21/01/2026

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BIZ & FINANCE WEDNESDAY | JAN 21, 2026

Digital Realty expands into Malaysian market network service providers including

Air passenger traffic set to maintain growth momentum: PublicInvest

KUALA LUMPUR: Passenger traffic in the aviation sector is set to maintain its growth momentum, with mid single-digit volume growth expected this year despite an unstable macroeconomic en-vironment. Public Investment Bank Bhd (PublicInvest Research) said in a report that this growth should be primarily driven by strong inter national demand, new routes, expanded seat capacity, supportive visa policies, and the Visit Malaysia Year 2026 (VM2026) campaign. The bank-backed research firm further said that the Asia-Pacific region was the fastest-growing aviation market in 2025, having grown by over 8%. It is likely to continue leading volume growth, with forecast revenue passenger kilometre (RPK) growth of 7.2% in 2026, driven by strong economic growth in China and India, and the expansion in international travel. “Malaysia stands to benefit directly from this trend due to its strategic location, increased intra Asean travel connectivity, and the further boost from VM2026 initiatives, which aim to attract 40 million international tourists. “The country is well-positioned to meet this target, having already welcomed 38.3 million foreign tourist arrivals in the first 11 months of 2025 alone, surpassing the total for all of 2024,“ PublicInvest Research said. Further, the firm also noted that supply chain disruption remains one of the most significant challenges for the industry. It said that while deliveries of new aircraft picked up in late 2025 and production is set to rise in 2026, demand for new aircraft and engines will continue to exceed available supply. “The normalisation of the structural mismatch is unlikely before 2031, due to the supply disruptions over the past five years and an unprecedented order backlog.

“This shortage has pushed the average passenger fleet age to 12.8 years, compared to the pre pandemic average of 7 years. Maintenance costs are expected to remain elevated due to the ageing fleet and parts availability issues; however, this pressure is partly offset by the near completion of aircraft reactivation programmes and a broader slowdown in inflation,“ it said. Touching on jet fuel prices, PublicInvest Research said global oil prices continued their decline, with Brent crude falling to US$61 per barrel in December 2025. For the full year, jet fuel averaged at US$90 per barrel, representing a 9% YoY decline. For 2026, the International Air Transport Association projects jet fuel prices to dip marginally to US$88 per barrel, tracking lower Brent crude prices, though refining constraints are expected to keep the prices firm. The firm noted that this forecast assumes a crack spread of US$26 per barrel and a crude oil price of US$62 per barrel. “Looking ahead to 2026, the operating environment is expected to be shaped by a firmer ringgit, supported by consistent macro delivery, investment-related inflows, and external balance resilience. “This appreciation should lessen the local-currency cost of critical USD-denominated fees, notably jet fuel and aircraft leases, thereby boosting airline profit margins,“ PublicInvest Research noted. The research firm maintains an Outperform recommendation on the sector. It said that while supply chain challenges remain a significant headwind for the industry, airline profitability is projected to improve, supported by stronger load factors, better cargo yields, steady jet fuel prices, and the weaker US dollar.

local team over time to support future growth and operational scale. “Malaysia is currently in a sustained scale-up phase for digital infrastructure, with total data centre capacity projected to grow from 1.26 gigawatts in 2025 to 2.53 gigawatts by 2030,

o Acquisition of TelcoHub 1 anchors its first local campus with strong fibre density and regional connectivity KUALA LUMPUR: Digital Realty, a global provider of cloud- and carrier neutral data centres, plans its entry into Malaysia through the execution of the agreement to acquire CSF Advisers, owners of the TelcoHub 1 data centre located in Cyberjaya, one of Greater Kuala Lumpur’s most established data centre hubs. Digital Realty’s expansion into the Malaysian market extends its Southeast Asia platform and reinforces its commitment to support the region’s growing digital infrastructure requirements. Digital Realty managing director and head of Asia Pacific Serene Nah ( pix ) said Malaysia plays an increasingly important role in the region’s digital ecosystem as hyperscalers, enterprises, and platforms scale up and infrastructure requirements evolve towards greater resilience, interconnection, and readiness for more complex workloads. “Our entry into Malaysia will bring our global platform, operational expertise, and long-term investment approach into the local market, support the country’s digital ambitions, and help to shape how regional infrastructure is built for the future,” she said in a statement. TelcoHub 1 is an operational 1.5 megawatt data centre considered one of Malaysia’s largest dark fibre interconnect hubs, with more than 6,000 cores of regional and long-haul fibre landing at this facility. It is also among the most network dense data centres, hosting over 40

access to key platforms such as AWS, Google, MY IX and Decix Asean, according to peeringdb.com. In conjunction with TelcoHub 1, Digital Realty has also agreed to acquire adjacent land capable of supporting up to 14 megawatts of IT load, providing clear capacity for future expansion.

according to data from the Asia Pacific Data Centre Association’s July 2025 report,” said Lee. “Continued expansion is fueled by rising demand for cloud services, AI acceleration, robust connectivity infrastructure, and supportive government policies. “We are excited to join Digital Realty and hope this acquisition will enhance our connectivity solutions for customers, support local talent development, and contribute to Malaysia’s maturing digital infrastructure ecosystem,” he said. Digital Realty’s entry into Malaysia will underscore its long-term investment commitment in the country and further establish Malaysia as a credible location for interconnected, secure, and sovereign-ready digital infrastructure serving Southeast Asia. Sustainability will be a key focus, with Digital Realty working alongside the Malaysian government and industry stakeholders to support national digital priorities and advance energy-efficient data centre practices, aligned with local regulations and long-term environmental goals. Digital Realty’s expansion into Malaysia will build on its established Southeast Asia presence in Singapore and Jakarta. The company will continue to evaluate opportunities to expand capacity, capabilities, and partnerships in the region, in line with its broader regional strategy.

These acquisitions are expected to close in the first half of 2026, subject to customary closing conditions. Building on this foundation, the Malaysia campus will be integrated into PlatformDIGITAL, Digital Realty’s global data centre platform, enabling customers to deploy infrastructure within a consistent, secure, and interconnected environment, as digital and AI-driven workloads scale. Digital Realty plans to introduce its interconnection and orchestration solution ServiceFabric to the campus, providing customers with global connectivity and greater flexibility to manage their digital infrastructure across the region. Together, these capabilities build on CSF Advisers’ existing strengths and enhance Digital Realty’s ability to support both local customers and organisations with regional footprints anchored in Singapore by offering complementary capacity and connectivity across Southeast Asia. Upon completion of the acquisition, Advisers’ chairman and CEO Billy Lee, together with the local leadership team and more than 40 skilled professionals, will join Digital Realty. Their combined expertise will be instrumental in supporting CSF Advisers’ diverse customer base spanning enterprises, cloud, and digital service providers. Digital Realty plans to expand the

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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