Infrastructure & PPPs in Malaysia - Q1 2023 Update
YOG INFRA Q1 2023 insight series
MALAYSIA is seeing infrastructure developments in emerging clean energy transition sectors, particular e-mobility with multiple developers working to create the EV charging infra for private cars and public buses. Renewable Energy development continues through partnerships with international investors, with plans to make use of ASEAN grid for import of clean electricity in the country.
Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight series.
MALAYSIAN AUTO PARTS MAKER PARTNERS TENAGA FOR EV INFRASTRUCTURE
Malaysian automotive parts maker EP Manufacturing and Tenaga Nasional will jointly explore projects for battery swapping stations and related infrastructure in the ASEAN region. Both companies' subsidiaries - EP Blueshark and Tenaga Switchgear - have signed a memorandum of understanding (MOU), setting out a collaborative framework.
The potential areas and scope of the MOU include:
localizing battery and battery swapping stations.
unifying the stations and infrastructure networks; and
deploying the projects through Tenaga's network.
PLANS ANNOUNCED FOR A RM 5 BN PUBLIC TRANSPORT EV FACILITY IN MALAYSIA
A joint venture (JV) company comprising Energy Absolute Thailand and Computer Forms Malaysia (CFM) have announced plans to develop a RM 5 Bn electric public transport vehicle manufacturing facility in Malaysia. The facility will manufacture electric trains, buses, boats, trucks, and EV batteries among others. The JV will also transfer innovation, renewable energy (RE) expertise and carbon credits to the Government of Malaysia in support of its net-zero carbon emissions by 2050.
AIRTRUNK PLANS ITS FIRST DATA CENTER IN MALAYSIA
AirTrunk plans to develop a data center with a capacity of more than 150 MW in Malaysia. The AirTrunk JHB1 facility, which will occupy a little more than 10 hectares in Johor Bahru, will be funded through a sustainability-linked loan framework. The center will be AirTrunk's ninth in the Asia Pacific, taking its total capacity to more than 1.35 GW. It will offer domestic and international connectivity with technology hubs, including in Singapore.
The center will have a solar-ready roof, equipped to add 5 MW of panels. The initial phases of JHB1 will provide 50 MW of capacity, with construction due to start shortly and scheduled for completion in 2024.
MALAYSIA’S PESONA METRO SECURES USD 218 MN HOUSING PROJECT
Malaysian construction firm Lumayan Metro (LMSB) has secured an MYR 948.1 MN (USD 218 MN) deal to design and construct 3,438 units of an affordable housing project in Kuala Lumpur. Residensi Wilayah, to be developed in two phases, is an initiative of the government. It is aimed at providing affordable housing in the federal territory for first-time buyers. The project was launched and is likely to be completed in 3 years. LMSB signed the turnkey agreement with developer Danau Lumayan.
The first phase involves the construction of 922 residential units on a 43-storey block, while the second phase will consist of two blocks of 52 storeys each, housing 2,516 units. The residential units will feature amenities including swimming pools, gymnasiums, prayer rooms and multipurpose halls.
GOVERNMENT OF MALAYSIA TARGETS 4,000 EV CHARGERS IN 2023
The Government of Malaysia is targeting to have more than 4,000 electrical vehicles (EV) charging stations across the country by the end of 2023. The country currently has 900 charging stations. This is part of the national roadmap for EV charging stations, under which around 10,000 chargers will be installed by 2025, of which 1,000 chargers will be direct current (DC) type and remaining 9,000 units will be alternating current (AC) or slow charging type.
The Ministry of Finance (MoF) is also to allocate part of the 2023 Budget to develop the RV ecosystem in Malaysia. Tenaga Nasional Bhd (TNB) will also allocate RM 90 Mn till 2025 to build new DC charging stations. The agency will install 7 new chargers along the North-South Highway (PLUS) by the end of 2023. TNB is also considering installing DC chargers along trunk roads in the country.
MAHB TO OPERATE MALAYSIA’S AIRPORTS TILL 2069.
Malaysia Airports Holdings Bhd (MAHB) has secured an in-principal approval from the Government of Malaysia to operate, maintain and develop 39 airports and short take-off and landing airports (STOL ports) across the country till 2069. The new operating agreement grants MAHB the flexibility to choose the method of funding for future developments, either through government allocations or an investment recovery model mechanism. An airport development fund (ADF) will also be developed that will use contributions from airport users for projects.
The Government of Malaysia will hold the right to restructure the aviation sector by clustering, carving out, disinvesting, or closing the airports. The government will also be able to restructure the ownership of the facilities with approval from MAHB.
MRT CORP PLANS ALIGNMENT STUDY FOR THE CIRCLE LINE
Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) will conduct an alignment study for the upcoming MRT Circle Line in Malaysia. The transit provider will also consider the feasibility of a proposed realignment. The main objective is to minimize social impact and ease the land acquisition process.
Once the study is completed, a Public Inspection of the MRT3 Railway Scheme will be undertaken over a period of 3 months during which the public will be able to provide their feedback about the route and stations.
The 51 km Circle line will include 33 stations, out of which 10 stations will provide interchange to KTM Komuter, Kuala Lumpur Light Rapid Transit (LRT), KL Monorail Line, MRT Kajang Line and MRT Putrajaya Line stations. The line is expected to be fully operational by 2030. Civil construction packages for the MRT line are yet to be awarded.
THAILAND-BASED UTILITY TO EXPORT RENEWABLE ENERGY TO MALAYSIA.
Thailand-based B.Grimm Power Public Company Limited (BGRIM) has signed a memorandum of understanding (MoU) with TNB Power Generation Malaysia to export renewable energy (RE) under the ASEAN Power Grid project. Under the terms of the agreement, the utility will supply 200 MW of hydropower, solar and wind energy from its facilities in Laos.
Additionally, the Electricity Generating Authority of Thailand (Egat) has also signed an MoU with TNB to conduct a feasibility study to develop a power supply between Malaysia and Thailand. The study, which will be conducted over a period of three years, will include the design, efficiency, risks and costs of the potential system.
MALAYSIAN RENEWABLES DEVELOPER PLANNING 100 MW SOLAR PLANT
Renewables developer Gading Kencana is planning to construct a solar energy farm in the Malaysian province of Kedah in the next 2 years. The plant will have a capacity of 100 MW-150 MW. It is identifying the development site, an investment of as much as MYR 40 Mn (USD 89.3 Mn) may be required for a 100 MW facility. Gading Kencana has 3 solar plants.
The government's policy is to achieve a net zero carbon target by 2050. Currently, the government is introducing the feed-in-tariff mechanism first, followed by competitive bidding for large-scale solar projects, and has recently launched the corporate green power program.
MALAYSIAN PORT PLANS USD 678 MN CAPACITY EXPANSION
Port of Tanjung Pelepas (PTP) plans to invest RM 3 Bn (USD 678 Mn) over the next 5 years to create an additional capacity of 3.5 Mn twenty-foot equivalent units (TEUs). The investment would be segregated into two parts, comprising investment in infrastructure and equipment as well as automation and digitalization, which includes environmental, social, and corporate governance (ESG) related development.
The investment is predominantly to grow PTP’s footprint in the free-zone and also terminal while making the footprint greener and more sustainable. A joint venture between Malaysia’s MMC Corporation Bhd (70 %) and The Hague’s APM Terminals (30 %), PTP was developed from green field consisting of 809.37 hectares for port terminal and 607.03 hectares for free-zone area.
List of key transactions - Malaysia Q1 2023
Source: Inframation, YOG INFRA analysis
ABOUT YOG INFRA
Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.
YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.
With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.
For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at email@example.com
©2023 YOG INFRA. All rights reserved.