Selangor’s strategic positioning and Malaysia’s role as the upcoming chair of the ASEAN Summit in 2025 underscore its potential as a hub for global logistics players, said state executive councillor for investment, trade, and mobility, Ng Sze Han. He highlighted the state’s proximity to central Malaysia as a key factor in attracting logistics companies.

Speaking after the Selangor and Hebei (China) trade mission signing ceremonies at the Concorde Hotel, Ng emphasised: “Selangor is in a strategic position as the (economic) hub of Malaysia. Next year, we (Malaysia) will be the chair for ASEAN, and this shows very good progress (for the sector).

“Therefore, we should let global logistics players know about the advantages of setting up their offices, facilities, or warehouses in Selangor.”

The event, hosted by Permodalan Negeri Selangor Bhd (PNSB), saw the signing of memoranda of collaboration (MoCs) between Hebei Logistics Group Metal Materials Co., Ltd. and Skyvast, as well as Sunhola Group Co., Ltd. and Skyvast.

Hebei Logistics Group is linked to the state-owned Assets Supervision and Administration Commission of Hebei Province, while its subsidiary, Hebei Logistics Group Metal Materials Co., Ltd., specialises in logistics and materials. Sunhola Group, a prominent enterprise in northern China’s food and agricultural product circulation, also participated in the partnership.

Ng commended PNSB’s initiatives to collaborate with Chinese establishments, calling it a positive step in strengthening Selangor’s economic growth. “We welcome all the high-impact investment into Selangor and are constantly engaging with potential investors from overseas, including industry players.

“Therefore, this is very good progress by PNSB to engage with the potential investors,” he said.

The partnerships aim to bolster foreign investments, particularly in warehousing and logistics, by leveraging Selangor’s strategic location and robust infrastructure. This move is expected to create new business opportunities, strengthen regional connectivity, and enhance the state’s role as a leading economic player in the region.

Present at the ceremony were PNSB chief executive officer Raja Ahmad Shahrir Iskandar Raja Salim, Menteri Besar Selangor (Incorporated) group chief executive officer Saipolyazan M. Yusop, and Invest Selangor Bhd chief executive officer Dato’ Hasan Azhari Idris.

Ng reaffirmed the state government’s commitment to attracting high-impact investments through active engagement with international investors and industry stakeholders.

Source: Selangor Journal

Selangor eyes global logistics hub role amid ASEAN summit spotlight

The renewable energy industry will be one of the main focuses in the Johor-Singapore Special Economic Zone (JS-SEZ) development which is expected to significantly benefit both countries.

Deputy Secretary-General (Policy) of the Economy Ministry Datuk Dr Zunika Mohamed said Singapore needs a sustainable energy supply to ensure the survival of industries in the city-state and Johor can potentially meet those needs.

“Apart from energy, the other sectors we want to focus on in this collaboration are industries that can significantly add value to the national economy,” she said on Bernama TV’s Ruang Bicara programme last night.

In addition to supporting the development of renewable energy, the JS-SEZ is designed to attract foreign investments, ease the movement of goods and people and raise economic cooperation between Malaysia and Singapore.

She said Johor has great potential to attract foreign investors including those from Singapore seeking business expansion.

“With the JS-SEZ, we will be able to attract more investments into Johor with a spillover (to benefit) the whole country,” she said.

She also said discussions to develop the JS-SEZ are now in the final phase with an official agreement between the two countries expected to be signed shortly.

Johor Menteri Besar Datuk Onn Hafiz Ghazi reportedly said the joint JS-SEZ agreement is expected to be signed on Dec 9.

On the 13th Malaysia Plan (12MP), she said it was being detailed to involve various parties and community groups to ensure that everyone progresses together under Malaysia MADANI.

Zunika said the 13MP will focus on implementing the government’s initiatives to introduce reforms to narrow social and economic gaps.

“We have seen the economic development over the last few months which shows that we are on the right track to further raise economic growth to benefit the people,” she said.

Source: Bernama

Renewable energy among the focuses of JS-SEZ development

The investment potential generated from Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea is related to the electric vehicle sector, metals for electric vehicle applications, bio-pharmaceuticals, green technology, and the carbon capture and storage sector, said the Ministry of Investment, Trade, and Industry (MITI) today.

Its Minister, Datuk Seri Tengku Zafrul Tengku Aziz, said the list of investments would be announced later.

As for export potential, products to be imported by South Korea from Malaysia include palm oil, biofuels, food products, and materials for use in the franchise industry such as industrial gloves.

Tengku Zafrul said South Korea is an important trade partner and one of the major investors in Malaysia.

“Therefore, we welcome the potential investment of RM32.8 billion, as well as the export potential of RM1.3 billion from South Korean companies, which will certainly deepen the Malaysia-South Korea trade and investment relations,” he said in a statement today.

He added that Malaysia welcomes cooperation in various new and high-potential fields such as automotive, renewable energy, green technology, halal industry, advanced manufacturing, and artificial
intelligence, especially with the diplomatic relationship upgraded to strategic partnership.

This cooperation will enable Malaysia to seize new opportunities and achieve the objectives of the New Industrial Master Plan 2030, which is expected to have a positive impact on the economy, he said.

Meanwhile, MITI said the ministry through Malaysia External Trade Development Corporation (MATRADE) had organised the participation of nine Malaysian companies and one business chamber in the official visit to South Korea.

Additionally, 50 business matching programmes were arranged, enabling Malaysian and South Korean companies build business cooperation and collaboration in the future.

During the Prime Minister’s official visit to South Korea, Tengku Zafrul also held a bilateral meeting with the South Korean Minister of Trade, Ministry of Trade, Industry, and Energy, Cheong Inkyo, to discuss various issues, including the status of negotiations for the Malaysia-Korea Free Trade Agreement, which is expected to be finalised next year.

Both Ministers also witnessed the exchange of three memoranda of understanding between Malaysian and South Korean companies in the fields of trade promotion, information and communications technology, and hydrogen and smart city development.

In terms of foreign investment, South Korea has been one of the key investor countries in the manufacturing sector since the 1980s.

As of June 2024, the total value of investments with participation from South Korea involved 399 projects worth RM43.9 billion (US$11.7 billion), creating 49,234 job opportunities.

Of this investment, the manufacturing sector accounts for 392 projects worth RM43.1 billion (US$11.5 billion), while the services sector involves seven projects worth RM800 million (US$183.3 million).

Source: Bernama

Energy-related sector among potential investments raked in from PM’s official visit to S. Korea – MITI

The construction of 17 data centres in Selangor is set to bring investment potential worth RM52 billion over the next 10 years, the Selangor State Assembly was informed today.

State Investment Committee member Ng Sze Han highlighted that the construction of these centres will create various employment opportunities, including high-skilled roles such as IT engineers, network engineers, research and development engineers, and data centre managers.

“Among the 10 data centres located across the state are Google in Sungai Buloh, HeiTech Padu in Shah Alam, and NextDC in Petaling Jaya.

“Seven data centres are situated in Cyberjaya, including Vantage Data Centre, Bridge Data Centre, Equinex, NTT Global Data Centre, Microsoft, Edge ConneX, and ST Telemedia Global Data Centre,” said Ng.

Last year, the Selangor State Development Corporation signed a memorandum of understanding with Singaporean company RDA Ventures Pte. Ltd to develop three data centres in Cyberjaya.

The initiative, which involves major agencies such as MDEC and the Malaysian Investment Development Authority (MIDA), is expected to create job opportunities in fields such as electronics, computer science, statistics, and administration.

In August, Selangor Innovation Development Committee member Dr Fahmi Ngah noted that many companies are eager to invest in the industry, citing the state’s extensive 5G network coverage as a key enabler for seamless business operations.

Source: Business Today

Selangor eyes RM52 billion investment in data centres

Malaysia is emerging as a top investment destination for renewable energy (RE) projects, backed by its wide natural resources, policy support, and technological readiness, said US-listed GE Vernova decarbonisation leader for Asia Kazunari Fukui.

According to Fukui, Malaysia’s resource-rich landscape coupled with initiatives like the National Renewable Energy Policy Act, has attracted global attention. 

“Japan, for instance, is looking at Malaysia for carbon storage solutions spearheaded by the likes of Petroliam Nasional Bhd (Petronas) and hydrogen sourcing, particularly from Sarawak. This is all because Malaysia is rich in renewable resources.

“Countries like Japan, Korea and Taiwan lack sufficient renewable resources. Malaysia, with its solar, wind, and hydro potential, is a natural partner for low-carbon fuel exports,” he told Business Times in an interview.

According to Fukui, Malaysia has already seen success with high-efficiency combined-cycle gas power plants like the Sultan Ibrahim power plant and Edra Power Holdings Sdn Bhd’s facilities, both of which utilise GE Vernova’s cutting-edge gas turbine technology.

He said the Sultan Ibrahim plant boasts a 64 per cent energy efficiency and is already 50 per cent hydrogen-ready, paving the way for cleaner power generation in the future. 

“Additionally, projects like EDRA have contributed to job creation, with over 2,500 jobs generated during its development phase,” he said. 

Commenting on the power sector in Malaysia, Fukui said Malaysia has been very progressive in this front.

“GE Vernova really commend the Malaysian government for doing their piece. Malaysia has a target to generate 31 per cent of power from renewable sources by 2025, eventually getting to 70 per cent by 2050. Very ambitious and we like Malaysia’s direction in terms of driving energy transition.

“However, I believe energy transition is not just about adding renewables. We really need that to be backed by dependable power. So we think it’s very important that Malaysia continues to use dependable power, the thermal asset,” he said.

Moving forward, Fukui said GE Vernova is ready to play a pivotal role in supporting Malaysia’s energy transition.

To further enhance its attractiveness, Fukui suggested Malaysia continue scaling up renewables and supporting decarbonised thermal energy through policy incentives.

He said investments in grid infrastructure and technologies like carbon capture, hydrogen readiness, and digital tools will also be crucial. 

“Malaysia has the tools, policies, and natural resources to lead the way. The collaboration between the government, industry players, and technology providers like GE Vernova is critical to unlocking this potential,” he added.

Source: NST

Malaysia a top investment destination for RE: GE Vernova

Sarawak is advancing more floating solar projects on its major hydroelectric dams.

These projects are on Murum and Bakun dams (Kapit Division) as well as Bengoh dam (Kuching) alongside ground-mounted solar systems with battery support in Baram (northern Sarawak), Mukah (central Sarawak) and Kuching, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.

“The 50 megawatt (MW) Batang Ai floating solar farm will be Malaysia’s largest floating solar facility by end of 2024 (when commissioned),integrating seamlessly with the existing 108MW Batang Ai hydroelectric plant,” he said at a state assembly here last week.

Abang Johari said a landmark memorandum of understanding had been signed recently between Sarawak Energy Bhd (SEB), Abu Dhabi Future Energy Company – Masdar,and Gentari (global clean energy solutions provider) to conduct a joint feasibility study on a potential floating solar project in Murum reservoir.

The signing ceremony early this month was witnessed by the Sarawak Premier, who was a panel member on “Regional Spotlight – Asia’s role in defining the hydrogen market” at the Abu Dhabi International Petroleum Exhibition and Conference 2024 hosted by Mubadala Energy.

The feasibility study, according to Gentari chief executive officer Sushil Purohit, aims to assess the potential for a large-scale floating solar installation on the Murum reservoir.

This evaluation will encompass technical feasibility, environmental impact and economic viability to determine if the project can be successful implemented.

If deemed viable, this floating solar installation could not only strengthen Sarawak’s renewable energy capacity but also position it as a pioneering model for floating solar projects across the region.

It also supports Sarawak’s ambition to become a leader in clean energy development and export in South-East Asia, said Sushil in a statement.

Abang Johari said this collaboration demonstrates Sarawak’s commitment to expanding renewable energy capacity through strategic international partnerships.

“When completed, the Murum floating solar project will be the world’s largest hybrid floating solar-hydro installation,” he added.

The 944MW Murum power plant, which was first commissioned in 2014, has a 245 sq km reservoir.

Masdar CEO Mohamed Jameel Al Ramahi said the Murum floating solar project follows Masdar’s landmark agreement with Malaysian Investment Development Authority in 2023 for the development of 10 gigawatts of clean energy projects across Malaysia.

Abang Johari said to address solar energy’s intermittency challenges, Sarawak is making strides in smart grid technology and energy storage system.

“A proposed high-voltage green grid, utilising the Right-of-Way of the Sabah-Sarawak Gas Pipeline, will connect renewable energy sources to key demand centres.

“Feasibility studies for pumped storage hydro systems further support grid stability, storing excess energy for use during high-demand period and reducing reliance on fossil oil,” he added.

The Premier said the recent technical tour at Masdar City in Abu Dhabi gave him a great look at some of the latest developments in the sustainable city model through the adoption of a carbon free city.

“The advancements of Masdar City will serve as a model for the future development of Kuching, particularly in new areas.

“I am inspired by Masdar’s approach and hope to adopt some of their ideas, like solar power, low-carbon solutions and environmental conservation.

“We are also considering to establish a Sarawak Trade and Toursim office in Abu Dhabi.

This office will be managed and finance by Petroleum Sarawak Bhd and SEB, with the goal of enhancing connections and providing a platform for continuous engagement with United Arab Emirates stakeholders, fostering further collaboration in renewable energy, tourism and trade,” he added.

Abang Johari said biomass energy generation is another promising area which he has encouraged Sarawak companies to explore the opportunities.

“Today, l am proud to say that Sarawak is home to the world’s first large-scale Napier grass biomass pellet manufacturer and exporter.

“What is even more exciting is that we are already selling these pellets to UK’s Drax Power Station (where he toured recently) which was once coal-powered but is now 100% fuelled by biomass.

“Napier grass,which grows rapidly and requires minimal replanting, offers applications beyond energy, including sustainable aviation fuel, fertilisers, and animal feed, promoting a circular economy while enhancing energy and food security,” he said.

On hydrogen, Abang Johari said high energy demand nations, especially in East Asia, are partnering with Sarawak for hydrogen production.

“Significant projects are underway, with a vision to produce 240,000 tonnes of green hydrogen annually by 2028. These initiatives could add RM2.5bil to RM3.6bil annually to Sarawak’s gross domestic product and create high-paying jobs,nearly four times the current average wage,” he said.

Source: The Star

Sarawak targets more floating solar for its hydroelectric dams

Malaysia is better placed to adapt to the flood risk in the ASEAN region and will become more competitive in the new-age industries by scaling up renewable energy.

Globally, climate change and energy transition face major challenges, such as shifting to low-carbon sources in electricity generation, industry energy usage and transportation fuel; developing technology and innovation for energy transition; and 3) mobilising transition finance for mitigation and adaptation.

Sustainability researchers with Maybank Investment Bank Bhd (MIBG Sustainability Research) noted that in all of these areas, the financially stronger, highincome economies are able to demonstrate scale and speed.

“This is similar within Asean, and so far Singapore is leading the transition by developing clear policies, strategies and financing to achieve net zero by 2050,” commented MIBG Sustainability Research in its special report titled “Malaysia ESG Focus: Slow Transition, Improving Disclosures” yesterday.

“Like Singapore, Malaysia has a strong financial base and pragmatic policies for shifting to a low-carbon economy.

“However, Malaysia’s low adoption of renewable energy is still its weakest link, affecting its corporate net zero implementation and rapid decarbonisation at scale.

“We believe Malaysia is better placed to adapt to the flood risk in the Asean region and will become more competitive in the new-age industries, such as electronics, technology, AI and data centres by scaling up renewable energy, clearly giving it more opportunities than risks.

“Our favourite sustainability themes in Malaysia are in sectors such as renewable energy EPCC and asset ownership, including selective Utility players.”

Right now, Malaysia accounts for 0.77 per cent of global emissions, emitting 367.76 million tonnes of carbon dioxide equivalent in 2021. This makes it the world’s 25th largest emitter.

In terms of commitments, it has a net zero by 2050 target outlined in the Twelfth Malaysia Plan, and a second, updated version of its Nationally Determined Contribution (NDC), where it updated its mitigation target to 45 per cent reduction in GHG emissions (unconditional) by 2030 compared to 2005 levels.

According to MIBG Sustainability Research, the average annual temperature in Malaysia is projected to increase by 1.1-1.5 Celcius degrees by 2050, and by 1.7-2.1 Celcius degrees by 2100, with Sabah and Sarawak facing higher levels of increments.

The increase in temperature is likely to impact the country, and this includes water security,

We believe Malaysia is better placed to adapt to the flood risk in the Asean region and will become more competitive in the new-age industries, such as electronics, technology, AI and data centres by scaling up renewable energy, clearly giving it more opportunities than risks.

MIBG Sustainability Research

food security, public health and biodiversity with compounding effects on vulnerable sectors and communities.

Traditionally, Malaysia has been a fossil-fuel producer due to its bountiful oil & gas reserves, with coal imports increasing as energy demand rises every year by around two to three per cent.

It has a 1.1 per cent share of renewables in electricity generation, putting it at No. 96 of 198 countries. Its share of coal in electricity generation is 44.5 per cent, ranking it No.14.

Malaysia’s electricity capacity is divided between independent power producers (IPPs) and Tenaga Nasional Berhad (TNB).

The nation operates three major grids in Peninsular Malaysia, Sabah and Sarawak, each facing unique challenges and opportunities in the transition to cleaner energy.

Malaysia’s proximity to the equator provides strong solar irradiance in the range of 15751812 kwh/m2 throughout the year, comparable to countries with more mature and developed solar PV markets.

According to one think tank report reviewing Malaysia’s renewable resource potential, it can install 269GW of solar PV, 13.6GW of large hydro, 3.6GW of bioenergy, 2.5GW of small hydro and 229MW of geothermal.

Source: Borneo Post

Malaysia well positioned to accelerate energy transition

The Ministry of Transport has proposed the establishment of a dedicated logistics hub in Nilai or Enstek, Negeri Sembilan, to further bolster Malaysia’s logistics sector.

Minister Anthony Loke said the location is ideal due to its proximity to Kuala Lumpur International Airport (KLIA) and its strategic connectivity via highways linking the northern, southern, eastern, and western regions of Peninsular Malaysia.

“We have initiated discussions with Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun. I suggested that a site in Enstek or Nilai be designated specifically for logistics.

“Currently, this area is utilised for various industrial purposes, but there is no dedicated logistics zone. I proposed that the state government or its agencies allocate land to develop a national logistics hub,” he told reporters here today.

Loke said this after officiating the groundbreaking ceremony for GOLOG’s Smart Regional Halal Distribution Centre (Smart RHDC) at Enstek here today. GOLOG chief executive officer Ivan Chin was also present.

Loke said a purpose-built logistics hub in Negeri Sembilan could attract more logistics companies, which are presently concentrated in congested areas such as Shah Alam and Klang, Selangor. Unlike these locations, Nilai and Enstek offer the added advantage of proximity to KLIA.

“A dedicated logistics hub would undoubtedly draw significant investments into this sector,” he said, adding that Malaysia’s globally recognised halal certification system also positions the country as a leader in producing halal products.

Sharing his observations from visits to China and Hong Kong, Loke said there is growing global recognition of the economic potential of halal-certified products, with Malaysia’s certification system considered among the most comprehensive.

“Even in non-Muslim-majority regions like China and Hong Kong, there is an understanding of the importance of halal products. Cities aspiring to be international hubs attract many Middle Eastern tourists who require halal products,” he added.

Loke emphasised that halal certification goes beyond food to include products like pharmaceuticals and cosmetics, broadening market opportunities.

Highlighting GOLOG’s role in advancing halal logistics, he said the Smart RHDC facility will serve as a hub for consolidating halal products for export and import via KLIA.

Meanwhile, Ivan Chin revealed that the RM400 million Smart RHDC project is expected to be completed within 18 months.

Chin said the facility will provide greater market access for business owners and farmers through collaboration with the Federal Agricultural Marketing Authority (FAMA).

The Smart RHDC will become a central hub for global halal food exports, offering advanced storage solutions for raw materials, semi-finished, and finished products.

It will also feature Malaysia’s first Artificial Intelligence-powered automated cold storage warehouse, with a capacity of 84,000 pallets and 60 loading bays.

“The facility will utilise over 30 Automated Guided Vehicles (AGVs) and be powered by the innovative GOLOG Intelligent Operating System (GAIA OS), “ Chin added.

Source: Bernama

Transport Ministry proposes new logistics hub in Nilai or Enstek

Google has applauded Malaysia’s approach to building artificial intelligence (AI) infrastructure under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, with the technology giant investing US$2 billion in the country.

Google vice president of government affairs and public policy Karan Bhatia said in the recent APEC Summit in Peru that the approach to building such infrastructure was the reason Google is investing US$2 billion in a data centre in Malaysia.

In May 2024, Google announced the investment of US$2 billion (RM9.4 billion) in Malaysia, including the development of its first data centre in the country and a Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as AI literacy programmes for students and educators. Google’s investment is expected to generate over US$3.2 billion in economic impact and create 26,500 jobs by 2030.

Meanwhile, Microsoft vice president of data and AI Zia Mansoor praised Malaysia’s efforts with the National Artificial Intelligence Roadmap that has been created. “It’s very comprehensive. It’s looking at the AI infrastructure. It’s looking at skilling. How are you skilling all Malaysians around AI technology?” he said at the APEC CEO Summit Peru 2024 held recently.

He also said the roadmap creates an AI centre of excellence in the government, in which the government uses AI technology. “To me, those are such important conditions,” he added.

On Nov 15, Anwar held a discussion with Google in the capital of Peru, focusing on data centres and AI.

He said that appropriate attention needs to be given to strengthening the AI and data centre ecosystem, especially in terms of the relevant rules and regulations to prevent data leakage and exploitation with malicious intent.

Anwar also said Malaysia stands ready to align its policies to match new demands and ever-evolving industries in a multi-pronged approach to continuously attract high-value investments.

Source: Bernama

Google, Microsoft applaud Malaysia’s approach to building AI infrastructure, roadmap

The Sabah government plans to establish an Artificial Intelligence (AI) Centre as part of its efforts to support the state’s digital ecosystem, the State Legislative Assembly sitting was told today.

Sabah Minister of Science, Technology, and Innovation Datuk Dr Mohd Ariffin Mohd Arif said the initiative was also part of a strategic move to drive digital transformation.

“Our goal is to attract investment, nurture local talent, and foster innovation in various sectors,” he said when winding up the debate on the Supply Bill 2025 (Sabah Budget 2025) for his ministry today.

In the meantime, Mohd Ariffin said the Sabah government would continue to enhance service delivery through the use of information and communication technology (ICT), while also leveraging Fourth Industrial Revolution (IR 4.0) technologies in the state’s administrative operations.

He said that this included the use of AI to handle repetitive tasks and daily administrative duties, enabling civil servants to be more productive and focus on more demanding and high-impact tasks.

Meanwhile, Mohd Ariffin said the Sabah Creative Economy and Innovation Centre (SCENIC) would continue to focus on three core areas next year, namely technology, innovation-driven entrepreneurship, and creativity.

“The main focus is on developing human capital while driving the growth of startups, particularly those involved in social enterprises and technology,” he said, adding that SCENIC had helped make Sabah the second-largest social enterprise ecosystem in Malaysia and the sixth-largest technology startup ecosystem in the country since its establishment in 2020.

Mohd Ariffin said SCENIC would once again collaborate with the Social Enterprise World Forum (SEWF) to organise the SEWF Rural Gathering in October 2025, aiming to bring together rural social enterprises in Kota Kinabalu for knowledge exchange and networking to support rural economic development.

“Through the Digital and IoT Sandbox initiatives, SCENIC strives to improve the level of technology readiness for commercialisation. Collaboration with schools and higher learning institutions will continue to strengthen Sabah’s technology ecosystem.

“Since 2022, through this initiative, SCENIC has helped raise RM7.8 million for technology start-ups in Sabah,” he said.

Mohd Arifin said his ministry also planned to establish two additional branches of the Science Centre in Sandakan and Tawau with PETRONAS’ sponsorship, aiming to strengthen strategic cooperation between the government and industry while also fostering a culture of science, technology, engineering, and mathematics in Sabah.

Source: Bernama

Sabah plans to set up AI Centre to drive digital transformation – Mohd Arifin

Artificial intelligence (AI), digitalisation and the green economy will fundamentally reshape the job market, introduce 60 new roles and upskill 1.8 million domestic workers in 10 key sectors by 2025, Human Resources Minister Steven Sim Chee Keong said.

The Human Resources Ministry has identified more than 600,000 jobs that need skill enhancements, while new roles will emerge to meet the growing demands of these sectors, he said at the launch of Talent Corporation Malaysia’s (TalentCorp) report entitled “Impact of AI, Digital and the Green Economy on the Malaysian Workforce” at Malaysia International Trade and Exhibition Centre today.

The report highlighted 10 key sectors in the first phase of the upskilling initiative – aerospace, chemicals, electrical and electronics, energy and power, food manufacturing and services, global business services, information and communications technology, medical devices, pharmaceutical manufacturing, and wholesale and retail trade. These sectors contributed about 60% of Malaysia’s gross domestic product in 2023, amounting to RM933 billion, and employed 31% of the country’s skilled and semi-skilled workforce.

“We chose these sectors because they form the backbone of our economy. Understanding their future trajectory is critical for shaping our policies,“ Sim told reporters at the launch.

He said emerging roles such as AI engineers, sustainability specialists and bioprocess engineers are expected to become increasingly significant, driven by advancements in AI and sustainability initiatives. “The report is not just about the future. It is a roadmap for ensuring our workforce is prepared to meet these challenges.”

In response to the anticipated demand for upskilling, Sim said, the government has allocated RM3 billion in funding for training programmes. “This will be channelled through agencies like TalentCorp, HRD Corp, and Perkeso. By 2025, we aim to empower workers through targeted skills training that aligns with the future needs of our economy.”

Sim noted that one key initiative is the launch of the MyMahir portal, a living document that provides real-time updates on employment trends and training opportunities. “MyMahir is not just a platform, it is a game changer. It will enable small and medium enterprises, job seekers and policymakers to align their strategies with evolving market demands.”

The report underscores the importance of adapting to technological and environmental changes, he said. “Approximately 1.8 million workers will require targeted skill enhancements to remain competitive. We are not just addressing today’s jobs but preparing for tomorrow’s jobs.”

Sim said phase two of the initiative would expand the study to include 12 additional sectors, providing a deeper understanding of Malaysia’s labour market. “Phase two will be released next year, and our goal is to ensure no sector is left behind. Collaboration across ministries and industries is key to achieving this.”

The initiative aligns with Malaysia’s broader economic goals, including transitioning to a high-income nation and fostering inclusive growth, he said. “Upskilling and reskilling are not just policy objectives; they are essential for securing a sustainable and resilient future.”

Source: The Sun

AI, digitalisation and green economy to reshape Malaysian job market: Sim

Kuala Pilah is set to welcome a new private specialist hospital, thanks to a collaboration between Oval Gallery Sdn Bhd and Sena Healthcare Services Sdn Bhd.

The hospital, located in Taman Redani Juasseh, is expected to be completed by 2028, with an investment of RM150 million.

Oval Gallery chairman Datuk Seri Tunku Nadzaruddin Ibni Almarhum Tuanku Ja’afar said the 240-bed hospital will be built on a 0.946-hectare site and received pre-establishment (zoning) approval from the Ministry of Health in 2019.

The construction and operation of the hospital will be managed by Sena Healthcare Services, with work expected to begin at the end of 2025.

“An investment of RM150 million will be allocated to the construction and initial operating costs of the hospital”.

For the first phase, 120 beds to be added later,” he said to reporters at the memorandum of understanding (MoU) signing ceremony for the hospital’s construction and operations, witnessed by the Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun.

Tunku Nadzaruddin added that the hospital will serve as a new landmark for the district and will provide signicant benets to the local community, including residents of Jempol, by creating job opportunities and contributing to the local economy.

Meanwhile, Aminuddin said that private sector involvement in providing healthcare services would help alleviate the burden and pressure on citizens to access more systematic treatment.

He noted that this effort aligns with the government’s goal to ensure that the public can enjoy a better standard of living, as well as the strategic location of the hospital, which is situated along the main road connecting the districts of Seremban, Kuala Pilah, Jempol, and Tampin, as well as the states of Johor and Pahang.

“This hospital will provide services to residents in these districts, with a population of nearly half a million people.

“Even residents from border areas such as Muar, Segamat, Muadzam, Rompin, and Mersing will have the option to seek treatment here,” he said.

Aminuddin also highlighted that the presence of professionals, including specialist doctors and support staff such as nurses and technicians, would indirectly contribute to the local economy by creating more job opportunities for the community.

New private specialist hospital in Kuala Pilah by 2028 with rm150 mln investment

CCK Consolidated Holdings Bhd will be investing RM20mil in a new cold room for frozen meat and food products under an expansion project for its Kuching Bintawa factory.

The new cold room measuring 21,506 sq m will more than double the factory’s existing cold room capacity by an additional 5,000 pallets from 2,000 pallets to 7,000 pallets, according to group managing director Tiong Chiong Hiiung.

He said the new cold room will be equipped with an automated storage and retrieval system to automatically store and retrieve goods from defined storage locations to reduce labour requirements.

The building plans for the expansion project have been submitted and are awaiting the approval of the relevant authorities. Tiong said CCK also plans to invest RM8mil in a new broiler farm in Sarawak on land that is to be acquired.

The farm, which will have a maximum capacity of 200,000 heads per cycle, is expected to commence operations by the first quarter of 2026 (1Q26).

The company has planned for another capital expenditure of about RM6.34mil on the digitalisation of the group’s operations and upgrading of digital technologies.

Negotiations with a vendor, Tiong said, are in the final stages to award a RM4mil contract for services to digitalise the group’s current operations and streamline its processes to improve efficiency.

The money will also be spent for the procurement of the necessary hardware to facilitate the upgrading of the digital technologies, such as new point-of-sale systems, new weighing counters and hand-held computers. The entire process is expected to commence in 1Q25 for completion within 24 months.

Tiong said the total capital expenditure of about RM36.34mil for these projects will be funded from the proceeds of RM88.1mil, which will be raised from the proposed sale of CCK’s 26.5% equity interest in PT Adilmart, Indonesia to Astrantia Sdn Bhd.

Adilmart, which is a wholly-owned subsidiary via CCK and CCK Frest Mart (which hold a 96.25% and 3.75% stake, respectively), is involved in the production and trading of frozen food, including sausage and other processed meat, in Indonesia.

Under signed agreements, Astranita will acquire 31,772 existing shares (26.5%) in Adilmart for RM88.1mil and subscribe to 27,047 new Adilmart shares (18.4%) of the enlarged issued Adilmart shares, for RM75mil in cash.

Upon completion of the deals, Astrantia will increase its equity interest to 40%, whereas CCK will reduce its stake to 56.9%, with the balance of 3.1% held by CCK Frest Mart.

Astrantia is a special purpose vehicle company incorporated by Creador V to hold the investment of Creador V and undertake the proposed acquisition of the 26.5% stake in Adilmart and new share subscription of 18.4% in Adilmart.

CCK is seeking the approval of its shareholders on the two proposals (proposed disposal of 26.5% stake in Adilmart by CCK and proposed new share subscription of 18.4% equity interest in Adilmart by Astrantia) at its EGM here on Nov 27.

In a circular to shareholders on the two proposals, Tiong said CCK intends to reward its shareholders with an indicative special cash dividend amounting to RM30mil (4.83sen per share) from the RM88.1mil proceeds.

The balance of RM20.9mil from the proceeds will be set aside for the group’s working capital.

CCK is Sarawak’s largest integrated poultry supplier. Its business comprises four segments: retail, poultry, prawn and food service.

The group operates a wide sales network in Sarawak and Sabah, comprising 66 Fresh Mart retail stores, three CCKLocal supermarkets and six wholesale stores.

The group also has manufacturing and sales operations in Pontianak, west Kalimantan and Jakarta, Indonesia.

On the utilisation of the RM75mil proceeds from new share subscription by Astrantia, Tiong said Adilmart intends to use RM40mil to fund the construction of new manufacturing facilities, RM20mil for purchase of machineries and RM5mil for other costs (motor vehicles and administrative expenses).

“We intend to acquire a piece of land measuring approximately 11 acres in Indonesia for the construction of manufacturing facilities as our current manufacturing plants located in Jakarta and Pontianak have achieved their maximum production capacity.

“These new manufacturing facilities will be used to produce frozen food products, such as sausages, nuggets, burgers, meatballs and other meat products, which are similar to the products currently being manufactured in the existing facilities.

“We expect to double our group’s production capacity and output following the commencement of these manufacturing facilities,” he added.

Tiong said Adilmart plans to purchase and install automated machineries, such as a thermoforming machine, bowl cutter, forming machine and fryer, for about 10 production lines in the new manufacturing facilities.

These production lines are envisaged to have production capacity of between 3,000 and 4,000 tonnes a month. The new manufacturing facilities are expected to have built-up area of 19,200 sq m.

Source: The Star

CCK to invest RM20mil in new cold room

MALAYSIA’s push towards digitalisation is drawing keen interest from global tech giants, with Amazon Web Services Inc (AWS), Microsoft Corp, Google and Oracle Corp committing a combined investment of US$16.9 billion (RM75 billion) through to 2038.

These investments reflect Malaysia’s position as an emerging hub for regional cloud infrastructure, signalling its potential to become a gateway for Southeast Asia’s expanding digital economy. They also showcase Malaysia’s market opportunities within the context of a broader artificial intelligence (AI) and data centre development strategy across the region.

Oracle Corp, in particular, had last month announced a massive investment plan of over US$6.5 billion to set up its first public cloud region in Malaysia, making it the latest major investment by a global tech giant in the country.

It was reported that Oracle’s initiative is poised to be one of the largest — if not the largest — single tech investments to date in Malaysia, surpassing the US$6.2 billion that AWS announced last year.

In an exclusive interview with The Edge, Oracle Japan & Asia-Pacific senior vice-president for technology and customer strategy Chris Chelliah says this cloud region isn’t just another data centre in Malaysia. Instead, it involves multiple data centres working together, ensuring redundancy and scalable resources. This way, businesses can get the services they need without the delays that come from having everything in one place.

“The cloud region is more than just a single data centre. To us, there is a clear distinction. You can think of a data centre as a four-wall apartment, while a cloud region is more like the electrical appliances that make the apartment liveable. In other words, you could say that our cloud region is a tenant of the data centre.

“We are a platform provider, not a data centre owner. So, if you think about it, all our US$6.5 billion will be allocated to building cloud facilities, not data centres. Whereas other companies are talking about billions of investments, including the cost to build a data centre. This really shows the magnitude of our investment commitment in Malaysia,” he says.

Oracle Malaysia managing director Fitri Abdullah highlights that the group intends to create infrastructure that supports the digital transformation of businesses in Southeast Asia.

“A cloud region helps us deliver cloud services with low latency and high availability, which means companies can run efficiently and securely. This investment reflects the growing demand for cloud and AI services in the region,” he explains.

Given that every industry has different needs for digital transformation, Fitri says Oracle’s cloud region will be flexible enough to serve sectors such as finance, healthcare and manufacturing.

Moreover, it will also enable Oracle’s Malaysian clients — including government agencies and companies in the airline and hospitality sectors — to access cloud services hosted locally, rather than relying on external providers.

“We plan to engage with our customers to understand their needs, so we can offer solutions tailored to their specific challenges. Moving to cloud computing is essential for businesses that want to stay competitive.

“Our investment in the cloud region in Malaysia is about making this transition easier, giving businesses a solid foundation for adopting digital technologies. We believe our cloud solutions will open new doors for growth and innovation,” Fitri elaborates.

Third in Southeast Asia

For perspective, Oracle has 85 cloud regions around the world and is planning to build another 77, which is more than all the three hyperscalers, namely Google, Microsoft and AWS, combined.

Nevertheless, Malaysia will be equally important as compared to other cloud regions, says Chelliah.

“With our 36 years of history in Malaysia, a key reason for establishing a cloud region here is to serve our clients better. In fact, over the past eight years, Oracle Malaysia’s clients have been migrating to the cloud. This latest investment in the cloud region will enable us to provide more cutting-edge features to them,” he explains.

Currently, Oracle has 12 cloud regions in Japan and Asia-Pacific, two of which are in Singapore. Thus, the upcoming Malaysian public cloud region will be its third in Southeast Asia.

“By putting our cloud region in Malaysia, we’re not just serving local clients; we’re aiming for businesses all across Southeast Asia. Our goal is to create a seamless experience for our customers, so they can access a range of cloud services that are reliable and efficient.

“With each data centre in the region contributing to this ecosystem, data stays close to where it’s needed, cutting down on latency and improving performance,” Chelliah reiterates.

Fitri says Oracle aims to support small and medium enterprises because they are crucial to Malaysia’s economy. “Our cloud solutions are designed to help these businesses compete with larger firms. By making advanced technologies accessible, we hope to fuel innovation and growth among SMEs.

“Our investment in the cloud region shows we’re confident in Malaysia’s growth potential. We want to support local businesses on their digital transformation journeys, providing the tools they need to succeed in an ever-changing technology landscape,” he continues.

Fitri adds that there is a lot of potential for growth in Malaysia’s cloud computing market, and Oracle’s cloud region is built to meet that demand, offering flexible solutions that match modern business needs.

“As we move forward, we expect to see more companies eager to adopt cloud and AI technology for their growth strategies. We’re looking forward to what lies ahead with our cloud region in Malaysia.

“The infrastructure we’re building is meant to drive digital transformation across various sectors, helping businesses innovate and thrive. Our investment shows we believe in Malaysia as a technology hub in Southeast Asia,” he stresses.

Meanwhile, Chelliah acknowledges the importance of security, and hence, Oracle’s cloud region will have advanced measures in place to protect sensitive data. “We know that businesses need to feel secure about their data, so we’ve built our cloud architecture to meet both local regulations and international standards.”

Texas-headquartered Oracle is a US multinational computer technology company specialising in database software and cloud computing.

According to Chelliah, building a cloud region is not just about the infrastructure, but also about the software and services that empower businesses.

“We want to make it easier for our customers to focus on what they do best while we handle the complexities of the cloud. Oracle’s strength in databases is a huge advantage for us. It gives us synergies when we offer cloud services.

“Our database technology allows us to deliver robust data management solutions that are essential for businesses moving to the cloud. This expertise is what sets us apart from our competitors,” he says.

When asked, both Chelliah and Fitri declined to speculate on the economic impact that will be generated by Oracle’s investment, although they expect this project to create thousands of jobs in Malaysia.

“It’s not just about building data centres; it’s also about contributing to the local economy and helping develop talent. We’ll be collaborating with educational institutions to train the next generation of technology professionals,” says Fitri.

“Our vision is to create a space where businesses can use our cloud solutions to enhance what they do. By empowering local companies, we hope to drive innovation and growth across different sectors. The cloud region will be central to this, providing the necessary infrastructure for businesses to scale efficiently,” says Chelliah.

Over the past year, major players in the tech industry have also made significant investments in the region.

Notably, Microsoft announced cloud service investments totalling US$1.7 billion in Indonesia, while AWS revealed plans for an investment of US$9 billion in Singapore and US$5 billion in Thailand.

Meanwhile, Google recently broke ground on a US$2 billion data centre in Malaysia, which is expected to contribute over US$3 billion to the country’s economy by 2030.

As Southeast Asia positions itself as an important hub for digital transformation, the influx of investments from these tech giants signals not just a competitive landscape but also their belief in the region’s potential. However, only time will tell if the concerns and scepticism surrounding data centres and cloud regions — in Malaysia, particularly regarding their consumption of water and electricity — are justified.

The real test will be whether this growth brings lasting benefits to local businesses and communities, shaping a sustainable future for the region’s digital economy. 

Source: The Edge Malaysia

Oracle: US$6.5 bil investment in Malaysia ‘more than a data centre’

In a world increasingly dominated by artificial intelligence (AI) and digital technologies, the Malaysian government also recognises that bridging the digital divide is crucial for equitable development across all segments of society.

Prime Minister Datuk Seri Anwar Ibrahim said while acknowledging Malaysia’s ability to attract huge investment in these areas, the government is also aware of the challenge of ensuring that its emerging economy remains competitive, equitable, and sustainable.

“If you want to ensure that an emerging economy succeeds, remains competitive, and sustainable, then it has to be through a quantum leap. And AI is the answer for that, for the matter of digital transformation.

“But there are also concerns that needs to be addressed. First, the digital divide. We can’t talk about the modern economy without trust, humanity, justice and democratisation of access,” he said at the Apec CEO Summit, in a session titled, “Opportunities and Challenges in the AI Revolution”, here on Thursday (Nov 14).

Other panellists in the session were Microsoft vice-president of data & AI, Zia Mansoor, Vobile chief executive officer Yangbin Wang, and Google vice-president, government affairs & public policy, Karan Bhatia.

Also present at the session were Foreign Minister Datuk Seri Mohamad Hasan, and International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The event that took place at the Grand National Theatre of Peru was moderated by Apec Business Council (ABAC) Canada member Jan De Silva.

Hence, while Malaysia has made significant strides in building its digital infrastructure, further investments are necessary to ensure that all citizens have access to the tools and resources that will allow them to thrive in the digital age. 

This requires a concerted effort to bring connectivity to remote areas, build digital literacy, and create opportunities for all Malaysians, regardless of their geographic location, said Anwar, who is also finance minister.

“All opportunities provided to urban areas must also be available to rural and heartland communities. It requires additional infrastructure investments and I don’t think we can avoid that,” he said.

Besides the infrastructure, which is more of a hardware in the ecosystem, the software part of it must be given equal priority, Anwar pointed out. 

“We have Islam as the majority of the population; we have Christians, Buddhists, Hindus and many others; so, we must ensure that digital technologies align with the nation’s values of humanity, justice, and ethics.

Therefore, Anwar highlighted that “the issue of data protection, the input that we provide or place into AI is pertinent”.

This includes safeguarding against biases in AI algorithms, ensuring transparency, and protecting citizens’ privacy, he stressed.

Hence, to ensure that AI technologies are developed and used responsibly, Malaysia seeks to develop a balanced approach that promotes innovation, while safeguarding human dignity and ethical principles.

He said while the West, particularly the United States and Europe, has been at the forefront of AI development, Malaysia is committed to ensuring that it can remain competitive without being overly reliant on any one region. 

This means adopting a neutral stance in choosing the best technologies and solutions, whether they come from the United States, China, Europe, or other parts of the world, Anwar said.

Malaysia’s approach will be centred on what is most beneficial for its people and economy, while also maintaining sovereignty over its digital future, he said, adding that the key to Malaysia’s strategy is the concept of “centrality”, which emphasises the country’s role as a major player in the global digital landscape. 

Anwar said Malaysia aims to be at the crossroads of innovation, drawing from the best practices and technologies from around the world, while maintaining control over its digital and technological future. 

Earlier, De Silva said Malaysia’s digital transformation journey has been truly impressive, attracting global attention and investment from leading technology giants, with digitalisation access exceeding 97% of the population.

“Your digital economy is so well positioned for remarkable growth,” she said when introducing Anwar at the hall.

De Silva was referring to investments of almost US$17 billion (RM76.29 billion) that have been coming in from global tech giants like Amazon, web services, Google, Microsoft, Oracle and others, as Malaysia forges ahead in its high-growth digital economy.

Source: Bernama

Anwar: Tech, AI is beyond just an access

Malaysian Prime Minister Datuk Seri Anwar Ibrahim held a discussion with technology giant Google in the capital of Peru on Thursday (Nov 14), focusing on data centres and artificial intelligence (AI).

He said that appropriate attention needs to be given on strengthening the AI and data centre ecosystem, especially in terms of relevant rules and regulations to prevent data leakage and exploitation with malicious intent.

“Therefore, I have instructed the relevant ministries to take immediate action to curb the impact,” he told the media after meeting with Google’s head of delegation Karan Bhatia, who is its global head of government affairs and public policy, on the sidelines of the Asia-Pacific Economic Cooperation (Apec) Summit 2024. 

Earlier, he joined business leaders from Apec economies at a luncheon hosted by Apec Business Advisory Council (ABAC) Malaysia chairman Datuk Ruben Emir Gnanalingam, who is also Westports Holdings Bhd (KL:WPRTS) executive chairman. 

“During the session, I exchanged views with them and shared Malaysia’s aspirations on trade and investment matters, as well as invited them to invest in our country,” the prime minister said.

Anwar, who is also finance minister, said he highlighted the transparent Madani Government policies and its emphasis on business facilitation to make Malaysia’s business ecosystem more competitive.

Source: Bernama

Anwar meets Google rep, discusses boosting AI and data centre ecosystem

MALAYSIA, like many Southeast Asian countries, faces the challenge of balancing sustainability, reliability and affordability in its energy goals. Is the country ready for renewables?

The country has set ambitious targets: net-zero emissions by 2050 and increasing the share of renewable energy in its power mix. These goals are impressive and align with the global push towards sustainable energy. However, achieving them requires more than ambition. We need strategic planning, significant investment and innovative technologies.

Prime Minister Datuk Seri Anwar Ibrahim’s visit to Berlin in March was not just ceremonial; it highlighted the importance of international collaboration and technology transfer in supporting Malaysia’s renewable energy goals. Global partnerships are essential for advancing the nation’s energy future.

Malaysia’s Renewable Energy Roadmap aims for 31% of the country’s power capacity to come from renewable sources by 2025 and for carbon emissions to be reduced by 45% by 2030. As of 2022, renewable energy capacity has grown to over 9,000 megawatts – a 50% increase since 2013.

However, renewable sources only produced 3.1 terawatt-hours of electricity, compared with 77.3 terawatt-hours from coal. Clearly, there is room for growth.

Imagine a seamless flow of electrons from renewable sources such as solar and wind into the national grid. These sources are often in remote areas, far from the high-demand city centres. The challenge is transporting this energy efficiently and ensuring a stable supply despite the variable nature of renewables.

Intermittency, the fluctuation in energy production from sources like solar and wind, can cause instability in the power grid, which traditionally relies on consistent output from fossil fuels. If the grid is not ready to handle these fluctuations, it could lead to blackouts or energy shortages.

To avoid stranding existing assets, Malaysia can repurpose peaker plants or retired thermal power plants using the Rotating Grid Stabiliser solution. This cost-effective solution ensures a reliable energy supply during the transition.

Stabilising voltage and frequency with synchronous condensers enhances the grid’s reliability, making it easier to integrate renewable energy. This approach supports the grid and maximises existing infrastructure, making the transition more practical and economically viable.

As mentioned, some sources of energy are far from high-demand city centres. This is not just a challenge for Malaysia but for the entire Southeast Asia. Efficient energy transport would ensure secure energy for Malaysia and nearby countries, making the region more resilient.

The Asean Grid ambition aims to create an interconnected electricity system among member states. By developing this integrated network, we can enhance energy security, promote renewable energy use and ensure a more reliable power supply across borders.

Long-distance power transmission requires a strong grid infrastructure. High-Voltage Direct Current (HVDC) technology can efficiently transmit large amounts of power over long distances with minimal energy loss.

Think of HVDC as a superhighway for electricity. This technology will allow Malaysia to export surplus renewable energy to neighbouring countries like Singapore, fostering regional cooperation and energy security.

Modernising the grid with HVDC will enhance Malaysia’s energy system, allowing it to accommodate more renewable energy and reduce environmental impact. This interconnected grid will support Malaysia’s renewable energy goals and set a precedent for sustainable development in the region.

However, these goals come with challenges. The energy sector is still developing and needs substantial investments – up to US$10.8 billion (RM47.33 billion) for solar PV alone. There is also a lack of awareness about the financial returns on these investments, which can hinder progress.

Public-private partnerships, supported by a strong regulatory framework, can help overcome these obstacles. Key actions include improving the financing landscape, reducing project approval times and ensuring policy transparency.

We recognise the complexities of this transition. With every step, we can make progress.

Malaysia’s journey will involve expanding renewable energy use, transforming conventional power, strengthening electrical grids, securing the supply chain and driving industrial decarbonisation. Each action contributes to a greener Malaysia.

Thorbjorn Forsis the group senior
vice president and managing director of
Asia Pacific Siemens Energy.

Source: The Sun

Powering Malaysia’s green future

The Digital Ministry has announced that digital investments totalling RM141.72 billion were approved in the first 10 months of this year.

Minister Gobind Singh Deo said that in the January-October 2024 period, 41,078 job opportunities were created in the digital economy sector.

“The ministry has determined that the implementation of national digitalisation programmes and initiatives should prioritise the strengthening of the digital infrastructure, cyber resilience and digital talent development.

“Our focus is on how to attract investments, get more attention for Malaysia as a digital hub and create jobs in Malaysia in order to support the new ecosystem,” he said in winding up the debate on the Supply Bill 2025 at the policy stage for his ministry in the Dewan Rakyat today.

Gobind said the National Council of Digital Economy and Fourth Industrial Revolution (4IR) has been formed to monitor the implementation of the Malaysia Digital Economy Blueprint and National 4IR Policy.

“At this time, the country is in Phase 2 (2023-2025), focusing on efforts to drive inclusive digital transformation by emphasising inclusivity among members of the society and all business levels.

“The next phase (2026-2030) is set to make Malaysia a producer of digital products and provider of digital solutions for the regional market,” he said.

Meanwhile, he noted that the Johor government is studying 36 applications for data centre infrastructure development in the state.

According to Gobind, as of October 2024, 10 data centres had begun operations while seven were in the process of development in Johor.

“The government is always balancing the need for data centre development with the areas’ potential for broader economic growth.

“The planning for areas dedicated for data centres such as the Johor-Singapore Special Economic Zone (JS-SEZ) is aimed at maximising economic spillover by attracting high technology investments and potentially generating high income for the people,” he said.

Source: Bernama

RM141.7b worth of digital investments approved in 2024, 41,078 jobs created, and 10 data centres operating in Johor, says Gobind

· DHL’s new white paper reveals while progress is being made in Asian road freight, challenges remain, and opportunities to reimagine the movement of freight across the region

· Countries such as Thailand, Vietnam, Malaysia and Singapore to benefit from its multimodal connectivity

Note to editor: Find out more on how companies can build supply chain resiliency through omnisourcing and multimodal transportation strategies on Logistics of Things.

DHL Global Forwarding (DHL), the freight specialist arm of DHL Group, said that road freight will continue to play an important and increased role in Southeast Asia, as companies look to build more resilient supply chains. In a new white paper titled “Highway to the Future: Navigating the Road Freight Opportunities in Southeast Asia”, DHL outlines the role of road freight as a single or in a multimodal solution, as businesses look to more agility and flexibility in transportation modes for their shipments.

“Over the last few years, we have seen strong export growth in Vietnam, Thailand, and Malaysia. Vietnam is Southeast Asia’s largest exporter currently, while Malaysia has strengthened its position as a semiconductor hub. Thailand has made great strides in automobility, particularly in the electric vehicles (EV) sector.

The new DHL International Multimodal Hub at Suvarnabhumi Airport Free Zone 3 will also see Thailand emerge as a regional trade hub. The simplified process will allow goods to be shipped through multiple transport modes, making the country even more attractive for companies looking to expand or move part of their production into Southeast Asia.

While our last whitepaper focused on the emerging use of road freight during the pandemic, our new whitepaper highlights why it remains important even as we see air and ocean freight normalize globally,“ said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia and South Pacific.

Countries such as Vietnam, Thailand, Malaysia, and Singapore are set to benefit, especially with their connectivity options, as trade can happen through either road, air, or ocean. These countries also have favorable trade agreements with major economies globally.

Digitalization and improved infrastructure to drive road freight forward

The growing importance of building a resilient supply chain has called for greater agility and transparency with real-time visibility and insights into shipment statuses and road conditions, amidst concerns about security, safety, and stability. Southeast Asia’s advanced cellular networks have enabled real-time monitoring of road freight via sensors and GPS units, providing customers with accurate predictions of cargo location and arrival times1.

While global companies are diversifying their supply chain, Chinese companies are also expanding their manufacturing base into the region. In 2023, China’s investment into Southeast Asia reached US$24 billion, according to a report by McKinsey. These investments highlight the region’s growing importance as a global manufacturing hub, especially with markets such as Cambodia, Laos, Thailand and Vietnam. These countries have announced or implemented improvements or expansions of transportation infrastructure that are vital for logistics. For example, in 2021, Laos opened a new railway linking Vientiane to Kunming in China. Thailand has also opened the new DHL International Multimodal Hub, making it easier for shipments to move in, out, and through Thailand across different transportation modes.

“These investments into making rail or road infrastructure better in Southeast Asia means that it is often cheaper and faster than air to ship from China into Southeast Asia. Road freight plays an important role in a multimodal solution. Moving goods through a combination of transport modes can result in faster Door-to-Door (DTD) lead time compared to ocean freight, with substantially lower cost than air freight,“ said Bruno Selmoni, VP, Head of Road Freight and Multimodal Solutions, Southeast Asia, DHL Global Forwarding.

Government policies help to streamline cross-border freight

Government initiatives in the Southeast Asia region have provided opportunities to streamline shipments across borders. Countries within the region are also attempting to resolve border issues, collaborate on improving infrastructure, and streamline procedures.

Initiatives like ASEAN’s Customs Transit System, ACTS, aim to streamline the processes and reduce paperwork further. The Customs Administrations of all ten ASEAN Member States collectively endorsed the ASEAN Authorized Economic Operator Mutual Recognition Arrangement (AAMRA) in 2023. This agreement establishes a consistent and transparent trading environment within the member states. AAMRA aligns certification standards with the World Customs Organization (WCO) SAFE Framework, ensuring expedited cargo clearance and priority treatment for certified AEOs within ASEAN.

Other than regional agreements, countries in the region have also taken steps independently to facilitate the cross-border movement of goods. Cambodia and Vietnam, for example, have worked together to add lanes to one congested checkpoint.

Growing shift to sustainable road freight in Asia

In a report by International Data Corporation, it is said that 45% of Asian-based organizations will operationalize integrated sustainability in the supply chain by 2026. Freight transportation, including trucks, planes, ships, and trains, contributes approximately 8% of global greenhouse emissions.

A push towards a more sustainable road freight is needed but significant challenges lie ahead. The ASEAN Regional Strategy for Sustainable Land Transport highlighted three categories of green freight policies and measures:

· Logistics optimization, such as reducing empty hauling, or implementing logistics centers and freight exchanges

· Use of multimodal such as rail or waterways

· Greening of trucks either by improving efficiency, low rolling-resistance tires, or alternative fuels

However, achieving this requires aligned efforts from shippers, vehicle manufacturers and government roadmaps.

“A sustainable road freight solution has its challenges but many opportunities, especially when it comes to greening of trucks. We are seeing more electric trucks made available, biofuels used in DHL’s fleet in Europe, and upcoming technology like hydrogen fuel being tested. Of course, any solutions will need a comprehensive partnership between the private and public sectors. Governments need to set the appropriate policies and infrastructure, automotive manufacturers need to give viable commercial options, and logistics players like us need to adopt these solutions,“ explains Selmoni.

For instance, DHL Global Forwarding recently introduced a fleet of electric vehicles in Bangkok, Thailand that is set to eliminate 85,000 kilograms of CO2 emissions yearly. These initial vehicles will cover a monthly distance exceeding 28,000 kilometers in operation and deliver approximately 1,000 tons of shipments to our customers.

“The discussion on road freight is now shifting away from its relevance and cost, but to other challenges on infrastructure and policies which will smoothen the road ahead. Yet at the same time, many of our customers recognize road freight as a key component of their multimodal strategy. This is why it is essential for logistics firms, including DHL, to adapt and anticipate regional trends proactively. This requires an accurate understanding of our customers’ specific business landscape. When we align our solutions to the unique shifts brought about by regional dynamics, we help shape the future of logistics in Asia,“ added Tieber.

For more information, download the white paper from here.

[1] Building an Internet for the Future of Southeast Asia, Kearney, June 2023, Building an Internet for the future of Southeast Asia – Kearney. Southeast Asia

Source: The Sun

DHL sees the continued importance of road freight in Southeast Asia as companies build supply chain resiliency

Malaysia has great potential in the downstream rare earth elements (REE) industry as a super magnet-producing country, particularly for supporting the growth of the electric vehicle (EV) manufacturing industry, the Dewan Rakyat was told today.

Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said the latest REE roadmap, which covers the entire supply chain including the upstream, midstream and downstream stages, has been tabled at the sixth National Economic Action Council meeting of 2024 chaired by Prime Minister Datuk Seri Anwar Ibrahim recently.

He said the study on the proposed business model for the REE industry, looking at the total ecosystem, was conducted by the Academy of Sciences Malaysia.

“Malaysia has a huge potential to be involved in this industry, especially at the downstream level to be a producing country supporting the growth of the EV manufacturing industry.

“However, the ecosystem needs a local intermediate industry for processing REE raw materials in the form of rare earth carbonates that are produced by local mines,” he said in winding up the policy-level debate on the Supply Bill 2025 (Budget 2025) on behalf of his ministry.

Meanwhile, Nik Nazmi said rare earth mining company Lynas Malaysia Sdn Bhd is prepared to process the country’s REE.

“The REE process in Australia differs from that in Malaysia. Lynas has given its commitment to open another line to process REE from our country,” he said.

The minister, however, said that the company must comply with strict environmental, health and safety requirements.

“Lynas requested a long (operating) licence period, and this matter is being openly discussed for evaluation. This is because opening a new line requires a large investment, and if this application is not approved, there is no future for them here,” Nik Nazmi said.

At present, Lynas processes raw materials sourced from Australia and ships to countries such as Vietnam and Japan.

Source: Bernama

Malaysia has great potential in downstream REE industry, supporting EV manufacturing – Nik Nazmi

Malaysia should shift from merely hosting data centres to becoming a global leader in the design, manufacturing, and export of data centre infrastructure, said Minister of Economy Rafizi Ramli.

To achieve this, Rafizi said specific policies will be incorporated in the upcoming 13th Malaysia Plan (13MP) to make this vision a reality, to position Malaysia as a central hub for artificial intelligence-driven (AI) data infrastructure on the world stage.

“What we want to avoid is Malaysia continuing to attract data centres, but are not able to get into the data centre value chain and supply chain. We have been looking at how to work on a few catalytic interventions to create the ecosystem so that by the end of this decade, Malaysia can also participate in the whole data centre value chain,” he told reporters following an industry engagement session for the 13MP.

“First [is for us] to benefit from existing and future data centres in the country, but more importantly for us to begin exporting our own data centres around the world,” Rafizi added.

While the country may not yet be at the forefront of creating cutting-edge AI algorithms or large language models (LLMs) now, Malaysia already has a head start in attracting global players to build data centres due to its strategic location, robust energy infrastructure, and business-friendly policies, Rafizi said during the session.

“Malaysia has an ecosystem that can house an economy that is driven by AI. It begins with the data centre. Given the head start that we have, we are among the first few countries in the world that begin the growth of data centres. We should not stop by just housing data centres,” he said.

Rafizi posited that Malaysia can evolve into a global exporter of data centres, offering various expertise from the design of data centre systems to the manufacture of specialised chips and the components that power them.

“Data centres will go through various cycles. They have to upgrade their chips. Newer chips will come in. And with every new data centre, that means a new data centre system has to be designed.

“So, Malaysia fits this profile of a country that can offer a complete AI data centre-based ecosystem, all the way across the value chain, from housing the data centres to designing data centres, to designing the chips, to manufacturing the chips, and all the ancillary products that come with the data centre.

“In the future, one would imagine that as you have more countries having to build their own data centres, Malaysia would be one of the main players whereby people have to come here to get the data centres from us,” he said.

Between 2021 and 2023, Malaysia approved a total of RM114.7 billion in investments related to data centres, according to Knight Frank Malaysia’s 1H2024 Real Estate Highlights report, as the country aims to become a data centre hub in the region.

Among the latest of such investments was Microsoft Corp’s investment of US$2.2 billion (RM10.4 billion) in cloud and AI infrastructure in Malaysia.

However, concerns have been raised that data centre investments are being driven solely by property plays, limiting their impact to the broader economy.

Source: The Edge Malaysia

Rafizi: 13MP will have policies to shift Malaysia from just hosting data centres to exporting such infrastructure

Sarawak Energy Bhd (SEB), together with Abu Dhabi future energy company, Masdar, are studying the feasibility of installing a floating solar photovoltaic (PV) project at the Murum dam in Belaga district that is targetted to generate 1,000 megawatts (MW) of electricity.

Premier Tan Sri Abang Johari Openg said when completed, it will be the biggest floating solar project in the world, beating the floating solar in China that generates 680 MW.

He said a memorandum of understanding (MoU) was signed recently between SEB and Masdar to explore the development of the floating solar project at the Murum dam.

“If realised, this development will give Sarawak an additional capacity of up to one gigawatt, more than doubling the capacity provided by the same land space,” he said at the Sarawak Housing and Real Estate Developers Association (SHEDA) annual dinner last night.

He said the state government is focusing on producing more power, with the excess to be shared with Peninsular Malaysia and neighbouring countries, such as Kalimantan, Brunei and Singapore.

The premier said Sarawak is expected to generate 10,000 MW of electricity by 2030 and this will be increased to 15,000 MW by 2035.

“Once we have reached the 15,000 MW, the data centres will come here, high tech industries will also be coming and we will diversify our manufacturing industries, including aerospace,” he said, adding that this will become the engine of growth.

He said the decision to generate more electricity is to ensure that Sarawak can preserve and develop its energy security.

“Clean and green energy is the bedrock to our infrastructure and future,” he said, adding that essential services such as transportation, telecommunications, sanitation, aviation and healthcare systems all rely on Sarawak having stable and secure power supply.

He said the state’s progress cannot rest solely on the decisions of others, saying that although changes in world or domestic affairs may influence partnerships and mechanisms, the principle and focus of achieving economic prosperity, social inclusivity and environmental sustainability, remains the same.

“If you have been following the news, you will be aware that the Sarawak Government and Sarawak government-linked company (GLC)  have been travelling extensively, learning new technologies, promoting Sarawak as a leading renewable energy partner and gathering investment opportunities to bring home.

He said the scale and speed at which the state is shifting its economic structure is unprecedented.

” It is aspirational. It is hope magnified for the people of Sarawak,” he added.

Abang Johari added that the direction provided by the Post-Covid-19 Development Strategy 2030 (PCDS 2030) blueprint is extensive and property developers have ample opportunity to leverage almost every part of the plan.

On the Trust Fund for Affordable Housing, the premier said he has proposed the establishment of a trust fund to replace the current obligation for the private sector to allocate 30 per cent of their housing projects to low-cost housing.

“Since its inception, Sarawak’s Affordable Housing policies have gone through several reiterations,” he said, adding that these changes had been made gradually in consideration of the evolving needs of a growing population.

“Although the policies, mechanisms and methods of providing affordable housing may differ from season to season, the objective of providing such housing remains the same.

“One of the purposes of affordable housing is to promote social inclusivity and socioeconomic mobility,” he said.

Source: NST

SEB, Masdar plan to install world’s biggest floating solar project at Murum dam

The construction and upgrading project for roads in Lingkaran Pulau Indah and Northport, which was announced through Budget 2025 recently, is a dual-purpose approach that can boost the productivity of the domestic cargo-based industry.

The steps to upgrade the infrastructure connecting North Port and West Port, which was previously recognised as the 11th busiest port in the world for the year 2023 by Lloyd’s List, is a strategic plan to ensure that the country’s main shipping gateway remains one of the key assets in driving economic growth.

Universiti Teknologi MARA Civil Engineering Studies senior lecturer Rusdi Rusli said the function of main roads is to connect one location to another, involving not only the movement of goods but also the human resources that drive the industry.

The project, which will involve the widening and improvement of the road surfaces, is capable of increasing industrial productivity, thereby impacting production performance, which in turn will contribute to the strengthening of the state and national economy.

“The main issue we see is congestion…we do not want this congestion to become an obstacle to good connectivity to ensure that export or import goods can be linked well, and when our facilities are good, it will attract investors because the logistics network is an important factor for the industry.”

“Port Klang is among the busiest ports in Malaysia, so with a good road network it will further increase the productivity of the port, thereby contributing to the country’s tax revenue and at the same time, the cargo-based industry will continue to grow,” he said when contacted by Bernama.

Meanwhile, MAIWP International College University Logistics and Supply Chain Management lecturer Mohd Azlan Abu Bakar believes that improvements in logistics infrastructure can make Malaysia an attractive regional hub for multinational companies, especially in the manufacturing, trade, and logistics sectors.

“This has the potential to make Malaysia the main gateway for Asean trade, driving sustainable economic growth and providing job opportunities for the local population,” he said.

Azlan also suggested that improvements should focus on several critical aspects such as reducing congestion, traffic management efficiency, and regular road maintenance to ensure that the potential can be achieved.

From the social aspect, the upgrading and construction of the road, which also serves as a daily route for residents and workers, will certainly help reduce the risk of accidents and congestion that have long plagued the community there.

“Improvements to infrastructure such as wider roads will surely take into account better lighting systems, and the addition of safety technology like surveillance cameras which can enhance the safety of road users,” he said, adding that higher safety standards can reduce the percentage of accidents.

When tabling Budget 2025 on October 18, Prime Minister Datuk Seri Anwar Ibrahim announced an RM107 million allocation for the construction and upgrading of Lingkaran Pulau Indah and Northport roads in Selangor to drive the country’s logistics sector.

Source: Bernama

Port Klang roads upgrade can boost industrial productivity, increase user safety — Experts

Emerging technologies such as artificial intelligence (AI), machine learning, and automation are rapidly reshaping the global workforce, and in this new landscape, Malaysia’s ability to stay ahead of these trends will be key to maintaining its competitive edge on the world stage.

Deputy Prime Minister Datuk Seri Fadillah Yusuf emphasised that for the country to succeed, it must not only adapt to these changes but also take a leadership role in shaping them by fostering a workforce equipped with the skills that will define Malaysia’s future economy.

“As we prepare for the future, we must cultivate a mindset within our workforce that embodies the principles of learning, unlearning, and relearning.

“This is the key to thriving in an ever-evolving environment where upskilling and reskilling must remain at the forefront of our efforts,” he said in his speech at the Human Resources Development Awards 2024 (HRD Awards), here yesterday.

Also present at the ceremony were Human Resources Development Corporation (HRD Corp) chairman Datuk Abu Huraira Abu Yazid, Malaysian National News Agency (Bernama) chief executive officer Nur-ul Afida Kamaludin and Bernama deputy editor-in-chief (News Service) Nasriah Darus.

Fadillah expressed his satisfaction that many organisations that have have risen to the challenge by investing in their employees’ development, and in doing so, strengthening Malaysia’s economic resilience and enhancing its global standing.

He highlighted that Ministry of Human Resources (KESUMA), through HRD Corp, has played an instrumental role in facilitating this transformation and was proud of the initiatives rolled out in 2024 that further support industries in enhancing their human capital development efforts.

“Notably, the enhancements to HRD Corp’s Allowable Cost Matrix (ACM) reflect our commitment to providing high-quality and accessible training.

“With more flexible course formats and higher claimable rates, these will better align Malaysia’s training ecosystem with global best practices,” he said.

On the awards, he said that they provided an opportunity to recognise organisations that have led the charge in human resources innovation.

These companies are not only improving their workforce capabilities but also setting new standards for talent development, and in turn, demonstrates Malaysia’s leadership within the ASEAN region, he added.

A total of 36 awards celebrating excellence across diverse categories including the prestigious Human Resources Minister Awards, HRD Corp Awards, Excellence Awards, and one very special Recognition Award in Learning and Development were presented to celebrate the dedication, innovation, and impact, where each recipient represents the future of Malaysia’s human resource landscape.

Source: Bernama

Malaysia to stay ahead of emerging technologies to maintain workforce competitiveness – Fadillah

Huawei has provided hundreds of mobile network sites as well as cloud services and intelligent operation centres in Sarawak, which have helped improve wireless network coverage in remote areas, accelerating the country’s digital transformation, said Prime Minister Datuk Seri Anwar Ibrahim.

Through his visit and high-level meeting with the Huawei delegation earlier on Thursday in Beijing, the prime minister said he was informed about several Huawei technologies being utilised to address certain issues in Malaysia, particularly in bridging the digital divide.

“I was impressed by the technological progress and solutions developed by Huawei, which include 5.5G, cloud computing, and artificial intelligence (AI) that have catalysed digital transformation in government and industry sectors,” he said in his official Facebook post.

Earlier, Anwar, who is also the finance minister, visited the Huawei Executive Briefing Center in Beijing and was welcomed by Huawei’s senior leadership, who guided him through the company’s various technological advancements. He then led the Malaysian delegation in a high-level meeting with the Huawei delegation, headed by Liang Hua, chairman of the board of Huawei Technologies Co Ltd.

Anwar ends his four-day working visit to China on Friday, which kicked off on Nov 4.

Accompanying him during the China visit were Foreign Minister Datuk Seri Mohamad Hasan, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

Huawei helps to accelerate country’s digital transformation — PM