Latest news with #RM89.8bil
The Star
25-06-2025
- Business
- The Star
Moving up the DC value chain
KUALA LUMPUR: The data centre (DC) phenomenon globally has taken on a new course, moving from being mainly cloud DCs to being more artificial intelligence (AI) based for the future. And with that, the sentiment has gone from the idea of sheer expansion of the industry to how each country can shape what is coming next. Malaysia has proven itself as a successful and tantalising hub for DCs starting from the 2000s, and this was strongly accelerated during the Covid-19 pandemic. The Malaysian Investment Development Authority's (Mida) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the DC journey is no longer about chasing megawatts, lower latency or faster deployment, but rather about building a digital spine for the nation – one that is resilient, sustainable, inclusive and future ready. 'The world is undergoing a generational shift. Generative AI, quantum breakthroughs and large-scale automation are not theoretical futures, they are life-evolving systems. And DCs are at the heart of this transformation,' he said during Bursa Malaysia and Hong Leong Investment Bank Bhd's 19th edition of the Stratum Focus Series, themed 'Data Centre 2.0: The Ecosystem and What's Next for Malaysia' here yesterday. According to Sikh Shamsul, the global shifts have been evident enough that this should serve as a call to action for Malaysia. Within the country for the first quarter, he noted there were RM89.8bil approved investments. Of this, RM35.1bil went to the information and communications sub-sector, with over 93% flowing into DC projects. He added that from 2021 until March 2025, the Digital Investment Office (DIO) facilitated RM310.7bil in digital investments. The DIO is a joint initiative by both Mida and the Malaysia Digital Economy Corp. 'We have surpassed our national target of RM130bil well ahead of schedule. More than 92,000 new jobs have been catalysed, with many in frontier domains like cloud engineering, AI operations and cybersecurity,' he said. However, Sikh Shamsul said he acknowledged that many viewed DCs as power-hungry assets that yield limited local benefits, but this was not true. 'This perspective may not fully capture the broader and deeper value that DCs bring to the economy. Beyond direct employment, DCs support entire value chains, from civil engineering, and mechanical and engineering services to cloud application development and digital transformation for SME's,' he said. Sikh Shamsul also said to sustain momentum, the domestic ecosystem must be deepened, which is why Mida's Data Centre Nexus 2025 was vital for the industry. 'This initiative brought together eight global operators and 16 Malaysian vendors, unlocking commercial dialogues that are now progressing into tangible partnerships. 'We would like to see more Malaysian companies be potential vendors or suppliers to these hyperscalers or DC operators,' he added. Still, he cautioned that unchecked growth will carry risks such as greenhouse gas emissions. 'We must avoid the trap of scaling fast without scaling responsibly. This is why sustainability is not an afterthought, it is a strategic imperative in which the government has said it is committed to steering for the industry,' he noted. Meanwhile, JLL Malaysia Data Centre Transactions Lead director Kent Seet said the country was not short of advantages of why its location is suitably strategic for DCs, and will continue to draw more investments in the coming years. He said being natural disaster-free has been one of the top reasons why, citing that other countries within the region had not been so fortunate. 'We've had some clients that have pulled out halfway of constructing DCs in these countries because the risks are there. 'Malaysia also has ample water and power supply, and is still relatively cheaper compared to the developed and even regional countries,' he said. The workforce is another bonus, he said, whereby English is widely spoken. This is on top of the fact that most Malaysians speak many other languages, which is an added advantage. With talk about the upcoming electricity tariffs and how this might impact DC operators, Seet said he doesn't expect it to be huge for these companies, as they will definitely be reeling in profits. 'So, about the electricity tariff, I think they are going to implement it in the coming months. I don't know how big the impact is, but I would like to believe that the impact won't really reduce such investments coming to Malaysia. It's more of a way to filter out the speculation,' he explained. As for the next hotspots for DCs, Seet said areas outside of Greater KL could be the newer, more ideal locations. 'Negri Sembilan, I always say, is an up-and-coming location, mainly because the land it offers is more affordable. If we look at Cyberjaya and some locations in Johor, it is already three figures per sq ft. Then you look at Kuala Lumpur, and there is no land big enough to build a proper tech park,' he said. Sarawak is another state that has been mentioned a number of times in terms of being a viable location for DCs. Seet said he recently visited the state and spoke to some of the government agencies where he learnt that they were very positive about any such investments there. 'Going back to the fundamentals, DCs store data and they need connectivity. I think Sarawak has three or four cable landing stations compared to Peninsular Malaysia, where I think we have about nine. 'So, each cable landing station has several fibres connected to the rest of the world,' he explained. In essence, to make Sarawak a successful DC destination, there needs to be more cable landing stations. 'The state will also need to figure out who its customers are – it could be the government, the private sector or even tech companies. 'Perhaps, if its government can offer some contracts to DC operators, it could be a catalyst for the rest,' he said.
The Star
12-06-2025
- Business
- The Star
Record deals since Merdeka
Engaging the youth: Anwar greeting students at the 2025 National TVET Day celebration in MITC, accompanied by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. — Bernama MELAKA: Malaysia has approved investments amounting to RM89.8bil in the first quarter of this year, the largest amount for this time period since Merdeka, says Datuk Seri Anwar Ibrahim. The Prime Minister said that this figure was a 3.7% increase compared to the same period last year, signalling strong investor confidence even as global supply chains and investments are being affected by tariffs imposed by the United States. 'This figure also demonstrates that our economy remains resilient and competitive despite global turbulence and economic uncertainty, including the imposition of tariffs by the United States,' he said during his keynote address at the 2025 National TVET Day celebration held at the Melaka International Trade Centre (MITC) in Ayer Keroh yesterday. Anwar also revealed that a major US-based chip manufacturer had recently expressed interest in investing RM10bil in Malaysia. 'In principle, we have agreed to the proposal, but we have asked the American company to hold until July 9 when President Trump is expected to finalise the new tariff rates,' he said. 'However, the investors indicated they are still keen to proceed, confident that Malaysia will not be significantly affected by the tariffs.' Anwar said that the company had requested expedited approval to begin operations in the country. 'Beyond political stability, foreign investors have also been impressed by the professionalism and discipline of our local workforce. 'This sentiment was echoed in a recent meeting with Google, where they acknowledged that Malaysia's talent pool is among the best in Asia in terms of discipline and skill,' he added. Anwar said the recent development also reinforces the fact that the government's clear policies, along with political stability, continue to position Malaysia as an attractive destination for global investment.
The Star
12-06-2025
- Business
- The Star
M'sia secures RM90bil approved investments in 1Q
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. KUALA LUMPUR: Malaysia has secured RM89.8bil in approved investments for the first quarter of financial year 2025 (1Q25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop. In a statement yesterday, the Malaysian Investment Development Authority (Mida) said these investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians. 'The results reflect continued investor confidence in the country's clear policies and long-term fundamentals, bucking the trend of cautious international capital flows due to geopolitical and macroeconomic volatility, and the intensifying global competition for fresh investments. 'Foreign investments dominated the investment landscape, contributing RM60.4bil or 67.3% of total investments, while domestic investments accounted for RM29.4bil or 32.7%,' it said. Besides job creation, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said the increase in the Managerial, Technical, and Supervisory index to 46.3% from 44.2% in the same quarter last year reflects the country's success in creating higher-skilled, better-paying jobs. 'With a better integrated Asean economy, which we are working hard on as Asean chair, we are also paving the way for Malaysia's continued positioning as a manufacturing and services hub to this fast-growing 680-million strong region,' he said. He said the investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds from the US-China trade war. 'Nonetheless, although major markets' protectionist policies and supply chain frictions continue to weigh in on companies' investment decisions, Malaysia's clear policies should be able to attract more investments from Asia's growing economy, which is expected to expand to about 42% of global gross domestic product by 2040,' he said. Besides bringing in good jobs and business opportunities, Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the projects secured by Mida for 1Q25 supported the national effort to build a more diversified and resilient economy. 'To remain a choice location for high-performing companies, we will strengthen our local ecosystem as enablers and prepare our workforce to seize new job and leadership opportunities.' — Bernama
The Star
12-06-2025
- Business
- The Star
Malaysia retains foreign investors despite US-China tensions
KUALA LUMPUR: Despite geopolitical tensions between the US and China, foreign investors remain in Malaysia. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia has not seen any cancellations of investment commitments so far. "The ones already in Malaysia continue to stay, and those committed have not pulled out, but those yet to commit are reconsidering," he said during a press conference at the Regional Socialisation of the Asean Economic Community Strategic Plan 2026-2030 event on Thursday (June 12). Tengku Zafrul said the ministry is pleased with the country's investment performance for the first quarter, announced on Wednesday. The Malaysian Investment Development Authority (MIDA) reported that Malaysia secured RM89.8bil in approved investments for the first quarter of the financial year 2025 (1Q25), a steady 3.7% year-on-year increase despite a challenging global economic backdrop. These investments, spread across 1,556 projects in manufacturing, services, and primary sectors, are set to generate over 33,300 new employment opportunities for Malaysians. "Usually, the first quarter is softer as decisions are made towards the end. We were quite pleasantly surprised with this number," said Tengku Zafrul. However, he cautioned that making investment forecasts for the future is not easy, as many companies are adopting a wait-and-see approach due to dynamic geopolitical issues. He said Malaysia is currently maintaining its Gross Domestic Product (GDP) forecast for this year. Commenting on trade negotiations between the US and China, he said Malaysia views the development positively. "Things are showing progress in the right direction. We will have a positive spillover if these two countries can do more together," he said. Tengku Zafrul stated that negotiations between Malaysia and the US have been ongoing virtually. He will visit the US on June 18 to meet with US Trade Representative Jamieson Greer. He said the main goal is to reduce the 24% tariff, and for certain sectors important to both countries, Malaysia aims to negotiate further to lower the tariff rate to below the 10% floor tariff. "It is not going to be easy. What is important is to show that Malaysia and the US's relationship in terms of trade and investment is complementary. We are not competing against the US," he said. "A lot of things we do actually strengthen and complement US businesses both in the US and Malaysia. So it is a win-win relationship," he said. He said the ministry is also enhancing enforcement to address trade diversion issues and ensure Malaysian exporters are considered.
The Star
11-06-2025
- Business
- The Star
Malaysia records approved investments of US$21bil in 1Q
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.— MUHAMAD SHAHRIL ROSLI/The Star KUALA LUMPUR: Approved investments in Malaysia rose by 3.7% in the first quarter from a year earlier to RM89.8bil (US$21.2bil ), the Malaysian Investment Development Authority said on Wednesday. Foreign investments were RM60.4bil, or two-thirds of the total, and domestic investments accounted for RM29.4bil, the authority said in a statement. "The investment environment in 2025 is expected to remain challenging due to continued geopolitical and macroeconomic headwinds stemming from the U.S.-China trade war," Trade Minister Tengku Datuk Seri Zafrul Abdul Aziz said in the statement. Tengku Zafrul said that while protectionist policies and supply-chain frictions would affect corporate decision-making, he expected Malaysia to attract more investment, given that the broader Asian economy was increasing its share of global GDP. The top three sources of foreign investment in the quarter were Singapore with RM28.3bil, the United States at RM9.9bil and China at RM7.9bil. The services sector attracted RM57.8bil on the approved investments, the authority said. - Reuters
