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The Sun
10 hours ago
- Business
- The Sun
Balancing innovation and responsibility
MALAYSIA is racing toward a digital future – one powered by a booming data centre industry projected to consume over 20 GW of electricity by 2040, as forecast by the Ministry of Energy Transition and Water Transformation (Petra). This explosive growth is unlocking vast economic potential but also highlighting the way that Malaysia must balance the demands of a thriving digital economy with the environmental challenges it brings. According to Deputy Investment, Trade and Industry Minister Liew Chin Tong, Malaysia's data centre industry has witnessed substantial growth, with investments totalling RM184.7 billion from 2021 to December 2024 thanks to the increasing demand for cloud computing, artificial intelligence (AI), and digital services. Our proximity to Singapore, which imposed a moratorium on new data centres due to resource constraints, has further enhanced Malaysia's appeal. Local communities, particularly in Johor and Selangor, are seeing new employment opportunities and infrastructure development as global players establish operations in these regions. Reuters reported that the investment made by one of the world's largest technology companies in Malaysia is expected to generate approximately US$10.9 billion in new revenues over the next four years and create more than 37,000 jobs, demonstrating the sector's potential to drive national growth. The economic benefits are clear. Faced with significant opportunities for growth, it's all the more important that we carefully consider our responsibilities to the wider community, and the impacts on the places we live and work. The impact that data centres pose to the environment needs to be carefully managed. Malaysia's Ministry of Energy Transition and Water Transformation has projected that electricity demand from data centres, which require continuous power and extensive cooling systems, will reach 7.7 GW by 2030 and could surge to 20.9 GW by 2040. To mitigate these issues, the government has implemented several forward-looking initiatives. The National Energy Transition Roadmap (NETR), introduced by the Ministry of Economy, aims to achieve 70% renewable energy capacity by 2050, an ambitious leap from the current 25%. Additionally, the Corporate Renewable Energy Supply Scheme (CRESS) allows data centre operators to source energy directly from green power producers, bypassing the national grid. The significant amount of water required to cool data centres have also raised alarms. The National Water Services Commission (Suruhanjaya Perkhidmatan Air Negara/SPAN) warns that unchecked water usage by data centres could contribute to a water crisis. In response, several strategies have been adopted to manage water consumption. Water Usage Effectiveness metrics help track and promote efficient water management practices within data centres while companies have collaborated with state-owned entities to develop recycled water supply schemes, reducing reliance on potable water. There is also growing interest in alternative cooling technologies, including immersion cooling, which can significantly lower both water and energy consumption. These are important strategies, and it is critical that we continue to build on this work to ensure that we are balancing our economic growth with the urgent need for environmental stewardship. We know that collaboration between public and private sectors is an essential part of ensuring responsible growth of any sector, so it's great to see that the government has taken a proactive stance in regulating and guiding the development of data centres. The Ministry of Investment, Trade, and Industry's guidelines outline best practices for energy and water efficiency, safety, scalability, and the adoption of smart technologies. Environmental Impact Assessments are mandatory for projects with significant ecological implications to ensure new data centres consider and mitigate environmental impacts. Government incentives, including potential tax breaks, also encourage green practices such as renewable energy integration, advanced cooling systems, and efficient water usage. Beyond government action, industry stakeholders are actively contributing to responsible practices within the data centre ecosystem. The YTL Group 2024 Sustainability Report highlighted that YTL Green Data Centre Park in Johor integrates advanced technologies and energy-efficient designs including solar-powered infrastructure, advanced cooling systems, and rainwater harvesting systems to minimise environmental impact while ensuring high performance. With an expected capacity of 500MW, the park stands as a regional benchmark for balancing technological advancement with environmental responsibility. We have also seen leading global data centre providers focusing on energy efficiency to meet their carbon neutrality goals and investing in rooftop solar panels and virtual power purchase agreements for solar farms. Addressing the dual priorities of economic development and environmental sustainability requires a multi-pronged approach. One potential solution is the development of responsible data centre certification programmes. By creating a national certification that evaluates facilities on their energy efficiency, water usage, and carbon emissions, the government can incentivise more sustainable choices. Another opportunity lies in regional collaboration, where Southeast Asian nations work together to share technologies, regulatory best practices, and renewable energy resources. Investment in research and development is also crucial. Government grants and private sector initiatives can support the creation of advanced cooling systems, AI-driven energy management, and water recycling innovations tailored to Malaysia's tropical climate. Lastly, transparent reporting and environmental accountability must be prioritised to ensure measurable progress and public trust. Malaysia stands at a pivotal crossroads: the path forward must blend innovation with responsibility. By fostering collaboration across government, industry, and academia, Malaysia can lead Southeast Asia not just in digital capability, but in responsible digital leadership. Achieving this vision will require actionable policies, measurable standards, transparent reporting, and shared accountability.
Borneo Post
2 days ago
- Business
- Borneo Post
Charting green course: Is Malaysia steering towards zero-emission ports?
Sabah Ports Sdn Bhd has already demonstrated foresight with initiatives like solar power installations in Tawau and the exploration of electrified Rubber-Tyred Gantry Cranes (e-RTGs) at Sapangar Bay Container Port. The global maritime industry is abuzz with a powerful new vision: the zero-emission container port. This isn't a distant dream, but a pressing global mandate, championed by alliances like the Zero Emission Port Alliance (ZEPA). The question for Malaysia, strategically positioned along the world's busiest shipping lanes, is whether we are truly pulling our weight in this critical race. Malaysia has undeniably begun its journey towards greener ports, taking tangible steps and laying crucial groundwork. However, these efforts remain incremental, often confined to pilot projects, facing considerable hurdles before a systemic shift can be achieved. A cornerstone of zero-emission ports is the transition to Battery-Electric Container Handling Equipment (BE-CHE). Here, Malaysia shows promise. Westports Malaysia has emerged as a clear leader, implementing significant pilot projects with battery-electric Rubber-Tyred Gantry Cranes (e-RTGs) and terminal tractors, directly slashing diesel consumption and emissions. The Port of Tanjung Pelepas (PTP) is also actively exploring electrification. Meanwhile, Sabah Port Sdn Bhd has wisely pursued solar power installations for its warehouses in Tawau and is pursuing similar initiatives at Kota Kinabalu Port. However, it has been forced to slow down due to bureaucracy within the Energy Commission of Sabah (ECoS) in approving the project. The challenge remains scaling these successful pilots to a complete replacement of existing fleets, a feat still being pioneered globally by leaders like Yantai Port in China and European ports such as Gothenburg and Hamburg. Besides focusing on equipment, people are starting to pay more attention to using cleaner fuels like hydrogen to cut down pollution from shipping and trucks. Malaysia has some big advantages, like lots of untapped renewable energy and government support. For example, Sarawak is testing hydrogen-powered buses. Malaysia has a national plan (called the Hydrogen Economy and Technology Roadmap) to become a hydrogen exporter by 2050. But for now, there are still big challenges to get hydrogen or ammonia fueling stations running on a large scale — things like making 'green' hydrogen, ensuring safety, and managing costs. Meanwhile, making all the port trucks (drayage trucks) switch to cleaner energy is a huge task that's barely started. On the governance side, big companies like Westports and PTP regularly share reports on how they plan to reduce emissions. The National Energy Transition Roadmap (NETR) outlines the country's overall plan to support green transport and hydrogen development. However, there are still no detailed, cost-effective, port-specific plans that spell out exactly how to get to zero emissions, including clear targets and deadlines. Translating these broad national goals into real, mandatory steps and investments at each port still needs more work. Perhaps Malaysia's most significant gap lies in shore power, or 'cold ironing.' This technology, allowing berthed ships to plug into the grid and switch off polluting engines, is notably absent in our container ports. High capital costs and complex coordination have stalled progress, leading to continued emissions of local air pollutants (SOx, NOx, PM) and CO2 from vessels at berth – a major missed opportunity. While Malaysian ports are engaged in broader sustainability efforts, these alone will not achieve zero emissions. The core focus must be on intensifying emissions from primary sources: equipment, ships and land transport. And while collaboration exists, it needs to deepen into active partnerships for co-investment in shared infrastructure and enforceable standards. The road ahead is fraught with challenges: the enormous cost of transformation, the need for robust infrastructure, and reliance on evolving technology. Most critically, collaboration needs to become more formalized and action-oriented across all stakeholders – government, port authorities, operators, shipping lines and energy providers. Malaysia's efforts are a meaningful start, but they are preliminary. The urgency of the climate crisis and the ambitions of leading global ports demand a decisive leap beyond incrementalism. To truly contribute its fair share, Malaysia needs: · Mandatory Shore Power Roadmaps: Policy must drive installation, with incentives leading to mandates. · Accelerated Fleet Electrification: Move beyond pilots to comprehensive, funded programs for all major terminals and targeted efforts for zero-emission drayage trucks. ·From Hydrogen Strategy to Port Pilots: Translate national strategy into concrete, funded pilot projects for green hydrogen production and bunkering infrastructure. ·Binding Port-Specific Zero-Emission Roadmaps: Each major port must publish a detailed, costed, time-bound roadmap, integrated into its master plan. ·Enhanced Collaboration Ecosystem: Establish formalized platforms for co-investment in shared infrastructure and coordinated action among all stakeholders. Malaysia has the foundational elements and the will. But transforming our vital maritime gateways into true zero-emission hubs requires significantly escalated ambition, bolder policy, massive, targeted investment, and unprecedented industry-wide cooperation. This is not a challenge for Westports or PTP alone; it's a national endeavor that extends to every corner of our maritime landscape, including the crucial ports of Sabah. With its strategic location at the heart of the BIMP-EAGA region and its growing economic importance, the push for green ports is particularly vital for Sabah. Sabah Ports Sdn Bhd has already demonstrated foresight with initiatives like solar power installations in Tawau and the exploration of electrified Rubber-Tyred Gantry Cranes (e-RTGs) at Sapangar Bay Container Port. These early steps, though pilot in nature, show a commitment to environmental responsibility. However, the path to a truly zero-emission future for Sabah's ports – from the bustling Sapangar Bay to the smaller yet critical gateways like Tawau and Sandakan – will demand a significant acceleration of these efforts. It means overcoming challenges in infrastructure, attracting green investments, and ensuring policies are tailored to Sabah's unique geography and operational needs. The vibrant blue waters surrounding Sabah, a crucial part of its identity and economy, underscore the urgent need for its ports to lead by example in maritime decarbonization. The journey has begun, but the pace must quicken dramatically across the entire nation, including the unique and vital contributions of Sabah's ports, if we are to truly embrace the green horizon and secure a sustainable future for our seas and our economy.
Focus Malaysia
5 days ago
- Business
- Focus Malaysia
Energy Asia 2025: Turning talk into tangible transition
THE Energy Asia 2025 conference wrapped up with a clear message: Asia must take the driver's seat in shaping a pragmatic and inclusive energy transition. With regional energy demand expected to surge, the continent faces the dual challenge of decarbonising without sacrificing economic growth. The event underscored that for Asia, energy security and affordability cannot be compromised in pursuit of net-zero goals. Central to the discussions were collaborative strategies, investment commitments, and emerging technologies such as AI and carbon capture. Malaysia, playing a key role as ASEAN Chair 2025, showcased substantial progress through initiatives like the National Energy Transition Roadmap (NETR), and through regional partnerships spearheaded by Petronas. Key projects included expanding LNG regasification capacity, developing CO₂ carriers, and deepening energy ties with Korea, Japan, and the US. The conference highlighted how cleaner fossil fuel use, such as LNG, will remain vital in the short-to-medium term, supported by innovations in hydrogen and CCUS. Notably, Petronas launched the Petronas Energy Transition Academy (P-ETA) to bridge the green talent gap, while collaborations like the Blue Carbon Collective reflected growing interest in nature-based climate solutions. But ambition is not enough—execution is now critical. The report emphasized moving beyond MoUs to real project implementation, infrastructure development, and regulatory harmonization. Financing emerged as a key hurdle, with calls for stronger public-private partnerships, blended finance models, and deeper green capital markets. Europe's experience offered instructive parallels, showing how regional interconnectivity, joint procurement, and CCS networks can work—albeit with complex coordination. Asia can take cues while tailoring solutions to its own socio-economic realities. Looking ahead, action plans must include accelerating technology adoption, expanding carbon markets, and ensuring a just transition that benefits all. Malaysia appears well-positioned, having launched or committed to policies on climate change, circular economy, energy efficiency, and digitalisation of the energy sector. Energy Asia 2025 did not just set the agenda—it demanded measurable progress. With Asia pivotal to global net-zero goals, the region must balance idealism with practicality. The takeaway is clear: decarbonisation must not come at the cost of development—but with innovation, cooperation, and sustained investment, both goals are within reach. —June 6, 2025 Main image: Baker Institute
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
Energy Asia 2025: Malaysia at the forefront of ASEAN's energy transition
The region's growing energy demand and net-zero ambitions present both an urgent challenge and a strategic opportunity by NURUL NAJMIN ABU BAKAR & AKMAR ANNUAR ASEAN'S shift to a low-carbon economy calls for a coordinated push from governments, industries and capital markets with Malaysia positioning itself as a regional frontrunner through whole-of-nation efforts and financial innovation. Speaking at the Energy Asia 2025 conference recently, Malayan Banking Bhd (Maybank) president and group CEO Datuk Khairussaleh Ramli said the region's growing energy demand and net-zero ambitions present both an urgent challenge and a strategic opportunity. 'Seven out of 10 ASEAN countries have committed to net zero by 2050. Malaysia is guided by the National Energy Transition Roadmap (NETR). Institutions like Maybank are supporting not just through financing, but by guiding stakeholders on how to move forward,' he said. Citing the recent Petrovietnam-Sembcorp Industries Ltd agreement to export renewable energy (RE) to Malaysia and Singapore, Khairussaleh described the move as a positive example of cross-border collaboration. However, he cautioned that carbon capture technologies remain commercially not viable without blended finance mechanisms. He added that financial institutions must back both the expansion of renewables and the decommissioning of legacy assets to achieve real decarbonisation. Meanwhile, Bursa Malaysia Bhd CEO Datuk Fad'l Mohamed said Malaysia's energy transition would require RM220 billion in investment by 2030, with capital markets expected to play a central role. 'To support this, Bursa has introduced a RE sub-sector, updated listing requirements and launched a Centralised Sustainability Intelligence platform,' he said. Globally, sustainable investments reached US$3.2 trillion (RM13.98 trillion) in 2024, underscoring the scale of capital now moving into climate-aligned opportunities. Institutional investors are also stepping up. Permodalan Nasional Bhd (PNB) president and group CEO Datuk Abdul Rahman Ahmad said the group has committed RM5 billion to green assets and aims to reduce its portfolio emissions intensity by 30% by 2030. 'If companies show no credible progress, we are prepared to vote against their board leadership,' he said. On the ground, oil and gas (O&G) players are beginning to adapt — but not all are moving at the same pace. Malaysian O&G Services Council (MOGSC) president Syed Saggaf Syed Ahmad noted that while large companies are making strides, smaller firms still need support to align with environmental, social and governance (ESG) goals. To help bridge this gap, MOGSC signed a partnership with Petroliam Nasional Bhd (Petronas) during the conference, aimed at helping small and medium enterprises (SMEs) enhance their sustainability capabilities. Abdul Rahman says PNB aims to reduce its portfolio emissions intensity by 30% by 2030 (pic: MUHD AMIN NAHARUL/TMR) Energy Shift Remains Complex Regional and global energy leaders said Asia's energy transition will remain heavily reliant on fossil fuels despite accelerating investment in renewables. Speaking at Energy Asia 2025's 'Navigating the Multi-dimensional Transition' leadership dialogue, S&P Global senior VP and chief energy strategist Dr Atul Arya said the transition must reflect regional realities. 'The idea of a linear transition is no longer applicable globally,' he said. Meanwhile, Vitol Inc CEO Russell Hardy projected that oil demand will peak in the mid-2030s and stressed the importance of continued investment to offset declining fields. 'If prices are too low, we get an investment pause,' he said. While Asia is rapidly expanding renewables, Hardy warned that electric vehicles (EVs) powered by coal-fired electricity defeat the purpose of decarbonisation. Petronas senior VP for corporate strategy Marina Md Taib described Asia's transition as 'multi-speed', noting that up to 80% of the region's energy will still come from fossil fuels by 2040. She stressed the need to balance energy security, affordability and sustainability. Petronas is allocating 20% of its group capital expenditure (capex) to low-carbon ventures and is restructuring its portfolio to support its net-zero 2050 goal. Hardy said Vitol is investing in carbon capture in the UK, biofuels and liquefied natural gas (LNG) bunkering to decarbonise its energy supply chain. He also cautioned against over-reliance on regional power grids. 'Never forget about energy security,' he said. Marina added that strategic partnerships across governments, technology providers and financiers will be essential. Petronas is working with Japan's Ministry of Economy, Trade and Industry (METI), Ente Nazionale Idrocarburi (ENI) and Euglena CoLtd on hydrogen, carbon capture and storage (CCS) and bio-refinery projects to scale transition efforts. Hardy stresses the importance of continued investment to offset declining oil fields (pic: Bloomberg) Gas as Cornerstone Energy Security and Transition Meanwhile, energy leaders agreed that natural gas will remain central to Asia's energy mix as the region works to balance economic growth and decarbonisation. Executives from Petronas, Inpex Corp, PTT Exploration and Production Public Co Ltd (PTTEP) and Mubadala Energy pointed to South-East Asia's (SE Asia) strong demand, infrastructure readiness and political stability as key drivers for gas investment and long-term collaboration. Inpex president and CEO Takayuki Ueda said Asia's rising energy needs make localised production essential. He noted Malaysia's fiscal transparency and pipeline network as strategic advantages. Inpex holds six upstream blocks in Malaysia and is advancing the Abadi LNG project in Indonesia, which integrates CCS from the outset. PTTEP CEO Montri Rawanchaikul said Malaysia is now a growth focus, following its 2019 acquisition of Murphy Oil's assets. The company is monetising recent gas finds through 'grey-to-green' strategies and expanding across Thailand, Oman, the United Arab Emirates (UAE) and Algeria. 'Natural gas remains the most pragmatic transition fuel. It complements evolving grids and provides a reliable energy base,' he said. Mubadala Energy COO Adnan Bu Fatema said 70% of its portfolio is now gas-focused, with key assets in Malaysia and Indonesia. He cited SE Asia's demographic and economic weight and the urgent need to replace coal with cleaner alternatives. Petronas' Malaysia Petroleum Management senior VP Datuk Bacho Pilong noted that Sabah is a new growth area, with rising demand from green industries. He cited record production and investments in 2023 and efforts to attract investors through accessible geological data. Panellists agreed that regulatory stability, infrastructure and technology, especially CCS, are vital to unlocking SE Asia's gas potential. They also stressed deeper collaboration across governments, national oil companies (NOCs), international oil companies (IOCs) and service providers. 'If we are serious about energy security and transition, we must work together,' Bacho said. Malaysia needs a strategy that fits our context, not one forced by external pressure, says Che Khalib (Source: Malakoff Corp Bhd) Reindustrialisation Push Facing Hurdles Malaysia's reindustrialisation ambitions are at a crossroads as stakeholders warn of inconsistent policies, talent gaps and conflicting energy narratives that could stifle progress despite strong fundamentals in sectors like semiconductors. Khazanah Nasional Bhd MD Datuk Amirul Feisal Wan Zahir said Malaysia risks remaining in the 'middle-income trap' without bold steps to develop high-value industries, especially where it already has comparative advantages. 'Our semiconductor sector is among the best at backend packaging. But we need to go beyond being 'wire benders' — there is room for innovation in advanced packaging. We are producing limbs and bodies, but not the brains,' he said. He also cited the success of global players like Samsung Electronics Co Ltd and Taiwan Semiconductor Manufacturing Company (TSMC), who were supported in scaling up but were expected to be globally competitive. Malaysia's earlier experiment with Proton Holdings Bhd, he argued, was stifled by prolonged protectionism. Mid-tier companies, which contribute significantly to GDP, must also be incentivised to reinvest and expand. 'If you are already earning millions, why push harder?' Amirul Feisal said, highlighting the role of catalytic funds like Dana Impak to transform promising firms. But while capital is not a constraint — with over RM5 trillion in Malaysia's equity, bond and banking markets — structuring investments for long-term transformation remains a challenge. On another note, Malaysian Industry-Government Group for High Technology (MIGHT) president and CEO Rushdi Abdul Rahim said public-private partnerships must be clearly defined with built-in exit strategies 'The government must know when to take off the training wheels. We need foresight, a systemic approach and follow-through,' he said. Yet perhaps the most controversial remarks came from MMC Corp Bhd MD Tan Sri Che Khalib Mohamad Noh who strongly reminded that every energy transition needs to be gradual and realistic. He was particularly critical towards financial institutions for penalising coal plants while still relying on them for baseload power. 'Banks have always been seen as a dirty business. Today, they refuse to finance coal but hike rates instead. 'Who pays? The rakyat. Electricity from coal or solar is still an electron. Malaysia needs a strategy that fits our context — not one forced by external pressure,' he said. He warned that Malaysia's 70% renewable target by 2050 could be unattainable if policy contradictions persist, especially with energy-intensive investments like data centres. 'Industrialisation takes 30 to 40 years. We need stability, not goal-posts that keep moving,' he added. This article first appeared in The Malaysian Reserve weekly print edition
The Star
7 days ago
- Business
- The Star
FBM KLCI slips below 1,500 as Middle East conflict sap risk appetite
KUALA LUMPUR: Malaysia's benchmark index opened under the 1,500 psychological level on Monday following the US's shock attack on Iran over the weekend that has escalated the geopolitical fever while threatening to dirupt Middle East oil supply. The FBM KLCI fell 9.55 points to 1,493.19 at the starting bell, with investors caught off guard by the US missile attack on Iran's nuclear sites given US President Donald Trump's earlier comments about a two-week timeframe. Malacca Securities Reseaerch said the heightened geopolitical tension may spur interest in gold and oil and gas-lreated counters. "Despite the ongoing tension, we remain positive on the construction and utility sectors, with the former benefits from public infrastructure developments and data centre investments across the country, while the latter is supported by Tenaga Nasional's power grid upgrades and the country's renewable energy shift under the NETR masterplan. "Thus, we favour counters like Gamuda, IJM, Inta Bina, MN Holdings, Southern Cable Group, and Solarvest," it sad in a note. Oil-related stocks on Bursa Malaysia were lifted by a 3% surge in oil prices yesterday to a five-month high. Petron Malaysia climbed 19 sen to RM3.92, Henyuan Refining jumped nine sen to RM1.94, Hibiscus Petroleum gained eight sen to RM1.79 and Dialog rose five sen to RM1.59. Leading actives were Hubline down 0.5 sne to four sne, MYEG falling one sen to 89.5 sen and Mui Industries dropping 0.5 sen to five sen.
