Salutations
Yang Amat Berhormat Dato’ Onn Hafiz Ghazi Chief Minister of Johor
Yang Berhormat Tuan Liew Chin Tong Deputy Minister, Ministry of Investment, Trade & Industry
Yang Berhormat Puan Teo Nie Ching Deputy Minister, Ministry of Communications
Yang Berhormat Tuan Lee Ting Han Chairman, Johor State Investment, Trade, Consumer Affairs and Human Resource Committee
Mr William Huang Founder, Chairman and Chief Executive Officer, GDS Holding
Ms Jamie Khoo Chief Executive Officer, GDS International
Ms Yilin Chen Managing Director (South East Asia & Hong Kong), GDS International
Mr Jimmy Yu Senior Vice President of International Business, GDS International
Distinguished guests,
Industry Leaders,
Esteemed colleagues,
Ladies and Gentlemen.
Salam Perpaduan, Salam Malaysia MADANI, and a very good morning to all of you.
1.It is a pleasure to be here today. The GDS International Data Centre Supply Chain Ecosystem Summit reflects Malaysia's growing importance in the regional digital landscape. It also reaffirms our ambition to become a leader in digital infrastructure.
2.I would like to begin by recognising the contributions of GDS International, and other partners, whose investments and initiatives have been instrumental in making Malaysia a strategic data center hub in Southeast Asia.
3.We have experienced a series of data centre investments by tech giants in recent times, especially in Johor. The digital economy promises exciting returns, as it is projected to contribute 25.5% to our nation’s GDP by the end of 2025.
4.As Malaysia, and its neighbours in the region, welcome the rapid expansion of this industry that can further drive Southeast Asia’s digital economy, we must ask ourselves a crucial question: Do we have the adequate supply chain to support this growth?
5.Data centers are the backbone of our modern economy, powering everything from cloud computing to artificial intelligence (AI). They also require a vast array of resources; from hardware and software to skilled labour. Yet, the expansion of data centers can only be successful if our supply chains are robust and efficient.
6. Multinational professional services company, Turner & Townsend, in its Data Centre Cost Index 2024 published earlier this month highlighted that constrained supply chains existed, and that almost 80% of its respondents reported delays in manufacturing or delivery of critical equipment.
7. Data centre operators require a predictable supply chain to protect their financial interests and reputation. As operators venture into new markets, there could be limited supply chain capabilities in those localities. But I like to view at the positives. The massive demand can translate into opportunities for local supliers to expand, and collaborate with one another.
Johor-Singapore Special Economic Zone: Catalyst for growth of supply chain ecosystem
Ladies and gentlemen,
8. Johor has proven to be a preferred location for tech giants. I have been informed there are over 50 data centres in this state, turning Johor into one of the biggest data centre hubs in the country. And I am confident that more data centres will be built here, thanks to the establishment of the Johor-Singapore Special Economic Zone.
9.Our Prime Minister YAB Dato’ Seri Anwar Ibrahim, while tabling Budget 2025 on October 18, said special incentives for the Johor-Singapore Special Economic Zone will be revealed later this year. He added that these incentives can attract quality investments and offer high-value jobs, turning it into a sustainable special economic zone.
10. I believe this special economic zone will spur businesses, including small- and medium-enterprises (SMEs), especially those in the data centre supply chain. The creation of such an economic zone, and the bustling data centre sphere, will naturally encourage suppliers domestic and international- to expand their businesses here. Such an effort will naturally contribute to the state’s dynamic economic landscape, and that of the country.
Foster collaborations among one another
11. Suppliers play various roles in the data center ecosystem, from providing cloud services to infrastructure solutions, and colocation services. They contribute to the overall efficiency and reliability of data center operations.
12. However, delays due to geopolitical issues and global material shortages are becoming a norm. The reason data centre operators are moving away from traditional locations is to avoid geopolitical issues, and as such, the supply chain in newer markets must be quickly strengthen to cope with increase in demand.
13. The best way to do so is to collaborate and strike partnerships. This is especially so for local suppliers who can leverage the expertise of foreign companies, while strengthening their talents within.
14. As such, this summit is a perfect platform for data centre operators and suppliers to learn, and understand each other better. I have been informed that the GDS International Data Centre Supply Chain Ecosystem Summit will see the signing of several MoUs, sharing of 5 insights by industry players, and a networking session at the end of the day.
15. I’ve been told that the highlight of today’s event is the signing ceremony involving GDS International and its suppliers. The summit also unveiled the investments of RM1 billion in building integrated factories and service centres in the state by GDS’s Suppliers. I’ve been informed that this commitment will generate an annual output exceeding RM5 billion, and create over 5,000 jobs.
16. These partnerships will not only assist the parties involved but also help stimulate the industry, creating more interest and opportunities that can directly and indirectly benefit the greater community.
Ministry of Digital’s efforts to help industry players
Ladies and gentlemen,
17. The Ministry of Digital remains committed in assisting industry players to grow and achieve success. Your success will translate into success to the country, and the region. At the Malaysia Digital Xceleration Summit two days ago, I spoke about the importance of I.C.T that stands for infrastructure, cyber resilience and talent.
18. I stand here, assuring my commitment that the Ministry of Digital, will continue to assist in the building of infrastructure while creating a digitally resilient environment.
19. We have already started the ball rolling with high-speed connectivity as the 5G coverage in populated areas (COPA) has exceeded 80%. The government will also announce the second 5G network soon. Wewill also launch the National Artificial Intelligence Office (NAIO) in December.
20. In creating digital resilience, we now have the Cyber Security Act and have amended the Data Protection Act. The Digital Ministry will also establish a Digital Trust and Data Safety Commission in the first half of 2025. The Commission will oversee the development of a safe, secure, and trusted data ecosystem that fosters productive data flows.
21. The other key pillar of the Ministry of Digital is talent development. The Malaysia Digital Economy Corporation (MDEC), an agency under the Ministry of Digital, has the Premier Digital Tech Institution (PDTI) programme that sees the involvement of industry players and the academia. Its ultimate goal is to create a skilful workforce that is market-ready.
22. Universities too have been proactive in this area. Universiti Teknologi Malaysia, for example, has established the nation’s first AI Faculty. More research universities are expected to offer AI-related education, following the RM50 million allocation that was announced during the tabling of Budget 2025 by our Prime Minister, YAB Dato’ Seri Anwar Ibrahim recently (October 18, 2024). The Ministry of Digital and its agencies are also working closely with higher learning institutes are eager to create more digitally-savvy talents, within and outside the data centre sphere.
23. We will continue to work closely with the industry and higher learning institutions to develop a skilled workforce capable of managing the complex needs of data, AI and their ecosystems.
Sustainable Practices Key In Digital Tech
Ladies and gentlemen,
24. While we are in the thick of the digital race, we must be mindful of sustainable practices. The adoption of energy-efficient technologies and green energy solutions in data centre operations will align with global sustainability goals. On this note, I would like to commend the Johor government and Plan Malaysia Johor in drawing up the Johor State Data Centre Development Planning Guidelines. These guidelines are crucial for coordinating and monitoring the development planning of data centres.
25. Sustainable development guidelines are also being drafted at the federal level. The guidelines include metrics such as Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE) and Carbon Usage Effectiveness to measure energy and water efficiency.
26. As such, it is important not only for operators but those within the data centre supply chain ecosystem to adapt, adopt and offer eco-friendly services.
27. Conversations on sustainable digital infrastructures will be further amplified as Malaysia takes the lead in ASEAN next year. With the theme ‘Inclusivity and Sustainability’, we will be able to gather insights from Member States in creating a sustainable digital 8 technology environment, and how we can collectively work together to accelerate those efforts at a regional level.
Ladies and gentlemen,
28. Malaysia’s ambitious agenda is a journey that involves the government, industry players, society, and global partners working together. By leveraging our existing strengths and embracing new opportunities, we are confident that Malaysia will continue to lead the region in digital transformation.
29. In conclusion, the Ministry of Digital fully supports the efforts by the industry and other stakeholders in building a stronger, more connected digital ecosystem. This summit is a testament to the power of collaboration and the importance of aligning industry initiatives with national objectives. Together, we can build a future where technology drives growth, innovation, and inclusivity for all.
30. I look forward to the outcomes of today’s discussions and reaffirm the government’s commitment to supporting the industry as it grows and evolves.
31. Thank you once again to GDS International for organising this important summit, and for your faith and confidence in Malaysia’s digital economy.
Thank you.-END-
