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THURSDAY | MAY 28, 2026

Aquawalk positive on visitor growth

for scalable compute power, data storage and secure networks is pushing businesses to rely more heavily on cloud providers rather than on-premise systems. Alibaba Cloud said it has invested heavily in AI-optimised infrastructure, including data centres and tools designed for large-scale AI workloads. The company currently operates 78 data centres across Asia, supporting enterprises with computing, storage, networking and security capabilities. In Malaysia, competition remains intense with global and regional players vying for market share as government policies encourage digital adoption and investment in high-value technology sectors. The push towards smart manufacturing, fintech and digital services is expected to further lift demand for cloud services. Gartner noted that increasingly 400,000 visitors in its first year of operations on a conservative basis. Foong said the attraction will cater more heavily towards domestic Indonesian visitors due to its proximity to ecotourism destinations such as Mount Ijen and Mount Bromo, with ticket prices likely to remain lower to suit the local market. By contrast, the Kota Kinabalu aquarium is expected to command stronger pricing due to the city’s higher-spending international tourist base and growing popularity among foreign travellers, particularly from South Korea. Foong said the Phuket aquarium is expected to continue increasing its contribution, supported by island’s tourism market, where about 60% of visitors are foreigners and 40% locals. The overall revenue contribution ratio across the group’s aquarium portfolio is expected to remain broadly stable over the next three years, even as new aquariums are developed alongside continued growth from existing operations in Kuala Lumpur and Phuket. Aquawalk is considering in creasing ticket prices this year, although Foong said the group will likely keep increases lower for Malaysian visitors and higher for international tourists. He said Aquawalk remains one of the most affordable aquarium operators in the region compared with operators in Singapore, the Philippines and Thailand. However, pricing decisions will be tied to new attractions, experiences, renovations and other improve ments. “We are conscious as well about our objectives, and that is to make sure as many people as possible get to experience the wonders of the sea,” Foong said. On margins, he said the group’s gross profit margin has improved to about 60% from 57% over the past

complex AI ecosystems, coupled with regulatory requirements and data localisation needs, are reinforcing the role of IaaS as a foundational layer for businesses. This is particularly relevant in markets like Malaysia, where com pliance and data sovereignty are becoming key considerations for enterprises. Alibaba Cloud said its strategy centres on building “AI-native” and “agent-native” cloud capabilities, positioning itself to capture long-term demand as AI moves into production across industries. With Malaysia continuing to strengthen its digital economy am bitions, the cloud computing sector is expected to see sustained growth, supported by rising enterprise adoption, policy support and in creasing integration of AI techno logies into core business operations. two years, while adjusted profit after tax has remained steady at about 35%, excluding one-off items such as the sale of Burger & Lobster in 2024. Foong said said Aquawalk’s in house design-and-build arm, Aqua Blue, is currently more important as an efficiency driver than a direct revenue contributor as it remains heavily involved in the group’s own aquarium projects. According to him, AquaBlue allows the group to internalise design, engineering, construction, hus bandry and operational transfer capabilities, generating significant cost savings and operational effi ciencies. He estimated that design fees alone could result in savings of 15% to 20%. Looking ahead, Foong said Aquawalk’s regional expansion plans remain on track despite the uncertain global backdrop, with ongoing projects progressing as scheduled and the group continuing to explore additional opportunities beyond 2029 and 2030 as part of its longer term Southeast Asian growth strategy. Beyond its upcoming aquariums in Kota Kinabalu and Surabaya, Aquawalk is evaluating additional prospects across the region, sup ported by its in-house development capabilities through AquaBlue. Foong said the group remains confident in the long-term funda mentals of the aquarium and edutourism industry, citing con tinued demand for family-oriented attractions, experiential tourism and conservation-focused educational experiences across Asia. “Aquawalk’s expansion strategy is not solely driven by commercial growth, but also by a broader ob jective of increasing public exposure to marine biodiversity, sustainability and ocean conservation through accessible and interactive attractions,” he added.

o Aquarium operator remains cautiously upbeat, cites resilient regional tourism demand and group’s exposure to multiple tourism markets

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

arising from the Middle East conflict, Foong said Aquawalk remains cautiously positive due to resilient regional tourism demand and the group’s exposure to multiple tourism markets. “The region in which we are in is resilient. The business in which we are in is also resilient, I think proven through our survival through the (Covid-19) pandemic and through two wars and now going into our third,” he said. Foong said the outbreak of the Iran war has introduced fresh uncertainty into the operating en vironment, particularly around con sumer confidence, travel sentiment and discretionary spending patterns as households become more cautious amid rising geopolitical tensions and concerns over living costs. The group is maintaining its full year projections for now, but Foong acknowledged that a prolonged conflict could eventually force Aquawalk to reassess its outlook if the broader economic impact begins affecting tourism activity more materially. “If the Iran war continues to drag on and the broader economic spillover effects become more prolonged and severe, particularly through rising fuel prices, higher travel-related costs and weaker consumer spending sentiment, then I think this will probably have to be revised,” he said. A sustained increase in fuel prices could eventually push up airfares, transport costs, accommodation

PETALING JAYA: Alibaba Cloud has reinforced its position in the fast growing cloud market in Malaysia, ranking second by revenue as demand for AI-driven infrastructure accelerates across the country and the wider Asia-Pacific. The group said its regional market share rose to 22.5% in 2025 from 20.8% a year earlier, maintaining its lead as Asia-Pacific’s largest Infra structure-as-a-Service (IaaS) provider by revenue, according to a report by Gartner. The stronger showing in Malaysia comes as enterprises step up adoption of cloud and artificial intelligence solutions to manage rising costs, labour constraints and digitalisation needs. Industry observers note that Malaysia’s Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com He attributed the slower start partly to shorter school holidays earlier this year and the overlap between Chinese New Year and Ramadan, which disrupted the group’s usual seasonal visitor patterns. Softer traffic during Ramadan was offset by stronger visitor flows during the Hari Raya festive period. Despite the softer backdrop KUALA LUMPUR: Aquawalk Group Bhd is keeping its full-year growth target despite broader geopolitical uncertainty that could dampen tourism sentiment, raise travel costs and pressure discretionary spending in the months ahead. Group CEO and executive director Daryl Foong Chuen Hoe said the aquarium operator continues to expect a 3% increase in visitorship across its portfolio, including Aquaria KLCC in Kuala Lumpur and its aquarium in Phuket, Thailand, which should translate into about 6% revenue growth from RM111 million recorded in 2025. “For the full year, we are still keeping to the 3% growth in terms of visitorship,” he told SunBiz in an exclusive interview at its Kuala Lumpur office. Foong said the group expects first half revenue to remain broadly flat year-on-year, while visitor numbers could see a slight decline as softer consumer sentiment and geopolitical uncertainty weigh on tourism activity and spending behaviour.

sumption of cloud resources. In Southeast Asia, Alibaba Cloud recorded notable gains beyond Malaysia. It climbed to second place in Indonesia and third in Singapore, where it was the only major global provider to post triple-digit growth, highlighting intensifying competition in one of the region’s most mature digital markets. The expansion aligns with broader industry trends flagged in the Gartner report, which showed the global IaaS market grew 24.3% in 2025, adding US$45 billion (RM178.5 billion) in revenue. AI-native workloads emerged as the dominant driver of new demand, as enterprises scale up machine learning, automation and data-intensive applications. Analysts point out that Malaysia stands to benefit from this shift as companies accelerate cloud migration to support AI deployment. The need Foong says Aquawalk remains confident in the long-term fundamentals of the aquarium and edutourism industry. rates and broader service industry expenses, potentially affecting affor dability for travellers and tourism demand across the region, Foong said. Aquaria KLCC remains the group’s largest revenue contributor, ac counting for about 78% of total revenue, underpinned by its esta blished market position, strong brand recognition and steady mix of both local and international visitors, which continue to support stable visitor traffic and profitability for the group. Foong said the group’s expansion into new markets is aimed at reducing reliance on a single location while broadening exposure to different tourism flows and customer segments across the region. Aquawalk is opening aquariums in Kota Kinabalu, Sabah, and Surabaya, Indonesia. The Surabaya aquarium is expected to attract about 300,000 to

Alibaba Cloud solidifies position in Malaysian market

positioning as a regional data and digital hub continues to attract hyperscalers and cloud providers competing for enterprise workloads. Globally, Alibaba Cloud ranked as the fourth largest IaaS provider, with market share increasing to 7.7% in 2025 from 7.2% previously, reflecting broader momentum in AI-led cloud demand. Chief technology officer Li Feifei said the growth underscores a shift from experimentation to real deployment of AI systems. Companies across the region are increasingly committing to AI-native infra structure, driving sustained con