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Infrastructure & PPPs in Malaysia - Q2 2022 Update

YOG INFRA Q2 2022 insight series

MALAYSIA's infrastructure development is seeing a focus on clean energy transition, with local companies (including government owned companies) taking bold steps for developing new technologies. These include new project announcements in areas of rooftop solar, floating solar, battery storage, hydrogen etc. However, there is a notable lack of interest and investment by international players in the country, and it remains to be seen if any partnerships evolve for upcoming projects.

Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight series

 

April 2022

MALAYSIAN UTILITY TENAGA SIGNS RENEWABLES PACT WITH PROPERTY DEVELOPER

Malaysian power utility Tenaga Nasional has partnered with domestic real estate firm S P Setia to provide renewable energy for its upcoming properties in the country.

Tenaga's renewables unit will install rooftop solar, as well as develop battery energy storage for residential and commercial projects. It will also set up an electric vehicle charging infrastructure.

Kuala Lumpur-listed S P Setia has a development pipeline valued at MYR 4 Bn (USD 946 Mn) for this year and aims to have renewable energy as the main source of power for a majority of its buildings.


MALAYSIA'S YTL TO DEVELOP 500 MW DATA CENTER PARK

A unit of Malaysian infrastructure conglomerate YTL Power International will develop a 500 MW green data centre park in Johor state. YTL Green Data Centre Park - proposed facility will run on solar power - will be spread over 275 acres of land in the Iskandar region of Johor. The project will also have dark fibre connectivity to Singapore and to other parts of Malaysia.

The facility will be built in multiple phases. It will have an IT capacity of 72 MW and is expected to start operations in the first quarter of 2024.

It’s Singapore-based data center unit acquired a 12.5 MW data center on the island. The company is expanding a 5 MW data center in Sentul, Kuala Lumpur, and plans to develop data center campuses across Thailand, Philippines, Indonesia and Vietnam.


MALAYSIA’S PNB TARGETS USD 2.3 Bn GREEN INVESTMENTS

Malaysia’s Permodalan Nasional (PNB) will invest MYR 10 Bn (USD 2.33 Bn) in green and transition assets by 2030 as part of its new sustainability framework comprising environmental, social, and governance commitments.

The state-backed fund manager has also committed to becoming a net zero enterprise by 2025 and achieving a net zero portfolio by 2050. PNB has close to MYR 300 Bn in assets under management.


FEASIBILTY STUDIES TO BE CONDUCTED ON 150 MW ON FLOATING SOLAR FARM IN MALAYSIA

Shizen Energy Incorporated and the Nusa Baiduri Consortium, comprising Shizen Malaysia Bhd and Nusa Baiduri Sdn Bhd, have signed a memorandum of understanding (MoU) to conduct a feasibility study for a 150 MW floating solar project in Malaysia. Shizen Malaysia Sdn Bhd will be in charge of the study.The feasibility study will last 12 months and if it provides a favourable result, the project will be executed in two phases.

The floating solar park will be located on the Durian Tunggal Dam in Melaka state. Once operational, renewable energy (RE) generated at the facility will be sold to Syarikat Air Melaka Bhd (SAMB).


May 2022

SCIB TO UNDERTAKE ROAD PROJECT IN SARAWAK

Masama Sdn Bhd has awarded Sarawak Consolidated Industries Bhd (SCIB) a RM 38 million engineering, procurement, construction and commissioning contract to undertake a road construction project in Sarawak, Malaysia. The proposed road will connect Baleh Bridge, RH Belaja, Ng Benin, SK Ng Pelagus and Pelagus Resort in Kapit.

The contract period of 10 months and will end in March 2023. The project is part of Package 2 of Road Infrastructure Projects in Pelagus and Baleh.


TELLHOW TO FINANCE AND BUILD 45 MW MALAYSIAN HYDRO PLANT

Tellhow International Engineering’s Malaysia unit plans to build and finance a 45 MW hydropower plant. The state-backed Chinese engineering company has signed an agreement with Kuala Lumpur-based KPower Engineering for the project, which will be located in the Cameron Highlands of Pahang state, Malaysia.

The hydropower project has secured a renewables power purchase agreement with state utility Tenaga Nasional Berhad. The company, based in central Jiangxi province, has also signed an engineering, procurement and construction agreement with KPower to build a 29.1 MW hydropower project in Kota Marudu district of Sabah state.

The project has a target commissioning date of early 2023.The project has a first phase capacity of 40 MW and second of 12 MW. In 2020, it signed an EPC plus financing agreement to build the 30 MW Baloi gas power project with an estimated value of USD 30 Mn.


June 2022

GOVERNMENT OF SARAWAK ALLOCATES RM 190 MN FOR ROAD UPGRADATION PROJECT

The Government of Sarawak has allocated around RM 190 million to upgrade and widen roads in the Malaysian state. Smart street lightning will be installed along the upgraded stretch to improve traffic regulations. Existing roads in the state have been prone to peak hour congestion since the completion of the Sibu-Kapit Road in 2020. Additionally, RM 105 million has been allocated for the construction of a road to connect Ulu Sungai Katibas with Sungai Bakit.

The state government has also announced plans to construct a 30 km electricity grid project from Kapit to Tunoh. The project is estimated to cost around RM 58 million.


PETRONAS LAUNCHES CLEAN ENERGY PLATFORM IN MALAYSIA

Petroliam Nasional Bhd (Petronas) has launched its new clean energy platform that will provide renewable energy (RE), hydrogen and green mobility solutions in Malaysia and the Asia Pacific (APAC) region.

The platform is called Gentari Sdn Bhd and will focus on the supply, distribution and retail of clean energy through a portfolio of RE plants, mostly solar, the capacity of which is planned to reach between 30 GW and 40 GW by the end of 2030. Apart from solar, the target portfolio will also include wind and battery storage. Currently, the company owns over 1 GWp of solar assets.

In the electric vehicles (EVs) sector, the platform will provide green mobility solutions through an existing network of 170 charging with a goal of gaining a 10 per cent market share across key markets in APAC.

 

List of key transactions - Malaysia Q2 2022



Source: Inframation, YOG INFRA analysis

 

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