The United Arab Emirates Ministry of Investment and the Ministry of Investment, Trade and Industry of Malaysia have signed a Memorandum of Understanding (MoU) with the aim of establishing a framework for investment cooperation in the digital infrastructure sector with a specific emphasis on data centers in Malaysia.
The agreement was signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Tengku Zafrul Aziz, Minister of Investment, Trade and Industry of Malaysia.
Malaysia’s growing reputation as one of the most dynamic data center markets in the Asia Pacific region is reinforced by the country’s strategic location, strong infrastructure and government-backed initiatives such as New Industrial Master Plan 2030. The plan prioritizes promoting digitalization in key sectors and strives to accelerate the adoption of advanced technologies and digital solutions, with the overall goal of improving productivity and efficiency across various industries.
Data centers are essential for organizations to store crucial data and operate applications. Malaysia currently operates more than 40 data centers and the sector is expected to experience a compound annual growth rate of approximately 16 percent between 2022 and 2027, reaching US$2.9 billion by the end of the five-year period. This increase is attributed to growing demand from small and medium-sized businesses, which play a crucial role in the country’s economy and are poised to make substantial contributions to economic expansion through digital transformation.
The MoU between the UAE and Malaysia focuses on establishing strong and efficient collaboration through the development of bilateral relationships between public and private organizations. The agreement also proposes introducing incentives to promote relevant initiatives and seeks to facilitate the exchange of knowledge.
Minister Mohamed Alsuwaidi commented,
“In the context of the growing bilateral relations between our two nations, this partnership facilitates collaboration in an area that is essential for the development of a resilient economy. “The anticipated increase in the number of data centers in the country will elevate Malaysia’s position as one of the emerging data centers in Southeast Asia and provide businesses across various sectors with a solid foundation for digitalization.”
Minister of Investment, Trade and Industry of Malaysia fixed,
“Malaysia’s collaboration on digital infrastructure with the UAE, focusing on data centres, will certainly help strengthen our position as a preferred destination for digital investments. As a regional data center hub, Malaysia is well positioned to capture a significant share of the ASEAN digital economy, which is projected to reach $1 trillion by 2030. Malaysia’s Ministry of Investment, Trade and Industry and its agencies are determined to make all the commitments made come true. investments so that investors, businesses and our people can quickly reap the benefits of a stronger and more prosperous digital economy within Malaysia and ASEAN.”
The signing of the MoU is supported by strong trade relations between the two countries, with non-oil trade volume exceeding US$2.22 billion in the first half of 2023. The UAE is currently Malaysia’s second largest trading partner in the Middle East. East, constituting 32 percent of its total trade with Arab nations, while Malaysia ranks eighth among non-Arab Asian countries in UAE exports and 19th in re-exports.
News source: Emirates News Agency