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KUALA LUMPUR: Without the materials known as “rare earth” and “critical minerals,” electric cars wouldn’t run, laptops wouldn’t boot up, solar panels and wind turbines wouldn’t generate power, and mobile phones wouldn’t make a single call. The shift to green energy is supercharging the demand for these critical minerals, presenting a significant opportunity for Malaysia, according to an analysis released today by IQI. Kashif Ansari, Co-Founder and Group CEO of IQI, explained, “Rare earths are so named because they are usually found only in low concentrations, making mining less viable. Additionally, they require extensive separation and purification to become usable.” A Trillion Ringgit Opportunity Ansari added, “The market for these materials is currently valued at RM1.4 trillion. That figure is already massive, but it’s just the beginning. By 2040, this market is expected to swell to RM3.4 trillion, driven by the increasing need for materials that power electric cars, wind turbines, and solar panels. “Malaysia is home to one of the largest critical mineral refining facilities in the world, operated by the Australian company Lynas. This plant is a testament to Malaysia’s growing influence in a world where green technology is becoming increasingly important. “You can see how much rare earth and critical minerals could contribute to Malaysia’s wealth when you consider that the Lynas plant alone has brought in RM3 billion in foreign direct investment, RM1.5 billion in exports, RM9.4 million in taxes paid, and RM65 million in wages paid to local workers. The average income of Lynas employees is four times higher than the local average in Pahang.” Why the Green Transition Can Make Malaysians Richer “For Malaysia, the trend represents an opportunity to build a stronger economy. The country’s rich reserves of critical minerals, combined with its strategic location and industrial strength, position it perfectly to capitalize on this growing demand. “Malaysia’s reserves of rare earth elements have the potential to create more high-paying jobs and increase export income, as companies around the world seek new suppliers. “For everyday Malaysians, this opportunity translates into real benefits. By expanding its role in processing and manufacturing these minerals, Malaysia can create new jobs, drive economic growth, and ensure the country remains competitive on the global stage. “Government initiatives like the New Industrial Master Plan 2030 are helping turn this promise into reality. Malaysia’s total mineral resources are valued at RM4.1 trillion, including RM745 billion worth of rare earths. The estimated value of Malaysia’s metallic minerals alone is RM1 trillion.” Risks to Avoid “Becoming a larger exporter of critical minerals also comes with risks, including the potential for environmental damage if the industry is not managed sustainably. However, with smart investments and a focus on sustainability, we believe Malaysia has the potential to help lead the global green energy revolution, creating a brighter and wealthier future for all its citizens.” Impact on Real Estate “As a real estate and technology company, Juwai IQI looks at the critical minerals opportunity through the lens of its impact on the real estate market. The critical minerals boom will have a significant impact on Malaysia’s real estate market, increasing demand for industrial space and land where mineral reserves are present, driving new residential and commercial development, and helping to push up property demand and the value of homes. “The increased need for industrial space is the most direct real estate impact. As Malaysia ramps up its role in refining and processing critical minerals, companies will require factories, warehouses, and logistics hubs. “This new mining and processing investment will also spur residential and commercial real estate development in key regions. We especially expect this to occur in Pahang, Perak, and Kedah, which have rich deposits of critical minerals. For example, the Lynas plant I mentioned is located in Pahang. “Nearly all homeowners will benefit as the regions involved in the critical minerals supply chain see their economies boom. This will create local wealth and boost incomes and opportunities nationwide by enriching the national accounts. “You can expect a direct impact on property values. When Malaysian families find they have more money in the bank, they will seek to buy bigger and more convenient homes.” Conclusion “In conclusion, we believe the critical minerals opportunity will drive real estate development and boost property values, providing a win for Malaysians. This is particularly advantageous for households in the B40 group, especially those who secure some of the high-paid jobs in this growing industry. They should see the biggest impact in terms of increasing household income and better housing affordability. “The opportunity for Malaysia to become a leader in the global green energy market is not just about national pride and sustainability. It’s about tangible benefits for every Malaysian. It means more jobs, better wages, and new industries that can drive economic growth for years to come. This is a chance for Malaysia to improve everyone’s future and leave a legacy of innovation, resilience, wealth, and sustainability.”

KUALA LUMPUR: Malaysia’s status as Southeast Asia’s fastest-growing data centre hub will not only spur the growth of the digital economy but also be a catalyst in the nation’s transition towards renewable energy (RE). Dr Jasrul Jamani Jamian, associate professor at Universiti Teknologi Malaysia’s Electrical Engineering Faculty, said the inflow of data centre players to Malaysia helps the government in optimising the country’s existing electricity generation capacity. At the same time, he said, it will be a driver in realising the government’s efforts towards an RE generation capacity target of 70% or 56 gigawatts in the energy sector by 2050. From 2021 to 2023, Malaysia approved investments worth RM114.7 billion in data centre and cloud services. It was also reported recently that Moody’s Ratings projected the power requirement for data centres in Malaysia to double to about 500 megawatts in the next two years. “It’s high time for power generation using natural resources such as coal and gas, especially those that have been operational for 25 to 30 years, to be replaced with RE, which is more efficient and environmentally friendly,” Jasrul Jamani said He said that in expanding electricity generation, there is a significant need to transition towards RE from low-efficiency operations. ”The government is already moving in that direction, such as through the implementation of the Fifth Large-Scale Solar (LSS5) programme currently and the upcoming LSS6,” he said. He noted that under the National Energy Transition Roadmap, with the high RE penetration, the country will require a large energy storage capability to ensure a stable RE dispatch. He said the development of a large-scale battery energy storage system (BESS) using state-of-the-art technology is in line with the rise in RE capacity. BESS, he said, will ensure that no energy supply disruption affects data centre operations. Jasrul Jamani said BESS will also help data centre operators reduce electricity bill costs by storing energy outside peak hours and using it during peak hours. “Therefore, the development of data centres in Malaysia is in tandem with national efforts to transition from conventional power generation to RE generation,” he said. He said that setting up more data centres in Malaysia will bring revenue gains for Tenaga Nasional Bhd (TNB) as the data centre industry requires a high and continuous supply of electricity. According to him, TNB’s system has excellent stability and capability level for meeting the needs of all consumers, including data centres, based on its projected power reserve margin of 28% to 36% in Peninsular Malaysia from 2024 to 2030. — Bernama

KUALA LUMPUR: UMR Strategic Sdn Bhd, a leading recruitment agency specializing in supplying foreign workers to industries such as hospitality, manufacturing, pharmaceutical, and retail, has embarked on a groundbreaking digital transformation journey by appointing CLL Systems Sdn Bhd to develop a bespoke Resource Management System. In an era where digital transformation is revolutionizing the recruitment industry, UMR Strategic recognized the need to move beyond traditional, error-prone methods of handling worker intake, placement, and management. “The industry is rapidly evolving and to stay competitive requires embracing digital solutions that enhance efficiency and data accuracy,” said Craig Chin, Director of CLL Systems Sdn Bhd. “Automation is no longer optional; it’s essential for delivering superior services to clients and maintaining a competitive edge.” UMR’s manual, repetitive processes were becoming laborious and time-consuming. The need for a robust and agile solution that could handle diverse regional laws and regulations was clear. CLL Systems has stepped in to provide a flexible, secure, and efficient Resource Management System, allowing UMR’s staff to focus on value-added activities and achieve customer excellence. “This adoption of digitalization has enabled us to be innovative in our approach to providing superior services to customers while ensuring that we are at the forefront of the industry. CLL Systems has been instrumental in making this possible,” said Alvin Lee, Managing Director of UMR Strategic Sdn Bhd. “Since implementing the new system, we have seen an 80% reduction in processing time for filtering worker data and a 70% improvement in compliance accuracy.” The digital transformation initiative has yielded transformative results for UMR Strategic. By automating and streamlining operations, tasks such as reviewing salary payouts, tracking worker movements, scheduling duties, and managing tasks have become seamless and efficient. The integration of digital analytics and automation capabilities empowers UMR’s staff to meet evolving customer and regulatory expectations with unparalleled precision. Looking ahead, UMR Strategic aims to further enhance its operational capabilities by adopting Robotic Process Automation (RPA) and upgrading its existing IT infrastructure. Discussions are underway with CLL Systems to explore these advancements, ensuring that UMR Strategic remains at the forefront of innovation and efficiency in the recruitment industry. CLL Systems specializes in customized systems tailored to the unique needs of their clients. Their expertise in enhancing operational efficiency and driving innovation has been crucial in delivering a solution that meets UMR Strategic’s specific requirements. Through close collaboration, CLL Systems has helped UMR Strategic scale new heights, delivering unmatched efficiency and setting new benchmarks in the requirement industry.

PETALING JAYA: Capital A Bhd will reactivate 15 aircraft from the 22 non-active aircraft as well as receive eight new aircraft to invest in network growth across the region. For the second quarter ended June 30, 2024, it registered a net loss of RM454.18mil on the back of higher foreign exchange losses and aircraft depreciation charges. Its revenue, however, increased 54% year-on-year to RM4.86bil attributed to the strong recovery in demand from both domestic and international travel. In a statement yesterday, the company said that 20% of its fleet from the 165 operating aircraft was not in operation during the quarter under review.–The Star