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Malaysia’s Data Hub in Iskandar to Accelerate Local Cloud Services and Data Centre Industry Growth and Drive Investors

8 Apr 2015

The industry recorded a 26% increase in growth from RM630mil to RM795mil.

JOHOR BAHRU, APRIL 8, 2015 - Multimedia Development Corporation (MDEC), Performance Management and Delivery Unit (PEMANDU), Johor Corporation (JCorp) and Iskandar Regional Development Authority (IRDA) today made two key announcements on Malaysia’s cloud services and data centre industry: Malaysia’s 2014 data centre industry performance and the new Data Hub in Sedenak, a 700-acre area, earmarked in the Iskandar Region for local and global data centre companies.

Iskandar Data Hub 01

The announcements were officiated by YBhg Dato’ Sri Ahmad Shabery Bin Cheek, Minister of Communications and Multimedia Malaysia, in the presence of YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU, YBhg Dato’ Yasmin Mahmood, Chief Executive Officer of MDEC, Engku Ahmad Kamel, Director of Economics and Investment, representing IRDA and Ibrahim Bin Abdul Samad, Managing Director, Property Services, representing JCorp.

“In the data economy, creating wealth requires the skill of an alchemist. It is about selecting, sifting through, separating, combining, cleansing and purifying the almost unlimited amount of raw data to produce the ‘gold’ that provides value for businesses, people and the nation. In other words, management of this abundant resource will be key for countries and companies that aspire to surge ahead,” said YBhg Dato’ Sri Ahmad Shabery Bin Cheek.

Speaking at the press conference YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU said, “Through the Economic Transformation Programme, the Data Centre industry will continue to be supported by the Government. The past five years has brought great progress in the Data Centre ecosystem, and I look forward in seeing exciting projects coming to fruition within the next five years.”

The Malaysian Cloud Services and Data Centre industry is marked by broad trends of expansion, efficiency and consolidation in 2014. The industry recorded RM795mil in revenue for 2014, a 26% growth from RM630mil in 2013. Exports grew from 7% to 18%.

Key industry sectors that contributed to the industry revenue include the federal government (29%), banking and financial (19%), and content and technology (17%).There was also growth in High-value Data Centre Services such as Managed Services that accounts for 50% of the total revenue, a 20% increase from 2013.

Iskandar Data Hub 02“Growth in the data centre industry showcases a positive development and confidence from local and global investors in Malaysia. We are targeting the industry to grow by 15% to RM915mil by end of 2015,” said YBhg. Dato’ Yasmin Mahmood.

Building on the encouraging performance results of the industry, the new Data Hub in Sedenak is set to meet the region’s rising demand for data centre space and services. The hub is equipped with robust, state-of-the-art infrastructure; supported by high capacity power and reliable connectivity; and comes with friendly cloud and data centre policies.

“Cloud services and data centre is a key sector identified to contribute to the national gross income. With the new Data Hub, we aim to attract high value investments from top cloud services and data centre providers to Malaysia, to further accelerate the growth of industry and position Malaysia as a world-class data hub in the region,” said YBhg Dato’ Yasmin Mahmood.

The Data Hub will create a healthy ecosystem for local businesses to scale their capabilities and competencies with knowledge sharing from established data centre players. The hub will also contribute to the development of sustainable communities where future generations can continue to thrive and expand.

YBhg Datuk Ismail Ibrahim, Chief Executive Officer of IRDA said, “We will continue to support these data centre initiatives as part of Iskandar Malaysia’s efforts to provide state-of-the-art ICT infrastructure and connectivity under our Smart City Framework.

“We would like to thank MDEC, as the lead agency developing and promoting the data center industry, for their advice, support and promotion of Sedenak as a prime location for the Data Hub. We are confident that our location is conducive and strategic in supporting data centre infrastructure for the Data Hub,” said YBhg Dato’ Kamaruzzaman Abu Kassim, President and Chief Executive Officer of JCorp.

The Data Centre Task Force consisting of MDEC, MIDA and PEMANDU will continue to work together with Johor partners, IRDA and JCorp, to further develop the cloud services and data centre ecosystem and industry towards positioning Malaysia as a world class data hub in the region.