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KUALA LUMPUR: Malaysia’s leading car manufacturer, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), is planning to establish a regional hub for spare parts on the East Coast, leveraging the upcoming East Coast Rail Link (ECRL). Perodua’s President and CEO, Datuk Seri Zainal Abidin Ahmad, indicated that Kuantan, Pahang, is a strong candidate for the hub’s location, though other sites in the East Coast are also being considered. “This initiative will benefit our East Coast customers by providing a comprehensive vehicle hub, including spare parts and pre-owned vehicles,” Zainal said during the panel session titled “East Coast Rail Link (ECRL): ECRL@Selangor – Economic Benefits & Opportunities” at the National Investment Seminar yesterday. He emphasized that the project could significantly stimulate economic development in the area through partnerships with Malaysia Rail Link Sdn Bhd (MRL) and local entities in Pahang. Earlier this week, Perodua signed a memorandum of understanding with MRL, the 665-km ECRL project owner, to utilize the rail network for transporting cars from its Serendah, Selangor plant to the East Coast, as well as to Sabah and Sarawak. The ECRL will feature 20 passenger stations and 10 freight stations. MRL’s head of strategy, Mohd Zaidi Sharif, highlighted the Puncak Alam ECRL station in Selangor as a potential site for a steel products distribution hub and the manufacturing of finished steel products. “We will bring all the raw steel products from Kemaman and Kuantan to the Puncak Alam ECRL station for distribution to the Klang Valley area,” Mohd Zaidi said. Zainal noted that the proposed steel hub at Puncak Alam could attract investments in auto-related steel-based activities such as tools, molds, and dies, which are crucial for stamping and injection molding processes in the local automotive industry. “For the automotive industry, we have brought in vendors from Japan, China, and South Korea to invest in Malaysia and set up joint ventures with our local vendors. However, we have not been able to attract investments to produce automotive-grade steel. Japanese vendors have indicated that while incentives from the Malaysian Investment Development Authority are important, a comprehensive logistics supply chain is crucial. This presents an opportunity to promote the automotive industry and attract investors to Puncak Alam for steel-related investments, particularly in tools, molds, and dies for our stamping and injection molding processes,” he explained. Zainal also highlighted the cost savings expected from transporting cars, parts, and components via the railway instead of by road. Currently, Perodua ships its cars from Port Klang to customers in Sabah and Sarawak via the Straits of Malacca. The ECRL is expected to enhance regional integration between the East Coast, Sabah, Sarawak, and the West Coast. “We used to transport our completely built-up (CBU) vehicles using trucks and lorries, which posed challenges in efficiency and safety. Efficient transportation infrastructure is key to attracting investors. Currently, we do not have vendors in Sabah and Sarawak due to logistical difficulties, with most vendors situated in Shah Alam and Penang. With the ECRL, more suppliers will be able to invest in Pahang and Terengganu,” he said. Domestically, Perodua holds a 40% market share and aims to increase this to 45% this year. The company also plans to grow its exports over the next few years. “We want to increase our exports but still have about 120,000 outstanding bookings to fulfill domestically. We must deliver these bookings first before we can export. Based on our plan, exports should constitute about 10% of our total production. Currently, our production supports 350,000 units, so we aim for 35,000 units for export. We used to export to Sri Lanka, but the country is not accepting any CBU imports due to economic circumstances. We have shipped cars to African countries and are looking at markets like Mozambique. Additionally, we export used cars to Fiji and other countries,” Zainal said. The ECRL railway line from Kota Baru to the Gombak Integrated Terminal is projected to be completed by December 2026 and operational by January 2027. The extension from Gombak to Port Klang is expected to be finished by December 2027, with full operations beginning in January 2028. Mohd Zaidi stated that the project is progressing according to plan and is targeted to be completed slightly ahead of schedule. “Those familiar with the construction industry understand that a project of this scale and size, a 665-km linear project involving more than 1,400 construction sites, is a mega challenge to keep on track,” he said.

SEREMBAN:  Negeri Sembilan’s Halal Malaysia Industrial Park (HALMAS) has received an encouraging response, including a recent request from a New Zealand pharmaceutical company expected to invest RM300 million in the state, said Negeri Sembilan Menteri Besar, Datuk Seri Aminuddin Harun. “Halal Park in this state is one of the most highly sought-after. I just returned from New Zealand, where a pharmaceutical company is committed to investing and obtaining a halal certificate,” he told reporters after chairing the state government’s EXCO meeting. Aminuddin said the state’s HALMAS has attracted several major investors, including Mahsuri Food Sdn Bhd, Ajinomoto (M) Bhd from Japan, Sunshine Bread (M) Sdn Bhd from Singapore, Coca-Cola Bottlers (M) Sdn Bhd and Kellogg’s Malaysia (United States), particularly in Bandar Enstek, Nilai.”The demand for halal investment is high. There are no new industrial areas and the development of the Techpark@Enstek Phase 3 in Bandar Enstek is almost sold out,” he said. Aminuddin added that the state government is working to enhance the halal industry among small and medium enterprises to improve the quality of local products. Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Ahmad Hamidi, previously reported that the utilisation and development of the 14 Halal Parks across the country remain low, at 1l per cent of the total 5,484 hectares developed so far.In another development, Aminuddin said that the construction of the Institute of NeuroScience (INS) in Pedas, Rembau which was announced in 2019, had been cancelled due to the COVID-19 pandemic. Earlier, the media reported that the private medical centre, costing RM1.02 billion, was expected to offer neuro related health services and generate a development value of RM1.7 billion within five years. — BERNAMA

JAKARTA: PT Telkom Indonesia, a state-owned telecommunications company, is aggressively expanding its data center business to capitalize on the surging demand for data storage, especially driven by artificial intelligence (AI) development. Through its subsidiary, PT Telkom Data Ekosistem (TDE), known as NeutraDC, Telkom aims to boost its data center capacity to 500 megawatts (MW) by 2030, both domestically and internationally. This represents an over eight-fold increase from its current 60 MW capacity. “Most of our expansion plans involve adding capacity. We build, invest, and then make it available for use,” said Honesti Basyir, Telkom Group’s business development director, at NeutraDC’s headquarters in Singapore last Friday. He added that while regional expansion is crucial due to unmet needs in many countries, the company must first prove itself in Singapore. International growth might involve strategic acquisitions due to varying regulations. NeutraDC CEO Andreuw Thonilus Albert suggested that if growth accelerates, they could push towards a 700 MW capacity. Data center investments are rapidly increasing in Southeast Asia, following trends seen in the U.S. and Europe where tech giants are expanding their AI and cloud capabilities. Microsoft CEO Satya Nadella recently pledged a $1.7 billion investment in Indonesia over the next four years for AI, cloud services, and digital talent development. Nvidia also announced plans to build a $200 million AI center in Southeast Asia. According to Mordor Intelligence, the Asia Pacific data center market is projected to reach 23,200 MW by 2029, with a compound annual growth rate (CAGR) of 10.21% from 14,270 MW this year. Generative AI is expected to significantly transform the data center industry, as noted by a January report from property consultancy Jones Lang Lasalle. Singapore is anticipated to lead the ASEAN data center market this year with over 880 MW, surpassing Indonesia’s 650 MW. NeutraDC’s Andreuw defended Telkom’s recent expansion, noting that it isn’t too late, especially after Singapore lifted its moratorium on new data centers last year, which had been in place since 2018. Telkom shifted focus to the data center business in 2022 after prioritising its telecom operations. Telkom plans to leverage Batam’s strategic position to benefit from Singapore’s overflow, seeing it as a win-win solution. “Indonesia has significant potential for data centers due to the large workload expected,” Andreuw said. Telkom, Indonesia’s largest telecom group, currently operates 32 data centers, including 27 domestic and five international sites, as per its 2023 annual report. In 2024, Telkom anticipates substantial growth in cloud and business-to-business IT services, projecting 27% and 7% CAGRs, respectively. The first quarter saw a 24.6% year-on-year revenue increase in the group’s data center and cloud business, reaching 449 billion rupiah ($27.5 million). “We believe we can achieve one trillion rupiah in revenue this year by adding capacity and attracting high-quality tenants,” Honesti stated. In March, Telkom consolidated its data center business under NeutraDC, including assets previously owned by Telin Singapore Data Centre. Telkom also injected 1.6 trillion rupiah into NeutraDC on June 4, supporting the development of a hyperscale data center in Cikarang, West Java, which will add 18 MW to the existing 42 MW capacity. Despite Singapore being the regional leader in data centers, experts suggest Jakarta could attract significant investment by demonstrating good data governance, strict data protection enforcement, and robust infrastructure. “Foreign investors often question whether Indonesia has strong data laws,” said K&K Advocates partner Danny Kobarata. Indonesia’s data protection law, passed in 2022, will be implemented in October this year. Straits Interactive CMO Alvin Toh advised companies to showcase compliance with international standards through self-audits and exceeding compliance requirements. — The Jakarta Post/ANN

SINGAPORE:  Supermom, Southeast Asia’s leading parenting data network, is poised for a year of remarkable expansion, forecasting a 100% increase in revenue for 2024 and intensifying its presence across Southeast Asia, particularly Indonesia. The company also builds high-value communities in Malaysia, Thailand, and Vietnam. The disclosure comes alongside the appointment of Hellen Katherina, former Managing Director of Nielsen Indonesia, as Country Director, marking a significant enhancement in leadership aimed at accelerating regional growth. Supermom’s network now includes over 100 brand partners such as Abbott Laboratories, Prudential, and Danone, with a 100% retention rate of top clients in recent years. With headquarters in Singapore, Supermom connects brands with parents through a unique platform that leverages artificial intelligence to facilitate meaningful interactions. This innovative approach introduces parents to products tailored to their needs, and those of their children, but also provides multinational brands with high-value consumer insights. Luke Lim, Group CEO of Supermom, highlighted the company’s strategic initiatives, “With the appointment of Hellen Katherina and the launch of our ambitious Project 1MPACT, we are geared to activate over 1 million ‘Key Opinion Moms’ in Indonesia by 2025. These moves are integral to our mission of transforming how brands connect with parents by leveraging the power of zero-party data and word-of-mouth marketing.” Project 1MPACT, set to launch officially in Q2 2024 with support from Sandiaga Uno, Indonesia’s Minister of Tourism and Creative Economy, aims to empower 1 million Indonesian moms and women to become digitally savvy. This initiative will also contribute significantly to the nation’s digital economy, which is expected to reach US$228 billion by 2027. At the end of 2022, Supermom raised an oversubscribed US$5.9 million series A fundraising round from AC Ventures and Qualgro. This funding has enabled the continued expansion of Supermom’s proprietary tech platform, unifying data touchpoints and enhancing the collection process to build a robust consumer data platform for brands. Luke said, “Our platform has demonstrated tremendous growth and resilience, activating one mom every minute for the brands we serve. This rapid expansion is a testament to our community’s engagement and the efficacy of our business model, which integrates affiliate marketing seamlessly into our ecosystem, empowering participating parents to earn extra income.” He added, “Supermom is not just about connecting brands with parents. It’s about creating a comprehensive ecosystem where moms can learn, earn, and share. This community-driven model allows for authentic interaction and empowers moms with tools and opportunities to influence their peers positively. In the increasing adoption of Generative AI, a tsunami wave of content will be generated by AI, and authentic sharing by real moms will become ever more important.” The recent Supermom Brand Awards 2024 is a key example of the platform’s growing influence, gathering over 11,000 parents to provide over 110,000 insights across Southeast Asia in less than a month, and showcasing the favorite family brands of today’s millennial parents. As Supermom continues to evolve, the company remains on the lookout for business partners and investors to enhance its technology and further develop AI-driven solutions that cater to the dynamic needs of parents and brands in emerging Asia. New tech products are slated for rollout in H2 2024 to boost engagement and connectivity, ensuring that parents can maximize the benefits of Supermom’s offerings.