Malaysia continues to lead regionally for digital infrastructure
In a statement yesterday, BMI said the investment is driven by the new Singapore economic zone (SEZ), which will likely lead to more industrial parks being introduced and more areas being put up for acquisition to develop new data centres.
"Our estimates show over 3.2 gigawatt (GW) of planned capacity entering the Malaysian market, followed by Indonesia with 1.8GW and the Philippines lagging significantly with just under 180 megawatt (MW)," it said.
The statement said Alibaba Cloud will also increase its presence in Southeast Asia, with data centres being planned in Malaysia and the Philippines. It is also expected to support the region's rapidly growing digital economy and drive adoption of cloud services among local businesses.
The statement said Malaysia remains a popular destination for digital infrastructure investment with demand continuing to shift away from Singapore.
In a separate statement today, BMI said although the new power tariffs may lead to short-term challenges for data centre projects in Malaysia, its dominant position in emerging Southeast Asia is unlikely to be dramatically altered as demand for cloud computing remains strong.
"Some Malaysian data centre platforms will look to address demand from non-artificial intelligence (AI) related use or potentially less intensive AI use cases, to bypass the tariff.
"This development is expected to accelerate the adoption of renewable energy and investments in sustainability," it said.
The statement also added that adopting renewable energy sources is necessary as power continues to be the leading issue for many markets.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
19 minutes ago
- The Star
M'sian developers bag nine global awards in Lagos
Projects recognised for innovation, sustainability and community impact MALAYSIAN developers achieved significant recognition at the 33rd FIABCI World Prix d'Excellence Awards in Lagos, Nigeria, securing nine accolades – five gold and four silver. These awards celebrate excellence in real estate development, recognising projects that prioritise innovation, sustainability and community impact. This year, Malaysian developers were honoured across various project categories, including affordable housing, office spaces, industrial parks and environmentally focused developments. FIABCI World president Ramon Riera Torroba commended the winners, stating that the awards celebrated developments that went beyond beauty and function. 'These are projects that embody innovation, sustainability and community impact – developments that give back to the environment and society in meaningful and lasting ways,' he said. FIABCI Prix d'Excellence committee president Laszlo Gonczi emphasised the awards' global reach, noting the rise of national competitions inspired by earlier efforts in Brazil, Malaysia and Singapore. 'This is more than a contest. It's a global forum where quality outweighs size and where David can truly defeat Goliath,' he said. He added that developers from countries without national competitions were encouraged to enter directly, many of whom later became the catalyst for the formation of local chapters. The Prix Secretariat secretary Dr Yu Kee Su, praised this year's entries for setting new industry benchmarks. 'Let us reaffirm our shared mission to shape spaces that are not only functional and beautiful, but also sustainable and future-ready,' he said. 'The integration of green building practices and smart technologies has never been more critical, and your work exemplifies the transformative power of these principles.' One of Malaysia's celebrated developers, SP Setia Bhd, stood out with two accolades at this year's ceremony. The group received a Gold Award for Sapphire by The Gardens in Melbourne, Australia (a residential high-rise) and a Silver Award for Amantara at Setia Eco Templer (residential low-rise). 'Let us reaffirm our shared mission to shape spaces that are not only functional and beautiful, but also sustainable and future-ready.' - Dr Yu Kee Su SP Setia president and chief executive officer Datuk Choong Kai Wai, who attended the gala and received the awards, expressed his gratitude. 'We are incredibly honoured to receive this recognition for both of our flagship developments and to be benchmarked by global industry standards. 'Both wins are a testament to our hard work towards creating sustainable communities,' he said. With this achievement, SP Setia now holds the world record for the most FIABCI World Gold Prix d'Excellence Awards – a total of 19 wins, further cementing its position as a leader in global property excellence. At the FIABCI elections for world vice-president (2025–2026), Yu was appointed for the role during the 75th FIABCI World Real Estate Congress in Lagos. 'I am deeply honoured and sincerely grateful for your trust and support,' said Yu, after two rounds of online voting via the FIABCI App. 'This recognition makes my 25-year journey in FIABCI, serving in various roles, all the more meaningful. 'The path was never easy, but your belief in me has made the journey worthwhile,' he said. This appointment comes as FIABCI-Malaysia prepares to celebrate its 50th anniversary – a golden jubilee, to be marked by an event on Oct 9, at One World Hotel, Bandar Utama, Selangor. The celebration will highlight five decades of dedication to promoting real estate professionalism, elevating Malaysian developers onto the world stage and fostering strong international ties. The event will also honour Datuk Alan Tong, a past world president (2005–2006), who turns 90 in September, as well as remember the late Michael Geh Thuan Peng and Yeow Thit Sang, two past presidents, whose legacies continue to inspire the FIABCI community in Malaysia and beyond. Yu also extended his thanks to Malaysian delegates who travelled to Lagos to attend the congress. 'Your dedication and sacrifice, overcoming distance, logistical challenges and personal commitments truly reflect the spirit of our Malaysian chapter,' he said. Malaysia's World Gold Winners Affordable Housing: I-Santorini by Ideal Property Group Environmental: Iringan Bayu Wetland Park by OSK Holdings Bhd Industrial: Nouvelle Industrial Park@Kota Puteri by EXSIM Development Sdn Bhd Office: TSLAW Tower by Pedoman Cekap Sdn Bhd Residential Low-Rise: The Light Collection IV by IJM Land Bhd Malaysia's World Silver Winners Hotel: Hyatt Centric Kota Kinabalu by Hap Seng Land Sdn Bhd Office: Sentul Works by YTL Land & Development Bhd Residential High-Rise: SkyLuxe on the Park Residences by SkyWorld Development Bhd Residential Low-Rise: Setia Eco Templer – Amantara by S P Setia Bhd
The Star
an hour ago
- The Star
‘Carbon tax will be gradual, not a barrier to investment'
Bilateral synergy: Anwar addressing the audience during a roundtable meeting in Paris with French captains of industry. — Bernama PARIS: The proposed carbon tax, to be finalised in several months, should not be considered a problem for investing companies, says Prime Minister Datuk Seri Anwar Ibrahim. He said the proposed tax would be carried out cautiously and gradually. 'We are finalising that in the next few months. 'I know about the trend of decarbonisation (which is) strong and compelling, but we have to be realistic. 'The proposed tax should not be seen as a problem at the expense of investing companies,' he said during a question and answer session at a roundtable meeting with French captains of industry. More than 42 representatives from French companies and 18 representatives from Malaysian companies attended the event. The French representatives had positive remarks about working in Malaysia, with several of them noting that they invested because they believed in the country. Anwar also said that Malaysia, which focuses on neutrality, is friendly to all including having excellent relations with China, adding that having economic fundamentals remains the core focus. 'We engage and respond to all. At the end of the day, peace and stability are important in carrying out business. We are in one of the most peaceful regions in the world and one with the fastest growing economies,' he said. Anwar also took time to speak with Canadian Prime Minister Mark Carney to congratulate him on the Liberal Party's recent electoral victory. 'I look forward to working closely with Prime Minister Carney and his new administration to strengthen the longstanding Malaysia-Canada partnership for the mutual benefit of our peoples,' he said. Malaysia, he added, remains steadfast in its commitment to strengthening bilateral relations with Canada across various sectors, including trade, investment and defence cooperation. 'I'm pleased with PETRONAS' continued involvement in the LNG Canada project, as it clearly symbolises strong cooperation in the energy sector,' he said. He called on Canada to reconsider visa exemptions for Malaysians, noting that both countries are Commonwealth members.
The Star
an hour ago
- The Star
A lid on plastic waste imports
PETALING JAYA: Malaysia has tightened imports of plastic waste, a move hailed by campaigners as a major step in protecting human health and the environment. Under the updated Customs (Prohibition of Imports) (Amendment) Order 2025, which took effect on July 1, all imports of plastic waste involving waste, parings and scraps, must adhere to stricter rules and receive approval from government-owned certification body Sirim Bhd. Sirim's guidelines state that only countries that are parties to the Basel Convention – an international treaty governing the transboundary movement of hazardous and other wastes – or countries with specific agreements with Malaysia will be allowed to export plastic waste into the country. 'These stricter regulations are very much welcomed. 'It is important to acknowledge the Malaysian government's leadership in making this difficult decision (despite the protests of the industry) to prioritise human and environmental health,' said Wong Pui Yi, a researcher at waste trade watchdog Basel Action Network. Malaysia is a major destination for plastic waste from developed countries amid growing concern over the health and environment consequences of improperly regulated waste recycling. According to figures from the International Trade Centre – a joint agency of the World Trade Organisation and the United Nations – Malaysia was the sixth biggest importer of plastic waste last year, with 431,500 tonnes of imports. One of the countries affected by Malaysia's stricter controls is the United States, which has not ratified the Basel Convention. According to Wong, 191 countries have ratified or acceded to the Basel Convention, adding that the United States is the only major country that has not ratified it. The Los Angeles Times reported that Malaysia's move could have significant consequences for California, which shipped 864 shipping containers of plastic waste to Malaysia in 2024. Malaysia, the report said, emerged as a major destination for US plastic waste after China banned American waste imports in 2018. Sahabat Alam Malaysia (SAM) said it welcomed the stricter controls imposed by Malaysia. 'We greatly appreciate that the Malaysian government has taken steps against the environmental injustices associated with global waste trade. 'We hope that with stricter enforcement, it will help end the harm to public health and the environment caused by waste trade and toxic recycling,' said SAM president Meenakshi Raman. Meanwhile, Wong said rich, developed, industrialised countries including Japan, the United States, United Kingdom, Australia and Canada export thousands of tonnes of plastic waste every year. This practice of exporting waste has allowed rich countries to continue high levels of plastic consumption without addressing the issue that many types of plastics are either not economically viable or too technically challenging to be recycled. 'The rich countries need to find better ways to deal with their own plastic waste, including, importantly, to prevent and minimise plastic waste by capping plastic production, improving product design and creating systems that move away from single-use disposables,' said Wong. She said that in the Asia-Pacific region, Malaysia follows Thailand and Indonesia, which have also banned plastic waste imports. 'We hope Malaysia will bring this ambition to the negotiations towards a global agreement to end plastic pollution, taking place in August,' Wong said.
