DC outlook intact for now

Sunway University economics professor Dr Yeah Kim Leng.
PETALING JAYA: There is a possibility that the firms involved in the alleged breach involving Nvidia-powered artificial intelligence (AI) chips may face US sanctions, but such measures are unlikely to be applied to Malaysia, says Sunway University economics professor Dr Yeah Kim Leng.
Yeah said this is given that many existing data centres (DCs) and those in the pipeline are US-based companies.
'Nvidia, a US company, is seeking new markets to offset its loss of China's market as the Chinese government has banned the use of its chips.
'China is accelerating development of home-grown AI chips, thereby offering an alternative supply unless companies that use them are also sanctioned by the United States,' he told StarBiz.
Yeah opined that despite the uncertainties caused by the technological rivalry between China and the United States, the outlook for DCs in Malaysia remained positive given the rising local and global demand for cloud and AI services.
'Malaysia will also benefit from the global firms' diversification of DCs that leveraged on each country's growth opportunities and cost advantages such as availability of cheap energy, land and skilled manpower resources,' he said.
According to a Wall Street Journal article, Chinese engineers reportedly flew to Malaysia in March with suitcases full of hard drives containing around 80 terabytes of data to train AI models at local DCs equipped with advanced Nvidia chips.
In addressing the alleged breach, the Investment, Trade and Industry Ministry (Miti) said, in a statement on Wednesday, it is in the process of verifying the matter with relevant agencies.
It reiterated that servers using Nvidia chips and AI chips are not classified as controlled goods under the Malaysian Strategic Trade Act 2010.
'Malaysia will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries,' it said.
Given that the allegations were made in March, MIDF Research said it could be a move to 'speed up the process', before the eventually rescinded AI Diffusion Framework that was expected to come into force on May 15.
The research house is of the view that the pipeline of DC jobs in Malaysia is unlikely to be impacted by the alleged breach. It noted there is no slowdown or delay in ongoing projects and contractors are actively bidding for new DC construction jobs.
'Just last month, Gamuda Bhd sold 389 acres of land in Port Dickson to Google-linked Pearl Computing Malaysia Sdn Bhd and signed a RM1.01bil external infrastructure contract for enabling works for DC development, while Sunway Construction Group Bhd secured a RM1.16bil contract from a US tech giant to build two DCs,' MIDF Research said in a report yesterday.
Microsoft recently reaffirmed its commitment to a RM10.5bil investment in cloud and AI infrastructure in Malaysia, including the development of hyperscale DCs in the Klang Valley.
'We also reiterate that not all DCs are AI DCs and while most of them are AI-ready, they may eventually be utilised for non-AI purposes,' MIDF Research said.
It cited the example of YTL Power International Bhd which previously allocated 100MW for AI from its 500MW DC in Kulai, Johor.
iFAST Capital research analyst Kevin Khaw Khai Sheng said the long-term prospects of the country's DC sector remains 'quite intact'.
'Ultimately, Malaysia continues to benefit from several competitive advantages –such as abundant water resources for cooling, land, skilled labour and a relatively weak ringgit, which makes the country cost-effective,' he said.
Khaw added that, due to Singapore's limited access to such resources, he expected closer collaboration between Malaysia and the city-state.
Asked if the alleged breach would affect ongoing tariff negotiations between Malaysia and the United States, Khaw said it would unlikely be a decisive factor given that the country is already negotiating from a weaker footing.
'The alleged breach may add a bit more pressure to our position in negotiations. But ultimately, it depends on how our government handles the situation and works toward securing the best possible outcome.
'From the United States' perspective, Malaysia is not their major competitor. It is actively trying to diversify its supply chain risks – especially in light of tensions with China – and is looking for more allies and partnerships with other countries. Given Malaysia's 'neutral' stance and our geographical advantages, we could still be seen as a potential partner for the United States,' he said.
Khaw said the construction sector's outlook remained optimistic with the order book environment set to improve heading into the second half of 2025.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Star

an hour ago

• The Star

Accenture beats third-quarter revenue estimates

FILE PHOTO: Figurines with computers and smartphones are seen in front of Accenture logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration (Reuters) -Accenture beat Wall Street estimates for third-quarter revenue on Friday, driven by growing demand for the consulting giant's AI-driven services from enterprise customers. It reported revenue of $17.7 billion for the quarter ended May 31, compared with analysts' average estimate of $17.30 billion, according to data compiled by LSEG. Shares of the company fell 2.6% in premarket trading after Accenture said new bookings decreased 6% to $19.7 billion in the third quarter. The company is grappling with weak U.S. federal contracting environment as the Trump administration has slowed new contracts and cut existing agreements in a bid to reduce federal spending. The company said these changes have not had a material impact on its operations or financial condition. (Reporting by Meghana Khare and Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)

Malay Mail

an hour ago

• Malay Mail

NIA Invites You to Countdown to "SITE 2025" Southeast Asia's Largest Innovation and Startup Expo, uniting 10 Countries and Over 100 Organizations to Drive Global Innovation Collaboration

BANGKOK, THAILAND - Media OutReach Newswire - 20 June 2025 - The National Innovation Agency (Public Organization) or NIA, under the Ministry of Higher Education, Science, Research and Innovation, has announced its readiness to host the Startup x Innovation Thailand Expo 2025 (SITE 2025) under the theme: "Global Innovation Partnership – AI & Sustainability: The Next Era of Innovation," to be held from July 4–6, 2025, at Paragon Hall, 5th Floor, Siam Paragon. This year marks a significant milestone as SITE evolves into a truly regional platform for innovation. Thailand is positioning itself as a Global Innovation Collaboration Hub, uniting the strength of 10 leading partner countries: Japan, South Korea, Hong Kong, Singapore, Czech Republic, Hungary, Finland, Switzerland, Qatar, and Chile—spanning Asia, Europe, the Middle East, and Latin America. In addition, over 100 organizations will participate, including 20 international agencies, 12+ leading private-sector companies, 7 professional associations, and 50 universities from across Krithpaka Boonfueng, Executive Director of NIA, stated:"SITE 2025 is more than an expo—it's a platform where meaningful global collaboration takes place with depth, inclusivity, and a shared purpose. With AI and sustainability at the core of the global economy, our goal is to drive real-world impact across business, investment, and innovation policy."The 2025 edition of SITE will feature more than 30 seminars, covering the full spectrum of global innovation across three major stages: Main Stage – the "heart" of the event, where international thought leaders will share visionary insights and the latest trends in AI, sustainability, and cross-border collaboration. Global Stage – in-depth policy and strategy sessions exploring opportunities, challenges, and pathways to bring innovation to the global market. Pitch Stage – a dedicated arena for Thai and international startups to pitch their ideas, promote technologies, and scale their ventures in front of global of the major highlights on the Pitch Stage will be the National Pitching Startup Thailand League 2025, alongside the 100 Startup Pitching showcase, featuring cutting-edge technologies such as AI, Deep Tech, and sustainability-driven expo will also include exhibitions from over 300 startups and leading innovation organizations, presenting real products, prototypes, and market-ready solutions. More than 30 Business Matching sessions will be held to facilitate direct connections between entrepreneurs, investors, technology owners, and partners from both Thailand and abroad. The Prime Minister Awards, a prestigious national honor, will recognize organizations, startups, and collaborations that have created significant and measurable impact both nationally and Krithpaka concluded: "NIA invites everyone with a creative spirit—innovators, investors, entrepreneurs, students, or those seeking new opportunities—to be part of SITE 2025. This is a platform to connect with global players, update on future trends, and create meaningful change together. It's also a critical opportunity to help drive Thailand forward in alignment with the 'Groom – Grant – Growth – Global' strategy." The 30+ Business Matching rounds are designed to help entrepreneurs meet with investors and technology owners in a targeted and impactful Panel at the Press Conference: "Accelerating Innovation Through Global Partnerships" This session highlighted cross-sector collaboration driving Thai innovation to the global stage. From the government perspective, Mr. Pariwat Wongsamran, Deputy Executive Director of Innovation System at NIA, said: "Innovation today knows no national borders. What NIA is doing is not just about giving opportunities to entrepreneurs—it's about laying the foundation for an ecosystem that connects Thailand to the world in a tangible way. Through partnerships in Europe and Asia, we're not only focusing on current innovations but also building infrastructure to support long-term growth so that Thai startups can scale more sustainably." Ms. Salinee Phonprapai, Deputy Director-General of the Department of International Economic Affairs, added: "Innovation is now a key engine driving Thailand's economy. The Ministry of Foreign Affairs is pushing Thai startups onto the global stage through a network of 98 embassies and consulates worldwide. We're also working with partners like NIA, BOI, EEC, depa, and the Department of Trade Negotiations to promote investment, open new markets, and facilitate trade deals. In addition, visa policies are being introduced to attract global talent to enhance Thailand's innovation ecosystem."On the private sector and innovation business side, Na Ranong, President of the Thai Venture Capital Association (TVCA), emphasized: "Global partnership is the heart of modern investment. It increases business expansion opportunities and leads to higher value exits, particularly in hot sectors like AI and Deep Tech, which are drawing attention from global investors. Today's investors are looking for startups that can truly connect to the global network." Mr. Thanawit Tonkanya, President of the Thai Startup Association (TSA), said: "Thai startups must dream big, embrace international perspectives, and develop pitch skills that appeal to investors. SITE 2025 is a real-world arena for testing, connecting, and growing global networks.""Be part of the global change! and connect with innovators, creators, and investors shaping the future at SITE 2025." The event will take place from July 4–6, 2025, at Paragon Hall, 5th Floor, Siam entry! Register at: For more updates, follow on Facebook: NIA - National Innovation Agency Thailand, and Startup ThailandHashtag: #NIA #SITE2025 #StartupThailand #InnovationThailand #DeepTech #AI #Sustainability #GlobalInnovationPartnership The issuer is solely responsible for the content of this announcement.

The Sun

an hour ago

• The Sun

EU bars China firms from major medical equipment deals

BRUSSELS: The European Union (EU) yesterday banned Chinese firms from government medical device purchases worth more than €5 million (RM25 million) in retaliation for limits Beijing places on access to its own market. The latest salvo in trade tensions between the 27-nation bloc and China covers a wide range of healthcare supplies, from surgical masks to X-ray machines, that represent a market worth €150 billion in the EU. 'Our aim with these measures is to level the playing field for EU businesses,' the bloc's trade commissioner Maros Sefcovic said. 'We remain committed to dialogue with China to resolve these issues.' In response, China accused the EU of 'double standards'. 'The EU has always boasted that it is the most open market in the world, but in reality, it has gradually moved towards protectionism', foreign ministry spokesman Guo Jiakun said at a regular press briefing. 'Under the guise of fair competition (the EU) actually carries out unfair competition, which is a typical case of double standards.' The European Commission said in a statement the move was in 'response to China's longstanding exclusion of EU-made medical devices from Chinese government contracts.' Brussels said just under 90% of public procurement contracts for medical devices in China 'were subject to exclusionary and discriminatory measures' against EU firms. In addition to barring Chinese firms from major state purchases, 'inputs from China for successful bids' would also be limited to 50%, it said. Over the last three years, Brussels and Beijing have come into conflict in a number of economic sectors, including electric cars, the rail industry, solar panels and wind turbines. The decision on medical devices comes at a time of heightened trade tensions with President Donald Trump, which has imposed customs surcharges on imports from all over the world, including Europe. The EU has decided to take a tougher stance on trade in recent years, adopting a vast arsenal of legislation to better defend its businesses against unfair competition. In April 2024, the commission opened an investigation into Chinese public contracts for medical devices, the first under a new mechanism introduced by the EU in 2022 to obtain better access to overseas state purchases. China, on the other hand, accuses Europe of protectionism. After a year of negotiations, the commission, which manages trade policy on behalf of the 27 member states, said it had failed to make any progress with China. 'The measure seeks to incentivise China to cease its discrimination against EU firms and EU-made medical devices and treat EU companies with the same openness as the EU does with Chinese firms and products,' Brussels said. – AFP