26/06/2025

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THURSDAY | JUNE 26, 2025

Fadillah: Strong potential for M’sia to expand market in Central Asia via Uzbekistan TASHKENT: Malaysia has great potential to expand its market in Central Asia by streng thening bilateral cooperation with Uzbekistan, which can serve as the best platform and gateway into the region, said Deputy Prime Minister Datuk Seri Fadillah Yusof. He said that in several meetings with top leaders and private sector representatives in the republic since last Saturday, both countries had agreed to strengthen and enhance economic cooperation, including increasing trade and investment volumes – especially in sectors such as energy, palm oil, sukuk and semiconductors. Therefore, the working visit, which follows Prime Minister Datuk Seri Anwar Ibrahim’s visit last year, is expected to further broaden business and investment networks in the republic to achieve that goal. “We also agreed to further enhance coopera tion in the energy sector, particularly renewable energy. They also invited Malaysia to participate not just in the installation of energy systems, but also in transmission, upgrading the grid system, and smart grid systems, which we are also developing. “They also proposed cooperation with Malaysia in the area of carbon trading. This aligns with our commitment to global sustainability, and they are looking forward to Malaysia’s expertise in this field,” Fadillah told reporters at the exit press conference at the end of his four day working visit to Uzbekistan on Tuesday. Fadillah, who is also Minister of Energy Transition and Water Transformation, said Uzbekistan is also interested in learning from and sharing Malaysia’s expertise in water security. “One of their challenges is in clean water supply for drinking and other uses, and they made a specific request for us to share our experience and expertise in this area. I agreed, in principle and we will follow up to see how we can fulfil that request,” he said. Additionally, he expressed hope that Uz bekistan will increase imports of palm oil from Malaysia, which is currently the main export product to the country. “In this regard, I suggested that Uzbekistan cooperate with the Malaysian Palm Oil Council (MPOC) and subsequently become a hub for Malaysian palm oil exports to Central Asia,“ he added. He also hopes that MPOC will organise awareness programmes in Uzbekistan to promote the benefits of palm oil, thereby enhancing the republic’s position as Malaysia’s entry point into Central Asia. Fadillah said the Uzbekistan government also has expressed interest in learning from Malaysia’s extensive experience in developing the sukuk market, as Malaysia is recognised as a global leader in Islamic finance. To boost bilateral tourism, Fadillah announced that AirAsia X will launch a flight route between Malaysia and Uzbekistan starting October. Apart from that, he mentioned that Malaysia encourages Uzbekistan to continue participating in technical training programmes under the Malaysian Technical Cooperation Programme organised by the Ministry of Foreign Affairs. Fadillah said Malaysia and Uzbekistan will also explore deeper cooperation in the semiconductor sector, with a memorandum of understanding signed on June 13 between Mimos and Uzbekistan’s Ministry of Economy and Finance, along with the Uzeltexsanoat Association. – Bernama

Mida champions M’sian content in digital projects From left: Bursa Malaysia head of investor development Stephanie Tan, Hong Leong Investment Bank (HLIB) head of dealing (corporate and institutional business group - public) Wan Kharuddin Ungku Md Khalid, MN Holdings managing director Datuk Toh Eng Keat, Fad’l, Sikh Shamsul, Lee, IJM Construction Sdn Bhd CEO Wong Heng Wai, JLL Malaysia director of data centre transactions Kent Seet Tiong Hong, Master Tec Group executive director and CEO Tee Kok Hwa, and HLIB head of broking Allen Tan Jee Khien and acting head of research Chan Jit Hoong.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

o Local companies urged to become vendors, suppliers to multinational hyperscalers and data centre operators

KUALA LUMPUR: More Malaysian firms should become vendors and suppliers to hyperscalers and data centre operators (such as AWS, Google and Microsoft), said the Malaysian Investment Development Authority (Mida). CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said this is part of the agency’s broader “Built by Malaysia” approach that champions local content, technology transfer and inclusive growth. “The government is supporting this with competitive policies. The Digital Ecosystem Acceleration Scheme or DSEC offers tax allowances of up to 100% of capital expenditure,” he said in his speech at the “Data Centre 2.0: The Ecosystem and What’s Next for Malaysia” talk yesterday. Furthermore, he said, Malaysia Digital or MD status allows digital firms to scale across the country. “Under Budget 2025, the new Investment Incentive Framework is being introduced, a tiered outcome-based structure that prioritises high-impact projects aligned with our national investment aspirations. We would like to see more Malaysian companies to be the potential vendors or suppliers to these hyperscalers or data centre operators.” Sikh Shamsul pointed out that Malaysia attracted RM310.7 billion in digital investments from 2021 to March 2025 with major global technology players having made commitments to Malaysia, including Google with US$2 billion (RM8.4 billion) for its first cloud data centre, Microsoft US$2.2 billion for artificial intelligence (AI) and cloud infrastructure, AWS US$6.2 billion through to 2038, Nvidia and YTL US$4.3 billion for Malaysia’s first AI-focused cloud data centre and Oracle over US$6.5 billion for its first Malaysian public cloud region. “Global leaders are betting big on Malaysia. We are not just racing for more megawatts, lower latency or faster deploy-

the focus shifts from basic co-location services to advanced, high-performance computing infrastructure that supports AI workloads, green innovation, and data sovereignty. “With RM6.7 billion in approved investments and another RM3.9 billion currently in advanced hyperscale discussions, Malaysia is no longer a peripheral player in the region, and should now be positioning itself as a key digital infrastructure hub.” Commenting on future developments, Lee said Malaysia must strengthen its position as a neutral, stable and indispensable hub for data and AI development. “This includes implementing smart policies that support local AI innovation, protect data sovereignty, and promote the development of energy-efficient, sustainable data centres.” Additionally, she said, deeper colla boration between government, industry players and academia will be key in ensuring Malaysia develops long-term competitiveness in high-performance digital infrastructure. “The transition to Data Centre 2.0 is both a challenge and an opportunity. With the right strategies, Malaysia can turn global uncer tainty into national advantage and solidify its leadership as a regional data centre hub in Asean.” Meanwhile, Bursa Malaysia CEO Datuk Fad’l Mohamed said as demand for AI and high-performance computing accelerates, capital markets will play a vital role in financing the next wave of infrastructure growth. “At Bursa Malaysia, we are focused on strengthening our marketplace to attract long-term, technology-driven investments that will support Malaysia’s intent to remain as a competitive economy and a leader in Asean.”

ment. We are building a digital spine for the nation,” he said. Sikh Shamsul reiterated that Malaysia has surpassed its national digital investment target of RM130 billion well ahead of schedule. “More than 92,000 new jobs have been catalysed, many in frontier domains like cloud engineering, AI operations and cybersecurity. From Cyberjaya to Johor, we are witnessing one of Southeast Asia’s most dynamic digital corridors,” he said. The Digital Investment Office, a joint initiative by Mida and Malaysia Digital Economy Corporation, has facilitated these digital investments. However, Sikh Shamsul said data centres are seen by some as power-hungry assets that yield limited local benefits. “This perspective may not fully capture the broader and deeper value that data centres bring to Malaysia’s economy. Beyond direct employment, data centres support entire value chains. From civil engineering and M&E services to cloud application development and digital transformation for SMEs.” He said recent global shifts such as the US Department of Commerce recalibration on AI diffusion rules signal a deeper understanding that digital leadership cannot be siloed or reactive. “It must be strategic, collaborative and bold. For Malaysia, this is a call to action. We must continue to lead with agility, vision and policy foresight.” In her opening address, Hong Leong Investment Bank group managing director and CEO Lee Jim Leng said global develop ments, including US-imposed restrictions on AI chip exports will accelerate digital infrastructure investment in Southeast Asia. She said Data Centre 2.0 is a phase where