Karpowership, a Turkish operator of floating power plants, is keen on collaboration opportunities in Sabah to fulfil the state’s power needs, said its Asia commercial operations director Tolga Bayav. 

He said the integration of the company’s floating power plant solutions, known as powerships, may assist in ensuring a stable and dependable power supply in the state, as well as Malaysia, which in turn would drive industrialisation while attracting foreign investments.

“In Malaysia, Karpowership will also support economic opportunities and increase the quality of life… We are continuously exploring ways to innovate and adapt our offerings to meet the specific needs of the energy sector. 

“Our experience in ongoing projects and partnerships are aimed at not only supplying power but also enhancing the strategic energy capabilities of our clients. We are committed to investing in sustainable power technologies and building long-term relationships that support the objectives of the Malaysian government,” he said.

He said this to Bernama when met on the sidelines of the Defence Services Asia (DSA) and National Security (NatSec) Asia 2024 exhibition here on Wednesday. 

Elaborating on the what the company has to offer, Bayav said it specialises in both long-term independent power producer projects and short-to-medium-term bridge gap solutions, catering to base load, peak shaving, and mid-merit requirements. 

He said the company boasts an operational fleet of 36 powerships which could deliver upwards of 6,000 megawatt capacity, alongside a floating gas infrastructure fleet. 

“With 19 successfully completed power supply contracts, we continue to expand the energy portfolio. Karpowership’s areas of operation span from powership, floating storage regasification unit, land-based and solar solutions, driving impactful change in the global energy landscape,” he said, adding that the company is also exploring the potentials for collaboration with Petroliam Nasional Bhd (Petronas).

Meanwhile, Bayav said the DSA 2024 provides a pivotal platform for energy companies such as Karpowership to demonstrate their capabilities and advanced technological innovations in the energy sectors. 

“The response has been overwhelmingly positive. The dignitaries appreciated our efforts in pushing the boundaries of what’s possible in mobile power generation,” he said. 

Source: Bernama

Turkish company Karpowership eyes investment in Sabah’s power sector

AS the world shifts towards net zero and green economy, it will lead to small and big transitions affecting daily lives, workplace conditions and environment, employees’ skill set and jobs, business models and the way of doing business.

The scale of green transition is likely to be disruptive to the labour market. The greening of the economy, greening production of goods and services as well as green investment will inevitably bring about greening existing jobs and replacement as well destruction of some jobs while creating new green skills jobs.

What is green job? There is a lack of universally accepted definition or accepted way of categorising green jobs and green skills. This can lead to confusion and potential greenwashing.

The International Labour Organisation (ILO) defines green jobs as jobs that are good for people, good for the environment and good for the economy. Green jobs are decent and socially responsible as well as for the preservation and restoration of the environment.

As the economy and businesses gear up for green transformation and the challenges of climate change and sustainable technological change, the creation of green jobs and demand for green skills is on the rise.

The green economy transition is driving green jobs growth across traditional sectors such as manufacturing, agriculture, healthcare, construction and finance as well as new emerging green sectors such as electric vehicles (EVs), renewable energy (RE), circular economy, environmental services, sustainable city development, erosion control and flood mitigation management.

Additionally, green transition in particularly hard-to-abate sectors, which include heavy-duty trucking, shipping, aviation, iron and steel, and chemicals and petrochemicals, also create green transition jobs that need reskilling and upskilling of existing job profiles.

The ILO estimated that about 100 million new green jobs can potentially be created by 2030, leading to a net job creation of 25 million jobs. A total of 18 million jobs can be created by achieving sustainability in the energy sector and six million jobs can be created by embracing the circular economy.

The Global Green Skills Report 2023 indicated the increase in demand for green skills is outpacing the increase in supply, raising the prospect of an imminent green skill shortage.

Between 2022 and 2023, the share of green talent in the workforce rose by a median of 12.3% across the 48 countries examined, while the share of job postings requiring at least one green skill grew nearly twice as quickly by a median of 22.4%.

Between 2018 and 2023, the share of green talent grew by 5.4% per year while the share of jobs requiring at least one green skill grew by 9.2%.

Addressing this growing demand of green skills need requires a multifaceted approach, encompassing education and training, industry collaboration, and policy support to businesses’ skills needs identification and anticipation and equip workforce with the skillset, competencies and knowledge needed to build a sustainable green future.

Stakeholders in public and private sectors have to develop regulations, programmes and policies that foster green skills development and create pathways for workers to transition into green jobs.

For Malaysia, it is important for the policymakers and businesses to meticulously make policy assessment and readiness for developing a green workforce capable of helping the economy and businesses transition towards sustainable growth.

Malaysia has a well-developed green economy agenda dating back to the National Policy on Climate Change (2010) and National Policy on the Environment (2020), focusing on stewardship of the environment; effective resource management; enhanced environmental conservation; continuous improvement in the quality of the environment; sustainable use of natural resources; the role of the private sector; commitment and accountability; and active participation in the international community.

The green economy agenda was further reinforced in the 11th Malaysia Plan (2016-2020) and the 12th Malaysia Plan (2021-2025), outlining the strategic thrust of pursuing green growth for sustainability and resilience.

The focus areas include strengthening the enabling environment for green growth, the adoption of sustainable production and consumption concepts, the conservation of natural resources for present and future generations, and the strengthening of resilience against climate change and natural disasters.

The National Plan was reinforced by the National Green Technology Policy, the Environmental Quality Act (1974), the Green Government Procurement Guidelines (2018), New Industrial Master Plan 2030 and the National Energy Transition Roadmap to set overall directions, initiatives and enablers of supporting all stakeholders in implementing environmental sustainability.

Malaysia’s definition of green jobs is guided by the ILO definition, whereby green jobs are decent jobs that contribute to preservation or restoration of the environment.

The government has initiated occupational analysis in some of these new and emerging industries in green technology. The Occupational Structure of the Green Technology Industry project (2011) identified the main sectors likely to utilise occupations in green technologies.

The first iteration structure identifies six key sectors which include energy, manufacturing, transportation, buildings, waste and water, and has found 71 job titles that could be classified in green technology.

The second iteration of the Green Technology Occupational Framework only focused on the energy sector (RE and energy efficiency), and 112 occupations were identified.

The Green Jobs Portal, a proactive measure taken by the Environment and Water Ministry, has set a target of providing more than 200,000 green jobs by 2030. Data from MYFutureJobs indicated that there were 30,000 green jobs available in 2023,

How can policymakers and businesses increase the number of green jobs? The implementation of New Industrial Master Plan 2030 and National Energy Transition Roadmap to accelerate the economy’s and industries’ green transformation will attract potential investment in new green areas of up to RM1.3 trillion and is expected to generate 310,000 jobs by 2050.

The government can use a wide range of policy interventions, regulations and environmental standards, green taxes as well as financing measures to support and incentivise private sector and businesses to undertake green transformation.

These include increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

Building climate-resilient infrastructure, smart city and public housing development, expanding green public transportation, RE, smart electricity grids, and investment in flood mitigation, climate change mitigation and adaption project, as well as agriculture for creating sustainable food security – all these public investments will create green job opportunities.

Additionally, the government can collaborate with the financial institutions to provide loans at reasonable interest rates and grants for investing in green projects such as sustainable agriculture, renewable or low-carbon emission technology, smart government and private buildings, private housing, public walkways and cycleways and EV infrastructure.

The government can send decisive policy signals to the private sector that it is committed to the development of green economic prosperity.

For example, by offering tax incentives, subsidies and grant funding to support the collaboration between the industry, research institutes, academic institutions and private research and development firms to boost innovation and invest in transformative technologies such as RE, carbon capture, waste management and energy efficiency.

Green subsidies and tax rebates can be provided to boost demand for green products and services like EV, solar panels, RE and energy-savings equipment and appliances. This would increase the demand for green skills and encourage suppliers to reskill.

Businesses must demonstrate a commitment to equipping the workforce with green skills for talent motivation and retention while illustrating good career prospects in the green pathway.

Furthermore, businesses prioritising sustainability can send a strong message to their employees about their ESG values.

Enhancing skills is key to the green transition and harnessing the potential of artificial intelligence. Green skills are the knowledge, abilities, values and attitudes needed to develop a pool of workforce capable of helping businesses’ green transition.

Active labour market policy plays an important role to train and develop green skills. Both public and private investments in skills and training development are critical to building a resilient green and digital transition.

The greening of skills must take place through active labour market education and training. Policymakers and businesses must provide the necessary green training and career pathways, area-specific reskilling, design tailored and effective programmes to the workforce.

Lee Heng Guie is Socio-Economic Research Centre executive director. The views expressed here are the writer’s own.

Source: The Star

Get ready to develop a green workforce

Malaysia boasts a robust framework for Environment, Social, Corporate Governance (ESG), underpinned by an unwavering commitment to environmental sustainability, social inclusivity and corporate governance.

And federal initiatives such as the Malaysian Code on Corporate Governance (MCCG) and Bursa Malaysia’s sustainability reporting requirements exemplify the nation’s dedication to upholding these principles, said Invest Sabah Berhad chairman Senator Tan Sri Anifah Aman.

Speaking at the opening of the Environment, Social, Corporate Governance (ESG) Initiatives Awareness Forum at Magellan Sutera Harbour Resort here on Tuesday, Anifah added that Prime Minister Datuk Seri Anwar Ibrahim’s advocacy for carbon emission reduction and promotion of renewable energy epitomise Malaysia’s steadfast commitment to forging a sustainable future.

Anifah’s speech was delivered by Invest Sabah Berhad deputy chairman George Wong Hsueh Cheng.

Anifah said that under the visionary leadership of Chief Minister Datuk Seri Hajiji Noor, Sabah has embarked on a comprehensive ESG strategy and the state has taken decisive measures to combat illegal logging, champion reforestation efforts, and transition towards renewable energy sources, including solar and hydroelectric power.

In the realm of social inclusivity, Sabah, he pointed out, remained steadfast in its support for indigenous rights and the advancement of rural communities.

The government’s unwavering commitment to preserving traditional land rights and investing in critical infrastructure, education and healthcare ensures equitable participation in economic progress, Anifah stressed.

“Governance in Sabah is anchored in transparency and the fight against corruption, thus fostering a conducive environment for business and investment. Furthermore, the state is steadfast in promoting sustainable tourism, ensuring that this vital sector flourishes without compromising our natural heritage,” he said.

Anifah said that as the global business landscape continues to evolve, the principles of ESG ascend to greater prominence, adding, “These guiding principles steer us towards integrating sustainability, social responsibility and ethical governance into our operational frameworks. In doing so, we fortify our resilience, attract investment, and contribute to the holistic betterment of society.”

The forum, he said, serves as a conduit for exploring the latest advancements in ESG practices and discerning optimal strategies to navigate this dynamic terrain and also serves as a catalyst for forging strategic alliances and fostering collaborative endeavors in sustainability.

“By engaging with industry stalwarts, policymakers and esteemed academics, we stand to glean invaluable insights and cultivate innovative approaches to ESG. The networking opportunities presented here today offer fertile ground for cultivating relationships with like-minded professionals, thereby catalysing positive transformations within our organizations and broader communities,” he said.

Meanwhile Invest Sabah Berhad CEO and organising chairperson of the event, Dr Firdausi Suffian, in his welcoming address said that it was an honour to host the event in Sabah, as the state is one of the best places in Malaysia in relation to sustainability given its well-recognised, well-preserved biodiversity with its existing governance and regulation, internationally recognised for preserving its biodiversity, and of course one of the economic houses for the country given its considerable contribution in term of resources.

ESG, he said, is tied to the broad theme of sustainability and has been and continues to be an overarching concern in all policy levels as it is an important narrative and needs to be incorporated in our investment ecosystem.

“The role of Invest Sabah is pertinent in this matter, this organisation is poised to be the frontier for attracting investment to the state. We are committed to creating favourable investment climate to attract quality investment to drive structural change with strong emphasis on technology, sustainability, and socioeconomic inclusivity,” he said.

“ESG is not mutually exclusive. It is interrelated by nature. it is important to factor in capacity, capability and feasibility in practising ESG. It is known that with the advance of technology, we can mitigate our environmental degradation but at the same time we need to ensure capacity building is there so it will not compromise our society’s well-being.

“And while configuring policy we need to ensure it is practical and feasible by all. One important thing we need to avoid at policy making is topdown disconnected, bottomup disintegration in pursuing sustainable resilience. We have to work towards an inclusive approach, That’s why today we bring you this forum to discuss the broad challenges of sustainability, climate change and organisation agilities,” said Dr Firdausi.

According to him, the federal and state governments are committed to low-carbon development aimed at restructuring the economic landscape to a more sustainable one in line with the SDG goals.

He stressed that pursuing economic development with sustainable agenda is nothing new in Malaysia and also Sabah.

“Efforts in doing so has been recalibrated, refreshed and reaffirmed in national policy such as Madani Economy framework, 12th Malaysia Plan, Budget 2024, New Industrial Master Plan 2030 and of course National Energy Transitional Roadmap (NETR). In particular, NETR has explicitly stated to meeting the country’s climate commitment to cut 45% carbon intensity against GDP by 2030 compared to the 2005 baseline.

“Similarly in Sabah, the grand Sabah Maju Jaya plan has made a clear policy stance on sustainability with a specific theme under this policy to ensure development is espoused with sustainability and inclusivity,” he said.

The state government, he said, has introduced key gamechanger policies in relation to decarbonisation, renewable energy and sustainability such as Sabah Energy Roadmap and Master Plan, Blue Economy (first state to introduce the policy), Oil Palm Biomass Policy, and Ocean Thermal Energy Conversion (OTEC) Enactment 2024. All these policies is setting the tone for reducing carbon footprint and to meeting the global agenda for net-zero.

“Sabah policy makers have come out with sustainable governance and regulations more than three decades ago to protect our forest, biodiversity and marine life. The recent 28th Conference of Parties to United Nations Framework Convention on Climate Change has widely praised for Sabah good forest conservation governance, sustainable forest management and increasing carbon stock size of its totally protected forest areas. Under SMJ efforts today our Total Protected Areas have reached 1.9 million hectares. Mind you it is this state that made carbon emission trade-off for West Malaysia,” he pointed out.

Sustainability, Dr Firdausi said, has been an important narrative in Sabah policy-making institutions.

“I remember more than a decade ago, a question was asked to Sabahans to choose tree/ monkey or coal. As we all know coal plant is a cheaper source of energy.

“However, for the love of the environment, Sabahans choose tree/monkey over coal, even though this decision may somehow limit generating energy for the industry and household.

“Based on the preliminary findings, Total Primary Energy Sources (TPES) for national renewable energy comprising hydropower, solar and bioenergy constituted a mere 3.9%. However for Sabah despite our energy challenges so far our TPES accounted for around 7% higher than the national average. Under the current leadership we can see the state will continue working towards a greater sustainable development,” he said.

Source: Borneo Post

Malaysia has robust framework for ESG — Anifah

LOW-PROFILE company Nextgreen Global Bhd, which is in the business of turning empty fruit bunches (EFB), a byproduct of palm oil mills, into green and sustainable products such as pulp and paper, pulp moulding, fertiliser and animal feed, is now ready to showcase to the world what it can do.

After years of research and development (R&D) in the area of EFB and successfully commercialising its pulp production facility — with a capacity of 10,000 tonnes per year — in 2022, Nextgreen has found partners with the financial muscle to help scale up its operations.

“We have the breakthrough technology, now it is time for us to scale up. That is why we invited IOI Corp Bhd and also China’s Xiamen C&D Paper & Pulp Group Co Ltd to do business with us,” says Nextgreen managing director Datuk Lim Thiam Huat, 60, in an interview with The Edge.

Lim owns a 13.06% stake in Nextgreen, making him the second largest shareholder behind Datuk Gan Kong Hiok, who had 17.7% equity interest as at Feb 13, 2024.

Lim says the group invested about RM20 million over the last two decades to get to where it is today in terms of manufacturing paper pulp from EFB using its patented technology, known as the Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP), which he believes is the first of its kind in the world.

“Quite a number of companies have gone ahead [and tried to produce paper pulp from EFB], but they faced difficulty in achieving the quality of what Nextgreen can do today. Many have only been able to achieve the level of corrugated paper, but not up to the international standard required.

“As a result, they have not been able to commercialise it and are forced to shut down after a while because they cannot sell their products,” Lim says.

On April 8, Nextgreen announced a joint venture with IOI Paper Pulp Sdn Bhd, an indirectly wholly-owned subsidiary of IOI Corp, for the development of a zero-waste paper pulp plant in its Green Technology Park (GTP) in Pekan, Pahang.

On the same day, Nextgreen’s shares closed at a three-month high of RM1.05, up 13% from a low of 93 sen on April 3.

The joint venture (JV) announcement with plantation giant IOI Corp was followed by another one, where the newly established JV company — Nextgreen IOI Pulp Sdn Bhd — will team up with Xiamen C&D, a Fortune China 500 company, to develop the paper pulp production facility in Pekan.

The plan will see a new JV company established, with Nextgreen IOI Pulp holding 75% and Xiamen C&D the remaining 25%.

The three parties will work together on developing the paper pulp production facility that will span 43 acres within the GTP. The plant, which will cost RM600 million, is expected to be completed within 18 to 20 months, with an initial capacity of 100,000 tonnes of paper pulp per year produced from oil palm EFB.

“To scale up in a big way, we needed financial support as well as an off-taker. Of course, we already have a letter of intent from Japan’s Marubeni Corp as one of our off-takers.

“But having another party to participate with us; one that understands our business and loves our concept of the circular economy, zero waste, as well as a green product, that’s where Xiamen C&D comes into the picture,” Lim says.

The roles Xiamen C&D will play in the project include assisting with the financing of the project as well as being an off-taker of the products made by the pulp production facility.

Rolling out on full steam

Nextgreen is certainly not stopping at just 100,000 tonnes of paper pulp per year from its upcoming facility. With the backing and encouragement of its Chinese partner, it will scale up to 200,000 tonnes after achieving its initial 100,000-tonne target.

Thereafter, the plan is to double capacity to 400,000 tonnes per year, says Lim. All these goals are expected to be achieved within three years of the commencement of the paper pulp facility under the JV.

The JV company’s ambition is huge because it also has plans to set up a paper pulp facility in Sabah and Sarawak in the future.

Lim adds that it would also make sense for Nextgreen to expand into Indonesia, the world’s top producer of palm oil, because of the abundance of raw materials available in the country.

“We have decided to go ahead with the next plant in Indonesia. We have identified several places and we are targeting for it to take place this year,” he says, declining to elaborate.

However, he adds that it is clearly spelt out in the term sheet with Xiamen C&D that the Chinese partner intends to expand with Nextgreen IOI Pulp in Malaysia as well as Indonesia.

Nextgreen also intends to set up 20 collection centres throughout Malaysia, says Lim. The collection centres will serve as points of collection of the EFB from palm oil mills for its paper pulp facility and also a processing facility for organic fertiliser.

The group currently has four collection centres and aims to have 20 over the next five years. Each collection centre will involve around RM50 million to RM60 million of investment.

A year ago, Nextgreen entered into a shareholders’ agreement with Greentech Malaysia Alliances Sdn Bhd, Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd and Koperasi Perkhidmatan Setia Bhd to establish a JV company called GTC Biomass Bhd for the purpose of constructing, developing and commissioning two collection and processing centres in the country.

Greentech Malaysia Alliances will assist in bonds or green sukuk issuance while the cooperative will help in getting crowdfunding from other cooperatives for a chance to subscribe for preference shares in the JV company.

Cheaper than wood-based pulp

Unlike other recycled materials that tend to be more expensive to produce compared with the conventional material, transforming EFB into paper pulp fit for various paper products is significantly cheaper than wood-based pulp.

“There is vast availability of EFB in Malaysia, in the range of 30 million tonnes. At the moment, only 10% to 15% of EFB is being utilised for energy conversion and there is a balance of 85% available from the mills,” Lim points out.

The market price for a tonne of EFB ranges from RM2 per tonne to as high as RM12 per tonne, depending on the quality of the EFB.

“It is not very costly to convert the EFB into pulp. In fact, it is cheaper than the wood pulp process. When we entered into this business, we wanted to make sure that we could achieve a comparative price [with the wood pulp process] because if our cost was too high compared to the wood pulp process, it would not be economically viable.

“We have a bit of an advantage over wood pulp because our raw material is much cheaper than wood chips. To turn wood chips into pulp, manufacturers have to either buy the wood chips from the market or go into reforestation and harvest them. There is also the cost to bring the wood chips to the mills,” says Lim, adding that there is savings of some US$150 per tonne from just using EFB as raw material.

Based on the savings alone, one can understand why Xiamen C&D, which produces 13 million tonnes of paper and pulp per year, would be keen on Nextgreen’s technology and is supportive of the expansion of the latter’s operations.

Lim acknowledges that competitors from other countries will eventually catch up with Nextgreen’s patented technology but he is not worried about it because of the ecosystem the group has built to safeguard its interests, which would make it difficult for competitors to follow suit.

Palm oil millers are incentivised with carbon credits based on the amount of EFB delivered to Nextgreen. The group also incentivises millers who are usually in the plantation business by offering them discounts on the fertilisers the group produces.

The discounts are possible because Nextgreen saves on logistics cost, thanks to its collection centres, which double as mini processing plants for EFB pulp, thereby producing the fertiliser by-product close to the millers.

Nextgreen has also worked with various governing bodies such as the Ministry of Plantation and Commodities and the Malaysia Palm Oil Board to come up with regulations and requirements to ensure that there is due process at the collection centres.

“Our proposal was adopted in the National Biomass Action Plan, which put in some safeguards where parties cannot take the EFB without addressing the waste and environment,” Lim says.

Still need time for earnings to show

While Nextgreen has grand ambitions for itself going forward, it will still take some time before the earnings show.

Assuming the construction and setting up of its paper pulp facility goes as planned and achieves commencement within its targeted timeline of 18 months, earnings from the 100,000-tonne-per-year paper pulp facility will only start to roll in at the end of 2025.

The revenue that can be generated from the facility is estimated at RM355 million per year, based on the average market price of pulp at US$750 per tonne, with a gross margin of 30% and net margin of 20%.

Between now and the commencement of the facility, Lim sees earnings improving slightly, coming on the back of the group’s sales of the various by-products of the EFB pulp production at its current 10,000-tonne paper pulp facility.

For the financial year ended Dec 31, 2023 (FY2023), Nextgreen’s revenue nearly doubled to RM63.73 million from RM32.93 million in FY2022.

Net profit, however, fell 29% to RM9.65 million from RM13.61 million in the previous year on the absence of certain non-operating income — a reversal of impairment losses and gains of disposal on property, plant and equipment (PPE) — in FY2022. It also incurred higher income tax expenses amounting to RM2.54 million in FY2023 compared with RM11,000 in FY2022.

In the second half of this year, Nextgreen will see a contribution from its by-products, namely its organic solid fertiliser, a liquid fertiliser and animal feed.

It is worth noting that no part of the EFB goes to waste as Nextgreen, through its R&D, has managed to find a use for all the residue and discharge from the pulp-making process and convert these into commercialisable products.

“The idea of this zero waste concept is looking at how we can address the oil palm industry issues brought up by the West. If we take up the EFB, only extract and take the good part of it out and leave waste behind, the problem goes back to the environment, then there is no meaning,” notes Lim.

He is optimistic about the prospects for the by-products as well, pointing out that the initial response from the trial plot conducted has been good and that the group has potential off-takers who are interested in being distribution agents for its products.

Nextgreen’s share price closed at 89.5 sen last Friday — down just 2% over the past year — valuing the group at RM903.8 million. 

Source: The Edge Malaysia

Nextgreen Global scales up operations, turning biomass into green products

Princeton Digital Group (PDG) has secured its first RM1.28 billion (US$280 million) green loan for its 150 megawatt (MW) artificial intelligence (AI)-ready JH1 campus in Sedenak Tech Park (STeP) in Johor.

JH1 is one of largest AI-ready campuses in Asia and is designed to cater to the infrastructure demands of some of the world’s most pre-eminent AI and cloud companies.

The 150MW hyperscale project is a planned US$1.5 billion investment for PDG. 

The US$280 million financing is for the first 52MW phase of JH1 which is on track to be ready for service in June 2024, completing within just 12 months from the commencement of construction.

PDG chief executive officer and co-founder Rangu Salgame said the company has been at the forefront of developing Asia’s data centre infrastructure to enable the massive growth of AI and cloud in the region. 

“Our data centre campuses are AI-ready and combine quality and resilience of infrastructure with a primary focus on sustainability,” Rangu said.

“JH1, and this financing by top banks, are evidence of how PDG is solving for sustainability while building at scale for AI.  “With our unmatched track record of execution, this further cements our position as a leading pan-Asian data center operator,” he added in the statement.

According to PDG, the loan is being provided by three banks, namely Maybank, Standard Chartered Bank and UOB Malaysia who acted as Joint Green Loan Coordinators. 

PDG is a developer and operator of Internet infrastructure, headquartered in Singapore with presence and operations in Singapore, China, India, Indonesia, Malaysia, and Japan.

Source: NST

Princeton Digital secures RM1.28b green loan for AI-ready campus in Sedenak tech park

Sime Darby Plantation Bhd (SD Plantation) today said it will work with major shareholder Permodalan Nasional Bhd to develop the 404 hectare Kerian Integrated Green Industrial Park (KIGIP), in Perak.

In a statement today, the company said a joint proposal was submitted to the Ministry of Investment, Trade & Industry (MITI) in February.

The development will be located in SD Plantation’s Tali Ayer Estate in Perak.

KIGIP, conceptualised to attract green electrical and electronics (E&E) investments into the country, was announced by the government in the 2024 Budget.

The plan involves the establishment of 267 hectare of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest growing sectors in the global economy.

“The decision to actively participate in the KIGIP development is an important milestone for us as we venture into the natural adjacency of plantation companies,” SD Plantation’s group managing director, Datuk Mohamad Helmy Othman Basha said.

Conceptually, SD Plantation said about 67 per cent of the main zone will comprise industrial areas, whilst the balance will house other infrastructure such as commercial and residential facilities and large green spaces.

Its plans are subject to feasibility studies, due diligence, legal requirements, and other internal approval processes.

On its push into industrial park development, Mohamad Helmy said the company is well positioned to expand into the industrial park development area due to its landbank and strong balance sheet.

“By collaborating in such projects, instead of just signing off our land, we aim to secure more sustainable revenue streams for our shareholders,” Mohamad Helmy said.

The group holds strategic landbanks in various states throughout Malaysia, and active discussions are currently ongoing with several state agencies to develop these lands into industrial parks.

The intention is to replicate KIGIP’s green energy model where feasible.

SD Plantation said the solar farms for KIGIP will be owned and operated by the company, as renewable energy has been identified as a key strategic pillar and revenue source for the group.

It is also a key component of SD Plantation’s net-zero strategy, specifically, a 42 per cent reduction target in Scope 1 and Scope 2 Energy and Industrial carbon emissions by 2030.

Renewable energy is expected to contribute significantly to the company within the next five years.

SD Plantation said moving forward, the company will identify less productive agricultural lands to convert them into solar farms.

SD Plantation started leasing its land to third party solar farms under the government’s Large Scale Solar (LSS) schemes 1 and 4.

For LSS4, about 40 per cent of the quota for solar farms awarded by the Energy Commission of Malaysia was on SD Plantation’s land.

Additionally, under the Corporate Green Power Programme, 38 per cent of the quota was produced on the company’s land, some for its own use.

Separately, the group is also exploring opportunities with partners to develop data centres, which typically consume large amounts of energy.

Source: NST

Sime Darby Plantation to work with PNB to develop 404ha Kerian Integrated Green Industrial Park

The Investment, Trade and Industry Ministry (MITI) has confirmed that an announcement on Google’s investment in Malaysia will be made in the near future.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said this follows the virtual meeting on Monday between Prime Minister Datuk Seri Anwar Ibrahim and Google president and chief investment officer Ruth Porat and other senior management members of the tech giant.

“Digital Minister Gobind Singh Deo and I also attended this virtual meeting. The discussion covers, among others, the investment in our country, the amount of which will be announced after being approved.

“I am made to understand that the announcement will be made in the near future,” he told the media after a dinner reception in honour of the Saudi Arabian delegation to Malaysia yesterday.

Among other issues to be discussed are the exchange of expertise as well as reskilling and upskilling of Malaysians in three sectors, namely education, agriculture and health, Tengku Zafrul said.

He said the Digital Ministry will coordinate the use of artificial intelligence while in terms of investment, MITI and the Malaysian Investment Development Authority (MIDA) are making preparations with Google.

In a post on Facebook yesterday, Anwar, who is also Finance Minister, revealed that he held an online conference with Porat as a follow-up to their meeting in the United States last year.

The prime minister said during the session, Porat informed on the progress of the framework areas that Google and parent company Alphabet can expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government.

In November 2023, the Malaysian government and Google announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the rapidly growing digital economy.

Source: Bernama

Announcement on Google’s investment in Malaysia to be made in near future – Tengku Zafrul

Resource site Baxtel cites Johor as the largest data centre market in Malaysia now, as multinational corporations (MNCs) with regional presence pour investments into the state, according to a report by Channel News Asia.

The site lists some 13 data centres facilities across more than 1.65 million square feet of land mass in Johor, with another four under construction.

Baxtel ranks Johor as the ninth-largest data centre market in Asia Pacific.

According to digital economy experts, Johor’s data centre boom is fuelled by multinational corporations with regional presence, whereas data centres elsewhere in the country is catered to the domestic market.

Property agency Zerin Properties believs Johor is poised to attract RM17 billion (US$3.6 billion) in new data centre investments this year, building on the RM51.1 billion invested in 2022.

The report said southern Johor in particular is seeing a boom in data centres thanks to its proximity to Singapore, spillover effects of the US-China trade war, as well as cheaper land, water and power.

Major data centre players like Nvidia, AirTrunk, GDS International, YTL Power as well as Princeton Digital Group have set up operations there, and tech giant Microsoft has reportedly purchased land in Kulai to open a data centre.

Zerin Properties highlighted the Malaysian government’s role in actively supporting Johor’s data centre ecosystem by developing industrial parks with suitable infrastructure.

Among the largest are the 745-acre Sedenak Tech Park (STeP) and the 509-acre Nusajaya Tech Park, it said.

Meanwhile, a research report from real estate consultancy Knight Frank predicts that Johor’s data centre market will exceed Greater Kuala Lumpur in terms of “live capacity.”

It said this will be driven by its proximity to land-scarce Singapore which, between 2019 and 2022, paused new data centre development.

It said Johor’s proximity to Singapore has led many multinationals based in the city state to expand across the Causeway to take advantage of Johor’s cheaper land, construction costs as well as operating expenses, particularly electricity tariffs, for their data centres.

“Another factor is United States-China strategic competition, which has spurred corporations from China and the West to diversify and expand in Southeast Asia in the semiconductor and digital infrastructure space,” it said in the report.

The report also highlighted the need to improve the water and power industry in Johor, as some experts have flagged disruptions in both as areas of concern.

The data centre industry is both power and water intensive.

Source: NST

Johor now the largest data centre market in Malaysia, driven by investments from MNCs: report

Prime Minister Datuk Seri Anwar Ibrahim today held an online conference with the president and chief investment officer of technology (CIO) giant Alphabet & Google, Ruth Porat.

In a post on Facebook, Anwar who is also the Finance Minister said the session was a follow-up to their meeting in the United States last year.

The prime minister said during the conference, Porat informed on the progress of the framework areas that Alphabet & Google can expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government.

“Alphabet & Google very much welcomed the leadership, commitment and speed of facilitation given by the Malaysian government since the previous meeting,” he said.

Anwar said the discussions also touched on the importance of cooperation and support of technology and artificial intelligence (AI) related to the education, health and agriculture sectors.

“I emphasised that these efforts must eventually bring comprehensive economic and social benefits without leaving out any group or community, especially in terms of technology literacy.”

Anwar hopes these efforts will bear fruit particularly in launching the national technology transition planning and creating job opportunities.In November last year, the Malaysian government and Google announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the fast-growing digital economy.

Source: Bernama

Alphabet & Google president updates Anwar on progress of potential areas of expansion in Malaysia

The National Artificial Intelligence Roadmap (AI Roadmap) positions Malaysia as a global leader in AI technology, said elevator company Kone Malaysia.

Managing director Teoh Tze Ping said the integration of AI into industries such as manufacturing, healthcare and construction can lead to substantial growth and competitiveness on a global scale.

“Malaysia can position itself as a hub, attracting investment and talent while staying competitive in the global AI landscape,” Teoh said in an interview with SunBiz about AI in predictive maintenance of vertical transportation in buildings.

The AI Roadmap is a document aimed at improving the quality of life for the people of Malaysia through the application of AI technology, while also accelerating the transformation of the country into a high-technology nation.

Teoh said the roadmap presents a framework for harnessing the potential of AI to drive economic growth.

“As AI continues to evolve, Malaysia is poised to reap the benefits of this technological revolution, ultimately contributing to its economy and journey towards becoming a leader in AI innovation while delivering benefits to the businesses and communities,” he said, adding that Kone Malaysia also views the roadmap as an opportunity to collaborate with government agencies and industry peers to accelerate the adoption of AI technologies.

In Malaysia, industry players have either initiated or are involved in AI projects and programmes. Among them are Petroliam Nasional Bhd (Petronas) and Telekom Malaysia Bhd (TM).

Petronas` uses Al to manage its platform data, introducing new technology to the oil and gas industry by shifting from condition-based monitoring and conventional analytics to predictive maintenance driven by predictive analytics.

In its Dulang platform, the VROC Al-validated the root causes of failures 2000 times faster, resulting in RM15 million in cost avoidance.

Meanwhile, TM has signed a memorandum of agreement with Huawei Technologies (M) Sdn Bhd to expand its cloud infrastructure offered through TM ONE.

International companies and digital startup companies in Malaysia are also leveraging AI to stay relevant and be competitive.

National ICT Association of Malaysia, Malaysian Global Innovation & Creativity Centre, Technology Park Malaysia and Malaysia Digital Economy Corp have reported that more than 100 companies in the country are associated with AI.

Teoh said Kone Malaysia believes that AI is set to be the game-changer to make maintenance proactive and predictive.

“Our main priority is to improve and enhance our predictive maintenance. This includes revolutionising maintenance with new, intelligent, and fully connected services,” he added.

Teoh said Kone Malaysia utilises AI and predictive maintenance to enhance the efficiency and reliability of elevators, escalators, and automatic building doors.

“Our predictive maintenance approach connects your elevators, escalators, and automatic building doors to our cloud-based service and uses AI-based analytics to make smarter predictive maintenance decisions,” he shared.

For high-rise buildings, he said, the people flow management is a critical aspect to minimise wait time, reduce congestion, and maximise efficiency. “This is where the integration of AI can assure smooth and seamless people flow in complex-built environments.”

Teoh said that by analysing the vast amounts of data collected from sensors embedded in elevators, Kone 24/7 Connected Services provide information on upcoming maintenance needs and identify any issues before they cause problems.

“The services use machine learning to help customers detect potential breakdowns before they occur, as well as help our technicians get the right information, at the right time, so they can diagnose and fix problems quicker,” he explained.

Source: The Sun

National roadmap positions Malaysia as global leader in AI technology: Kone

Zecon Bhd has earmarked a 3,000-acre landbank under its Kota Petra Masterplan to lead potential solar farms and green energy-related development, according to group managing director Datuk Zainal Abidin Ahmad.

He said the company is currently in talks with several agencies and technology companies, including Huawei Technologies, on potential solar projects in Sarawak and Sabah.

Last August, Zecon inked a memorandum of understanding (MoU) with Neuto Energy Sdn Bhd, a renewable energy technology firm, to establish a strategic alliance and collaboration for the development of large-scale solar photovoltaic (PV) projects.

To provide strategic connection to the 3,000-acre landbank, which is the site of the Kota Petra Masterplan, Zainal said two bridges across Sungai Santubong and Sungai Serai would be built.

The construction of the proposed Sungai Santubong Bridge has begun with the piling works after the contractor took possession of the site recently, while the Sungai Serai Bridge project will commence later this year, he added in the company’s 2023 annual report.

Sungai Santubong Bridge is a 280m three-lane dual carriageway concrete bridge with seven spans.

Sungai Serai Bridge, meanwhile, is a 150m two-lane dual carriageway concrete bridge with five spans, with navigational clearance heights of 14.6m and six m, respectively.

“We expect to complete the construction of both bridges by the middle of 2026,” said Zainal.

He said for the Kota Petra Masterplan, also in place are plans to collaborate with experts and agencies for digital transformation projects, including technology parks and data centres, which are some of the high-impact industries in line with the Sarawak government’s aspirations.

“The Sarawak government is ambitious about its digital future spearheaded by the Sarawak Post Covid-19 Development Strategy 2030, which aims to make the state a leading digital economy and thriving society by 2030 driven by data and innovation.

“Our resources will be aligned and we strive to play a pivotal role as landowner, developer and contractor to support the Sarawak government in achieving its goals.”

On March 15, 2024, Zainal said Zecon and Sarawak Digital Economy Corp Bhd signed an MoU to collaborate and explore the development of an integrated urban development and industries, as depicted in the Kota Petra Masterplan.

It includes an aerotropolis, logistics, industrial and technology parks, green energy industry and many other industries together with an integrated smart city eco-system incorporating digital infrastructure and smart technologies.

“The group’s Kota Petra Masterplan is imminent and with that we anticipate a very active and exciting 2024.

“The outlook for the group remains very positive and the timing is right for the group to strengthen its position by assuring that all the developments, infrastructure and green energy projects are going ahead as planned,” he added.

Zainal said the financing facilities amounting to RM815.94mil secured by Zecon group from Bank Pembangunan Malaysia Bhd (BPMB) in February 2024 is timely to boost the group’s operations, primarily the up-coming development projects.

BPMB’s Tawarruq Asset Financing Facilities consists of RM616.94mil for Zecon Medicare Sdn Bhd and RM235mil for ServeCo Sdn Bhd (an asset and facility management company under the group).

Both facilities have a tenure of up to 20 years from the date of the first drawdown.

“These are much-needed facilities for the group.

“The proceeds will be utilised primarily to fully settle the group’s existing facilities with the respective financial institutions and any approved balance will be used for working capital.”

Zecon Medicare is the concessionaire for the 243-bed Universiti Kebangsaan Malaysia Children’s Specialist Hospital in Bandar Tun Razak, Cheras, Selangor, under the “build, lease, maintain and transfer” model.

Zecon Medicare is a 51%-owned subsidiary of Zecon while the State Financial Secretary Sarawak owns the remaining 49% equity interest.

Zainal said ServeCo secured a landmark RM1.15bil, 25.5-year contract (concession started on Jan 1, 2021) to deliver comprehensive facility management services for the hospital.

The contract also includes providing services to the nearby 54-room Zecon Hotel.

Source: The Star

Zecon earmarks 3,000 acres for green energy