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Iskandar's new data hub to boost Malaysia's cloud, data centre growth, says Malaysian minister

AvantiKumar | April 8, 2015
The industry, which has recorded a 26% increase in growth, will be further supported by a new 700-acre Sedenak Iskandar Data Hub in the Iskandar region, Johor: MDeC, Pemandu, JCorp and IRDA.

Iskandar new data hub announced 2015 

Photo - (From left)  Engku Ahmad Kamel, Director of Economics and Investment, representing IRDA; YBhg Senator Dato’ Sri Idris Jala, Chief Executive Officer of PEMANDU, YBhg Dato’ Sri Ahmad Shabery Bin Cheek, Minister of Communications and Multimedia Malaysia; YBhg Dato’ Yasmin Mahmood, Chief Executive Officer of MDeC; and Ibrahim Bin Abdul Samad, Managing Director, Property Services, representing JCorp.


The growth of Malaysia's cloud services and data centre sector, which has already seen a 26 percent increase in 2014 from RM630 (US$172.96) million to RM795 (US$218.26) million, will be further boosted by a new 700-acre Sedenak Iskandar Data Hub in the Iskandar region, Johor, said national agencies Multimedia Development Corporation (MDeC) and the Performance Management and Delivery Unit (Pemandu).

The formal announcement in Johor Bahru of the new Sedenak Iskandar Data Hub for local and global data centre companies (8 April 2015) was Officiated by Malaysia's Minister of Communications and Multimedia, YB Dato' Sri Ahmad Shabery Bin Cheek, in the presence of MDeC's chief executive officer YB Dato' Yasmin Mahmood, Pemandu's chief executive officer YB Senator Dato' Sri Idris Jala, together with Engku Ahmad Kamel, director of economics and investment, representing the Iskandar Regional Development Authority (IRDA) and Ibrahim Bin Abdul Samad, managing director, property Services, representing Johor Corporation (JCorp).

The Sedenak Iskandar 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."

IRDA's chief executive officer YB Datuk Ismail Ibrahim later 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 centre 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," added YB Dato' Kamaruzzaman Abu Kassim, president and chief executive Officer of JCorp.

The new Sedenak Iskandar Data 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, according to an official statement.

The skill of an alchemist

"In the data economy, creating wealth requires the skill of an alchemist," said minister Shabery in his speech. "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."

Pemandu's Idris 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."

He said the Malaysian Cloud Services and Data Centre industry was marked by broad trends of expansion, efficiency and consolidation in 2014. The industry recorded RM795 (US$218.26) million in revenue for 2014, a 26 percent growth from RM630 (US$172.96) million in 2013. Exports grew from 7 to 18 percent.

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

"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 percent to RM915 (US$251.20) million by end of 2015," said MDeC's Yasmin.

"Cloud services and data centre is a key sector identified to contribute to the national gross income. With the new Sedenak Iskandar 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," she said.

The Data Centre Task Force, which comprises MDeC, MIDA and Pemandu, will continue to work with Johor partners, IRDA and JCorp, to further develop the cloud services and data centre ecosystem and industry into a world class data hub in the region, said Yasmin.


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