Latest news with #MIDFResearch
The Star
16 hours ago
- Business
- The Star
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allegations were made in March, MIDF Research said it could be a move to 'speed up the process', before the eventually rescinded AI Diffusion Framework that was expected to come into force on May 15.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.
New Straits Times
a day ago
- Business
- New Straits Times
Malaysia's data centres unlikely affected by Nvidia chips uproar
KUALA LUMPUR: Malaysia's fast-growing data centre industry remains on track despite reports that Chinese firms may be using servers with Nvidia chips in the country to train AI models, MIDF Research said. The firm said the chips are likely older versions, and not the latest GB200 chips restricted by the US for export to China. It added that data centre projects are continuing without delay, with contractors still actively bidding. Recent developments include Gamuda selling land in Port Dickson, Negri Sembilan to Google-linked Pearl Computing and winning a RM1.01 billion contract for data centre works. Sunway Construction secured a RM1.16 billion job from a US tech firm, while Microsoft reaffirmed a RM10.5 billion investment in artificial intelligence (AI) and cloud infrastructure in the Klang Valley. MIDF Research pointed out that not all data centres in Malaysia are built for AI, although many are AI-ready. For instance, YTL Power allocated only 100 megawatt (MW) for AI use at its 500MW facility in Kulai, Johor. Investment, Trade and Industry Ministry is looking into claims that a Chinese firm is using Nvidia-powered servers in Malaysia to bypass US chip export restrictions, as reported by the Wall Street Journal. The ministry said the servers involved are not classified as controlled items under Malaysia's Strategic Trade Act 2010, and local data centres are free to operate if they comply with local laws. However, it stressed that any attempts to circumvent trade controls or engage in illegal activities will not be tolerated. The ministry also reaffirmed Malaysia's adherence to global trade rules and urged companies to comply with export controls in international dealings to avoid secondary sanctions. Amid rising US-China tech tensions, Malaysia aims to remain neutral but is still pushing ahead with plans to become a key AI hub in Southeast Asia, as outlined by Prime Minister Datuk Seri Anwar Ibrahim. AI development depends heavily on powerful chips and large-scale data centres. Malaysia's data centre market is expected to grow from US$4.04 billion (RM17.2 billion) in 2024 to US$13.57 billion (RM57.8 billion) by 2030, according to the Malaysian Investment Development Authority.
Focus Malaysia
4 days ago
- Business
- Focus Malaysia
Private sector, infrastructure projects to anchor construction growth in 2025
DATA from the Department of Statistics Malaysia showed the construction sector remained on a positive trajectory for the 12th consecutive quarter, registering an increase of +23.1% year-on-year (yoy) to RM42.9 bil of work done value in quarter one (Q1) of 2025. Out of the work done, 36.6% or equivalent to RM15.7 bil was in civil engineering, primarily in the construction of roads and railways (RM7.9 bil) and construction of utility projects (RM6 bil ) activities. The value of work done for nonresidential buildings and residential buildings amounted to RM12.3 bil (28.8%) and RM9.9 bil (23.0%), respectively. Meanwhile, special trade activities contributed RM5.0 bil (11.6%), mainly in sites preparation (RM1.3 bil); electrical installation (RM1.2 bil); and plumbing, heat, and air-conditioning installation (RM1.1 bil). Nearly 63.4% of completed works value was concentrated in Selangor, Johor, the Federal Territories and Sarawak, with Selangor recording the highest construction work done value at RM11.1 bil. As of May-25, a total of 5,387 projects have been awarded in 2025, with a total value of RM76.3 bil. This is slightly lower than the same period in 2024 where 7,822 projects were awarded, with a total value of RM91.6 bil. 'Overall, we see this as a positive development despite the headwinds suffered by the construction sector in 1Q25, attributed to delays in project rollouts within the pipeline and global trade tensions. We do not expect any surprises for 2Q25,' said MIDF Research. Across the board, construction companies encountered subpar conditions in 1Q2025, with some benefiting from robust progress in infrastructure and property projects, while others faced challenges due to project completions and regulatory delays. 'Our economics team has maintained their forecasted growth for the construction sector in 2025 at +12.8%,' said MIDF. With the lack or rather delayed rollout of mega pump-priming projects under Budget 2025, the construction sector is still expected to be supported by private sector jobs with a focus on industrial buildings such as logistics warehouses, data centres, and semiconductor foundries. This will be further backed by previously awarded infrastructure projects such as the East Coast Rail Link (ECRL), RTS Link and the recently reinstated five LRT3 stations. The government aims to generate RM78 bil worth of public-private partnership (PPP) investments across 17 key initiatives by CY30, according to the PPP Master Plan 2030. Other upcoming projects that could boost the sector include, the Penang LRT (value estimated to be >RM10.3 bil), Penang International Airport expansion; the RM6.1 bil Northern Coastal Highway in Sarawak; the RM5.6 bil Sabah-Sarawak Link Road, the rollout of the MRT3 project, and the potential renewal of the KL-SG High Speed Rail project amongst others. 'We maintain our positive view on the construction sector, supported by a favourable cost environment and steady project momentum,' said MIDF. Steel bar prices have continued to ease for the second consecutive month amid a decline in global production, while cement prices remain stable due to disciplined domestic production and raw material cost control. These dynamics help cushion contractors from margin pressures. While recent geopolitical developments such as the Liberation Day tariffs and the conflicts in the Middle East have introduced some volatility, MIDF see limited impact on the sector given its domestic focus and low direct exposure to U.S. and Middle East markets. Moreover, key inputs remain reasonably priced, and sector fundamentals are supported by healthy job flows, a strong pipeline of industrial and infrastructure projects, and strengthened data centre demand. Looking ahead, the second half of 2025 is expected to show a recovery in construction sector performance, driven by improved project execution momentum despite more challenging market conditions. —June 17, 2025 Main image: National Action Plan On Business And Human Rights
The Star
5 days ago
- Business
- The Star
Net outflow of offshore funds from Bursa Malaysia rises to RM444.4mil
KUALA LUMPUR: Foreign funds exited the Malaysian stock market for a fourth consecutive week last week with a net outflow of RM444.4mil. The net outflow was at odds with most Asian regional markets, which registered net inflows of foreign funds over the past week, according to MIDF Research data. On Bursa Malaysia, foreign investors were net sellers on every trading day, except Wednesday. By sector, the highest net foreign outflows were recorded in financial services (RM305.2mil), healthcare (RM51.7mil) and property (RM36.8mil). The highest net foreign inflows were recorded in industrial products and services (RM19.4mil), transport (RM17.3mil) and REITs (RM8.2mil). Local institutions were seen stepping in during the week to extend their buying streak to four weeks, with a net inflow of RM620.6mil. Local retailers were net sellers for a second straight week, with a net outflow of RM176.2mil. The average daily trading volume (ADTV) saw a broad-based incline last week, with the exception of foreign investors. Local institutions and local retailers saw an increase of 12.6% and 14.6% respectively, while foreign investors saw a plunge of 8.4%.
Focus Malaysia
5 days ago
- Business
- Focus Malaysia
Foreign funds extend net selling streak on Bursa to a 4th successive week with RM444.4m
FOREIGN investors continued their streak of net outflows on Bursa Malaysia during the June 9-13 trading week by extending their stock disposal trend to a fourth week with a net outflow of -RM444.4 mil which was slightly higher than the previous week's outflow of -RM387.4 mil. They were net sellers on every trading session except Wednesday (June 11) with outflows ranging from -RM34.6 mil to -RM211.6 mil, according to MIDF Research. 'The largest outflow was recorded on Friday (June 13) followed by Thursday (June 12) with -RM127.4 mil while Wednesday (June 11) recorded a net inflow of RM10.1 mil,' observed the research house in its weekly fund flow report. The three sectors that recorded the highest net foreign inflows were industrial products & services (RM19.4 mil), transportation (RM17.3 mil) and REITs (RM8.2 mil). The top three sectors with the highest net foreign outflows were financial services (-RM305.2 mil), healthcare (-RM51.7 mil) and property (-RM36.8 mil). On the contrary, local institutions continued their buying activities by extending their buying streak to o a fourth week with net inflows amounting to RM620.6 mil. However, local retailers did the opposite by extending their selling streak to two weeks with a net outflow of -RM176.2 mil or three times higher than the previous week's net selling of -RM57.3 mil. The average daily trading volume (ADTV) saw a broad-based incline last week with the exception of foreign investors. Local institutions and local retailers saw an increase of +12.6% and +14.6% respectively while foreign investors saw a plunge of -8.4%. In comparison with another four Southeast Asian markets tracked by MIDF Research, Indonesia raked in the highest net inflow at US$50.9 mil to snap its single-week outflow streak. Elsewhere, Thailand posted a modest net inflow of US$18.1 mil to end its three-week foreign selling streak while Vietnam posted US$13.8 mil in inflows to reverse four straight weeks of foreign withdrawals. The Philippines was the only SEA country (apart from Malaysia) to record a net outflow last week with -US$2.1 mil to reverse a single-week streak of foreign purchases. The top three stocks with the highest net money inflow from foreign investors last week were Sunway Construction Group Bhd (RM68.5 mil), Genting Malaysia Bhd (RM45.2 mil) and My E.G. Services Bhd (RM33.0 mil), – June 16, 2025
