Energy & Technology

KUALA LUMPUR: Oil prices steadied on Tuesday after falling to their lowest levels since February 2021 in the previous session, as OPEC+’s decision to accelerate production hikes continued to raise concerns over a potential supply glut amid fragile global demand. Brent crude edged up 10 cents to USD60.33 a barrel by 0050 GMT, while US West Texas Intermediate (WTI) crude also rose 10 cents to USD57.23. Both benchmarks had settled on Monday at their lowest in over four years. The market reacted to OPEC+’s announcement on Saturday of a further ramp-up in output for a second straight month. The group committed to increasing production in June by 411,000 barrels per day (bpd), bringing the cumulative hike across April, May and June to 960,000 bpd. This marks a 44 per cent rollback of the 2.2 million bpd in voluntary cuts introduced since 2022, according to Reuters estimates. OPEC+ sources indicated that the group could fully unwind these voluntary cuts by October should compliance with production quotas remain weak. Meanwhile, US shale producer Diamondback Energy revised down its output forecast for 2025, citing increased market uncertainty and rising OPEC+ supply as key pressures challenging the trajectory of US production growth. In Washington, Treasury Secretary Scott Bessent reiterated that President Donald Trump’s policy agenda – including tariffs, tax reductions, and deregulation – would support long-term investment, stating that financial markets remain “anti-fragile” despite short-term volatility. The Federal Reserve is expected to hold interest rates steady at its upcoming policy meeting on Wednesday, as the evolving tariff landscape continues to weigh on the broader economic outlook. Barclays revised its Brent crude forecast downwards by USD4 to USD70 a barrel for 2025 and projected USD62 for 2026, citing a challenging path ahead for market fundamentals amid heightened trade tensions and OPEC+’s shifting strategy. –Reuters

Gamuda Berhad has entered into a strategic agreement with Pearl Computing Malaysia Sdn Bhd, an affiliate of Google, involving the sale of a 389-acre site in Port Dickson for RM455.23 million and subsequent development works valued at RM1.01 billion. The land, initially acquired by Gamuda for RM424.4 million in December 2024, will serve as the foundation for a large-scale data centre project. The transaction marks a significant milestone in Gamuda’s expansion into digital infrastructure and underscores its commitment to supporting Malaysia’s growing role in the global data centre ecosystem. In a filing with Bursa Malaysia, the engineering and construction group announced that its subsidiary, Gamuda DC Infrastructure Sdn Bhd, signed a sale and purchase agreement (SPA) as well as an external infrastructure contract with Pearl Computing on 2 May 2025. Under the agreement, Gamuda will deliver a comprehensive scope of enabling works — including civil works, utility connections, and water infrastructure — forming what it describes as a “top-to-toe” solution tailored for hyperscale clients. This includes the construction of a water treatment plant with a daily capacity of 65 million litres, due for completion in Q2 2027. An off-river storage facility, aimed at ensuring sustainable water supply and mitigating pollution during dry seasons, is also slated for delivery by Q4 2028. The infrastructure will feature pipelines connecting the plant to a service reservoir dedicated to the data centre’s operations. “The project reflects Gamuda’s full-spectrum delivery model for the fast-growing data centre sector, encompassing land development, critical utilities, and supporting infrastructure to deliver a ready-to-build platform,” the company stated in its announcement. Gamuda further highlighted that the initiative leverages its engineering expertise and advanced industrialised building system (IBS), which together enable accelerated construction timelines, enhanced cost control, and precision quality assurance — key considerations for international tech clients. The land disposal is expected to be completed in the fourth quarter of 2025, subject to the fulfilment or waiver of conditions outlined in the SPA. As of the midday trading session on Monday, Gamuda shares declined eight sen or 1.8% to RM4.32, valuing the company at RM24.9 billion. The stock has registered a year-to-date decline of 8.3%. –The Edge Malaysia

KUALA LUMPUR : Maxis Bhd has announced the expansion of its fibre network in Penang, with the goal of connecting over 100,000 homes across the state by 2027. The rollout will span all districts in Penang, with priority given to high-density urban areas such as Jelutong, Georgetown, Batu Maung, Bayan Lepas, and Bayan Baru, along with several key sites on the mainland. This expansion aligns with the Penang 2030 vision, which aims to transform the state into a family-focused, green, and smart region. Chief Minister Chow Kon Yeow said the initiative will enhance the state’s digital infrastructure, supporting talent development, economic growth, and digital inclusion. “High-quality internet connectivity is essential for Penang’s continued rise as a regional technology and innovation hub,” he said. Maxis CEO Goh Seow Eng noted that the project will enhance service delivery and enable broader digital participation. “With our own fibre network, we can ensure consistent service quality, offering fast, secure, and reliable connectivity,” he said. The company’s expansion in Penang is supported by the state’s Last Mile Connectivity Guidelines—Malaysia’s first such initiative—which streamlines pole-sharing and accelerates fibre deployment across providers. Maxis currently operates a fibre network exceeding 23,000km nationwide, with the capacity to serve over 500,000 homes. Its own-built infrastructure is further complemented by access partnerships with other providers, extending its reach to households across Malaysia.

The Sarawak state government has issued a legal notice to Petronas Carigali Sdn Bhd, the upstream subsidiary of Petroliam Nasional Bhd (Petronas), for allegedly operating without a valid permit at its Miri Crude Oil Terminal. According to a news report, the notice—dated 30 April—accuses the company of breaching Section 7(e) of the Distribution of Gas Ordinance (DGO) 2016, which mandates a licence for the construction, management or maintenance of gas pipelines or related facilities. Petronas Carigali has been given 21 days to obtain the required licence. Failure to comply may result in financial penalties under Section 21A of the same ordinance. This development marks the latest in a series of tensions between Sarawak and the national oil company, as the state continues efforts to assert greater regulatory control over its oil and gas resources. Sarawak established its own oil and gas regulator, Petroleum Sarawak Bhd (Petros), in 2017. The entity oversees upstream and downstream oil and gas operations within the state. However, Sarawak’s push for greater autonomy has led to continued friction with Petronas, which was formed under the federal Petroleum Development Act (PDA) 1974 and holds exclusive rights to the nation’s hydrocarbon assets. The legal notice further highlights ongoing jurisdictional disputes between the state and federal governments regarding control and licensing within Malaysia’s energy sector. –Business Times

NEGERI SEMBILAN : The state of Negeri Sembilan is rapidly positioning itself as Malaysia’s emerging hub for data centres, amid increasing constraints on approvals in Johor due to resource consumption concerns. Currently, two major data centre projects are underway in Negeri Sembilan. One development will feature a green data centre financed by United States investors, while the other will be an artificial intelligence (AI) data centre led by Malaysian infrastructure group, Gamuda Bhd. The state’s strong infrastructure network, including well-established highway connectivity, has been a critical factor in attracting these significant investments. To address the substantial resource demands of these facilities, Gamuda Bhd will also develop a dedicated water treatment plant with a daily capacity of 67 million litres. This infrastructure investment will ensure a sustainable supply to support the operational needs of the data centres. In light of the substantial water and resource requirements associated with data centre operations, the Negeri Sembilan state government has announced its intention to closely assess future proposals for similar projects. This approach aims to balance economic development with prudent resource management. –Bloomberg