MALAYSIA Trends and Developments Contributed by: Stephanie Phua, Wong & Partners
• the acquisition of two data centres from Permoda - lan Nasional Berhad by Bridge Data Centres (a Bain Capital portfolio company). Land acquisition costs, energy and sustainability remain the key considerations for investors. In an effort to address some of these concerns, the Malay - sian government published the Guidelines for Sus - tainable Development of Data Centre in December 2024, to provide a framework for the development and operation of sustainable data centres in Malaysia. The Malaysian government is also currently focusing on digitalisation initiatives and the launch of Industry 4.0 blueprint investments, which is set to accelerate demand for data centres in the country. An example of this is the Malaysian government’s recent partner - ship with Arm Holdings, through a USD250 million investment over the next decade for IP licences and compute subsystems to move Malaysia up the semi - conductor value chain under the National Semicon - According to Bain’s SEA Green Economy 2025 Report, corporates, private equity/venture capital, infrastructure funds, green funds, sovereign wealth funds and government-affiliated companies invested approximately USD8 billion in green investments into SEA between 2023 and 2024. Malaysia experienced a 124% increase in private green investments in 2024 of USD2.302 million, accounting for approximately 29% of the 2024 SEA total, due to the increase in large-scale deals specifically in the building, solar and green hydrogen sectors. Within that, PE investors are increasingly turning their attention to renewables and raising dedicated funds with longer-term investment horizons focusing solely on renewable energy in rec - ognition of the scaling opportunities in the region. Under the Malaysian National Energy Transition Roadmap (NETR), the Malaysian government aims to develop future capabilities and to shape demand in the green energy market, by providing ten flagship catalyst projects based on six energy transition levers: ductor Strategy. Energy transition
• hydrogen; • bioenergy; • green mobility; and • carbon capture, utilisation and storage.
Flagship catalyst projects include the development of a pilot renewable energy zone by sovereign wealth fund Khazanah Nasional Berhad, which will include the establishment of an industrial park, a zero-carbon city, a residential development and a data centre. On the back of the launch of the NETR, I Squared Capi - tal (through its portfolio company HEXA Renewables) has also announced its commitment to develop up to 1 GW of hybrid solar photovoltaic projects in the southern tip of Peninsular Malaysia. JSSEZ The Johor–Singapore Special Economic Zone (JSSEZ) which was launched on 11 January 2024 is drawing major interest, especially with incentives targeting AI and chip sectors. Early-stage infrastructure builds reinforce its appeal for PE investors targeting digi - tal infrastructure and semiconductor opportunities. Although the full blueprint for the JSSEZ by the Malay - sian Ministry of Economy is not expected until the end of 2025, several enabling measures are already operational such as the Johor Super Lane initiative which now offers fast-track approvals for eligible investments in priority industry sectors. The Malaysian Securities Commission has also implemented a Single Family Office (SFO) incentive scheme to attract capital inflows. SFOs that satisfy eligibility criteria, including at least MYR30 million of assets under management, will enjoy a concessionary tax rate of 0%. New legal considerations for private equity deals in 2024 Foreign direct investment regulation No overriding legislation, policy or regulatory body imposes restrictions on foreign investment in Malay - sia. Instead, foreign direct investment (FDI) restrictions are imposed on a sectoral basis by the relevant indus - try regulator through the granting and administration of licences, permits or other government approvals, or as a condition to qualify for any government-related tenders or concessions.
• energy efficiency; • renewable energy;
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