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SINGAPORE: The world’s largest technology firms are flocking to South-East Asia to build data centres at a time when demand for infrastructure and computing power to enable artificial intelligence (AI) is rapidly rising. The new investments are expected to contribute to the region’s economies by creating skilled jobs in data centre construction, engineering and maintenance, while also developing specialised talent in AI, cyber security, and data science and management. The investments will also improve the region’s digital infrastructure, allowing small businesses and large institutions to store their data locally, significantly reducing downtime while increasing data sovereignty. With AI-supported innovations such as searches on ChatGPT now requiring at least four to five times more processing capacity compared with traditional Internet searches, data centre demand is expected to grow at around 20% a year for the next five to seven years, analysts at Maybank Singapore Ltd noted in an October report. Data centres are large facilities built to accommodate servers, data storage systems and networking equipment that support better Internet services and telecommunications. This, in turn, enables popular online activities such as gaming, live-streaming and investing, as well as more advanced technologies like cloud computing and AI. Thanks to its lower costs, power availability and geopolitical neutrality, South-East Asia is emerging as an ideal region for tech operators to establish a data centre base, with the top five countries being Singapore, Malaysia, Thailand, Indonesia and Vietnam. While Singapore is the preferred destination for hosting data centres due to its superior infrastructure and stable regulatory regime, the republic imposed a three-year halt on data centre construction between 2019 and 2022 to assess its impact on the environment. Malaysia seized the bulk of new data centre investments entering the region during that period and now expects facilities with around one gigawatt (GW) of power capacity to come online over the next two years. That is double the existing data centre capacity it currently has. Another 3GW has also been announced and, if approved, will be gradually rolled out in the next three to five years, RHB Bank said. In comparison, Singapore’s data centre capacity currently stands at around 1.4GW. Among those channelling capital into Malaysia are tech titans like Microsoft, which said in May that it will invest US$2.2bil over the next four years to build cloud and AI infrastructure in the country. Amazon Web Services (AWS) in August announced plans to invest an estimated US$6.2bil to set up a data centre and cloud region in Malaysia. The cloud-service provider is also developing a similar region in Thailand. It revealed plans in 2024 to invest US$5bil in data centres in the country over the next few years, making Thailand its fourth AWS region in Asean after Singapore, Indonesia and Malaysia. In September, Google said it would invest US$1bil to build a data centre and cloud region in Thailand, which has so far seen around US$9bil committed by operators, according to analysts at Morgan Stanley. By 2028, RHB Bank expects Malaysia to account for over half the data centre processing power across the top five South-East Asian markets, with data centres in Johor making up the bulk of inventories at over 2.3GW. That could put the Malaysian state in close competition with Singapore as a data centre hub for the region. After partially lifting its moratorium in 2022, Singapore awarded around 80MW of new capacity to Equinix, GDS, Microsoft and an AirTrunk-ByteDance consortium in July 2023. In May, the government announced that at least 300MW of data centre capacity may soon be provided. Still, the republic has signalled that it will be more selective when awarding new capacity moving forward. Speaking at a conference in May, then Senior Minister of State for Communications and Information Janil Puthucheary said data centres are collectively Singapore’s biggest indirect carbon emitter. He added that existing data centres currently contribute to 82% of the information and communications sector’s carbon emissions and 7% of the country’s total electricity consumption. However, Janil said Singapore may still award an additional 200MW of capacity to operators that can tap green sources of energy to run the facilities and will provide schemes and incentives to support such investments. Dedi Iskandar, head of data centre solutions at property investment adviser CBRE, asked that the authorities provide more clarity on this front. “The industry does not have a clear picture of what’s next after the additional capacity was announced in May, or when we can bid or how. We haven’t seen this information coming, and that has created uncertainty,” he said. “When data centre operators have no line of sight, they cannot make plans to invest in Singapore.” Dedi said that while Singapore is still the preferred destination for hosting mission-critical computing applications, Johor, which still struggles with issues like talent and water shortages, is improving quickly. The highest risk for Singapore arises when the price gap for building and operating a data centre compared with Johor becomes too significant, and when the quality of data centre services between the two markets narrows, he said. CBRE data showed the average construction cost for a data centre in Singapore now stands at around US$11.40 per watt, the highest among nine cities in Asia, while in Johor, the average cost is around US$8.40 per watt. Energy and land costs in Johor are also among the lowest in the region. “This will naturally spur more enterprises to move their data centre operations from Singapore to Johor,” Dedi said. When asked for updates and views, the Economic Development Board and Infocomm Media Development Authority declined to comment. — The Straits Times/ANN

KUALA LUMPUR: The Securities Commission Malaysia (SC) and the World Bank have jointly launched a groundbreaking report, titled “ESG Disclosure Assessment of Malaysia’s Listed Companies and Recommendations for Policy Development,” at the SC-World Bank Conference 2024. This assessment provides a detailed look into Malaysia’s environmental, social, and governance (ESG) reporting landscape and lays the groundwork for policy improvement to align with international standards. Key Findings from the Report The report evaluates the current state of ESG disclosures among 90 companies listed on Bursa Malaysia, along with practices by several major institutional investors. As Malaysia’s economy embraces sustainability trends, the report sheds light on the progress and gaps in corporate ESG practices. Larger Firms Lead the Way Companies with higher market capitalisation displayed stronger ESG disclosure efforts compared to smaller entities, indicating that size plays a role in reporting quality. Regulatory Compliance as a Key Driver Many companies cited compliance with regulatory requirements as their primary motivation for ESG disclosures, demonstrating the importance of clear guidelines and mandates in the industry. Limited ESG Transparency Among Institutional Investors While some of Malaysia’s largest asset owners have initiated ESG efforts internally, these developments are not fully reflected in their public disclosures. This signals a need for greater transparency to align investors’ practices with public expectations. Gaps in Environmental Metrics Despite progress in governance and social reporting, companies fell short in areas such as climate change and biodiversity—topics increasingly scrutinized by global stakeholders. Policy Recommendations The report outlines several strategies to boost Malaysia’s ESG framework, especially following the launch of the National Sustainability Reporting Framework (NSRF). Key recommendations include: Encouraging Adoption of Bursa Malaysia’s Guidelines: The report urges broader implementation of sustainability reporting frameworks to enhance corporate compliance. Strengthening Domestic Investor Practices: To attract greater interest in ESG disclosures, domestic investors need support to develop more comprehensive sustainability initiatives. Continuous Monitoring and Consultation: Ongoing stakeholder engagement and monitoring will ensure the proper implementation and refinement of ESG practices over time. Conference Highlights The SC-World Bank Conference, now in its fifth year, focused on synergizing efforts between the conventional and Islamic capital markets to support small and medium enterprises (MSMEs) and mid-tier companies (MTCs). Deputy Minister of Investment, Trade, and Industry, YB Liew Chin Tong, officiated the event, underscoring the government’s commitment to sustainability. Speaking on the report’s significance, SC Executive Director of Islamic Capital Market Sharifatul Hanizah Said Ali stressed that “improved ESG disclosure practices will not only build investor confidence but also ensure Malaysia’s competitiveness in global markets.” The conference also spotlighted initiatives under the SC’s five-year roadmap (2024–2028) aimed at bridging financing gaps for MSMEs and MTCs, paving the way for a resilient, sustainable financial ecosystem. World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam, Dr. Zafer Mustafaoğlu, highlighted the importance of collaboration, stating, “By leveraging the World Bank’s expertise, we aim to support effective policy design to address MSME and climate financing gaps.” The Way Forward The ESG Disclosure Assessment report is a timely initiative, providing a much-needed baseline for Malaysia’s corporate sector. With over 200 industry stakeholders attending the conference—including entrepreneurs, government agencies, financial institutions, and private equity firms—the momentum toward improved sustainability practices is clear. For Malaysia to remain relevant in the evolving global market, companies and investors alike must embrace the recommendations outlined in the report. The road ahead requires commitment, collaboration, and proactive implementation, ensuring that ESG principles become integral to the nation’s economic growth.

KUALA LUMPUR: Worldwide Stainless Sdn. Bhd. has reached an agreement to acquire Bahru Stainless Sdn. Bhd. from Spain-based stainless steel leader Acerinox S.A. for a total consideration of USD 95 million. This acquisition marks a significant step in strengthening Malaysia’s position within the global stainless steel industry, with the transaction expected to close by the end of November 2024. Bahru Stainless Sdn. Bhd., Malaysia’s sole producer of cold-rolled stainless steel, ceased operations in May 2024. Seeing the strategic importance of reviving this key asset, Worldwide Stainless seized the opportunity. Under the leadership of CEO Danny Tan Wei Beoh, the Company plans to restart operations and rehire nearly 90% of Bahru Stainless’s retrenched workforce, restoring the expertise that built the plant’s solid reputation. Following the acquisition, Bahru Stainless Sdn. Bhd. will continue to operate under its current name.   Danny Tan emphasised the importance of this acquisition: “This acquisition is a commitment to the future of Malaysia’s stainless steel industry. We are dedicated to breathing new life into Bahru Stainless, tapping into its untapped potential, and reinstating Malaysia as a key player in the global supply of cold-rolled stainless steel. Our plan to rehire close to 90% of the previous employees reflects our belief in the workforce’s expertise and the future success of this operation.”   Shaping the Future of Stainless Steel in Malaysia   Worldwide Stainless was formed with a strategic vision by a team of seasoned industry leaders, including Danny Tan, Chung Shan Tat, Datuk Tan Kak Seng, Ta Wee Dher, and Lee Seng Yong. Together, this dynamic team brings decades of experience and expertise, creating a formidable force ready to propel Bahru Stainless into a new era of success.   Backed by AmBank (M) Berhad, which is financing 80% of the deal, Worldwide Stainless is poised to restore Bahru Stainless and accelerate its global expansion. The company’s clear vision is to rebuild, innovate, and supply high-quality stainless steel to both local and international markets.   Bernardo Velázquez, CEO of Acerinox S.A., remarked: “This strategic decision safeguards the interests of our employees, customers, and the local community. Bahru Stainless has played an important role in our Group’s history, and we are confident that under the ownership of Worldwide Stainless, it will continue to thrive and contribute to the industry. We thank all those who have been part of this journey.”   Danny Tan further added: “This acquisition is a defining moment for Malaysia’s industrial landscape. The focus is on restoring Bahru Stainless’s operations and cementing Malaysia’s role as a key player in the global stainless steel industry. With the support of our shareholders and partners, we are committed to achieving this vision and creating lasting value for domestic and global markets.”

PETALING JAYA: Genting Group has been accused of dumping nearly a billion dollars of debt on a small island-resort and casino in the Bahamas, some 50 miles from South Florida. Calling it “a massive and coordinated fraud”, the Capo family of Miami is suing Genting Americas Inc for at least RM2.6bil (US$600mil), based on a court filing sighted by StarBiz. Incorporated in Delaware in the United States, Genting Americas currently controls the Genting Group’s entire operations and properties in Miami, New York and the Bahamas. Genting Americas is an affiliate company of BB Entertainment Ltd, which in turn is a joint-venture that is 78% owned by BB Investment Holdings Ltd and 22% owned by RAV Bahamas Ltd. BB Investment is 100% owned by Genting Malaysia Bhd. RAV, on the other hand, is fully controlled by the Capo family. BB Entertainment runs Resorts World Bimini in the Bahamas. It is a 10,000 sq ft casino, a 305-room hotel with surrounding restaurants, lounges and a jetty used to dock cruise ships. RAV had on Oct 7 filed a lawsuit against Genting Americas before the US District Court Southern District of Florida, seeking damages in excess of US$600mil. In a filing with Bursa Malaysia, Genting Malaysia has labelled the lawsuit as “baseless and totally without merit”. “(Genting Malaysia) will vigorously defend against the complaint.” In the court filing, RAV said it has transferred to BB Entertainment approximately 20 acres of land, which is where Resorts World Bimini now sits. The first batch of four acres of land transferred in 2013 was valued at US$12mil, while another 16 acres transferred a year later was valued at US$25.5mil. To date, RAV said that BB Entertainment has not distributed any profits from this venture because Genting Americas, which controls BB Entertainment’s finances, “has used BB Entertainment as its financial wasteland”. “Through its stranglehold over BB Entertainment and its finances, Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities. “What is clear is that Genting Americas’ fraudulent accounting practices have drowned BB Entertainment in hundreds of millions of dollars in illegitimate debt.” BB Entertainment’s audited financial reports for 2022 reflect total liabilities of US$885.18mil. RAV noted that 99.4% of BB Entertainment’s total liabilities in 2022 constituted monies owed to Genting Malaysia’s subsidiaries. “Only a massive and coordinated fraud could dump nearly a billion dollars of debt on a small island resort, where RAV had already developed most of the significant infrastructure. “Genting Americas buried the nearly billion-dollar liabilities in consolidated statements using vague categories of expenses to conceal the fraud from RAV. “Genting Americas, at every turn, has deliberately kneecapped RAV’s efforts to obtain clarity into the financials, including denying RAV full access to BBE’s financial records, and denying its requests for an independent audit. “This lawsuit seeks the damages that Genting Americas’ continuing fraud has caused, which include, but are certainly not limited to, rendering RAV’s contribution to BB Entertainment (the 20 acres of land) entirely worthless,” according to RAV. RAV further alleges that only an outright fraud can explain how a small island-resort that averaged US$22mil in revenue per year for 10 years, can accumulate almost a billion dollars of debt in that same span. “No commercially reasonable actor would incur US$89mil of costs and interest per year to operate a small hotel that generates US$22mil in revenue per year,” it added. TA Research senior analyst Tan Kam Meng agrees that the accusations are baseless, on the basis that Genting Malaysia’s accounts are audited by PwC Malaysia. “I will give the benefit of the doubt to Genting Malaysia at this juncture. If there is fraud, the auditors would not certify the accounts. “Genting Malaysia also thinks that it has a strong case looking at its filing in Bursa Malaysia. Hence, I would not change my earnings projections at this moment,” he said. With regards to the lawsuit amount of US$600mil, Tan said Genting Group had the financial muscle to settle the amount, should the charge materialise. “They will probably be able to find a way to settle US$600mil,” he said. It is noteworthy that Genting Malaysia’s cash and cash equivalents stood at RM5.4bil as at the six months ended June 30, 2024. The company also had RM30.9bil worth of assets as at June 30, 2024. On the other hand, Genting Bhd’s cash and cash equivalents registered at RM25.6bil for the six months ended June 30, 2024, while its total assets were at RM109.9bil. In the meantime, Tan said Genting Malaysia’s prospects remained strong on the back of an influx of foreign tourists in Malaysia. Meanwhile, Rakuten Trade head of equity sales Vincent Lau said the court case is expected to drag on for some time which is typical of most such lawsuits. “As such, there is no immediate impact on the share price of Genting Malaysia and Genting Bhd. “Some investors may probably choose to sell their holdings and ask questions later, but overall it is not likely that there will be any major reaction in the share prices. “This is just a part and parcel of doing business and business operations are still fundamentally sound,” he said.–THE STAR

KUALA LUMPUR: DAMAC Group, a global leader in real estate development, data centers and other sectors, has announced its second significant investment in Thailand’s digital infrastructure. Under the brand EDGNEX Data Center by DAMAC, the Group plans to invest over RM4.28 billion (1 billion USD) in a series of data center projects to meet the rising demands of advanced AI technology and data processing capabilities. DAMAC announced a joint venture with PROEN Corp Public Company Limited, a prominent listed player in the Thailand technology landscape. This strategic investment marks a major expansion of EDGNEX’s footprint in Thailand and aligns with its commitment to supporting digital transformation in the Southeast Asia (SEA) region. EDGNEX will have a 70% stake in the joint venture and be responsible for data center operations. A press conference to commemorate the partnership, was honoured by the presence of H.E. Prasert Chantararuangthong, Deputy Prime Minister and Minister of Digital Economy and Society, who delivered a congratulatory speech and shared the government’s vision for investment in the digital business sector in Thailand. “I am honoured to be part of this event to congratulate the joint venture between these two corporations. It is a remarkable opportunity to meet key figures in the technology and digital industry, who play vital roles in driving Thailand forward into the digital era. The Thai government recognises the importance of establishing a strong foundation for the digital infrastructure. “This investment will significantly enhance Thailand’s data processing capabilities, aligning with the growing trends in the digital industry and attracting investors from around the world. Furthermore, it will create valuable opportunities for Thai professionals seeking to advance in the digital business sector,” said H.E. Prasert Chantararuangthong. “We are excited to expand our investment further into SEA and specifically into Thailand, a country that has shown immense potential for growth in digital innovation and smart technologies,” said Hussain Sajwani, Founder of DAMAC Group. “We aim to support Thailand’s growing digital economy and provide the necessary infrastructure for the next generation of AI-driven businesses. With this announcement, we substantially commit to the Thailand market, outlining a pipeline of approximately 100 MW of future data center capacity.” Kittipan Sri-bua-iam, CEO of PROEN Corp Public Company Limited, said: “We are very excited about this partnership with DAMAC Group which is increasingly becoming key player in the data center business with a solid footprint across SEA. This announcement underscores the importance of investments like DAMAC’s to meet the increasing demand for digital infrastructure in Thailand and we look forward to bringing excellence and innovation to the market.” The joint venture will include a state-of-the-art data center project with a total potential capacity of 20 MW. The first phase, comprising 5 MW of capacity, is already scheduled to be operational in early 2025. This data center will be a carrier-neutral facility with Tier III uptime certification, providing world-class reliability and resilience for its clients. The joint venture is targeted to finalize and commence its business by this year. An exclusive press conference was held to celebrate this milestone, featuring DAMAC Group and PROEN Corp senior executives. The Asia-Pacific data center market is also projected to experience significant growth. The market size is estimated at 14.27 thousand MW in 2024 and is expected to reach 23.2 thousand MW by 2029, growing at a CAGR of 10.21%.