Category Archives: MIDA

Digitalisation Helps Malaysia Remain a Top Global Investment Destination

Malaysia remains a top investment destination among global investors and a hub for business expansion. Investors continue to invest in Malaysia as the nation’s new leadership deepens its focus on strengthening the country’s economic growth and retaining Malaysia’s reputation as a stable investment destination.

Malaysia continues to thrive as one of the most technologically equipped economies in Asia. Through digitalisation, the country has become a hotbed of investment for both domestic and international players. Digital transformation is crucial for businesses of all sizes and industries. Many businesses are now going digital and equipping themselves for fast expansion. New services have been invented through the invention of the Internet of Things (IoT), artificial intelligence (AI) and cloud computing.

Malaysia attracted a total of RM193.7 billion (US$41.7 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022 and is expected to create 98,414 job opportunities in the country. This is a 2.5% cent increase as compared to the RM188.9 billion (US$45.1 billion) investments approved in the same period last year.

During this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion (US$24.4 billion). The manufacturing sector follows this at RM64.9 billion (US$14 billion) or 33.5% and the primary sector at RM15.5 billion (US$3.3 billion) or 8%.

The services sector accounted for the largest share of the total approved investments, amounting to RM113.3 billion (US$24.4 billion) from 2,167 projects which contributed to the growth of the country’s economy. This is a significant increase as compared to the RM70.4 billion (US$16.8 billion) investments approved for the services sector in the same period last year. A total of 39,772 new jobs are expected to be created in the services sector.

The information and communications sub-sector dominated the services sector, with approved investments valued at RM69.2 billion (US$14.9 billion) or 61.1%. From the total approved investments of this sub-sector, five (5) Information and Communication Technology (ICT) services which include data centre and cloud computing services were approved with investments totalling RM60.7 billion (US$13.1 billion) or 87.7%.

Malaysia continues to attract high-quality investments in the manufacturing sector from January to September 2022, reflecting the country’s competitiveness as a preferred location for investment in the region. The manufacturing sector accounted for RM64.9 billion (US$14 billion) (33.5%) from the total approved investments in various economic sectors, as compared to RM103.9 billion (US$24.8 billion) for the same period in 2021.

A total of 58,141 potential job opportunities are expected to be created in the manufacturing sector, where it will require 2,631 (4.5%) managerial positions, 6,277 (10.8%) professional/technical and supervisory roles, reflecting the higher value chain transition of the manufacturing sector. The approved manufacturing projects will also require 12,040 (20.7%) skilled employees.

The primary sector recorded a total of RM15.5 billion (US$3.3 billion) approved investments (8%) of the total approved investments in the various economic sectors from January to September 2022. FDI dominated the primary sector with investments valued at RM11.5 billion (US$2.5 billion) (74.2%), while the remaining RM4 billion (US$0.9 billion) (25.8%) is contributed from domestic sources.

Malaysia’s economy has grown rapidly. Due to ongoing reforms and recent digitalisation efforts, the country is experiencing its strongest recovery since the two-year pandemic that shut down the global economy. In collaboration with MITI, MIDA is actively working to attract investments in targeted industries from all over the globe to upgrade Malaysia’s industrial ecosystem and trade landscape. These initiatives include giving necessary business facilitation and value network to foreign, local, and start-up companies to ensure they can optimise operations in this dynamic market. The Government is eager to help businesses succeed and make Malaysia the ideal place for them to reach their full potential.

The Government remains resilient to discover new growth areas and empower businesses and local communities while upholding the principles of integrity, good governance, and the rule of law, in addition to promoting inclusivity and sustainable development through principles of SDGs and the New Investment Policy (NIP), under the umbrella of the National Investment Aspirations (NIA).

Malaysia still most desirable location for data centre hubs in the region

Malaysia is still the most desirable location in the region for data centre hubs, said Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman.

Supported by the country’s vast resources, favourable environment, and advancement in digital infrastructure, Malaysia has developed into a mature market for data centres, he said in conjunction with the grand opening of Bridge Data Centres’ (BDC) first-phase hyperscale data centre in Sedenak, Johor on Thursday.

“This illustrates the country’s readiness to serve as a regional data centre hub,” he said in a joint statement by Mida, Malaysia Digital Economy Corp (MDEC), and BDC on Friday.

Arham said the grand opening marked the success of Malaysia as a competitive nation in attracting data centre investment.

He said Mida, through the Digital Investment Office and Project Acceleration and Coordination Unit, has been very supportive of this project since its pre-investment stage right up to the implementation phase.

“We are excited and honoured to have been chosen by BDC and ByteDance System Sdn Bhd as their choice of location for the establishment of this hyperscale data centre venture,” he added.

ByteDance System will be the anchor tenant of BDC’s hyperscale data centre with long-term investment commitment in the country.

Meanwhile, MDEC CEO Mahadhir Aziz said the new facility will increase not only latency and efficiency but will  also help attract other global businesses and investments to the country.

With the rapid growth of cloud service providers and digital media, BDC has full support from the US-based Bain Capital to expand its hyperscale data centre business in the Southeast Asia region.

The company will be building another 100 megawatts (MW) of data centres in the next five years in Malaysia, Indonesia, and Thailand.

The first phase of the data centre in Sedenak covers the first of the three buildings in the 110 MW hyperscale data centre project, which spans 15.4 hectares.

BDC is one of the largest data centre companies in the region, providing hyperscale and wholesale data centre solutions.

BDC is also the first company with Malaysia Digital status to complete the construction and handover the business-ready hyperscale data centre in 2022.

New Data Centre Launched in Malaysia

NTT Ltd. a leading IT infrastructure and services company, and the first company to receive the Multimedia Super Corridor (MSC) status back in 1997,  today announced the commencement of its sixth data center construction in Cyberjaya, shortly after the completion of its fifth data center (CBJ5) in 2021.

NTT plans to initially invest over USD50 million for the new data center known as Cyberjaya 6 (CBJ6). It complements CBJ5 which covers just under 20 000 m2 with a total facility load of 22MW when combined with CBJ6. The facility will cater to hyperscalers and high-end enterprises to accelerate digital transformation across industries in Malaysia as the nation ushers in the new digital era. With its global reach alongside local operational expertise, NTT’s data centers provide businesses in Malaysia with access to a wide portfolio of ICT solutions to support digital growth and needs, being the first company to receive Multimedia Super Corridor status back in 1997.

NTT showed its intent to support Malaysia’s digitalization during the meeting with the Trade and Investment Mission (TIM) delegation led by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI) to Tokyo, Japan.

Dato’ Seri Azmin remarked, “MITI fully supports NTT’s investment plans in Malaysia and welcomes this latest move to develop a new data center and network infrastructure in Cyberjaya. Kudos to NTT’s vision of “NTT Green Innovation toward 2040”, in which NTT aims for carbon neutrality for its data centers by FY2030 and for the whole NTT Group by FY2040. This is certainly in tandem with Malaysia’s commitment to achieving net-zero emissions by 2050. This strategic investment will further support and drive Malaysia’s commitment towards ESG values and advancing green growth as outlined in the Twelfth Malaysian Plan.”

“The wave of digitalization is unstoppable. Companies today realize how important it is to harness the immense power of digital technology. We are honoured that Malaysia is the location of choice for industry leaders like NTT, to site their data centers.  The establishment of CBJ6 as part of NTT’s expansion plan is a strong testament to NTT’s confidence in Malaysia’s capability as a regional data center hub. We are confident that NTT’s efforts will contribute to the country’s goal of becoming a digital nation, helping it achieve a 22.6% GDP boost from the digital economy by 2025,” said Datuk Wira Arham Abdul Rahman, Chief Executive Officer of Malaysian Investment Development Authority (MIDA).

“Asia Pacific is a key growth region for NTT, and Malaysia has a prime position in its strategic investment plans. With this expansion through a new data center launch, NTT will drive business opportunities domestically and also across APAC. NTT’s investment will support Malaysia’s digitalization, and accelerate the growth of our domestic and APAC digital ecosystem” added Yasuo Suzuki, Executive Vice President, Data Center Service at NTT Ltd.

The optical submarine cable MIST1 between Malaysia, Singapore, and India which is currently under construction, will enable connectivity between CBJ5 and CBJ6 to further enhance Malaysia’s network connectivity globally and build sustainable socio-economic impact. NTT will continue to expand its cable capacity.

Over the past 30 years, NTT has been expanding its footprint in Malaysia, making the nation’s vision a reality through public-private partnership. Moving forward, NTT will remain steadfast in its support for building Malaysia’s technological infrastructure, contributing towards the nation’s digital ecosystem and continually improving Malaysia’s position as a digitally-driven nation.

Petronas in talks with companies in Japan to develop green tech, says Malaysian Industry Minister 

KUALA LUMPUR (June 2): Large Japanese companies are having talks with Petroliam Nasional Bhd (Petronas) for the development of green technology in Malaysia, according to Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali.

A study is underway and this is a good effort for the country to achieve its net-zero emissions objective as early as 2050, he said.

“We will continue (with this effort) and we have also asked the Japanese to continue the collaboration,” he told reporters during the International Trade and Industry Ministry’s (MITI) 2022 Aidilfitri get-together here on Wednesday (June 1).

Azmin considered MITI’s efforts to attract more investments as a success in terms of helping to create high-quality jobs as well as bringing in new technologies to enable small and medium entrepreneurs to be more active in increasing productivity.

He also said the Look East Policy has enhanced Malaysia’s socio-economic position since its introduction 40 years ago but the challenges today are different.

“Our current focus is on environmental, sustainability and green technology issues, which are at the core of the 12th Malaysia Plan,” he said.

Recently, Malaysia and Japan agreed to upgrade bilateral relations to a more comprehensive level while continuing with the Look East Policy by establishing new areas of cooperation such as energy, smart city, environment and climate change.

Prime Minister Datuk Seri Ismail Sabri Yaakob, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, Senior Defence Minister Datuk Seri Hishammuddin Tun Hussein and MITI Deputy Minister Datuk Lim Ban Hong also attended Wednesday’s event.

Malaysia to see greater digital connectivity through Jendela – MIDA

The RM21bil national digital infrastructure plan, Jalinan Digital Negara (Jendela) was designed to steer Malaysia towards greater digital connectivity by boosting the efficiency of the national infrastructure and optimising spectrum usage.

In August, Prime Minister Tan Sri Muhyiddin Yassin announced that the Jendela action plan, which is part of the 12th Malaysia Plan (2021-2025), would lay the foundation for comprehensive and high-quality broadband coverage as well as prepare the country for the transition towards 5G technology.

Malaysian Communications and Multimedia Commission (MCMC) chairman Dr Fadhlullah Suhaimi Abdul Malek said the tender for infrastructure works at 1,661 sites involving an investment value of Rm4.6bil under Jendela would be closed on March 31, 2021.

He said Jendela has two phases, where Phase 1 is executed from 2020 to 2022 and Phase 2 from 2022-2025.

Phase one entails enabling as many as 7.5 million premises with gigabit speed fixed-line broadband; expanding 4G mobile coverage from 91.8% to 96.8% in populated areas; and upgrading mobile broadband speed from 25Mbps to 35Mbps, and concerns gradual retirement of 3G networks by the end of 2021.

Phase two involves utilising fixed-wireless access and other fit-for-purpose technologies to address further gaps in the digital divide while priming for the eventual adoption of 5G once plans in phase one are achieved.

Nokia managing director for Malaysia and Sri Lanka, Datuk Sivananthan Shanmugam, said the Jendela initiative highlights the government’s commitment to develop the infrastructure needed to facilitate broader coverage of the current generation wireless technology across the nation, which in turn, would help to expedite the 5G roll-out in the near future.

“For mobile network operators, the Map will be especially useful for them to seek opportunities to optimise their resources through infrastructure sharing ventures, as well as reducing operator overlaps and duplication in order to improve nationwide broadband coverage,” he told Bernama.

Of the Rm21bil budgeted for Jendela, 40% is derived from MCMC’S Universal Service Provision (USP) funds with the remaining 60% to be funded by industry players.

MCMC will help to manage the delivery of Jendela’s targets by telecommunication companies through setting up a Specialised Project Management Service unit to closely monitor industry progress with respective managements and provide solutions to resolve any hiccups.

In a note, Kenanga Research said existing market leaders such as Celcom, Digi, Maxis and U Mobile would likely spearhead the target of achieving the national coverage of 96.8% by 2022, while the fibre network expansion of up to 7.5 million premises would likely be helmed by broadband leaders such as TM, Timedotcom and Maxis.

While the nation is looking forward to successful implementation of the 5G spectrum, Communications and Multimedia Minister Saifuddin Abdullah said the government has pledged commitment to roll out 5G technology by the end of 2022 or early 2023, with connectivity being one of its top priorities.

He said the implementation of the 5G network project included availability in terms of connectivity, people’s readiness to receive the network, as well as regulatory and industries’ preparedness.

“In terms of connectivity, it is useless if we have 5G in some areas when even 4G or others are not available in the rural and interior areas. There ought to be availability of access to avoid the digital divide.

“On industry accessibility, we expect 70% of 5G deployment will be for the use of industries while the remaining 30% will be among the general public,” he added.