Malacca Securities predicts continued investment and growth in data centers and AI, fueled by MNC investments and Malaysia's favorable economic environment.
Data centers and artificial intelligence (AI) will continue to be the driving themes of investment and growth in the country in 2025, according to Malacca Securities Sdn. Bhd. The brokerage firm said that the data center and AI theme will continue because investments from multinational corporations (MNCs) are just beginning in 2023 to 2024 and will lead to revenue by 2025 and beyond.
It said that with a stable political environment, a strategic geographical location, and business-friendly policies, Malaysia is well-positioned to attract foreign direct investment (FDI) from MNCs. “Malaysia has been a leader in Southeast Asia in attracting FDI, receiving RM141.72 billion in the first 10 months of 2024, according to Knight Frank. “The inflow of FDI is expected to boost construction activity, benefitting the construction sector, building materials, utilities, and real estate,” it said in a research note. Malacca Securities said that companies like Google, Nvidia, and Microsoft have invested in Malaysia, reflecting growing confidence in the country's economic potential. In addition, it said that the KL20 Summit and the National Semiconductor Strategy position Malaysia as a leading player in the global semiconductor industry, which could benefit the technology sector, including electronics manufacturing services (EMS) providers. “We believe the scope of the data center ecosystem will extend beyond construction, encompassing AI, cybersecurity, and cloud services. “This development will create opportunities for software companies specializing in cybersecurity, cloud service providers, and other related fields in the technology sector,” it said. Meanwhile, the firm also anticipates that the National Energy Transition Roadmap (NETR) and New Industrial Master Plan (NIMP) will support the country's growth
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