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Experts: Ng and Nordin. PETALING JAYA: As data centre investments drive demand for specialised services, Malaysian small and medium enterprises may find it difficult to tap into the sector due to specific requirements set by larger global operators, say stakeholders.
Small and Medium Enterprises Association president Datuk William Ng said many SMEs are still not fully equipped to meet the stringent compliance and technical standards required by operators such as Amazon and Google.
“These operators require high-tier uptime certifications and specific ISO standards, which involve substantial upfront capital investment to obtain and maintain,” he said when contacted. Ng added that AI-driven data centres, which utilise high-density cooling systems and massive power loads, represent a technological leap that many local SMEs are currently unable to support. Ng proposed targeted incentives, including supply chain grants, to help local SMEs offset the cost of securing internationally recognised certifications.
While describing the new investment incentive framework as a positive step, he said more direct matching grants are needed for ESG-compliant hardware upgrades. Ng also called for focused Technical and Vocational Education and Training programmes to train the next generation of specialised engineers. Currently, he said, SMEs involved in specialised construction and technical services within the supply chain are among the main beneficiaries of the growing sector.
SME Association of Malaysia national president Dr Chin Chee Seong said SMEs should be given greater opportunities to work with data centre operators.
“Government incentives for data centre investments should include provisions for local content and sourcing to ensure Malaysian SMEs are not left out of the data centre boom,” he said. Chin also said the sector’s growth would create a ripple effect for SMEs, particularly suppliers of construction services and equipment, electrical and engineering consultants, as well as cooling system and power supply providers.
“We are also seeing data centre development expand beyond the Klang Valley and Johor, with more facilities being built in other parts of the country,” he added. TVET expert Nordin Abdul Malek said skills training would play a critical role in supporting the growth of Malaysia’s emerging data centre industry.
“While data centres are viewed as high-tech facilities, they do not rely solely on software engineers or university graduates. “A large number of skilled technical workers are needed to ensure daily operations run smoothly,” said the executive chairman of Institut Agro dan Keusahawanan. Nordin warned that Malaysia risks becoming merely a host for foreign-owned data centres if it fails to urgently build a sufficient pool of local skilled workers.
“This could result in the country missing out on higher-value economic growth and advanced job opportunities. Malaysia must ensure TVET is recognised as a high-value technical career pathway for this sector,” he said. Nordin added that foreign investments in data centres should also be tied to local training initiatives and improved salary schemes to retain skilled workers.
Malaysian Smes Compliance Standards AI-Driven Data Centres Green Certifications Targeted Incentives ESG-Compliant Hardware TVET Programmes Local Supply Chain Skilled Technical Workers
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