Following the memorandum of understanding signing for the proposed Johor-Singapore Special Economic Zone (JS-SEZ), much excitement has erupted on the front of strengthening Malaysia and Singapore’s long-standing relationship. The two countries — while typically touted as competitors — are set to benefit from the JS-SEZ in an array of sectors, from semiconductors to manufacturing, with the most recent being the data centre landscape.

Drawing nuances from history as an important maritime trade route, Singapore is strategically located at the south entrance to the Strait of Malacca, making it an ideal location for data centres to be sited and connected to other regions.

However, scant land available and excessive power consumption on the island led the Singapore government to impose a moratorium on data centre construction in 2019, capping the country’s capacity at 1.4 gigawatts (GW).

Consequently, data centre operators looking to establish themselves in Singapore needed viable alternatives. Indonesia’s Batam and Malaysia’s southern state of Johor emerged as preferred options due to their proximity to Singapore. However, considering Johor is just across the Causeway, Malaysia appears to have a slight advantage.

“Malaysia’s strategic location provides low-latency connectivity to major cities in the region, including Singapore, Bangkok and Jakarta, and it has the edge to facilitate more data centres, particularly AI (artificial intelligence)-focused ones, that could also support the country’s aim to create 3,000 smart factories by 2030,” says Raymond Tong, president of Asia-Pacific at Vantage Data Centers. “Malaysia is emerging as a data centre powerhouse, attracting billions in investments for data centres amid increased demand for cloud and AI services, including the more than US$3 billion (RM13.32 billion) planned investment from Vantage Data Centers.”

As with any economic spillover, Malaysia has been quick to capitalise on the opportunity, leading to the construction of data centre facilities and parks over the past 1½ years, not only in Johor but also in other parts of the country.

Currently, there are four large data centre parks in Johor: Nusajaya Tech Park, Sedenak Tech Park (STeP), YTL Green Data Centre and Nusa Cemerlang Industrial Park, all of which house a mix of hyperscalers and data centre operators.

“Statistically, by end-2024, Johor is projected to host RM17 billion worth of new data centre developments, which is a huge gain not only for the state investment-wise but also for the economic spillover effect that is expected to take place in the long run,” says Datuk Akmal Ahmad, deputy chairman at JLand Group (JLG).

Negeri Sembilan, another land-rich state strategically situated between Johor and Kuala Lumpur, is also benefiting from the rising demand for data centres. One such developer looking to capitalise on this boom is Seri Pajam Development Sdn Bhd. With its 523.23-acre SPD Tech Valley in Senawang slated to be completed in 2034, Seri Pajam is pursuing global players in the tech industry including data centres and semiconductor companies as well as other businesses seeking locations that align with their corporate environmental, social and governance (ESG) standards.

This is just the tip of the iceberg as other big tech companies have made data centre commitments and investments as well. Microsoft, Alphabet (Google’s parent company), Amazon Web Services and Nvidia are among the tech bigwigs that have committed billions to develop cloud servers and AI infrastructure in the country.

Industry players believe Malaysia’s favourable data centre policies have played a significant role as operators enjoy incentives such as 100% tax exemptions on investments in data centres and cloud businesses.

Last year, utility provider Tenaga Nasional Bhd established the Green Lane Pathway, an exclusive and strategic offering for the country’s data centre market, which fast-tracks supply offerings for electricity and under which data centres will be connected three times faster than the normal delivery time, reducing the implementation period of 36 to 48 months to just 12 months, alongside a one-stop centre for data centre investors and dedicated support services.

In early August, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the government would announce guidelines for data centre power usage effectiveness (PUE) and water usage effectiveness (WUE) by the third quarter of the year to boost investments. This is to ensure data centres built in Malaysia meet the minimum sustainability requirements to achieve net zero emissions by 2050.

While all industry players agree that Malaysia will undoubtedly see positive socio-economic impact, from a stronger economy to increased job creation, the country is at a juncture where it needs to ensure the data centre industry grows sustainably and existing infrastructure is equipped to support this rapid growth.

Data centres require vast quantities of water for cooling purposes, which can be problematic in areas facing water scarcity or drought. Implementing water-efficient cooling technologies can help address this issue, says Alvin Gan, head of technology consulting at KPMG in Malaysia.

“Not only that but the heat generated by data centres can influence local ecosystems and urban temperature patterns. Efficient heat management and recovery systems are essential to minimise such effects,” he adds.

JLG’s Akmal says green technologies support sustainability and operational growth, which is why the group is actively exploring renewable energy (RE) solutions. “At the Ibrahim Technopolis (IBTEC) township where STeP is located, we are addressing resource management through initiatives such as solar farms and a water recycling plant, demonstrating our commitment to minimising environmental impact while contributing positively to the local ecosystem,” he says.

IBTEC’s circular economy initiative is a model set to transform both Johor’s and the nation’s economies by reducing raw material consumption, minimising waste and lowering emissions. Akmal says this positions Malaysia as a leader in green growth sectors such as electric vehicles; RE; carbon capture, utilisation and storage (CCUS); and the circular economy.

“Data centres, embedded within this strategic framework, serve as a pivotal catalyst for Johor’s economic transformation, supporting the growth of RE sectors and driving industrialisation in alignment with the Fourth Industrial Revolution (IR 4.0).”

The key to alleviating concerns over the rapid expansion of data centres is to ensure that all players within the data centre ecosystem are equally invested in sustainable growth. This includes adopting energy-efficient practices and exploring green energy options like solar power. If properly managed, the growth of data centres in Johor can drive positive development and economic advancement.

Scrutiny of security

Safeguarding the interests of data centre operators in Malaysia requires a holistic approach that not only addresses operational, regulatory and market challenges but also actively fosters growth and innovation. To this end, JLG’s Akmal says it is crucial that our regulatory framework remains stable, clear and consistently enforced, providing data centre operators with the confidence to invest in long-term projects.

“By involving industry players in the development of regulations, we can ensure that new policies are not only practical and responsive to their needs but also supportive of sustainable growth. Rather than seeing this as a challenge, it is a chance to advance cybersecurity efforts, ensuring that facilities remain at the forefront of both innovation and safety,” he says.

Prioritising cybersecurity, fostering international partnerships and maintaining strong disaster recovery strategies will further enhance the industry’s resilience and attractiveness. KPMG’s Gan says these measures can help Malaysia build a thriving data centre ecosystem that supports both economic growth and digital advancement.

Akmal concurs, saying: “Cybersecurity will remain a top priority, with continued investments in advanced security measures and strict adherence to both local and international standards. We are also closely monitoring regulatory changes related to sustainability, data protection and infrastructure to ensure compliance and maintain industry leadership.”

Source: The Edge Malaysia

JS-SEZ offers data centre opportunities by the bucketful

In May, tech behemoth Google made a significant move in Malaysia by investing a substantial US$2.2 billion (RM9.5 billion) to expand its Google Cloud region to deliver high-performance, low-latency cloud infrastructure, analytics and artificial intelligence (AI) services.

The investment is also poised to reshape industries, create jobs and position Malaysia as a Southeast Asian tech leader. The Malaysia cloud region will make it easier and faster for public sector organisations, small and medium enterprises (SMEs), start-ups and traditional businesses alike to leverage Google Cloud’s on-demand network and compute resources.

“It is faster and more reliable with economics that are better than what they could build themselves — without having to build it themselves. It will also deliver more choices for customers to store their data locally, enabling them to meet digital sovereignty requirements,” says Patrick Wee, country manager of Google Cloud in Malaysia.

For instance, regulated industries like the financial services and healthcare industries will be able to store sensitive data in compliance with local regulations. In financial services, even lower latency enables real-time fraud detection and risk management systems.

Moreover, the manufacturing industry can further advance Industry 4.0 initiatives, resulting in smarter factories and optimised supply chains. Retail and e-commerce businesses will benefit from rapid scalability and real-time data management.

“Google’s first data centre and Google Cloud region is our largest planned investment so far in Malaysia. It will enable easier and faster access to Google’s extensive suite of AI and machine learning tools and services, and accelerate digital transformation for Malaysian businesses in a rapidly evolving digital economy,” says Wee.

Closing the skills gap

Google’s new data centre and cloud region in Malaysia hold the promise of driving economic growth. However, the rapid pace of technological advancements is outstripping the development of workforce skills, creating a significant skills gap that presents a challenge for the country.

According to the World Economic Forum’s “Future of Jobs 2023” report, 48% of companies identify improving talent progression and promotion processes as a key business practice that can increase the availability of talent to their organisation.

To support the development of a skilled cloud workforce locally, Google has been working with the government, customers and partners to deliver tailored solution-based cloud skilling to upskill people via targeted workshops, online courses, hands-on labs and certification programmes.

“Our focus is on building competencies in critical areas such as AI, machine learning, cybersecurity and data analytics — all focused on solving real-world business challenges, with courses on how to build large-scale cloud projects, manage employees who are new to the Cloud, optimise Google Cloud costs and more,” explains Wee.

Earlier this year, Google announced a partnership with the Ministry of Higher Education (MoHE) to offer up to 500 Google Career Certificate scholarships to students from 161 public universities, polytechnics and community colleges across the country, available until the end of 2024.

These nine Google Career Certificates, designed by in-house experts, cover fields such as cybersecurity, data analytics and IT support. The programmes can be completed within three to six months through flexible, self-paced online training, requiring no prior experience.

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

Google Gemilang is Google’s digital training initiative aimed at helping the nation’s workforce develop current digital skills, unlock new opportunities and gain access to high-demand jobs.

Since its launch, Gemilang has already provided 31,000 career certificate scholarships, with 80% of certificate graduates reporting a positive career outcome, such as a new job, promotion or salary raise within six months of completion.

In addition, Google has also made data management, cybersecurity and AI skills development training options accessible to working professionals through the Google Cloud Skills Boost programme.

This includes courses such as the “cloud digital leader learning path”, the “introduction to generative AI learning path”, the “preparing for your professional cloud security engineer journey” course, and the “preparing for your professional data engineer journey” course, along with gamified learning experiences via the arcade.

“Regardless of whether they are executive-level, an IT decision-maker, in a non-technical role or a technical practitioner, learners can seize the opportunity to build and demonstrate their proficiency in in-demand cloud computing and AI skills to their employers,” says Wee.

These efforts are part of Google’s broader commitment to fostering a robust digital economy in Malaysia, ensuring that businesses have access to the talent they need to drive innovation and maintain a competitive edge in the global market.

The data centre will power Google’s popular digital services, such as Search, Maps and Workspace. It will also play an essential role in enabling the company to deliver the benefits of Al to users and customers across the country.

Companies like telecommunications provider Maxis use Google Cloud’s enterprise-grade generative AI capabilities to unlock their data’s full potential. Similarly, construction giant Gamuda Bhd uses generative AI across its different verticals. Bank Muamalat too leverages Google Cloud’s capabilities in security, data analytics and generative AI to help the bank drive new operational efficiencies.

“This investment also supports our partnership with the government of Malaysia and its goal of advancing a ‘cloud-first policy’, and unlocks the potential of digital transformation across the public sector as well,” says Ken Siah, head of data centre public affairs at Google Apac.

Future-proofing operations

To ensure that the Malaysian data centre has the necessary infrastructure to accommodate future growth and increasing customer demand, Google is focusing on scalability as one of its top features in its technical infrastructure.

“Google’s data centre in Malaysia is a long-term US$2 billion investment designed to meet the growing demand from customers locally and around the world. Ensuring robust business continuity and disaster recovery is critical for any Google data centre across our planet-scale network, and this will also be a top feature and priority for our infrastructure in Malaysia,” says Siah.

With more than 20 years in the cloud, Google offers security solutions and built-in protections to help customers modernise security in the cloud or wherever their applications or data live.

To highlight a few security features of its solutions and network, Google Cloud encrypts data-at-rest and data-in-transit by default and cannot be turned off. It also provides options for customers to use their own encryption keys for greater control.

“We also provide AI-powered tools such as data loss prevention application programming interface (API) to help customers quickly detect, classify, redact, mask and tokenise their sensitive data,” says Wee.

Google employs a multi-layered security approach, combining hardware and software innovations, 24/7 monitoring and advanced threat intelligence. It identifies and addresses vulnerabilities, utilises AI to detect anomalies and fosters a culture of security through initiatives like bug bounty programmes. This defence-in-depth strategy helps safeguard its infrastructure and user data from evolving cyber threats.

Through its security command centre, it provides customers with centralised visibility and control with built-in cyber risk management, improves their vulnerability management, reports on and maintains compliance and detects threats.

Source: The Edge Malaysia

Google’s data alchemy for Malaysia

The development of tech hubs and data centres is closely interconnected; both sectors drive and benefit from each other’s growth and advancements.

Hubs such as Cyberjaya offer dark fibre connectivity, enabling companies to effectively manage their network infrastructure. This set-up ensures uninterrupted bandwidth and consistent, reliable data transmission speeds, which are crucial for the efficient operation of data centres, says Kamarul Ariffin Abdul Samad, CEO of Cyberview Sdn Bhd.

Dark fibre connectivity refers to unused optical fibre infrastructure for networks.

“Tech hubs like Cyberjaya play a critical role in today’s digital landscape, ensuring that companies across all sectors are connected and supported, creating an environment where innovation can flourish,” he says.

Thus, it is crucial that data centre companies connect to a robust innovation and tech ecosystem by fostering collaboration with local start-ups, small and medium enterprises, research institutions and industry leaders, says Kamarul.

“Embracing emerging technologies, investing in research and development, and nurturing a culture of continuous improvement will enable tech hubs and data centres to thrive in today’s digital era.”

Furthermore, tech hubs are able to align local talent and skills with the growing digital economy in Malaysia because they serve as innovation ecosystems that bring together educational institutions, industry leaders and government initiatives.

In need of land

The influx of data centres also necessitates tech parks that provide well-planned environments for businesses to operate in by providing amenities such as power, connectivity and security.

Tech parks also provide data centre investors with the flexibility to choose environments that precisely match their business objectives. For example, Sedenak Tech Park is designed specifically for the data centre ecosystem with its prime location, ample space and eco-friendly power sources.

Tech parks play a vital role in stimulating local industries and supply chains, says Datuk Akmal Ahmad, deputy chairman of JLand Group Sdn Bhd. This is by encouraging the clustering of related industries, which fosters collaboration and skill development within the local workforce.

“Tech parks are vital catalysts for stimulating local economies and driving infrastructure development. By attracting businesses, start-ups and multinational corporations, they generate demand for a wide range of local services, fostering economic diversification and boosting local spending,” says Akmal.

As tech parks are established, they require reliable and advanced infrastructure to upgrade existing facilities or to develop new ones, he says. This demand prompts local governments or private investors to upgrade existing facilities or develop new ones, which creates a ripple effect that benefits the surrounding communities.

That is not all. The development of tech parks significantly boosts residential property values in nearby areas, says Akmal. As tech parks attract businesses and skilled professionals, the increased demand for housing leads to the development of various residential properties. This also prompts the creation of essential amenities to accommodate the growing population.

Furthermore, tech parks create demand for skilled workers in different sectors by bringing different groups of companies together, says Akmal. The clustering of businesses stimulates growth in local services like retail and housing.

Within the context of a tech hub, ripple effects in the creation of higher-income job opportunities such as in cybersecurity, network infrastructure management and data analytics can be expected as data centre investment emerges, says Cyberview’s Kamarul.

Cyberjaya, for example, is home to eight institutes of higher learning that supply talent to the tech sector. This is as industry-academia collaboration and dialogue allow two-way communication that improves the employability of graduates, says Kamarul. Cyberjaya is home to over 28,000 students.

As a tech hub developer, Cyberview has incorporated collaborative spaces, innovation labs and incubators as part of the tech hub’s urban planning components, which supports the growth of local start-ups and creative enterprises.

“This demand can drive up residential property values as more people, including highly skilled tech professionals, seek to live close to their workplaces, benefitting from reduced commute times and enhanced local amenities,” he says.

“It also gives rise to the development of modern amenities such as restaurants, retail stores and parks that enhance quality of life by providing convenient options for workers and residents [of the tech hub].”

Ironing out the details

However, the development of tech parks or hubs comes with its own challenges, notes Benjamin Ong, CEO of Mah Sing Group Bhd (KL:MAHSING). For instance, land acquisition can be a hurdle, as demand for suitable land can drive up prices. Additionally, there needs to be adequate infrastructure, power and water supply to meet the demands of these data centre developments.

This is why government and strategic policies are essential to maximise the benefits of tech hubs and data centres. The government plays a vital role in creating a conducive business environment, making investments in infrastructure and promoting local talent.

“Government policies and planning are very important. They have to increase spending on power and water infrastructure so that there is evenly distributed development across the segments. If that is planned properly, Malaysia stands to gain because we all move up the value chain,” says Ong.

There needs to be adequate infrastructure, power and water supply to meet the demands of these data centre develop.ments. This means that Malaysia must keep investing in its electrical grid and telecommunications infrastructure, says Kamarul.

This increased demand also necessitates the development of renewable energy sources and the enhancement of energy efficiency measures to support data centre growth whilst minimising environmental impact.

In response to this, Cyberview has implemented an action plan that includes establishing an environmental, social and governance framework and a five-year road map focused on enhancing sustainability.

“We are actively exploring further opportunities with potential partners to enhance our use of solar and renewable energy for data centres in Cyberjaya. This includes evaluating the feasibility of renewable power options through the Corporate Green Power Programme and Third-Party Access,” says Kamarul.

He acknowledges that as the demands of the tech industry continue to evolve, there is a need to work via a collaborative framework with key partners and government agencies, in order to offer solutions to scale infrastructure and manage resources.

“We also conduct a thorough cost-benefit analysis to understand the financial implications and potential returns of infrastructure in Cyberjaya. By doing so, we ensure that the infrastructure not only meets current needs but also positions the city as a forward-looking hub that can sustain tech and economic advancement,” says Kamarul.

Source: The Edge Malaysia

Building the digital backbone

The location of a data centre is a critical factor that influences its efficiency and operational success. Power reliability, protection from natural disasters and security are top priorities for any data centre operator.

SPD Tech Valley, Malaysia’s premier managed industrial park, can be the solution to these concerns, as it offers cutting-edge connectivity solutions that are crucial for data centre operations, along with a robust, secure and future-ready environment tailored to the needs of data centres.

With its fibre-optic infrastructure paired with 5G technology, the park ensures ultra-fast data transmission, minimal latency and optimal network performance. This advanced connectivity infrastructure is ready to support high-bandwidth applications and future technological advancements, making it an ideal environment for cloud computing, big data analytics and other data-intensive operations.

Part of the Malaysia Vision Valley (MVV) 2.0 development plan, SPD Tech Valley places data centres at the heart of a rapidly growing industrial region, providing a strategic edge in accessing both domestic and international opportunities.

Scaleability and flexibility are among the key advantages of SPD Tech Valley. The park offers 523 acres of managed space, providing ample room for expansion and the ability to custom-build facilities tailored to specific data centre needs.

This scaleable infrastructure allows businesses to expand and adapt to changing demands seamlessly, ensuring that operations can evolve with the industry’s ever-changing landscape.

Innovative environment

In a world in which data is one of the most valuable assets, security is paramount. As such, SPD Tech Valley is equipped with a multi-tiered security system designed to protect data centres from physical threats.

The park features 24/7 surveillance, artificial intelligence (AI)-enhanced security systems, including face and licence plate recognition, and secure perimeter fencing.

Furthermore, its commitment to security extends beyond physical measures. The park’s design and operational protocols are aligned with the highest standards of data protection, ensuring compliance with both local and international regulations. This comprehensive approach to security means that data centres are not only protected from physical threats but also from potential regulatory risks.

SPD Tech Valley is not just about infrastructure but also about creating a supportive business environment. The park enjoys strong backing from Malaysian government agencies such as the Malaysian Investment Development Authority and Invest NS to ensure a smooth set-up process and access to various incentives for data centre investments.

SPD Tech Valley is committed to reducing operational burdens, providing a comprehensive and managed environment that allows businesses to focus on their core activities without being bogged down by day-to-day management issues.

Designed with Industry 5.0 in mind, SPD Tech Valley integrates the latest technologies and infrastructure to support the future of data centres. The park continually invests in infrastructure upgrades to ensure it remains at the forefront of technological innovation.

Power supply is the lifeblood of any data centre, and SPD Tech Valley ensures operations are powered with precision and reliability. Strategically positioned next to Malaysia’s national grid with direct access to a 275 kilovolt-ampere (kVA) power line, SPD Tech Valley offers robust and stable energy supply.

The park is designed with 150MW of planned electricity capacity, with no restrictions on tapping additional supply from the national grid. With 50MW of ready power available from nearby PMU facilities and the flexibility to expand further, SPD Tech Valley is fully equipped to meet the energy-intensive demands of modern data centres.

SPD Tech Valley also embraces a sustainable approach, integrating renewable energy options such as solar power. This not only enhances sustainability credentials but also ensures energy efficiency and cost savings, making operations more resilient against future energy price fluctuations.

Whether it is implementing new cooling technologies, expanding connectivity options or enhancing energy efficiency, SPD Tech Valley is committed to providing future-ready facilities that meet the evolving needs of the data centre industry.

Embracing renewables

Sustainability is at the core of SPD Tech Valley’s development philosophy. The park is LEED Gold-pre-certified and GreenRE-certified, reinforcing its strong commitment to environmental responsibility.

SPD Tech Valley integrates green initiatives such as solar energy, rainwater harvesting and energy-efficient cooling solutions, aligning perfectly with the sustainability goals of modern data centres.

Solar energy drives a significant portion of the park’s daily activities, reducing reliance on fossil fuels and minimising carbon emissions.

In addition, the park takes a renewables-based approach to water usage by treating water from the nearby river, making it suitable for cooling systems. This not only conserves resources but also enhances the overall efficiency and sustainability of operations.

Such initiatives not only reduce the environmental footprint but also contribute to lower operational costs, making data centre operations more sustainable and economically viable.

Being sustainable also means ensuring that operations are protected from adverse weather conditions and physical impact. Natural disasters are an ever-present risk that can disrupt operations and cause significant damage to data centres.

SPD Tech Valley’s strategic location in Senawang, Negeri Sembilan, offers significant advantages for data centre operations. Located 70m above sea level, the park offers natural protection against flooding, ensuring that data centres remain operational even in adverse weather conditions. This elevation advantage, combined with state-of-the-art infrastructure, provides a secure and stable environment, safeguarding critical operations for peace of mind.

Situated in a region with no history of natural disasters, SPD Tech Valley ensures minimal risk of operational disruptions. The moderate climate in this area reduces the cooling load, leading to energy savings and enhanced equipment longevity.

For data centre investors seeking a location that offers robust power supply, natural disaster protection and advanced security, SPD Tech Valley stands out as the smart choice. With its state-of-the-art infrastructure, coupled with a secure, stable and sustainable environment, SPD Tech Valley is designed to meet the demands of the most critical operations.

Source: The Edge Malaysia

Powering up data centre operations at SPD Tech Valley

Logistics players are working hard to reduce their environmental impact from various angles 

In today’s dynamic business environment, the significance of environmental, social and governance (ESG) principles is gaining recognition, signifying a profound move towards embedding sustainability into the core of business operations. This shift highlights a broader perspective on a company’s societal responsibilities, blending profitability with positive global impacts. 

In this context, the logistics industry emerges as a pivotal player, adopting sustainable practices and leveraging technology to streamline supply chains in an environmentally conscious manner. 

Players in the logistics sector are investing their efforts into minimising their environmental impact from multiple angles, including pick-up and delivery route optimisation, vehicle efficiency and modernisation, and a shift towards renewable energy (RE). These efforts highlight the sector’s commitment to science-based carbon emission reduction targets. 

This initiative is crucial for the transportation sector to fulfil global warming limits set by the Paris Agreement and address its significant contribution to global CO2 emissions. Globally, industries have committed to reducing emissions to limit global warming to a 1.5°C increase, as per the Paris Agreement, to mitigate climate change risks. However, with the transport sector responsible for a substantial portion of CO2 emissions in 2020, it is clear that more aggressive action is required to meet these targets. 

In Malaysia, these global sustainability trends find a strong echo, with targeted initiatives aimed at bolstering the logistics sector’s efforts. The country’s commitment to curbing greenhouse gas emissions in proportion to its GDP by 2030 exemplifies the logistics sector’s critical role in Malaysia’s sustainability journey. This solidifies the country’s position as a leader in sustainable logistics practices in the region and highlights the sector’s significant contribution to achieving broader environmental objectives. 

Data Powers Sustainable Logistics

The pivotal role of data in bolstering sustainability initiatives is evident, serving as a cornerstone for strategic decision-making and operational enhancements. Specifically, within logistics, data-driven analysis in various parts of operations reduces carbon emissions and supports the transition towards RE. This strategic application of data not only aligns with the Paris Agreement’s objectives but also positions companies like FedEx to set a precedent. 

Data supports sustainable initiatives within companies in several critical aspects:

• Measurement and Monitoring: Data enables companies to measure their environmental impact, essential for setting goals and tracking progress. 

• Identifying Opportunities: Analysis helps pinpoint areas for sustainability improvements, such as energy usage and waste reduction. 

• Optimising Resource Use: Data allows for better resource management, reducing costs and environmental footprint. 

• Decision-Making Support: Provides insights for informed decisions on suppliers, investments and product designs aligned with sustainability. 

• Compliance and Reporting: Ensures accurate sustainability reporting and regulatory compliance, avoiding fines and reputational damage. 

• Innovation and Continuous Improvement: Fosters development of sustainable products and processes, enabling continuous strategy enhancement. 

Leveraging data-driven insights, businesses can track carbon output, identify improvement areas and set precise sustainability goals. This visibility helps meet carbon neutrality targets effectively. Throughout the project lifecycle — from assessment to outcome and evaluation — this strategic use of technology ensures continuous advancement toward a greener future. 

The strategic sustainability approach at FedEx, supported by concrete data-driven goals and targets in various segments, is founded on three core principles: Reduce, Replace, Revolutionise. This methodical framework facilitates precise tracking and measurement of environmental impacts, guiding the implementation of initiatives aimed at reducing emissions and waste, enhancing the efficiency of technologies and vehicles and pioneering innovations in fleets and facilities to achieve responsible resource use. 

Through emission and waste reduction, upgrading to more efficient technologies and vehicles, and innovating fleets and facilities, FedEx aims at using resources in a more responsible manner. Collective efforts have led to a 48% decrease in CO2 emissions intensity between financial year 2009 (FY09) and FY23, despite a 121% growth in average daily package volumes. 

Initiatives like fuel reduction in the fleet, increasing facility energy efficiency and optimising the recyclability of packaging are key to lessening environmental impact. An essential objective is converting the entire pickup and delivery fleet to electric vehicles (EVs) by 2040, aspirating for 100% of FedEx Express Pickup and Delivery (PUD) vehicle purchases to be zero-tailpipe emission EVs by 2030. Innovative solutions are necessary for achieving carbon-neutral operations and for carbon capture and storage. Modernising facilities and aircraft and adopting 100% recyclable packaging further FedEx sustainability commitments. 

Malaysia-Singapore First Cross-border EV Delivery Trial

The first cross-border delivery EV trial from Malaysia to Singapore by FedEx represents a significant advancement in sustainable logistics, aligning with Malaysia’s environmental goals. 

This 406km trial, which focused on data collection and operational insights, signifies FedEx’s move toward reducing its carbon footprint through environmentally responsible operations, demonstrating a reduction in tailpipe CO2 emissions of approximately 100kg compared to diesel-powered vehicles. 

The insights gained are vital for improving FedEx operational efficiency and customer experience, contributing to the broader goal of transitioning FedEx fleet to zero-emission vehicles by 2040 and underscoring its commitment to global sustainable logistics. 

During the trial, we closely monitored the time and efficiencies associated with EV charging. For instance, it took 40 minutes on a 90kWh charger to achieve a 48% battery gain. Additionally, similar to our mobile phones, the EV charging rate decreases once the battery reaches 80% capacity — charging at approximately 82kWh below 80% and dropping to about 25kWh above this threshold. 

This data is vital as it enables us to evaluate the efficiency of EVs in our fleet operations involving hundreds of PUD vehicles. Understanding these dynamics helps us prepare future plans to deploy EVs more effectively, including ensuring adequate access to charging stations. Ultimately, it paves the way for us to minimise our environmental footprint as we transition to more sustainable vehicle solutions. 

Vehicle range analysis is equally crucial for selecting the most suitable EV model for our operations. We observed that EVs are more efficient at lower speeds, consuming less energy per km. Specifically, at speeds estimated below 70kph with ECO mode activated, the drop in EV On-Board Telematics matched actual distance travelled kilometre-for-kilometre. 

Additionally, it is important to note that the range tested during the cross-border delivery EV trial represents the maximum distance achievable on a single charge when the vehicle is not carrying any cargo. We understand that the volume of packages loaded on the truck will impact the range, indicating that real-world operational conditions could lead to variations in these results. This insight is critical for FedEx as we plan for the future, enabling us to choose vehicles that align with the specific demands and operational realities of our fleet, ensuring efficiency and sustainability in our logistics network. 

These efforts to integrate advanced digital solutions like FedEx Sustainability Insights (FSI) and practical data into our business are mirrored in our wider sustainability responsibilities. FSI is designed to support our customers’ sustainability goals by providing them with detailed environmental data on their shipments moving through the FedEx network, enabling businesses, such as major global manufacturers in South-East Asia, to measure impact and implement data-driven environmental initiatives. 

The commitment to achieve vehicle electrification, fuel conversation, investing in energy efficiency initiatives and RE, and offering end-to-end sustainability for customer supply chains through data and packaging solutions are all in harmony with Malaysia’s 2050 sustainability ambitions, aiming to transform the country into a green and tech-centric economy. 

This highlights the logistics sector’s integral role in national and global environmental stewardship. Through shared commitment to green practices and responsible business operations, the logistics industry is setting new standards in driving a sustainable transformation for Malaysia and beyond. 

• Woon Tien Long is the MD of FedEx Malaysia. 

Source: The Malaysian Reserve

How data drives green logistics

The Penang STEM (Science, Technology, Engineering and Mathematics) Talent Blueprint which was launched today, will be incorporated into the National Semiconductor Strategy (NSS), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz

He said the blueprint also will be supported by a portion of the RM25 billion allocated to operationalise the semiconductor strategies while the integration underscores both parties’ commitment to making Malaysia a regional manufacturing and services hub.

“The Penang STEM Talent Blueprint is an excellent example of the whole-of-nation approach to address the challenges and seize the opportunities in our rapidly evolving industrial landscape.

“This (blueprint) aligns perfectly with the objectives of our New Industrial Master Plan 2030 (NIMP 2030), NSS and the Green Investment Strategy (GIS),” he said at the launch of the blueprint in Tech Dome Penang, Komtar here tonight.

Tengku Zafrul noted that the Penang STEM Talent Blueprint also supports one of the targets of the NSS, which is to train and nurture 60,000 highly-skilled Malaysian engineers by 2030.

He pointed out that the ministry has made STEM education as one of the key enablers for Malaysia’s reindustrialisation strategy because no country can position itself as a global leader in high-tech industries without a sufficient supply of STEM talent.

He said industries like semiconductors, electronics and green technologies are fast becoming critical drivers of global economic growth, with Malaysia already the sixth largest semiconductor exporter globally.

“However, the semiconductor industry and many other sectors we want to develop such as aerospace, medical devices, pharmaceutical and the digital economy, face a significant global challenge that is the talent crunch.

“Hence, the need to develop a sustainable skilled talent pipeline,” he added.

The minister also said Penang continues to attract high-value investments in semiconductors and related industries including being a major contributor to the national economy.

The blueprint was launched by Penang Chief Minister Chow Kon Yeow and handed over to Tengku Zafrul.

The key measurable targets for the STEM Talent Blueprint include doubling the number of STEM enrolment in secondary schools, university output for STEM, STEM-related Technical and Vocational Education and Training (TVET) output and girls in STEM education, alongside with doubling the number of high-value jobs.

In order to achieve this, the blueprint adopts a holistic framework model to build a robust STEM talent pipeline from primary to post-tertiary education.

Source: Bernama

Penang STEM talent blueprint will be incorporated into NSS – Tengku Zafrul

In a significant move to enhance regional energy cooperation, Malaysia and Indonesia have agreed to form a joint task force to boost renewable energy initiatives and advance the Asean Power Grid, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

The task force will explore the feasibility of a joint green industry between Malaysia’s Sarawak and Indonesia’s Kalimantan.

“The task force has been established to advance these initiatives. The group will begin its work on Monday (September 9) and is expected to finalise its findings within two weeks,” he told the Malaysian [ress.

The decision to establish a task force follows two bilateral meetings yesterday with Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, and Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia.

The task force will include representatives from the Energy Commission, Sarawak, and Tenaga Nasional Bhd, while Indonesia’s delegation will be led by a senior official at the Coordinating Ministry for Maritime Affairs and Investment.

It will deliver a comprehensive report to Fadillah and Luhut, addressing energy supply issues between the two countries with a particular focus on renewable energy.

Fadillah will consult with both the Malaysian government and the Sarawak state government on any proposals and the outcomes of their discussions related to the joint task force.

Currently, Sarawak supplies energy to West Kalimantan, and with ongoing hydropower developments in other parts of Kalimantan, the establishment of the task force is of significant importance for enhancing regional energy cooperation.

Meanwhile, Fadillah said his meetings with Luhut and Bahlil were highly productive, focusing on the collaborative development of the renewable energy sector and setting priorities.

“We aim to not only advance these initiatives at the bilateral level but also within Asean, ensuring the benefits extend beyond individual countries. The goal is to foster cooperation and mutual support among all Asean countries,” he said.

Regarding Malaysia’s energy transition, Fadillah highlighted the need for substantial investment to move from fossil fuels and coal to cleaner energy sources.

He also emphasised the importance of maintaining a stable energy supply and managing electricity costs while balancing environmental and economic impacts to prevent disrupting national progress.

“Fortunately, local banks are willing to fund these investments, reducing reliance on external aid and demonstrating a positive outlook for the transition,” Fadillah said.

Fadillah, accompanied by a delegation and Malaysia’s Ambassador to Indonesia Syed Md Hasrin Tengku Hussin, attended the 2024 Indonesia Sustainability Forum from September 5 to September 6.

Source: Bernama

Malaysia-Indonesia form task force to advance renewable energy, Asean Power Grid

Systech Bhd’s subsidiary SysAIU Sdn Bhd has inked a collaboration agreement with Pinetop Technology Venture Sdn Bhd to develop and operate AI-driven data centres.

The agreement spans an initial two-year term with the possibility of annual renewals. 

Pinetop is a Malaysian company specialising in the development and operation of AI data centres and IT software solutions.

SysAIU will oversee sourcing, installing, and maintaining the necessary infrastructure, while Pinetop will manage the daily operations of high-performance graphics processing units (GPUs) infrastructure.

Systech managing director Datuk Derrick Hooi said that the collaboration is a significant step forward in the strategic plan to expand into AI and data centre sectors. 

“We are poised to deliver provisioning state-of-the-art data centres that will meet the evolving needs of businesses in Malaysia and beyond. 

“This partnership not only reinforces our commitment to innovation but also positions us to capitalise on emerging opportunities in the digital economy,” he said.

Pinetop chief executive officer Eizaz Azhar said that the partnership with SysAIU marks a significant milestone in the journey to advance AI and data centre technologies in Malaysia. 

“By combining our deep expertise in AI-driven operation with SysAIU’s cutting-edge solutions and servicing of high-performance GPUs, we are confident that this collaboration will lead to the development of world-class data centres capable of meeting the evolving needs of the digital landscape,” he said.

Source: NST

Systech unit inks deal to to develop, operate AI-driven data centres

Malaysia expressed its commitment to empowering artificial intelligence (AI) technology through the National Artificial Intelligence Roadmap 2021-2025 and the implementation of the Digital Education Policy (DPD) at the 2024 Digital Learning Week held in Paris.

Education Minister Fadhlina Sidek, who is also the president of the Malaysian National Commission for the United Nations Educational, Scientific and Cultural Organisation (Unesco) (MNCU), said the potential of AI technology needs to be further explored to support educational goals without marginalising human values.

In a statement today, she shared Malaysian initiatives in actively implementing the Education Reforms, the 2027 School Curriculum and the new education development plan.

Fadhlina, who is leading the Malaysian delegation at the 2024 Digital Learning Week, held from September 2 to September 4, also participated in a round table discussion with other international education leaders.

She met with Unesco deputy director-general Xing Qu and discussed the agenda on education for all, the empowerment of Science and Technology and ethics in AI technology.

Fadhlina also expressed Malaysia’s desire to be on Unesco’s Executive Board for the term 2025 to 2029.

This is in line with Malaysia’s experience, commitment, image and good reputation as a member country that plays an active role in leading programmes implemented at the regional and global levels.

Xing also expressed his appreciation to Malaysia for the country’s continuous commitment to strengthening Unesco’s agenda.

Source: Bernama

Malaysia committed to empowering AI, digital learning