MY Morning Wrap | MN Holdings Wins RM136.24 Million Contract for Data Centre Power Infrastructure

The Malaysia Semiconductor Industry Association (MSIA) has announced an ambitious goal for the nation's semiconductor exports to reach RM1.2 trillion by 2030, which would maintain Malaysia's status as the world's sixth-largest exporter and represent a CAGR of 7.6%. MSIA president Datuk Seri Wong Siew Hai highlighted the need for Malaysia to enhance its semiconductor value chain capabilities and address talent shortages through government-industry collaboration. He emphasized the necessity of training and retaining 300,000 local talents, including 60,000 technical experts. The industry also plans to utilize foreign talents studying in Malaysia, particularly in science and engineering, to supplement the local workforce. Despite a 3% drop in semiconductor exports in 2023, the association is optimistic about the country's potential growth in this sector.

Malaysia is poised to see its fintech market value soar to US$100 billion within the next five years, a significant increase from the current US$50 billion valuation. This optimistic forecast was presented by Wilson Beh, the President of the Fintech Association of Malaysia, at the Tech in Asia Conference 2024. Key drivers of this growth include the widespread adoption of DuitNow, advancements in cross-border payment systems, and the successful execution of Project Nexus, which has enhanced payment integration with neighboring countries like Singapore and Thailand. The implementation of electronic Know Your Customer (eKYC) procedures and the introduction of digital banks have further stimulated the fintech sector. Malaysia's leading position in the global Islamic fintech index and the anticipated regulations from the Consumer Credit Oversight Board (CCOB) for innovative business models like buy now, pay later (BNPL) schemes are also contributing to the industry's momentum. The completion of Project Nexus phase three is expected to create more opportunities, particularly as Malaysia prepares to take on the role of ASEAN chair next year.

Malaysia is capitalizing on the increased demand for data centres, spurred by Singapore's halt on new facilities. Companies like Microsoft, Google, and Amazon are making significant investments in Malaysia's data centre infrastructure, with commitments reaching up to US$6 billion by 2037. Moody's Ratings projects that the Asia Pacific region's data centre capacity will more than double by 2028, with a compound annual growth rate of almost 20%, leading to over US$564 billion in investments. Emerging markets like Malaysia are poised for rapid growth due to their digital agendas and favorable investment climate.

Alongside the financial results, an announcement was made for a distribution per unit (DPU) of 1.17 sen. Optimistic about the year ahead, CapitaLand Malaysia Trust cites the strong domestic market, a rise in tourist numbers, and improved occupancy rates as factors contributing to the positive outlook. The trust is also looking to expand its portfolio by acquiring more industrial and logistics assets in Johor, where robust demand and favorable economic sentiments are present.