Infrastructure & PPPs in Malaysia - Q1 2025 Update
- YOG INFRA
- Apr 14
- 14 min read
YOG INFRA Q1 2025 insight series
MALAYSIA is seeing notable private sector investments in EV charging infra and renewable projects. The Large-Scale Solar (LSS) tenders continue to attract good investor interest with more such tenders announced by various sub-national governments. We also see an uptick in M&A activity with more JVs being formed for development of transport and urban infra proejcts.
Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.
JANUARY 2025
AIZO GROUP SUBSIDIARY TO DEVELOP 99.99 MW SOLAR PLANT IN PERAK
Wawasan Demi Sdn Bhd (WDSB), a subsidiary of Aizo Group Bhd has been selected by the Energy Commission (EC) to develop a 99.99 MW solar photovoltaic (PV) plant in Kampar, Perak, Malaysia. The project, part of the Large-Scale Solar 5 (LSS5) program, is set to be completed by October 30, 2027. The development, funded through internal funds and/or bank borrowings, will be executed under a 21-year solar power purchase agreement (PPA). This marks a key step in Aizo’s expansion into renewable energy.
Although the project is not expected to impact Aizo’s financial performance for financial year (FY) 2025, it is expected to contribute positively to earnings once operational. The company, which has faced consecutive annual losses since 2022, remains committed to supporting Malaysia’s clean energy transition. This solar project follows Aizo’s first LSS project, completed in May 2023.
GAC ENERGY AND EV PLUS MOBILITY TO EXPAND EV CHARGING INFRA IN MALAYSIA
Chinese state-owned GAC Energy Technology, a subsidiary of GAC Group, has signed a strategic cooperation agreement with Malaysia’s EV PLUS Mobility Solutions to develop electric vehicle (EV) charging facilities. The partnership, announced on January 15, 2025, will focus on deploying charging stations, promoting new energy vehicle (NEV) infrastructure, and exploring innovative commercial models for the sector.
The collaboration aims to enhance Malaysia’s green mobility experience by integrating efficient charging solutions and expanding operational services. GAC Energy, leveraging its global expertise, sees this as part of its internationalization strategy to support low-carbon transitions. EV PLUS Mobility, a leader in Malaysia’s NEV market, will contribute its expertise in building charging networks and promoting NEV adoption.
BIDS OPEN FOR 2 GW OF LARGE-SCALE SOLAR PROJECTS IN MALAYSIA
The Energy Commission of Malaysia has initiated a tender under its Large-Scale Solar (LSS) program to develop 2 GW of solar capacity. This marks the second such tender in under a year, following a similar 2 GW bidding round in April 2024. The initiative supports Malaysia’s goal of achieving a 70 % renewable energy (RE) mix by 2050.
The tender includes two packages: 1.5 GW for ground-mounted solar plants with capacities between 30 MW and 500 MW and 500 MW for floating solar systems with capacities ranging from 10 MW to 500 MW. Approved projects are slated for operation by 2027. Bidders can access Request for Proposal (RFP) documents online, with submissions due by February 2025.
Eligible applicants should be Malaysia-incorporated entities with a minimum of 51% local equity holding. Consortium applications are also allowed if they include at least one Malaysia-incorporated company and other foreign/local companies with a minimum of 51% local equity holding in the consortium.
IPOH SENTRAL PROJECT TO TRANSFORM TRANSPORT INFRASTRUCTURE
The Ipoh Sentral project has announced plans to reshape the city’s infrastructure in Malaysia. The RM 6.26 Bn (USD 1.41 Bn) transit-oriented development (TOD) will be located behind the iconic Ipoh Railway Station. The project is divided into two phases, with the first phase expected to start within six months.
The first phase will focus on upgrading the city’s landscape, including pedestrian walkways, cycling routes, and preserving heritage elements such as places of worship.
The second phase of the project, spanning 24.7 hectares, will include mixed-use developments like serviced apartments, commercial spaces, and a hotel. This phase is expected to take 20 years to complete.
The project is a collaboration between multiple stakeholders, including Railway Asset Holding Sdn Bhd and Malaysian Resources Corporation Bhd. The Ipoh Sentral project, developed by Malaysian Resources Corporation Berhad (MRCB), will cost RM 2.6 Bn (USD 581.51 Mn).
UVCELL SOLAR AND IOZELA PARTNER ON DATA CENTER AND RENEWABLE ENERGY HUB IN MALAYSIA
US-based renewable energy developer UVCell Solar and Southeast Asian data centre developer Iozela Data Center have signed a strategic agreement to develop a data centre complex and renewable energy hub in Malaysia.
The partners will develop a new data centre campus in Penang, Malaysia. The data centre will focus on sustainability, incorporating nature with technology to avoid disrupting the local environment. The partners envision the development as a model for ESG-compliant technology and aim to integrate full facilities, including a management office, staff accommodation, and a green plantation farm, to enhance the project's overall ESG impact.
UVCell will develop a renewable energy hub in Pahang, Malaysia, to power the facility. The hub will comprise solar and biomass farms, which are expected to generate 300MW to 500MW of power. UVCell will also establish a management office in Pahang to oversee the development and operations of the renewable projects.
The two companies plan to partner with “top-tier” vendors in Japan, China, the USA, and Singapore. The vendors will bring technological expertise in renewable energy, data infrastructure, and sustainability. The partners aim to use local workers in Malaysia, focusing on training and employing skilled professionals from the surrounding communities in Penang and Pahang. Malaysia’s data centre sector is expected to grow significantly over the remainder of the decade, from 710 MW in 2024 to 1.36 GW by 2029.
FEBRUARY 2025
AUTEL EXPANDS IN MALAYSIA WITH SMART EV CHARGING SOLUTIONS
Autel Intelligent Technology Corporation expands its presence in Malaysia by introducing advanced electric vehicle (EV) charging solutions. At Consumer Electronic Show (CES) 2025, the company unveiled the MaxiCharger DH480, a high-output charger capable of charging up to four vehicles simultaneously. Autel’s growth in Malaysia is in response to the country’s rapidly growing EV market, which saw over 21,000 registered electric vehicles in 2024, a 63.8 % increase from 2023.
Autel is addressing the surge in EV demand by partnering with local charging point operators (CPOs) like DC Handal Green Mobility to deploy high-power chargers across Malaysia. The company offers four intelligent charging solutions designed for various needs, including destination, residential, fleet, and on-the-go charging. Autel is also integrating solar energy and energy management systems into its charging infrastructure to promote sustainability and reduce electricity costs for consumers. While focusing on Malaysia’s growing market, Autel aims to further develop its smart charging solutions, optimize the user experience, and explore local partnerships to support the future of EV adoption in the country.
PETRA TO LAUNCH LARGE-SCALE SOLAR BIDDING IN MALAYSIA IN 2025
The Ministry of Energy Transition and Water Transformation (PETRA) of Malaysia has announced the launch of the Large-Scale Solar (LSS-6) bidding round in Q2 of 2025 to boost the country’s renewable energy (RE) capacity. PETRA aims to enhance the stability of the national grid by introducing a separate bidding round for energy storage systems by Q3 of 2025. These measures align with Malaysia’s goal to achieve a 70 % RE mix by 2050, supporting its transition to cleaner energy sources.
The ministry is also focusing on expanding the Community Renewable Energy Aggregation Mechanism (CREAM), which promotes solar power generation through residential rooftop spaces. PETRA’s commitment to these renewable energy initiatives is expected to contribute significantly to reducing Malaysia’s carbon footprint and meeting its environmental goals.
MALAYSIA MOT TO INVITE PROPOSALS FOR JOHOR ART SYSTEM
Malaysia’s Ministry of Transport (MoT) has announced that the government will soon invite proposals for an autonomous transit system (ART) to complement the Johor Baru-Singapore Rapid Transit System (RTS) Link. The ART project, planned as a Public-Private Partnership (PPP) model, aims to ease congestion when the RTS Link begins operations by the end of 2026.
The Cabinet reviewed the ART proposal in December and agreed on the Public-Private Partnership (PPP) model. The elevated ART, featuring rubber-wheeled vehicles guided by LIDAR-based lane markings, is expected to offer flexibility by allowing both rail and buses to share lanes. The Johor state government has expressed support for the initiative, but final approval will depend on the request for proposal (RFP) process.
Meanwhile, MRT Corporation and Sunway Group signed a master agreement to develop an integrated complex next to the Bukit Chagar RTS Link Station and the customs, immigration, and quarantine (CIQ) complex. The RTS Link remains on schedule for completion by December 31, 2026. The ART system is projected to cost RM 7 Bn (USD 1.57 Bn), significantly lower than the estimated RM 16.7 Bn (USD 3.75 Bn) required for an LRT system.
SABAH UNVEILS RM 8.88 BN ENERGY HUB TO BOOST RENEWABLES
The Government of Sabah has launched an RM 8.88 Bn (USD 1.99 Bn) oil and gas energy hub at the Sipitang Oil and Gas Industrial Park (SOGIP) to strengthen its role as a regional energy centre in Malaysia. The project, led by the Sabah Oil and Gas Development Corporation (SOGDC) in partnership with Gibson Shipbrokers Limited, will be executed in two phases. It includes the construction of a modern port dedicated to energy trade and transportation.
The project aims to attract investments in energy infrastructure while supporting local workforce development in renewable energy. Sabah’s government has established the Local Content Council through SMJ Energy to ensure industry players invest in training and upskilling the local population. As Malaysia accelerates its renewable energy integration, SOGIP’s expansion is expected to enhance economic resilience and position Sabah as a key player in the shift to cleaner energy.
KINERGY ADVANCEMENT AND PKNPK TO DEVELOP 1.8 GW RE PROJECTS IN PERAK
Kinergy Advancement Bhd’s (KAB) wholly owned subsidiary KAB Energy Holdings Sdn Bhd is collaborating with Perbadanan Kemajuan Negeri Perak (PKNPk) for the development of 29 potential renewable energy (RE) projects in Perak with a total capacity of over 1,800 MW.
They would identify, evaluate, and develop renewable energy projects in Perak by utilizing KAB’s technical expertise to drive innovative energy developments. Aligned with Perak Sejahtera 2030's Flagship 12: Water Resources and Renewable Energy, this partnership not only enhances the energy resilience of Perak but also contributes to the broader national goals of sustainable and renewable energy development.
The initiatives under this collaboration directly support the objectives of increasing water resources efficiency and promoting renewable energy usage, marking a significant step towards achieving Malaysia's long-term sustainability targets.
KAZAM, QUICKCHARGE EXPAND EV CHARGING NETWORK IN MALAYSIA
India-based Kazam has partnered with the charging point operator (CPO) QuickCharge to enhance Malaysia’s electric vehicle (EV) charging infrastructure. The collaboration involves integrating Kazam’s Charging Management Solution (CMS) into QuickCharge’s network, enabling real-time monitoring and improved scalability. Since its adoption, QuickCharge has installed over 100 chargers in residential, hotel, and office spaces, with its user base surpassing 50,000 in six months. Energy demand for EV charging has also more than doubled between July and December 2024.
QuickCharge is currently trialling Kazam’s Dynamic Tariff feature, which adjusts pricing based on factors like time of day and state of charge (SOC). The partnership aligns with Malaysia’s push for sustainable transport and EV adoption, with plans to deploy 2,000 more chargers nationwide.
HEITECH PADU TO EXPAND INTO RENEWABLE ENERGY WITH RM 903 MN CONTRACT
HeiTech Padu Bhd has announced plans to diversify from its core IT services into renewable energy in Malaysia. The company will now focus on developing, owning, operating, and maintaining renewable energy power plants, in addition to providing engineering, procurement, construction, and commissioning services (EPCC). This strategic shift follows a letter of acceptance from TNB Power Generation Sdn Bhd, a subsidiary of Tenaga Nasional Bhd.
The hydroelectric facility project carries a total contract value of RM 1.04 Bn (USD 235.50 Mn), with HeiTech Padu’s share amounting to RM 902.96 Mn (USD 204.54 Mn). This contract is expected to contribute at least 25% of the company’s net profit and net assets, marking a significant change in its business strategy. HeiTech Padu will provide further details on the diversification plan to Bursa Malaysia Securities Bhd in due course, as it aligns with Malaysia’s broader push toward renewable energy adoption.
TNB AND BHPETROL SOLIDIFY COLLABORATION WITH FIRST 200 KW DC EV CHARGING STATION
TNB Electron and BHPetrol have officially launched their first 200 kW DC fast charging station at BHPetrol Jalan Genting Klang 1, marking a significant step in their collaboration. This initiative aims to make EV charging more accessible to Malaysian drivers by leveraging the extensive 400-location BHPetrol retail network.
Additionally, two more 200kW TNB Electron high-powered charging stations are in the pipeline, reinforcing efforts to expand Malaysia’s EV infrastructure. The launch of the 200 kW DC fast charger at BHPetrol Jalan Genting Klang 1 is just the beginning of a broader effort between TNB Electron and BHPetrol to accelerate EV adoption in Malaysia. Currently, TNB Electron operates 11 public DC charging stations across Peninsular Malaysia.
As part of this collaboration, two additional 200 kW DC charging stations will be deployed at:
BHPetrol Karak
BHPetrol R&R Ladang Bikam (Northbound)
Both locations will be equipped with one charging unit featuring two CCS2 nozzles, allowing up to two EVs to charge simultaneously. These strategically positioned sites along major highways will improve access to long-distance EV travel, reducing range anxiety for Malaysian EV users.
The collaboration between TNB and BHPetrol is a strategic step that combines the expertise of both parties to provide a more extensive and accessible EV charging infrastructure. With this partnership, EV users in areas where BHPetrol stations are available can expect to access efficient and environmentally friendly charging facilities.
SJWD AND SWIFT PARTNER TO LAUNCH COLD STORAGE WAREHOUSE BUSINESS IN MALAYSIA
Thailand-based SCGJWD Logistics Public Company Limited (SJWD) and Swift Haulage Berhad (SWIFT) are joining forces to expand into the cold storage warehouse business in Malaysia. This strategic initiative aims to capitalize on the growing demand for cold chain logistics in the region and enhance SJWD’s ASEAN-wide service network.
The two companies will establish a joint venture company, Swift Cold Chain Sendirian Berhad, with SJWD holding a 49% stake and SWIFT holding 51%. This partnership will leverage SJWD’s expertise in cold storage warehousing and SWIFT’s strong presence in the Malaysian logistics market.
The joint venture plans to invest in three cold storage warehouse projects in Malaysia, with a combined floor area of over 30,000 square meters.
The first project, GVL Cold Chain, will be in the Shah Alam International Logistics Hub and is expected to be operational by Q1 2026. The investment budget is estimated at more than THB 287 Mn (USD 65.02 Mn).
The second project is in the planning process with the aim to invest in the construction of a cold storage warehouse with a floor area of approximately 10,000 square meters with a capacity of approximately 10,000 pallets of goods. This project will be in Johor Bahru in the south of peninsular Malaysia, bordering Singapore. Construction is expected to start in the first half of 2025.
The third project is in the investment planning stage and is anticipated to have a floor area of approximately 10,000 square meters.
MARCH 2025
MALAYSIA’S URBAN RENEWAL BILL AIMS FOR SUSTAINABLE CITY DEVELOPMENT
The proposed Urban Renewal Bill (URB) seeks to rejuvenate mature urban areas in Malaysia, promoting sustainable and structured city planning. The Government of Malaysia highlighted that limited vacant land in cities like Kuala Lumpur has led to suburban expansion, resulting in urban sprawl and increased carbon emissions. The URB aims to revitalise existing urban spaces, enhancing livability and facilitating convenient public transport access. This approach aligns with practices in countries such as South Korea, China, and Poland.
The government emphasised that urban renewal is intended to improve property values and living conditions without burdening current landowners. For instance, redevelopments like Kampung Kerinchi have seen property sizes and rental values increase, benefiting residents. The URB proposes lowering the consent threshold for redevelopment projects: 75 % for buildings over 30 years old, 80 % for those under 30 years, and 51 % for abandoned buildings. This legislative effort aims to address urban decay and ensure sustainable development.
CELCOMDIGI PARTNERS WITH JOMCHARGE AND CHARGEV TO EXPAND EV CHARGING IN MALAYSIA
CelcomDigi Berhad has announced a strategic collaboration with Malaysia’s EV charge point operators, JomCharge and Yinson Greentech’s chargEV, to accelerate the expansion of EV charging infrastructure. Under the initiative, over 100 EV charging points will be installed in commercial, residential, and public areas by the end of 2025.
The government emphasized the need to enhance accessibility to EV charging points as the EV market in Malaysia continues to grow. This initiative aligns with the company’s environmental and climate goals while integrating connectivity and green technology solutions into daily life.
KUALA TERENGGANU DRAWBRIDGE BECOMES WORLD’S FIRST TO OPERATE ON 98 % SOLAR ENERGY
The Kuala Terengganu Drawbridge has become the first bridge in the world to operate with 98 % solar energy in Malaysia. Connecting Tanjung in Kuala Terengganu city centre with Seberang Takir, the bridge is now registered under the Green Energy Tariff and certified by the International Tracking Standard Foundation. The transition to solar energy aligns with Malaysia’s environmental and sustainability goals, enhancing Kuala Terengganu’s reputation as a global tourism destination.
The bridge consumes 176 MW of electricity annually for the north tower and 294 MW for the south tower. To ensure efficient operations, TI Properties Sdn Bhd, a subsidiary of Terengganu Incorporation, has been appointed as the official operator. The integration of renewable energy further positions Malaysia as a leader in green infrastructure.
KJTS AND STONEPEAK JV TO DEVELOP MYR 1.5 BN DISTRICT COOLING PROJECTS
KJTS Group Bhd and US-based Stonepeak have announced a joint venture (JV) to develop district cooling projects in Malaysia, with an initial capitalisation of MYR 1.5 Bn (USD 339.33 Mn). The partnership aims to invest in district cooling and electricity distribution assets, addressing Malaysia’s growing energy efficiency needs amid rapid urbanisation and data centre expansion.
District cooling can cut energy consumption by up to 50 % compared to traditional systems, making it a key component of national climate action plans. The JV targets a MYR 2 Bn (USD 452.40 Mn) annual project deployment market. Legal counsel for the deal included Skrine for KJTS and Linklaters LLP with Rahmat Lim & Partners for Stonepeak. The transaction is set to close in Q1 2025.
WHB’S 1.2 GW PULAU INDAH POWER PLANT IN MALAYSIA BEGINS OPERATIONS
Worldwide Holding Berhad (WHB), a state-linked company of Selangor in Malaysia, has commissioned the 1.2 GW Pulau Indah power plant in the country. The facility, situated approximately 60 km from Kuala Lumpur, is powered by GE Vernova’s 9HA.01 combined cycle technology. It can generate enough electricity to power around 2.5 Mn homes in Malaysia.
Under a 21-year agreement, GE Vernova will provide maintenance services and software solutions aimed at enhancing the plant’s asset visibility, reliability, and operational availability. The plant features a modular design that simplifies installation, control, and maintenance, facilitating quicker project execution.
The Pulau Indah plant is equipped with two 9HA gas turbines, designed for flexibility with high ramp rates and rapid startup capabilities to accommodate varying energy demands. These turbines can also utilise a hydrogen blend of up to 50 % by volume with natural gas, aligning with Malaysia’s shift towards cleaner energy sources.
Natural gas is increasingly favoured for electricity generation in Malaysia due to its lower carbon emissions compared to coal and its operational flexibility. The Pulau Indah facility includes two 600 MW blocks, each comprising a 9HA.01 gas turbine, an STF-D650 steam turbine, a W88 generator, and a Once Through Heat Recovery Steam Generator (OT HRSG).
NESTLE INVESTS RM 250 MN ON WORLD-CLASS LOGISTICS HUB IN PORT KLANG
Nestle (Malaysia) Bhd is investing RM 250 Mn (USD 56.41 Mn) in an integrated logistics hub in Port Klang, Selangor, to facilitate the export of its products and sourcing of imported raw materials. The project is its broader strategy to enhance supply chain efficiency and sustainability while supporting the local economy through job creation and infrastructure development. Expected to be fully operational by Q1 of 2026, the hub will feature a modern warehouse and a container yard, leveraging economies of scale and digitalisation. The new logistics hub will incorporate cutting-edge technology and sustainable innovations, contributing also to reducing the environmental impact of Nestlé's logistic operations.
This includes a four-way shuttle automated storage and retrieval system (ASRS) to enhance warehouse safety and productivity. Additionally, the facility will be housed within a Zero Carbon Certified building, powered by solar energy, and equipped with electric trucks to manage container movements. The initiatives are expected to reduce Nestlé's carbon footprint by over 500 tonnes of carbon dioxide emissions annually.
IB VOGT ACHIEVES FIN CLOSE ON 30-MW SOLAR PROJECT IN MALAYSIA
German solar developer IB vogt GmbH has achieved financial close and launched the construction of a 30-MW solar project in northwest Malaysia’s Kedah state. The project was developed by IB vogt APAC under Malaysia’s Corporate Green Power Programme (CGPP) and is the first one under the initiative to enter the construction phase.
The photovoltaic (PV) farm will be in the town of Sungai Petani, Kuala Muda District, and will be equipped with bifacial modules and single-axis trackers. Once in operation, it is expected to generate electricity that will help offset roughly 55,380 tonnes of carbon dioxide emissions annually. The output will be sold under a long-term power purchase agreement (PPA) with Asia Pacific hyperscale data centre operator AirTrunk, backing its goal of matching 100% of the electricity consumption at its facilities with renewable energy by 2030.
The project is expected to support Malaysia’s efforts to lift the share of renewable energy capacity in its total power generation mix to 70% by 2050.
List of key transactions - Malaysia Q1 2025
Source: YOG INFRA analysis
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