KUALA LUMPUR: Malaysia’s construction and utility sectors could see a surge in investment and growth on the back of potential changes to the United States’ AI chip export policy, according to Kenanga Investment Bank Bhd.
In a market note released Saturday, Kenanga IB highlighted that the Trump administration is expected to roll back Biden-era restrictions on advanced AI chip exports under the US diffusion rule — a move that could trigger increased data centre activity globally, with Malaysia well-positioned to benefit.
The research house noted that Malaysian construction counters have already experienced a significant rebound, and this latest development may further elevate valuations. A key example is Pearl Computing — affiliated with a US tech major — which has agreed to purchase 389 acres of land in Port Dickson from Gamuda Bhd (KL:GAMUDA), alongside RM1 billion allocated for enabling infrastructure works.
“This is a major milestone for data centre development in the country and underscores strong investor confidence,” the report said.
Meanwhile, Malaysia’s utility sector is also poised to benefit from the booming data centre trend. Tenaga Nasional Bhd (KL:TENAGA) has reported the completion of 18 data centre projects as of December 2024, totalling 1,900MW of installed capacity. An additional 20 projects are in the pipeline, expected to contribute another 4,000MW in capacity.
Kenanga IB believes this rising energy demand will support Tenaga’s long-term growth, reinforcing its role as a key enabler of digital infrastructure expansion in Malaysia.–BERNAMA
