@NextDigital September/October 2025 | Page 4

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LOCAL NEWS
| September-October. 2025

ASEAN digital enabler

WHILE scaling up its digital transformation initiatives, Malaysia is positioning itself as a regional enabler. This effort, as stressed by Malaysian Prime Minister Datuk Seri Anwar Ibrahim, is part of a broader vision to strengthen digital integration across the Association of Southeast Asian Nations( ASEAN) member States.

In his keynote address at the launch of MaiStorage Technology, Anwar emphasised the importance of regional cooperation to ensure ASE- AN ' s global competitiveness. He pointed to the ASEAN Power Grid project, developed in partnership with Vietnam and Singapore, as a successful model for regional cooperation.
Serving as the ASEAN chair this year, Malaysia is prioritising regional digital integration, which Anwar deems a more strategic and futureoriented goal. However, industry experts note that ASEAN faces signifi-
cant structural barriers in realising this vision, primarily due to the existing technological gap, particularly in AI and semiconductor leadership.
Especially since ASEAN nations are struggling to move beyond lowervalue segments of the technology supply chain, observed East West
GEARING UP: Anwar Ibrahim delivers the keynote address at the launch of MaiStorage Technology.
Futures Consulting Director John Lee, during a panel discussion at the ASEAN Investment Conference 2025. While countries like Malaysia, Vietnam, and Indonesia have advanced in manufacturing, their contributions remain confined mainly to assembly and testing.
Lee also raised concerns about ASEAN ' s limited autonomy over its digital infrastructure. He argued that the reliance on foreign cloud providers, chipmakers, and platforms, primarily from the United States and China, has made it challenging for ASEAN to control its digital future.
SkyeChip Sdn Bhd Chief Executive Officer( CEO) Swee Kiang( SK) Fong echoed similar sentiments. He cited the nation ' s missed opportunity in mobile semiconductors due to a notable absence of local firms engaged in designing or fabricating chips for mobile devices.
Anwar believes policy clarity and governance reform in Malaysia have created an enabling environment for technology and AI development. While the New Industrial Master Plan( NIMP) provides direction, the rest lies in delivering results through effective implementation, as is the case in many nations, including Malaysia.

Demand soars for data centres Malaysia-Türkiye tech ties deepen

THERE is strong foreign demand for data centre infrastructure in Malaysia, reinforcing industrial property as a key investment focus.
According to RHB Research, the demand is linked to global realignments, particularly the prolonged US-China trade war. These geopolitical shifts are reportedly driving tech and manufacturing investments towards Southeast Asia.
Consequently, industrial properties related to digital infrastructure are becoming a key investment theme in Malaysia ' s tech landscape.
For one, DayOne Data Centres Singapore Pte. Ltd. recently secured RM15 billion in debt funding to expand its operations in Malaysia.
This significant investment underlines the increasing international belief in Malaysia ' s capacity to host and support large-scale digital infrastructure.
Despite global uncertainties, RHB maintains an optimistic outlook on the demand for digital infrastructure.
The government ' s exemption of Sales and Service Tax( SST) for residential-serviced apartments and the zero per cent tax on essential construction materials helps safeguard data centre developments from major cost disruptions. These measures are expected to ensure continued attractive investment conditions for the sector.
AS Malaysia takes the lead in hosting the 58th ASEAN Foreign Ministers ' Meeting( AMM), the Republic of Türkiye expressed interest in forging a more strategic partnership with Malaysia, with Turkish Minister of Foreign Affairs Dr Hakan Fidan pointing to technology and defence as key sectors.
His remarks highlight Malaysia ' s growing appeal as a key partner in the global tech landscape. Fidan specifically identified microelectronics and defence industry collaboration as critical domains for joint investment.
The current trade volume between Malaysia and Türkiye has surpassed US $ 5 billion. Hence, Türkiye is aiming to double the bilateral trade volume to US $ 10 billion.
Fidan highlighted the friendship between Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Turkish President Recep Tayyip Erdoğan as a key enabler of bilateral progress. He noted that the current trade volume falls short of reflecting the depth of diplomatic relations between the two countries.
Furthermore, Fidan highlighted the defence industry and microelectronics as promising areas for
BILATERAL MOMENT: Hakan Fidan( left) meets with Anwar Ibrahim to discuss elevating Malaysia-Türkiye bilateral relations.
joint investment. Currently, leading Turkish firms are exploring opportunities for technology cooperation with Malaysian partners.
Additionally, he also proposed strengthening bilateral energy cooperation at the governmentto-government level. These joint efforts, he suggested, could be led by Petronas and Türkiye ' s Stateowned energy firms. Ultimately, opening doors to digital energy solutions and green tech innovation. @ ND