarvest said it has entered into a Memorandum of Understanding (MOU) with Vista for the collaborations, which is effective for at least two years.

Vista is principally involved in the investment and development of RE projects, with a specific focus on rooftop and utility-scale solar power systems, according to Solarvest. The company specialises in the promotion, implementation and management of solar energy solutions.

“The parties [Solarvest and Vista] desire to combine their expertise and experience to ensure commercial and strategic advantages,” it said.

Currently, the MOU is not expected to have any material impact on Solarvest’s earnings for the financial year ending March 31, 2025.

“Upon the successful implementation and fulfilment of the proposed collaboration, it is expected that the proposed collaboration will contribute positively to the future financial performance of Solarvest,” it added.

Shares in Solarvest closed one sen or 0.61% lower at RM1.62 on Thursday, with a market capitalisation of RM1.17 billion.

Source: The Edge Malaysia

Solarvest partners Singapore RE firm to develop rooftop solar projects for Asian markets

The development of a data centre in Bagan Datuk, Perak, slated to commence in the third quarter of 2025, is set to be a game-changer for Malaysia in its bid to be a major player in the global digital economy, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the project, undertaken by MARA Incorporated Sdn Bhd and FELCRA Berhad, is a critical infrastructure that will support modern business operations and create opportunities in sectors such as financial services, e-commerce and high-tech industries.

“The establishment of the Fourth Tier Data Centre in Bagan Datuk will demonstrate that this district has the potential to thrive in the technology sector, on par with metropolitan hubs around the world.

“This world-class facility also has the potential to attract foreign investments, particularly from multinational corporations, further solidifying Malaysia’s position as a regional technology hub,” he said.

Ahmad Zahid said this during the signing of a Memorandum of Agreement (MOA) between MARA Incorporated and FELCRA for the data centre development in Bagan Datuk, held at Sofitel Hotel today.

Ahmad Zahid, who is also the Member of Parliament for Bagan Datuk, highlighted that the strategic location not only suits the requirements of a data centre but could also catalyse economic transformation in nearby rural areas, providing significant economic benefits to local communities.

He noted that this would not be Malaysia’s first data centre project. A few months ago, Prime Minister Datuk Seri Anwar Ibrahim officiated at the groundbreaking ceremony of a RM8.2 billion Google Cloud data centre in Selangor.

According to Ahmad Zahid, this development aligns with an October report by RHB Research predicting that Malaysia could become the largest data centre hub in ASEAN, with inventory expected to reach four gigawatts (GW) within four to five years.

“This development strengthens Malaysia’s position as the fastest-growing data centre location in the region. It not only drives digital economic growth but also serves as a catalyst for the country’s transition to Renewable Energy (RE),” he said.

Ahmad Zahid, who is also the Minister of Rural and Regional Development, added that the project, expected to be completed within 10 years, will generate job opportunities across various fields, including technical, construction and management sectors.

Source: Bernama

Bagan Datuk data centre to be a game-changer for digital economy – Ahmad Zahid

OCK Group Bhd has entered into a conditional investment agreement to invest RM350mil in Solarpack Asia Sdn Bhd (SPK Asia), and indirectly in Solarpack Suria Sungai Petani Sdn Bhd (3SP), of which SPK Asia holds a 49% stake in.

3SP is the developer, owner and operator of a 116 megawatt (MW) operational solar photovoltaic (PV) plant located in Sungai Petani, which was awarded under the third large-scale solar programme (LSS3).

OCK Group said the proposed investment is in line with its business expansion strategy, as it intends to focus on growing its solar energy related business by taking proactive approaches to capitalise on the growing demand for renewable energy solutions.

The deal will see OCK Group subscribing to 1,000 redeemable preference shares in SPK Asia to be issued by the latter, which would then confer on OCK Group the right to be paid, out of profits of SPK Asia, a dividend amount to be determined and approved by the board of directors of SPK Asia.

The investment consideration is determined based on a value of RM350mil that is subject to working capital, debt, cash and cash equivalents adjustments to be determined based on steps in the agreement.

OCK Group said the agreement is justifiable after considering the valuation of an independent business valuer who estimated the enterprise value of 3SP to be between RM344.7mil to RM350.7mil.

In a filing with Bursa Malaysia, OCK Group said the investment would be funded through internally generated funds and bank borrowings.

3SP is principally involved in designing, constructing, ownership, operation and maintenance of a 90.88 MW solar PV power plant in Sungai Petani.

The solar PV power plant commenced commercial operations on March 8 2022, with the company having secured a 21-year power purchase agreement with Tenaga Nasional Bhd, awarded under Malaysia’s LSS3 Scheme in 2022, of which is due for expiry in March 2043.

Commenting on the prospects of the investment, OCK Group said the proposed deal will increase its total solar generation assets.

Source: The Star

OCK Group to invest RM350mil into solar PV entity

China-based telecoms equipment giant ZTE Corporation is set to invest RM200 million in Malaysia to establish two innovation centres and introduce the latest 5G technology through collaborations with local operators. 

ZTE will also position Malaysia as a digital hub, while building a regional centre of excellence for its global operations, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz’s post on X (formerly Twitter).

“ZTE Corp is a major player in China’s 5G market, commanding approximately 35% of the market share. Notably, 95% of ZTE’s 5G equipment relies on chips sourced from Malaysia, underscoring the country’s importance to ZTE’s global operations,” said Tengku Zafrul.

He added that the Ministry of Investment, Trade and Industry (Miti) remains committed to supporting investments in high-tech sectors, in line with the objectives of the New Industrial Master Plan (NIMP). 

Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim posted on his X account that he received a courtesy visit from the ZTE Global delegation, led by its chief executive officer Xu Ziyang.  

The discussions during the meeting focused on the critical role of 5G in driving economic growth, and positioning Malaysia as a hub for innovation, smart cities, and next-generation technologies. 

Anwar noted that ZTE has expressed its commitment to transform Malaysia’s digital landscape by enhancing rural connectivity infrastructure and bridging the urban-rural digital divide, supporting inclusive network development.  

ZTE’s technological prowess was demonstrated through a world-record 5G speed test, achieving an impressive 28Gbps (gigabits per second), Anwar noted. This milestone reflects the synergy between ZTE’s advanced network infrastructure capabilities and local expertise in digital technology, he added. 

ZTE, having operated in over 160 countries, has been present in Malaysia since 2004, driving 5G innovation with artifical intelligence (AI)-enabled solutions to enhance connectivity and economic development in the country, Anwar noted. 

Source: The Edge Malaysia

China-based ZTE to invest RM200m in Malaysia for development of innovation centres

Shipping diversions from the Red Sea have continued to weigh down on global trade, especially within the Asia to Europe regions, says Kenanga Investment Bank Bhd.

In a report, the research house said the diversion from the Suez Canal to the Cape of Good Hope had resulted in a longer voyage for the Asia-Europe route, which contributes to 30% of global container volume, thus reducing the frequency of calls to shipping lines.

“The World Trade Organisation (WTO) kept its projection for 2024 global merchandise trade volume growth at 2.6% and introduced 2025’s at 3.3%, but said the lower water levels in Panama Canal is also disrupting the movement of shipping liners,” it said.

Reports of extreme weather off Southern Africa’s shipping routes as well as the worsening situation in the Middle East is likely to further impact the movement of shipping liners with a possibility of further cuts in the WTO’s projection for global merchandise trade volume growth.

The report also said that stricter regulations on carbon emissions could pose more concerns to the seaport and logistics industry, particularly from the United Nations’ International Maritime Organisation (IMO) and the European Union (EU).

“While the exact implications of the regulation of IMO and EU’s Carbon Border Adjustment Mechanism on the seaport and logistics sectors remain unclear, the volume of containers heading to the EU will certainly be affected, especially those originating from China, which is a major exporter of iron, steel and aluminium to the EU,” Kenanga Investment said.

The research house said overall, the sector’s earnings saw a slight improvement in its recent third quarter results season with 25%, 25% and 50% beating, meeting and missing its forecasts, respectively, as opposed to 50% meeting and 50% missing its forecasts in the preceding quarter.

“Westports Holdings Bhd beat expectations with stronger earnings growth, despite only a marginal increase in container volume driven by the better yield from gateway cargoes and lower operating costs with recognition of lower depreciation cost,” it said.

Kenanga Investment said Swift Haulage Bhd also met its expectations and it expects a strong quarter ahead for the group as port congestion eases.

It noted that Bintulu Port Holdings Bhd’s results disappointed due to higher-than-expected operating and tax expenses, while Pos Malaysia Bhd’s results were also more subdued on poor cost containment, with its core net loss plunging further into the red.

Meanwhile, the report said on a positive note, the boom of eCommerce has continued on and is a bright spot in the domestically-driven third-party logistics sector, which is less vulnerable to external headwinds.

Kenanga Investment noted the boom will spur demand for distribution hubs and warehouses to enable just-in-time delivery as well as reshoring to bring manufacturers closer to end-customers.

“It will also enable an efficient automation system and warehouse decentralisation to reduce transportation costs and de-risk the supply chain.

“There is also strong demand for cold-storage warehouses on the back of the proliferation of online grocery startups,” it noted.

The research house said it will maintain a “neutral” call on the sector, but does not have any top pick at the moment.

Source: The Star

Logistics sector to benefit from eCommerce popularity

In recent years, Malaysia has emerged as a data centre powerhouse in the Asia-Pacific region, driven by a global surge in demand and an established data centre sector. 

With favourable conditions such as the availability of land, cheaper electricity, and an advantageous geographical location, the country has attracted numerous firms to establish data centre operations within its borders.

As interest surged, Tenaga Nasional Bhd, the national electricity provider in Malaysia, responded by launching the Green Lane Pathway initiative in 2023 to streamline power approvals for data centres, reducing lead time from three to four years to as short as 12 months.

Massive data centre growth

This effort paid off as the Malaysian data centre market took off, with RM114.7 billion investments in data centres and cloud services approved from 2021 to 2023. This propelled Malaysia into a data centre powerhouse, and further expansion is expected as the current supply is still insufficient to meet growing demand, according to Wan Murdani Mohamad, the vice-president of digital industry acceleration division at Malaysia Digital Economy Corporation (MDEC).

“Malaysia’s data centre industry is poised for significant growth over the next five years, driven by increasing demand for cloud services, digital transformation, and substantial investments from global tech companies, with a projected compound annual growth rate of 10% to 15%, positioning the country as one of the fastest-growing data centre markets in the Asia-Pacific region. 

“MDEC plays a pivotal role in this development through its Malaysia Digital (MD) initiative, which aims to establish the country as a key hub for artificial intelligence (AI) and data centres. By leveraging technological innovation to foster sustainable economic growth, MDEC is helping to position Malaysia as a leading destination for digital infrastructure and global investments, solidifying its role as a major player in the global digital economy,” said Wan Murdani.

Happy with its success but eager to cement its place as a strategic data centre hub in the Asia-Pacific, the Malaysian government is working hard to build an expansive data centre ecosystem. 

For a start, they are encouraging investments across related industries and seeking to leverage the growth of the data centre industry to support the country’s transition to renewable energy.

More importantly, Malaysia is positioning itself as an early mover in the white-hot AI field. The objective is simple: to place the country at the forefront of AI by leveraging the synergies between data centres capabilities and AI development. 

As Malaysia rises as a premier destination for AI, it aims to attract global technology firms looking to establish a base for cutting-edge research and innovation.

A focus on AI

The mandate for AI comes straight from Prime Minister Datuk Seri Anwar Ibrahim, who stated that the government is committed to positioning Malaysia as a sustainable AI data centre destination in Southeast Asia, strengthening its position as a leading global investment destination.

To achieve this, the Ministry of Investment, Trade and Industry (Miti) is developing special incentives for AI data centres. Minister Tengku Datuk Seri Zafrul Abdul Aziz noted: “The National Investment Council has agreed [for the Malaysian Investment Development Authority or Mida] to provide an incentive framework, including the use of energy and water-efficient equipment, as well as sufficient renewable energy to facilitate AI data centre investments in Malaysia.”

Malaysia itself is well positioned in AI. According to the “Government AI Readiness Index 2023” report by Oxford Insights, the Malaysian government has an excellent readiness score of 79.99%, while its total score across all three evaluated criteria is 68.71%, placing it in the top 25 countries globally.

Moreover, the growth of data centres is further bolstered by strategic investments in the semiconductor industry under the National Semiconductor Strategy (NSS). This initiative underscores the critical symbiotic relationship between the data centre and semiconductor sectors, as advancements in semiconductor technology drive efficiency and scalability in data centres. 

By prioritising semiconductor development, Malaysia strengthens its infrastructure for AI data centres and enhances its appeal as a sustainable and innovative destination for global investments. This supports Malaysia’s ambitious goals in the AI landscape, reinforcing its role as a leader in Southeast Asia’s digital and technological evolution. 

An eye on the future

As the amount of computing resources required for training cutting-edge AI models increases and more organisations turn to AI for a competitive advantage, the demand for AI data centres will only increase. 

The initiatives by the government will position the country to capture a significant share of this growing market, ensuring it remains at the forefront of technological innovation and economic growth in the region.

The government’s proactive approach to fostering a conducive environment for AI development is further bolstered by its strategic partnerships with public cloud giants, which have announced cloud regions in Malaysia and emphasised their AI offerings.

Ultimately, Malaysia is setting itself up as an AI hub by a judicious combination of investing in infrastructure, incentives, and creating a digital ecosystem for global tech companies to thrive.

Rizwal Zakaria is the Malaysian business development director of EdgeConneX, a global hyperlocal to hyperscale data centre solutions provider.

Source: The Edge Malaysia

How Malaysia is setting itself up as an AI hub

NationGate Holdings Bhd (NationGate) has achieved a significant milestone in its provision of data centre solutions, with the official launch of its latest artificial intelligence (AI) servers, powered by best-inclass graphics processing units (GPU) use at the forefront of the industry.

NationGate, an original equipment manufacturer (OEM) partner of a leading GPU company, will commit towards supporting the fast-growing data centre ecosystem in Malaysia and globally, beginning with the provision of these servers, benchmarked against the best equipment in the market, and associated tailored solutions to meet the diverse needs for generative AI and highperformance computing among customers, from startups to hyperscale data centres.

The launch, officiated by Deputy Minister of Investment, Trade and Industry (MITI), Liew Chin Tong, sees NationGate establishing itself as the first to manufacture such world-class servers produced in Malaysia.

As a trusted OEM partner, NationGate strives to ensure each and every AI server meets global standards for reliability, scalability, and ease of deployment.

NationGate managing director Datuk Ooi Eng Leong, said the venture would open doors for NationGate to expand its customer base both locally and across the region, as it positions at the forefront of the entry into AI-related services, and capitalising on the double digit percentage expansion per annum in data centre investments and construction market in Asean and globally.

In Malaysia alone, studies have shown that capacity for data centres are expected to more than double every two years for at least the next five years, making it crucial for the nation to localise the sourcing of technology and high-skilled workforce in order to fully capitalise the industry’s positive growth in the long-term.

“As a Malaysian company,

NationGate is able to provide one-stop service for AI servers and switching solutions while supporting the localisation agenda. NationGate’s strategic leap into AI and data centres underscores its commitment towards advancing technology, while fostering local innovation and economic growth by contributing towards supply chain investments and high-skilled employment opportunities which are essential to remain competitive in this fast-paced industry.

“As the first manufacturer in Malaysia of the industryleading servers sought by those in pursuit of digitalisation and better efficiency, we are hopeful towards providing the spillover effects of developing parts of the data centre value chain in the country including manufacturing and talent development, as part of the goals of the National Industrial Master Plan 2030 (NIMP 2030),” Ooi said.

This product launch is also more than just a milestone for NationGate, he added, but a statement of the Company’s vision for the future of AI.

“This milestone enables unparalleled solutions to businesses worldwide, driving efficiency and unlocking new possibilities, while making us well-positioned to capitalise on the strong AI server demand. We are very optimistic of our pathway towards growth in the data computing division, beginning with the provision of reliable and trusted AI servers for our customers,” he further added.

Source: Borneo Post

NationGate expands data centre solutions with advanced AI servers

Cypark Resources Bhd is partnering with the Terengganu state government to develop a 500 megawatt (MW) large hybrid hydro floating solar (HHFS) plant at Tasik Kenyir.

In a statement, Cypark said it has signed a heads of agreement for the joint venture (JV) with Terengganu Incorporated Sdn Bhd (Terengganu Inc), the state’s strategic investment arm.

The 500MW HHFS project is the first of its kind in Malaysia, harnessing Tasik Kenyir’s water for clean energy generation.

“It will be the single largest site in Malaysia that will combine solar energy production, battery storage, as well as unlocking the potential of Malaysia’s extensive bodies of water,” Cypark said.

The JV, it said, will be led by TNB Power Generation Sdn Bhd (TNB Genco), which will design, build and operate the plant. Design for the project is set to begin in 2025.

Terengganu Inc had launched the floating solar farm project, which is expected to generate up to 2,000 megawatts (MW) of electricity, on Sept 11. 

At the time, it was collaborating only with TNB Genco for the project. This came after the duo signed a memorandum of understanding (MOU) to undertake the feasibility study for executing the floating solar plant project at the lake back in July 2024.

With the latest agreement, Cypark has come into the picture and will partner Terengganu Inc to work with TNB Genco, according to Cypark’s executive director Muhammad Ashraf Muhammad Amir.

“Tasik Kenyir’s unique ecosystem provides the ideal setting for this innovative hybrid renewable energy solution. With solar energy now the most cost-efficient source of energy production, we know our projects will lead to a more efficient and resilient Malaysia,” said Cypark executive chair Datuk Ami Moris.

Terengganu Inc president and group chief executive officer Tuan Haji Burhanuddin Hilmi Mohamed Harun said the partnership underscores the state’s commitment to leveraging the state’s natural capital responsibly while driving inclusive and sustainable growth.

Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar previously announced that the floating solar farm at Tasik Kenyir is expected to produce 400MW of electricity within the next six months, at an investment of RM2 billion.

Shares of Cypark closed 2.5 sen or 2.8% higher at 90.5 sen on Friday, giving the group a market capitalisation of RM744.66 million. The stock has slipped 4.2% year-to-date.

Over the last six months, Cypark has delivered two of its solar farm projects after years of delay under the previous management.

Last month, the company started operations of its 98MW floating solar farm in Kelantan, after completing its 100MW hybrid solar plant project in Terengganu back in June.

Source: The Edge Malaysia

Cypark partners Terengganu govt to develop 500MW hybrid hydro floating solar plant

The data centre market in Southeast Asia has experienced robust growth over the last few years, driven by increased internet penetration, accelerating digital transformation, and rising demand for cloud services. 

According to DC Byte, data centre supply in the Southeast Asia 5 (SEA-5) markets of Malaysia, Indonesia, Thailand, Philippines, and Vietnam grew at a remarkable 70% compound annual growth rate over the last five years from 2018 to 2023.

And Malaysia sits at the forefront of this data centre growth. In the last two years, RM99 billion (US$21.7 billion) in data centre investments have been announced, with another RM149 billion in the pipeline, according to data from Malaysia Digital Economy Corporation (MDEC).

Rapid data centre growth

Part of this increase can be attributed to a spillover effect when Singapore enacted a moratorium on new data centres in 2019. Although this was lifted three years later, it was replaced with an initiative imposing new conditions and a selection process for data centres. This occurred amid growing demand, and led to a surge of investments in data centres in neighbouring countries.

As new data centres are built across Southeast Asia, Malaysia has gradually emerged as a front runner due to its affordable real estate, strong telecommunications infrastructure, and reliable power supply. 

To be clear, the Malaysian authorities have always been highly supportive of data centre developments, and have sought for years to position Malaysia as a regional hub.

More recently, the Malaysian Investment Development Authority (Mida) and MDEC have jointly established a Digital Investment Office. This office serves as a one-stop centre between the government and investors to coordinate and facilitate digital investments, accelerating the development of data centres. 

In 2023, the Ministry of Digital Communications was also split into the Ministry of Digital and Ministry of Communications to better focus on building the infrastructure needed to spearhead the country’s digitalisation efforts.

Various other government-backed schemes have also aimed to propel Malaysia forward as a leader in the digital economy, and enhance its attractiveness for data centre investments. These include MyGovCloud and Malaysia Digital.

Catalyst to growth

The consistent focus and a renewed push to develop a strong digital ecosystem have already yielded dividends. Malaysia recorded RM66.22 billion in investments in the digital sector within the first six months of this year, an amount that has already surpassed the value for 2023, according to Digital Minister Gobind Singh Deo.

The combination of favourable government policies and a sharp increase in opportunities has led to a surge of data centre investments and development in Malaysia. 

These investments have since grown and given rise to a vibrant data centre ecosystem and supporting industries, helping Malaysia to solidify its position as a data centre hub.

Already, public cloud giants have established or announced plans to build cloud regions in Malaysia. Amazon Web Services was the first to launch its Malaysian cloud region in August, with plans to invest RM29.2 billion through 2038. 

And earlier this year, Google committed to developing its first data centre and the establishment of a cloud region in Malaysia with a US$2 billion investment, while Microsoft said it will invest US$2.2 billion to advance new cloud and AI infrastructure in Malaysia.

Malaysia is also working to strengthen its position with a possible Johor-Singapore Special Economic Zone. The idea is to bolster economic ties between Malaysia and Singapore, creating a synergy that would attract more companies to invest in both Singapore and Johor in the south of Peninsular Malaysia. 

Ultimately, this would facilitate trade, stimulate economic activities, and create job opportunities on both sides of the border.

Building a data centre ecosystem

Currently, Malaysia’s data centre market development pipeline consists of a massive 1.2GW planned, representing 600% growth over the next five years. However, the country is not stopping here; it is actively working to support the continued growth of the vibrant supply chain ecosystem surrounding data centres. 

Malaysia already boasts a diverse range of industries, including semiconductors, data centre equipment manufacturing, cloud hyperscalers and AI data centres. By encouraging investments along the value chain, Malaysia aims to strengthen this ecosystem. This will allow data centre operators to source locally for faster time-to-market as well as provide high-value jobs through ecosystem integration.

Furthermore, the rapid growth of data centres also benefits other sectors such as the green energy sector.

According to MDEC, data centre investors are increasingly requesting renewable energy, preferably matching their consumption. This high demand for renewable energy offers Malaysia the opportunity to expand its renewable ecosystem, aligning with the government’s aim to reduce carbon emissions through its energy transition road map.

From data centres to AI hub

Data centres have become a strategic imperative in the AI era, as AI requires massive amounts of computing power and data to train, test, and deploy AI solutions and applications. And the modern, hyperscale data centres in Malaysia are ideally suited for the rise in generative AI workloads.

As demand for AI inference eventually surpasses AI training, some predict that future AI data centre will shift from the US and Europe to other regions with sizeable populations. In Southeast Asia, Malaysia is an ideal location as a new AI hub. 

The benefits of AI are set to extend far beyond just data centres. As Gobind told The Edge last month: “You have got industries that have problems which they can overcome using AI. That again is a solution that’s AI-based. You’ve got new companies that will build up. They will start, new economies will emerge, new industries will emerge.”

By encouraging data centre investments and facilitating the growth of its data centre supply chain, Malaysia is creating a robust ecosystem that supports AI development and attracts global tech giants to establish their AI operations locally. 

This strategic positioning not only bolsters Malaysia’s digital economy, but also enhances its global competitiveness in the rapidly evolving digital landscape, ensuring that Malaysia remains at the forefront of an AI-driven future.

Rizwal Zakaria is the Malaysian business development director of EdgeConneX, a global hyperlocal to hyperscale data centre solutions provider.

Source: The Edge Malaysia

The rise and rise of the Malaysian data centre hub

Prime Minister Datuk Seri Anwar Ibrahim has urged public universities, particularly those in the northern region, to give ample space for industry players to cooperate in exploring new disciplines related to high-tech industries.

Anwar stressed the importance of synergy between universities, industry players and the private sector, especially in developing the semiconductor industry as well as the related ecosystems, in line with Penang’s position as a semiconductor hub in the region.

He said that this was also to meet the country’s urgent need, which requires sufficient qualified engineers in high-tech industries, including the integrated circuit design industry.

“Universities must give the necessary space for the industry to come in a more aggressive manner. We make the necessary adjustments as time goes by but (the) best way to educate, train, upscale and rescale is to ensure the synergy, the working collaboration between the industries and the education institutions.

“It is important for the mission of education to ensure that this happens at a fast pace and the preparedness to adjust,” he said at the launch of the Penang Silicon Design @5km+ in Bayan Lepas near here on Saturday (Dec 7).

Anwar, also the Finance Minister, said that while political stability and clear national policies won’t have any difficulties in attracting investors, the issue of ecosystems still poses a challenge for them to invest in the country.

“Ensure the basic infrastructure is carried out at a fast pace. What is the training? Whether universities can focus on the new disciplines at a rapid pace.

“So, this is to remind USM (Universiti Sains Malaysia), UUM (Universiti Utara Malaysia) and related centres here in Penang, universities in Perak and Kedah, which could be utilised to ensure that these new disciplines must be approved at a fast pace,” he said.

He also expressed surprise with the ability of Universiti Teknologi Malaysia (UTM), which managed to approve the setting up of an Artificial Intelligence (AI) Faculty and start the programme within four months, which Anwar described as an extraordinary achievement in the country.

Meanwhile, Anwar also approved a matching grant of RM50mil for a five-year period, with RM10mil a year, for the Penang Silicon Design @5km+ initiative.

According to him, the Penang Silicon Design @5km+ initiative is a project that Penang can be proud of and one that is capable of boosting the economic strength of the state, and the country in general.

The Penang Silicon Design @5km+ initiative, which is spearheaded by the Penang government through its main agency, InvestPenang, was created to revolutionise the Malaysian semiconductor industry in line with the National Semiconductor Strategy (NSS).

This comprises three main components, namely the Integrated Circuit (IC) and Digital Design Park, Penang Chip Design Academy and Silicon Research and Incubation Space.

Among the objectives of the Penang Silicon Design @5km+ are to ensure that Penang remains the main hub for global IC design, thus strengthening Malaysia’s position in the international semiconductor ecosystem; develop an ecosystem and support infrastructure that is conducive and dynamic; create high-value employment opportunities; attract foreign direct investment; and enhance existing talent according to future industry needs.

Elaborating, Anwar said Penang has been known as a semiconductor centre for a long time and this Penang Silicon Design @5km+ initiative is a momentous occasion in the industry’s history to lift Penang and Malaysia to become a global semiconductor hub.

The total amount of investment for the Penang Silicon Design @5km+ is projected to be RM120mil for a five-year period and the state government has provided an allocation of RM60mil to drive this initiative.

Also present at the event were Finance Minister II Datuk Seri Amir Hamzah Azizan, Human Resources Minister Steven Sim, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Chief Minister Chow Kon Yeow. 

Source: The Star

Varsities need to give space for industry to explore disciplines with new technology, says Anwar

Perak is home to 21 large-scale solar (LSS) farms, with 18 already operational and three still under
construction, according to State Science, Environment, and Green Technology Committee chairman, Teh Kok Lim.

He said that the operational solar farms collectively generate a capacity of 532 megawatts (MW).

“Among those that are already operational are the Gading Kencana Sdn Bhd solar farm with a capacity of 30 megawatts (MW) in Bidor; Sinar Kamiri Sdn Bhd with a capacity of 49MW in Sungai Siput; Asia Meranti Solar (Kamunting) Sdn Bhd with a capacity of 9.9MW in Kamunting; Asia Meranti Solar (Kampar) Sdn Bhd with a capacity of 9.99MW and Redsol Sdn Bhd with a capacity of 30MW in Kerian,” he said during a question and answer session at the State Legislative Assembly sitting here today.

He was responding to a query from Mohd Akmal Kamarudin (PNSelama) regarding the number of large-scale solar farm sites in Perak and their total energy output.

Meanwhile, Teh highlighted that from 2021 until Oct 31 this year, Perak had planted 9,552,767 trees, covering a total area of 19,165 hectares.

He noted that Perak Forestry Department actively promotes and encourages participation from various sectors – including overnment agencies, private companies, non-governmental organisations, educational institutions, and the public – to support the Greening Malaysia campaign through the Communication,
Education, Participation, and Awareness (CEPA) programme.

“Since 2021, a total of 78 awareness campaigns have been conducted, resulting in the successful planting of 64,645 trees under the CEPA programme,” he added.

Source: Bernama

21 Solar Farms In Perak Produce Over500 MW Of Energy – Exco

Southeast Asia’s largest superapp Grab has selected Amazon Web Services (AWS) as its preferred cloud provider, to drive innovation and growth across its operations in eight countries.

The partnership is expected to enable Grab to reduce operational costs, enhance efficiency, and scale securely, with AWS’ infrastructure supporting the demands of its vast ecosystem. 

Grab, which serves 41.9 million monthly transacting users and 13 million driver and merchant partners, processes more than 100 transactions per second across its platform.

“At Grab, our strategy for growth is anchored on constant innovation to outserve the needs of our users and partners,” Grab chief technology officer Suthen Thomas Paradatheth said in a statement on Thursday. 

“This requires rapid experimentation, while ensuring security and stability, along with the ability to fully harness the potential of the latest tech like GenAI (generative artificial intelligence). We are pleased to extend our partnership with AWS as our preferred cloud partner to continue to support us on this journey,” he added.

Grab has operations in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam, where AWS is now its preferred cloud provider.

With a long-standing relationship since 2012, AWS has played a central role in Grab’s evolution from a ride-hailing startup to a superapp encompassing logistics, food delivery, and financial services. 

According to Grab, AWS’ infrastructure allows it to dynamically allocate resources to match fluctuations in demand, particularly during peak periods like holiday seasons, while scaling down during off-peak times to save costs.

Beyond operational stability, Grab has adopted AWS’ Graviton2 processors, enabling it to migrate over 400 back-end services from traditional virtual servers to the processors for greater cost and energy efficiency. 

“Cost optimisation is one of the three pillars of our technology strategy,” Grab head of engineering for technical infrastructure Mohan Krishnan said during a virtual media briefing. “The others are scaling securely and swiftly, and harnessing data and AI to improve the quality of experiences we offer our customers.”

Grab has also leveraged AWS’ toolset for its AI initiatives. Grab’s machine learning model platform, Catwalk, is built on AWS’ Elastic Kubernetes Service (EKS) and supports over 1,000 AI models in production. 

These models underpin core functions such as pricing, route optimisation, and fraud detection, while also powering customer-facing features like tailored food recommendations and AI-generated menu descriptions for merchants.

“Grab’s AI journey is about experimentation, building, and delivering models that enhance their ecosystem. Catwalk, built on EKS, has allowed them to deploy AI capabilities across use cases such as logistics, pricing, and fraud detection, which are critical to their business,” said AWS’ Asean managing director of commercial enterprise, digital and SMB, Gunish Chawla.

While AWS is the preferred cloud provider, Mohad said Grab will continue to maintain relationships with other cloud providers, including Microsoft Azure and Google Cloud. 

“Running multi-cloud takes effort,” he said. “But we feel that this strategy of still leveraging multiple clouds has the benefit of actually being able to use the best capabilities from different cloud providers.”

“And what we have been trying to pursue at Grab is trying to maximise both in terms of simplifying our multi-cloud setup by picking AWS as our preferred choice — so the bulk of our workloads go there — but in cases where using different clouds has some advantages, we leverage that too,” Mohad added. 

Source: The Edge Malaysia

Grab picks Amazon Web Services as preferred cloud provider to accelerate innovation across SEA

Amazon Web Services (AWS) anticipates strong growth in its cloud services business, driven by the adoption of generative artificial intelligence (Gen-AI) that will further enhance the digital economy across the Asean region.

AWS Asean managing director Jeff Johnson highlighted that the company is focusing on three main areas to help create the digital future needed in the region — security, inclusivity, and sustainability.

“We are very bullish about how we can continue to help the digital economies of Asean to grow. What is interesting is that 61% of the 680 million Asean population is under the age of 35 years, and we think about the digital opportunity and awareness of that large percentage of the population.

“Asean continues to have the fastest growing internet population, adding 125,000 users daily to the internet and is predicted to be the fourth largest economy by 2030. In this context, we are excited about how we can help our customers, partners, and governments,” he told a media briefing on the sidelines of ‘AWS re: Invent 2024’ here on Monday.

Citing some notable investments in the region, Johnson shared that the company had recently announced another US$8.8 billion investment in Singapore up to the year 2028, following the initial US$8.5 billion investment for its first AWS region in Southeast Asia, which is estimated to have an incremental gross domestic product (GDP) impact of US$17.6 billion on Singapore’s economy.

“For Malaysia, we launched our region in Kuala Lumpur in August this year, which we are super excited about. That is an investment of US$6.2 billion with an estimated GDP impact of US$12.1 billion. We are in the midst of setting up our fourth region in Asean with the Bangkok region in Thailand, coming online early in 2025, representing a circa US$5 billion investment,” he said, adding that the company has also made a significant investment of US$5 billion in Jakarta, Indonesia.

AWS re: Invent 2024, being held on Dec 2-6, 2024 at multiple venues across Las Vegas, is a learning conference hosted by AWS for the global cloud computing community.

The in-person event features keynote announcements, training and certification opportunities, access to more than 2,000 technical sessions, and the expo. It is expected to gather around 60,000 attendees from across the globe.

Source: Bernama

AWS sees strong growth in Asean cloud services market

Malaysia has immense potential to be the regional data centre hub capable of handling more than 600 million users.

National Tech Association of Malaysia (Pikom) research committee chair Woon Tai Hai said that over the past few years, the country has seen many data centre investments, as global players see Malaysia as a strategic gateway into the Asian market.

“We have seen quite a number of data centres coming into Malaysia, even prominent players like Amazon, Google, Nvidia and Microsoft.

“We are working with the government to formulate policies in the areas of talent, natural resources like water and electricity that data centres utilise and also on how local players can be part in these investments,” he said at the launch of the Pikom Economic and Digital Job Market Outlook 2024 Report today.

He also said that Malaysia’s digital economy continues to have a significant impact and serves as a cornerstone for the country’s long-term growth and competitiveness.

“With strong government support, increasing private sector collaboration, and a growing pool of skilled digital professionals, Malaysia is well on our way to becoming a regional digital leader.

“The opportunities are immense, and if we remain focused on nurturing talent, fostering innovation and bridging salary gaps, we as a nation can continue to unlock the full potential of our digital economy and solidify our position on the global stage,” Woon said.

He also said the government, related agencies, and stakeholders must make concerted efforts to upskill and retain local digital talents rather than lose them to foreign players who offer salaries in US dollars.

“We must offer the best for local digital talents and prevent this ‘talent theft’. We cannot afford to see local data centre players losing out to foreign players,” Woon said.

Pikom has projected that the digital economy’s contribution to Malaysia’s gross domestic product will rise to 24.1% in 2024 and 24.8% in 2025, based on geometric growth extrapolation and national economy forecasts from Department of Statistics Malaysia and Bank Negara Malaysia.

While this represents steady growth compared to 23.5% in 2023, it still falls short of the government’s target of a 25.5% contribution by 2025.

The report also noted that the digital economy in Malaysia is expected to recover and grow at robust rates of 7.6% in 2024 and 7.7% in 2025, following a significant slowdown to 3.9% in 2023.

This positive outlook is underpinned by an increase in digital investments and advancements in the sector, with earlier growth trends peaking at 14.3% in 2022 and steady expansions seen since 2019.

These projections are based on calculations using geometric means, reflecting confidence in the country’s digital economy’s resilience and potential for sustained development.

The report also showed that Malaysia’s digital economy supports the national economy through five key components, with e-commerce as the largest contributor.

This is in addition to the broader ICT industry, which encompasses ICT services, ICT manufacturing, ICT trade, and content and media.

Pikom chairman Ong Chin Seong said digital talents in Malaysia are seeing higher salaries as demand surges for skills in artificial intelligence (AI), data science, cloud computing and cybersecurity, driven by the rapid digital adoption across the nation.

Salary growth is projected to stabilise at 7.19% in 2024 and 7.12% in 2025.

“The double-digit salary growth of 13.90% recorded in 2023 was a one-off adjustment following the salary stagnation during the pandemic years.

“We are pleased to see this healthy adjustment to above 7%, which is reflective of a robust digital economy,” said Ong.

He said sustainable salary increments are critical to addressing the ongoing brain drain of digital talents to economies offering significantly higher remuneration.

Source: The Sun

Pikom: Malaysia has huge potential to become regional data centre hub but must address brain drain

CapitaLand Malaysia Trust on Monday entered in an agreement to  acquire its first automated logistics property, Elmina Logistics Hub, for RM180 million.

CLMT’s manager, CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), said the property, located within the Elmina Business Park in Selangor, features a state-of-the-art automated storage and retrieval system, enhancing operational efficiency and reducing reliance on manual labour.

Elmina Logistics Hub is expected to be completed in the first half of 2025. Among others, it has 19 loading bays with hydraulic dock levelers and a storage capacity for 30,000 pallets.

The freehold property will be fully leased to Projek Tetap Teguh Sdn Bhd, a subsidiary of PTT Synergy Group Bhd, for 10 years upon completion, said CMRM in a statement.

The lease, which includes built-in rent escalations, is expected to generate a gross annual rent of RM12.3 million, offering a first-year gross yield of about 6.8%, it added.

“The acquisition of our first modern automated logistics property enables CLMT to capitalise on the growing demand for such assets that enable customers to enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour,” said CMRM chief executive officer Tan Choon Siang.

This acquisition brings CLMT’s portfolio to 11 properties, increasing the proportion of logistics and industrial assets to 6% from 3% of its total portfolio under management.

“Stepping up our portfolio rejuvenation efforts, we have announced close to RM330 million investments in industrial and logistics assets since the expansion of CLMT’s investment mandate in 2021,” said Tan.

CLMT plans to finance the acquisition through existing debt facilities, which will increase its pro forma gearing from 42.1% to 44.1%, remaining below the regulatory limit of 50%. The acquisition is expected to be completed by the fourth quarter of 2025, said CMRM.

Source: The Edge Malaysia

CapitaLand Malaysia Trust acquires automated logistics property for RM180 mil

Sime Darby Property Bhd will be developing additional data centres at Elmina Business Park following the signing of a new build-and-lease agreement with Pearl Computing Malaysia Sdn Bhd, with a 20-year lease value of up to RM5.6 billion.

In a statement today, the group said the data centre facilities will be developed to meet customised specifications and infrastructure requirements on a 31.16-hectare site at the business park, located near Pearl Computing’s first data centre. 

It is currently under construction and targeted for completion in early 2026.

“Infrastructure development at the site is currently underway, with completion of construction targeted for 2026.

“Following that, the parties will enter into a 20-year lease with options to renew for two additional five-year terms,” it said.

The group said the deal realises its “Shift25” strategy by significantly increasing recurring income and expanding assets under management for its investment and asset management segment.

Meanwhile, its group managing director Datuk Seri Azmir Merican said the presence of these data centres in the business park enhances Selangor’s attractiveness as a key digital hub for Malaysia, buoyed by Selangor’s well-developed infrastructure, business-friendly policies, and collaborative efforts of authorities.

This agreement builds on Sime Darby Property’s maiden data centre collaboration, announced in May this year, which marked the group’s entry into the data centre segment.

Source: Bernama

Sime Darby Property to build new data centres in Elmina

SOME 30 participants represented Malaysia at the World young scientist summit (Wyss) 2024, which focused on global Technical and Vocational Education and Training (TVET) partnerships and idea exchanges.

it was the second consecutive year that Malaysia was invited to the event which drew over 400 delegates from various countries to Wenzhou, China, for four days.

as one of the biggest delegations, Malaysia brought along representatives from the National TVET Council (MTVET), skills Development Department, Human Resources Department, Universiti Teknikal Malaysia Melaka (UTEM), Universiti Kebangsaan Malaysia (UKM), Tafe College, sultan azlan shah Polytechnic, industrial Training institutes from Kuantan, Pasir Gudang and Kota Kinabalu, as well as Malaysia automotive Robotics & iot institute (Marii), and advance Retro solution (ars).

The delegation was headed by skills Development Department deputy director-general (development) Dr azmi ahmad.

“There is good potential for international collaboration between Beifang automotive school and Malaysia TVET for lecturer and student exchange programmes.

“With excellent training facilities and lecturing resources, Malaysian students could have the opportunity to explore new automotive technology.

“TVET is now borderless. “Collaboration across regions would enable the training landscape to be more competitive and effective,” said azmi.

He said students from Beifang shijiazhuang looked forward to starting their study exchange programme in Malaysia.

He also said that Malaysia could leverage the technology and support from yalong as well as the strong industrial and academic network via the Belt and Road initiative.

The Malaysia-china partnership was also strengthened with a letter of intent signing between Universiti sultan Zainal abdin (Unisza), yalong and ars.

Unisza’s Faculty of innovative Design and Technology dean Prof Dr saiful Bahri Mohamed said two students were doing an internship in yalong and one in ars.

This year, significant strides were made in Malaysia-china TVET projects.

Malaysian delegates also visited one of the country’s strategic academic partners, the Zhejiang industry & Trade Vocational College.

last month, ars concluded Malaysia’s first overseas industrial attachment training with the Centre for instructor and advanced skill Training (Ciast) at yalong.

Currently, three groups of lecturers from Giatmara, and Mara skills and Technical division are undergoing training in smart manufacturing, facility maintenance and technology for the internet of Things.

in addition, 24 students and lecturers from Kolej yayasan Pelajaran Johor and Johor skills will soon be completing their industrial automation training in China.

another 10 students and lecturers from Universiti Malaysia Kelantan will join the smart agriculture training in December.

Source: The Star

Malaysia eyes even closer TVET partnerships with China

BMW Group Malaysia has expanded its regional parts distribution centre in Senai, Johor.

The centre, which began operations in Malaysia in 2004, now boasts a state-of-the-art facility spanning 65,000 square metres (sqm), up from its initial 45,000 sqm in 2017. 

This expansion underscores BMW’s commitment to the region and strengthens its position as one of the largest facilities of its kind in the Asia Pacific region. 

Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said BMW’s growth journey in Malaysia over the past 20 years is not just a story of business growth but a testament to shared vision, technological advancement and exceptional performance.  

“This expansion is a powerful affirmation of Malaysia’s position as a strategic gateway to the region, where innovation and opportunity converge.  

“This facility is more than an operational hub; it symbolises BMW’s trust in our ecosystem while reinforcing Malaysia’s role as an integral part of its Asia Pacific supply chain, serving a dual purpose of supporting BMW’s after-sales operations and functioning as a strategic base for their regional supply network.  

“With our excellent connectivity, skilled talent pool and forward-thinking policies, MIDA remains committed to paving the way for BMW’s continued success and inspiring others to invest in Malaysia’s boundless potential,” he said in a statement. 

BMW Group Malaysia said the centre has shown sustained growth in its annual turnover, growing its business capabilities from 141 million euro in 2017 to 277 million euro in 2023, and almost double from when the facility first began operations 20 years ago.

BMW Malaysia managing director Benjamin Nagel said as the group marks 20 years of its regional parts distribution centre in Malaysia, it reflects on the centre’s contribution to BMW’s success and Malaysia’s role as a key logistics hub in the Asia Pacific. 

“Since the beginning, the facility and its capabilities has stood as a symbol of operational excellence, having evolved into a state-of-the-art facility that is recognised regionally and globally,” he noted. 

The recent expansion of the regional parts distribution centre introduces several notable improvements, including a purpose-built high voltage (HV) battery storage area and a modern very narrow aisle (VNA) racking system.  

The facility’s two-story configuration provides opportunities for future expansion, while the integration of a solar panel roof supports the group’s broader sustainability initiatives.

Source: NST

BMW expands regional parts distribution centre in Johor

The Forest City Special Financial Zone (SFZ) has identified two main sectors as its main focus areas, said Johor Menteri Besar Datuk Onn Hafiz Ghazi.

He said services for the first sector will be provided on Pulau Satu, while services for the second sector will be developed on the mainland of ​​Forest City.

“Forest City has a unique advantage as a tax-free island within the SFZ and encompasses two areas –– Pulau Satu and the mainland, each with conditional incentives targeting specific sectors.

“The first sector will involve the banking and financial services on Pulau Satu, while the logistics services, global service centre and transfer services will be offered on the mainland,” he said at the Johor state legislative assembly session in Kota Iskandar here today.

Onn Hafiz (BN-Machap) was responding to questions from Fauziah Misri (BN-Penawar) and Chiong Sen Sern (PKR-Bukit Batu) on the current status and development of the Forest City SFZ.

Onn Hafiz pointed out that there are nine incentives at Pulau Satu such as a concessional corporate tax rate of zero to five per cent compared to the current rate of 24 per cent, in addition to being the first location in the country to offer a 0 per cent tax rate for Family Offices.

He added that two incentives will be offered for the mainland, a 100 per cent investment tax allowance for five years to deduct 100 per cent of statutory income for the logistics services sector and a five per cent tax rate for up to 20 years for global service centres and relocation services.

“Several local and international financial institutions as well as logistics industry players have shown interest in investing in the Forest City SFZ, including Malayan Banking Bhd (Maybank), Public Bank Bhd, United Overseas Bank (UOB), Credit Lyonnais Securities Asia (CLSA) and Tiong Nam Logistics Holdings Bhd.

“In this regard, the state government will fully support the implementation of the Forest City SFZ which will provide huge benefits not only to Johor’s economic growth, but also to the people through high-income employment opportunities,” he said.

On September 20, the government launched the Forest City SFZ, announcing several incentives, which included making it the first location in Malaysia to offer a 0 per cent tax rate for family wealth offices, by the first quarter of next year.

Prime Minister Datuk Seri Anwar Ibrahim announced the formation of an SFZ in Forest City on August 25 last year to boost investment, growth and economic activities in Johor.

He was reported saying that the cost of doing business in the Forest City SFZ will be more affordable, as it will be assisted by several incentives provided by the government.

The Forest City SFZ is located in Forest City, Iskandar Puteri. It is made up of four man-made islands spanning 30 square kilometres.

Forest City is a US$100 billion (RM445 billion) development in Iskandar Puteri, Johor, by Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden Group and the Malaysian-government-backed Esplanade Danga 88 Sdn Bhd.

Source: Malay Mail

Johor’s Forest City SFZ to focus on banking, logistics for economic growth, says MB