
SNS Network to capitalise on AI and digital centre boom in Malaysia
He said the ICT solutions provider sees opportunities in supplying AI and storage servers, networking and cybersecurity solutions to support Malaysia's expanding data centre industry.
'Once these data centres are operational, a lot of equipment is required to support them. These are areas where we play a key role, and we are definitely very excited,' Ko told SunBiz in an interview.
Malaysia wrapped up 2024 as Southeast Asia's leading data centre destination, attracting US$23 billion (RM97 billion) in investment.
Ko said the industry's rapid growth began during the Covid-19 pandemic (2020–2022) when a surge in digital adoption accelerated digital transformation. 'During that time, many businesses and organisations started integrating digital devices into their operations, which led to a rise in virtual meetings, e-learning, and other digital applications.'
As AI adoption grows, businesses require powerful computing infrastructure to train and run AI models, which in turn fuels demand for data centres, storage solutions and networking technologies – areas where SNS Network sees strong opportunities.
The AI boom, Ko said, particularly following the 2022 announcement of ChatGPT, has fuelled demand for computing power. 'When we talk about AI, it is actually huge, and the opportunity is tremendous because it is one of the most important tools that will transform productivity. It will significantly improve the way we work.'
He said AI adoption is growing rapidly, creating opportunities to sell various types of computing devices.
'AI requires machines to run all the algorithms. No matter which language model you are using or what training you need, computing power is essential. Whether it's GPU (graphics processing unit) power or setting up an entire cluster, that is basically our job. We work closely with our clients to provide the necessary infrastructure. This is a very exciting moment because of the vast opportunities ahead.'
On the commercial side, Ko said AI use cases are increasing, leading to another wave of industry growth, possibly even on a global scale. 'Various industries will evolve with AI because everyone is striving to work more efficiently.'
He pointed out that digital equipment purchased between 2020 and 2022 are now approaching their three- to five-year upgrade cycle. 'It is time for many digital users to refresh their equipment. Of course, not everyone will upgrade at the same time, but the demand is already there.'
Ko explained that once someone integrates digital devices – such as laptops, smartphones or other computing devices – into their daily life or work, they are unlikely to stop using them.
'Instead, as their equipment ages, they are more likely to upgrade or refresh it rather than revert to a non-digital lifestyle,' he said.
This ongoing need for updated devices contributes to continuous demand for new technology, driving growth in the industry.
'We are seeing an organic refresh cycle that will happen over the next few years, batch by batch, across companies and organisations. This has become a key consumer buying behaviour today,' Ko said.
Even as SNS Network's enterprise solutions are benefiting from data centre and AI-driven infrastructure growth, the company is expanding its retail footprint to serve the growing demand for consumer ICT products.
In 2024, SNS launched two multibrand concept stores – GLOO Hyperstore Queensbay Mall in Penang and NB Plaza in Selangor. This year, the company plans to open three additional brand-specific stores in Penang for Honor, MI and IT World.
'This expansion aims to strengthen the group's customer base and retail footprint,' Ko said.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
an hour ago
- The Star
US AI startups see funding surge while more VC funds struggle to raise, data shows
FILE PHOTO: A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -U.S. startup funding surged 75.6% in the first half of 2025, thanks to the continued AI boom, putting it on track for its second-best year ever, even as venture capital firms struggled to raise money, a report from PitchBook on Tuesday showed. Startup funding in the first six months of 2025 jumped to $162.8 billion, marking the strongest performance since the same period in 2021 — the historic peak for venture capital activity. That previous surge came during the era of the Zero Interest Rate Policy (ZIRP), when central banks slashed rates to stimulate economic activity during the COVID-19 pandemic, sending capital into higher-risk assets including venture capital. This year's boom has been driven largely by major AI investments and bold bets from big tech companies, a wave of activity set off by the debut of ChatGPT in late 2022. In the past three months alone, $69.9 billion was invested in U.S. startups. Standout deals included OpenAI's $40 billion round and Meta's $14.3 billion purchase of a stake in Scale AI. Other AI deals exceeding $1 billion in the second quarter included significant investments in Safe Superintelligence, Thinking Machine Labs, Anduril, and Grammarly. These deals underscore sustained investor conviction in the AI sector, which accounted for 64.1% of the total deal value and 35.6% of the deal count in the first half of the year. "I think it's downstream of the fact that OpenAI and Anthropic continue to grow at unbelievable rates," said Davis Treybig, partner at VC firm Innovation Endeavors. "If there's even a chance you could see that sort of progress in other domains, whether it's robotics, protein folding models, world models or video models, then there's a lot of people who are going to want to invest a lot of money." HARDER FOR VC FUNDS In contrast, U.S. venture capital fundraising continued to face headwinds, with just $26.6 billion raised across 238 funds in the first half of the year. This subdued environment represents a 33.7% year-over-year decline in capital raised, extending the downward trend from 2024. It is also taking fund managers longer to close new vehicles, with the median time stretching to 15.3 months by the second quarter of 2025 - the longest in over a decade, data shows. The disconnection from the startup market reflects concerns from limited partners on the asset class due to recent underperformance and liquidity constraints. A rebound in exit activity, including IPOs and M&A, has brought a sense of optimism for the remainder of the year. Exit activity in the second quarter was up 40% from last year, as a loosening antitrust environment and a thawing IPO market boost confidence. Sectors aligned with President Donald Trump's priorities such as AI, national security, defense technology, fintech and crypto dominated IPO interest in the second quarter, the report noted. "The good news is we're starting to see the tide turn," said Lucas Swisher, co-head of growth investing at tech investment firm Coatue. "IPOs like Coatue portfolio companies Hinge Health and Coreweave have been well received by the market, and there are a dozen companies filed now." (Reporting by Niket Nishant in Bengaluru and Krystal Hu in New York; Editing by Lincoln Feast.)


The Sun
5 hours ago
- The Sun
US defense department awards contracts to Google, Musk's xAI
OpenAI, Alphabet's Google, Anthropic and Elon Musk's AI firm xAI have won contracts of up to $200 million each, aimed at scaling up adoption of advanced AI capabilities in the U.S. Department of Defense, the government agency said on Monday. The contracts will enable the DoD to develop agentic AI workflows and use them to address critical national security challenges, the department's Chief Digital and Artificial Intelligence Office said. 'The adoption of AI is transforming the (DoD's) ability to support our warfighters and maintain strategic advantage over our adversaries,' Chief Digital and AI Officer Doug Matty said. U.S. government agencies have been expanding their use of AI, driven by a White House order in April promoting adoption. President Donald Trump has also moved to soften regulation on the technology by revoking a 2023 Biden-era executive order, which sought to reduce AI risks through mandatory data disclosures. Separately on Monday, xAI announced a suite of its products called 'Grok for Government', making its advanced AI models — including its latest flagship Grok 4 — available to federal, local, state and national security customers. The Pentagon announced last month that OpenAI was awarded a $200 million contract, saying the ChatGPT maker would 'develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains'. The contracts announced on Monday deepen the ties between companies leading the AI race and U.S. government operations, while addressing concerns around the need for competitive contracts for AI use in federal agencies. In May, Democratic Senator Elizabeth Warren had urged DoD to ensure competitive AI contracting at a time when Musk's Grok chatbot was gaining ground in the federal government. - Reuters


The Star
13 hours ago
- The Star
Aeon Credit issues 10th sukuk wakalah of RM150mil
KUALA LUMPUR: Aeon Credit Service (M) Bhd has made its 10th issuance of sukuk wakalah under the Islamic commercial papers (ICP) programme today, with a total nominal amount of RM150 million and a 179-day tenure starting from July 14, 2025. "The proceeds will be utilised for financing of disbursements to customers in the ordinary course of business of providing consumer financing based on Shariah principle, financing expenses relating to the ICP programme, and refinancing any existing and future Islamic financing facilities of the issuer,' it said in a Bursa Malaysia filing. - Bernama