YOG INFRA Q3 2024 insight series
MALAYSIA is seeing development of large clean energy transition projects, across EV charging infra, rooftop and utility-scale solar, bioenergy etc. There are significant investments being made by international developers predominantly through JVs with local Malaysian counterparts. We also see a growing focus on urban mobility through use of EVs in private, commercial and public transport as well as associated EV charging infrastructure.
Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.
JULY 2024
MALAYSIA’S IJM LAND AND PROGRESSTURE SIGN SOLAR ENERGY
The property unit of Malaysian construction company IJM Corp has signed a memorandum of understanding (MoU) with Progress Ture Power to explore the potential deployment of solar energy of up to 40 MW, namely
25 MW in solar rooftop systems at residential developments
Floating solar farm with a capacity of 15 MW spread across 15.2 hectares at IJM Rimbayu.
This initiative is projected to significantly reduce carbon dioxide emissions, amounting to 40,997 tonnes annually and over 1 Mn tonnes over the next 25 years. The collaboration will also introduce an Energy-as-a-Service (EaaS) approach, offering end-to-end management of energy assets and services for homeowners within IJM Land’s townships.
MALAYSIA TOLL ROADS OPERATOR PARTNERS PETRONAS UNIT FOR HYBRID STATIONS
Malaysian toll roads investor PLUS Malaysia Berhad (PMB) and Petronas Dagangan are partnering to build the country's first lot of commercial hybrid fuel stations near expressways. The pilot project will be in Klang Valley and will include fuel stations, electric vehicle charging units and better public amenities.
These innovative stations will be a one-stop shop and will offer a comprehensive range of services:
Large-scale petrol and diesel stations: Catering to traditional vehicles.
Fast-charging stations: Catering to electric vehicle (EV) drivers, enabling quick and convenient charging during their journeys.
Improved public amenities: Enhanced facilities for a more comfortable rest stop experience.
SINGTEL AND TELKOM MALAYSIA ANNOUNCE 64 MW DATA CENTRE
Singtel’s data centre arm will jointly build a 64 MW project with Telkom Malaysia (TM) in Malaysia's Johor province. The planned facility inside a data centre campus - in the Johor-Singapore Special Economic Zone - is scheduled to start operating in 2026. Its capacity can be expanded to as much as 200 MW. The partners aim to also expand submarine cable connectivity for the data centre campus.
TM currently operates seven data centres across Malaysia with two core facilities located in Klang Valley and Johor. It is also part of the Asia Link Cable Systems (ALC) partnership, a 7,200km, 24 Tbps cable. The cable’s landing station will be located at the TM Exchange Kuala Sedili in Johor.
Singtel’s data centre portfolio currently comprises 62 MW of existing capacity in Singapore, while the company is building a new 58MW data centre known as DC Tuas. The company has also partnered with Telkom and Medco Power in Indonesia as well as Gulf Energy and AIS in Thailand to develop data centres in Batam and Bangkok respectively. The portfolio will deliver a total combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200 MW.
PARTNERS TO DEVELOP 1 GW RENEWABLE ENERGY PROJECT IN MALAYSIA
Malaysia-based Solarvest has partnered with Taiwan-based Green Rock Energy to develop 1 GW of renewable energy (RE) projects in both countries over the next five years. These projects will align with the government of Malaysia’s goal of achieving 40% green energy by 2035.
The government has also launched the LSS5 large-scale solar program, adding 2 GW of RE capacity. This complements the National Energy Transformation Policy (NETR), which includes various measures such as energy efficiency, RE zones, and green hydrogen. Further, the government also plans to adopt a third-party access mechanism and establish a RE trading centre to facilitate cross-border renewable energy exports and accelerate the energy transition in Southeast Asia.
Despite the complexity and intense competition of local green energy policies, Green Rock is confident that its collaboration with solarvest will overcome these challenges through their combined expertise and technological advantages. Solarvest is Malaysia’s largest publicly listed solar company by its market value and as of March 2024, solarvest had achieved 1.2 GW of regional projects, with 440 MW of projects under construction and 348 MW of solar assets.
PLANS ANNOUNCED TO BUILD ROADS FOR SEA TRANSPORTATION SYSTEM IN MALAYSIA
The State Government of Melaka has announced plans to construct four (4) new roads to enhance its sea transportation system in Malaysia. These roads will connect various ports and jetties, including the Tanjung Bruas port in Tanjung Kling, the KMB jetty, and new ports in the Straits of Melaka Waterfront Economic Zone (SM-WEZ).
First project involves building a new road and upgrading the existing route from the Bukit Rambai Industrial Park junction to Tanjung Bruas Port, with an expected cost of RM 428.37 Mn (USD 0.96 Mn) under Rolling Plan 1 (RP1) of the 13th Malaysia Plan (RMK13).
Second initiative is the proposed Coastal Highway Project, which will span the Alor Gajah and Melaka Tengah districts, covering a road length of 52.3 km at an estimated cost of RM 3.622 Bn (USD 827 Mn). Phase 1 of the Coastal Highway Project, included in RP5 of RMK12, involves constructing a four-lane road from Hatten City to Semabok, with a budget of RM 500 Mn (USD 1.12 Mn).
Third project is to upgrade Jalan Tun Hamzah from the Road Transport Department junction to the Alor Gajah-Melaka Tengah-Jasin (AMJ) Semabok junction; and the same has been approved under RP3 of RMK12, with a budget of RM 300 Mn (USD 0.67 Mn). This project is currently in the road design phase by the Public Works Department.
Fourth project is in the Linggi Port area, where the state aims to construct a road from Kuala Linggi to Ayer Molek in Masjid Tanah, with a budget of RM 125 Mn (USD 0.28 Mn) approved under RP4 of RMK12.
SHELL RECHARGE LAUCHES MALAYSIA’s LARGEST EV CHARGING STATION
Shell Recharge has launched Malaysia’s largest electric vehicle (EV) charging station in Genting Highlands, Pahang. The hub offers ten charging spots, including two 360 kW DC chargers shared by four bays and three 22 kW AC chargers shared by six bays. Each 360-kW charger can deliver a maximum rate when one car is plugged in, but when two cars are using it, the rate adjusts to 270 kW and 90 kW, respectively.
There is a reservation fee of MYR 10 (USD 2.41) for the 360 kW DC chargers and MYR 8 (USD 1.92) for the 22 kW AC chargers, which is waived if the reserved bay is claimed within 10 minutes. In addition to the new sky-high EV charging hub, Shell Recharge offers one of the longest cross-country high-performance charging (HPC) networks in Southeast Asia, linking Thailand, Malaysia, and Singapore. In Malaysia specifically, it has 22 HPC charging points at 11 locations along highways.
PETRONAS REACHES FINAL INVESTMENT DECISION ON MALAYSIAN BIOREFINERY
Petroliam Nasional (Petronas), Eni-controlled Enilive, and Euglena have reached a final investment decision to develop a biorefinery in Malaysia's Johor province. The partners will construct and operate the facility, which will be majority owned by Enilive and Petronas Mobility Lestari. It will be based within Petronas’ Pengerang Integrated Complex.
Targeted to be operational by the Q3 of 2028, the biorefinery will produce sustainable aviation fuel and other biofuels. Construction is scheduled to begin in the Q4 in 2024. The construction of the biorefinery is expected to begin in the Q4 in 2024, and upon completion, will have the capability to process about 650,000 tonnes per year of raw materials to produce SAF, HVO, and bio-naphtha.
The purpose-built new biorefinery is designed to have full flexibility both in terms of feedstocks processability, with state-of-the-art Eco fining and pre-treating unit, and products, with a configuration capable of maximizing the production of SAF for aircraft as well as HVO.
AUGUST 2024
PLANS ANNOUNCED TO CONSTRUCT THE SECOND MALAYSIA–THAILAND BRIDGE
The Governments of Malaysia and Thailand have announced plans to construct a second bridge to connect their territories. The proposed bridge is expected to start construction in April 2025 and is expected to be completed by 2027.
The project will include the creation of business opportunities, such as stalls, small shops, and enhanced commercial spaces, aimed at boosting local businesses in Kelantan, Malaysia, and Narathiwat, Thailand. Once the second bridge is completed, plans are in place to upgrade the existing bridge, which has served as a connection between the two countries since 1971. The cost of its construction will be shared between Thailand and Malaysia. Measures will also be taken for the Golok River estuary to reduce problems in the area with flooding that occur during the monsoon period.
MITSUBISHI POWER SECURES CONTRACT FOR 500 MW GTCC POWER PLANT IN SARAWAK
Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries, has secured a contract to supply advanced gas and steam turbines for a new 500 MW gas turbine combined cycle (GTCC) power plant in Sarawak, Malaysia. The contract, signed with Sinohydro Corporation, includes the M701F gas turbine, capable of co-firing up to 30% hydrogen. The plant, owned by PETROS Power, a subsidiary of Petroleum Sarawak Bhd, will be in Miri in Northern Sarawak.
Mitsubishi Power will also provide auxiliary equipment and technical support for installation and commissioning. This project is part of Sarawak’s broader strategy to enhance energy security and support economic growth under the Sarawak Gas Roadmap, aiming to transform the state into a high-income region by 2030.
Mitsubishi Power has also secured a Long-Term Service Agreement (LTSA) with PETROS to ensure the stable operational performance of the power plant following its commercial operation. The generators for the power plant will be manufactured by Mitsubishi Generator Co., Ltd., which was formed on April 1, 2024, through the integration of MHI and Mitsubishi Electric Corporation's power-generator systems businesses.
MY E.G. SERVICES AND PARTNERS TO ENHANCE DIGITAL INFRASTRUCTURE IN MALAYSIA
MY E.G. Services Bhd (MYEG) has partnered with MIMOS Bhd, the Worldcoin Foundation, and Tools for Humanity (TFH) to enhance digital infrastructure in Malaysia. This partnership aims to integrate Worldcoin’s advanced credential verification technology into Malaysia’s Blockchain Infrastructure (MBI).
This collaboration builds on a memorandum of understanding (MoU) signed between MYEG and MIMOS, which laid the foundation for the MBI. The partnership is expected to transform Malaysia’s digital economy by improving the security, efficiency, and scalability of digital ecosystems and blockchain applications. MIMOS will provide the technical backbone for the initiative, while the Worldcoin Foundation will ensure the benefits of digital transformation. Meanwhile, MYEG will integrate these digital innovations into existing public services, enabling more secure and convenient access for citizens.
MOU SIGNED TO FORMALISE COLLABORATION ON THE ECRL LAND BRIDGE IN MALAYSIA
Kuantan Port Consortium, Northport, and Malaysia Rail Link (MRL) have signed a memorandum of understanding (MoU) to formalise their collaboration on the East Coast Rail Link (ECRL) land bridge, connecting Kuantan Port to Port Klang in Malaysia. This partnership aims to enhance connectivity, streamline cargo transfer, and improve efficiency between the two ports.
The collaboration also focuses on human capital development by exchanging technical expertise to address industry challenges and improve operational capabilities. The ECRL land bridge is expected to cut cargo vessel travel time by up to 2.5 days and is scheduled for full completion in December 2027.
ECRL, administered and implemented by MRL, is a 665-km electrified railway link infrastructure project that connects Kota Bharu in Kelantan to Port Klang in Selangor, bridging the East Coast and West Coast of Peninsular Malaysia. Primarily a cargo route, the ECRL focuses on optimizing rail use with 70% capacity for freight and 30% for passengers, emphasizing industrial parks, logistics hubs and transit-oriented developments.
PARTNERS TO ADVANCE SOLAR POWER SOLUTIONS IN MALAYSIA
AGAPE ATP Corporation (ATPC) has partnered with ATPC Green Energy Sdn Bhd, a subsidiary of Phoenix Green Energy Sdn Bhd (PGE) to advance solar power technologies in Malaysia.
The collaboration focuses on developing and marketing solar products such as amorphous thin-film panels, contributing to Malaysia’s transition to sustainable energy. This alliance reflects ATPC’s commitment to expanding its green energy portfolio and enhancing its Environmental, Social, and Governance (ESG) practices. Both companies aim to drive innovation in the solar energy sector, lower carbon emissions, and support the country’s renewable energy (RE) goals.
SEPTEMBER 2024
SHIZEN ENTERS PARTNERSHIP TO EXPLORE THE DEVELOPMENT OF GROUND-MOUNTED SOLAR PROJECTS IN MALAYSIA
Shizen International, a subsidiary of Shizen Energy Group, has signed a memorandum of understanding (MoU) with Terengganu Incorporated Sdn Bhd (Terengganu Incorporation) to explore the development of ground-mounted solar power projects in Terengganu, Malaysia.
The partnership aims to advance green technology initiatives and enhance state revenue through the green economy. Shizen International and Terengganu Incorporation plan to contribute to the state’s ESG goals, including achieving a 35% renewable energy (RE) capacity mix by 2025, promoting clean energy use and local socio-economic development.
This initiative not only promises positive environmental impacts and reduced carbon emissions but also promotes clean energy use while boosting our support towards the local economy and surrounding communities.
List of key transactions - Malaysia Q3 2024
Source: YOG INFRA analysis
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