Infrastructure & PPPs in Malaysia - Q3 2026 Update
MALAYSIA is accelerating its digital transformation, clean energy transition, and infrastructure modernization through a combination of green financing and state-backed tendering. Digital infrastructure remains a major focus, highlighted by multi-billion-dollar green financing for hyperscale data centers in Johor, including AirTrunk's USD 2.32 Bn facility and STT GDC's USD 1.37 Bn campus. The country is also advancing its clean energy capabilities via the USD 3.7 Bn Large-Scale Solar 6 programme and the 100 MW Santong battery energy storage system. These initiatives, alongside civil upgrades like the USD 2.7 Bn Sarawak road development programme, reinforce Malaysia's commitment to sustainable growth, regional connectivity, and advanced manufacturing.
Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.
JULY 2026
SUNGROW COMMISSIONS MALAYSIA’S FIRST GRID-FORMING 100 MW/400 MWH BATTERY ENERGY STORAGE SYSTEM
Sungrow has commissioned the 100 MW/400 MWh Santong Battery Energy Storage System (BESS) in Terengganu, marking Malaysia’s first grid-forming, grid-connected utility-scale battery energy storage project. Developed and owned by Tenaga Nasional Berhad (TNB), the project is designed to enhance grid resilience, improve system stability and support the integration of renewable energy into Malaysia’s national electricity network.
Sungrow supplied 90 units of its PowerTitan 2.0 liquid-cooled energy storage system together with its Facility Energy Management System (FEMS) to enable intelligent energy dispatch and flexible grid support. The Santong BESS is designed to achieve a first-year round-trip efficiency of 88% and supports both grid-following and grid-forming operating modes. The system also incorporates advanced grid services, including Fast Frequency Response (FFR), voltage and reactive power control, rapid active power ramping and black start capability, enabling the restoration of grid operations following a complete power outage without an external power source.
The project was delivered on an accelerated schedule and established one of Malaysia’s fastest battery energy storage grid connection timelines. The 100 MW full-power discharge test was successfully completed, and the project is expected to provide grid support equivalent to the electricity demand of approx. 40,000 households across Malaysia’s East Coast. The commissioning represents a significant milestone in Malaysia’s efforts to modernise its electricity infrastructure and expand utility-scale energy storage as part of its clean energy transition.
MALAYSIA LAUNCHES USD 2.1 MN PROGRAMME TO MODERNISE TAXI INDUSTRY
The Government of Malaysia has launched a MYR 10 Mn (USD 2.1 Mn) National Madani Taxi Rejuvenation programme to modernise the country’s taxi industry through fleet renewal, digitalisation and driver support. The initiative introduces the Proton S70 as the country’s new official taxi model and aims to improve service quality while increasing drivers’ earnings. Selected financial institutions will provide low-interest financing to help taxi drivers purchase new vehicles and own individual taxi permits.
The programme also includes digital skills training to help drivers adopt app-based booking and cashless payment technologies. Government agencies will conduct on-site training at taxi stands to minimise disruptions to drivers’ daily income. In addition, the government has reinforced a policy that taxi permits remain registered under individual drivers, preventing ownership concentration among wealthy investors and safeguarding drivers’ long-term livelihoods.
The initiative forms part of Malaysia’s broader effort to revitalise the taxi sector through lower vehicle ownership, maintenance and financing costs. The government estimates the programme could increase drivers’ monthly earnings from around MYR 4,000 (USD 981.11) to between MYR 5,000 (USD 1226.39) and MYR 7,000 (USD 1716.95) while creating a more modern, efficient and technology-enabled taxi service for passengers.
MAHB, MITSUI FUDOSAN TO DEVELOP USD 19.66 MN SUBANG AIR CARGO LOGISTICS COMPLEX
Malaysia Airports Holdings Bhd (MAHB) and Mitsui Fudosan Group will undertake an RM 80 Mn (USD 19.66 Mn) investment to develop a new air cargo logistics complex, with MAHB holding a 30% stake and Mitsui Fudosan owning the remaining 70%. The partnership is part of MAHB’s strategy to leverage its airport land assets by combining them with the expertise of strategic partners in developing and operating logistics complexes.
The project, a new industrial development within the Subang Aerotech Park, is being developed by MFMA Industrial Sdn Bhd, a joint venture between Mitsui Fudosan (Asia) Malaysia Sdn Bhd and Malaysia Airports (Subang) Sdn Bhd. The facility is a strategic investment aimed at supporting the growth of aviation and aerospace-related businesses within the Subang Airport area.
The government is intensifying efforts to strengthen the country's air cargo sector by expanding operational capacity at several key airports, including the Kuala Lumpur International Airport (KLIA) and Kota Kinabalu International Airport (KKIA).
Built on a 1.78-hectare site within the Subang Aerotech Park, the new MAHB-Mitsui Fudosan facility will provide approx. 254,420 sq ft of gross floor area and offer multiple tenancy options to cater to varying operational requirements.
Strategically located within the Subang Airport area, the development will provide convenient access to established aerospace, aviation and logistics operators across the Klang Valley. The project is expected to be completed in the Q3 of 2027, with operations scheduled to commence in Q4 2026.
GENTARI COMMISSIONS 3.1 MWP SOLAR PV SYSTEM AT KLIA2 TO ADVANCE MALAYSIA’S CLEAN ENERGY TRANSITION
Malaysia-based clean energy company Gentari, through its subsidiary Gentari Renewables Sdn Bhd, has completed the installation of a 3.1 megawatt-peak (MWp) solar photovoltaic (PV) system at Kuala Lumpur International Airport 2 (KLIA2). The project represents another step in the adoption of renewable energy across Malaysia’s transport infrastructure and supports the country’s National Energy Transition Roadmap (NETR) and long-term decarbonization objectives.
The solar power system has been deployed under a power purchase agreement and will supply renewable electricity to gateway@klia2, the retail and lifestyle complex located within the airport. The facility is operated by Segi Astana Sdn Bhd, a joint venture between WCT Holdings Berhad and Malaysia Airports Holdings Berhad (MAHB), while WCT Malls Management Sdn Bhd manages its retail operations.
The installation includes around 5,212 solar panels spread across approx. 10,500 square meters of rooftop and car park areas. Once fully operational, the system is expected to generate about 4,277 megawatt-hours (MWh) of clean electricity every year. It is also projected to reduce annual carbon emissions by nearly 3,310 metric tons of carbon dioxide equivalent (tCO₂e), contributing to lower greenhouse gas emissions from airport operations.
MALAYSIA LAUNCHES SIXTH LARGE SCALE SOLAR TENDER
Malaysia has launched its sixth large-scale solar programme (LSS6), targeting MYR 13 Bn (USD 3.2 Bn) to MYR 15 Bn (USD 3.7 Bn) in private investments. LSS6 will be implemented through three packages. The first package will comprise an open tender for all developers involving 2.2 GW of solar and 1.1 GW of battery energy storage system (BESS) capacity.
The second package will be an open tender for Bumiputera companies in Peninsular Malaysia and involve 300 MW of solar and 150 MW of BESS capacity. The third package will be a Bumiputera solar programme offering 150 MW of solar capacity without BESS.
The programme is scheduled to be commissioned in phases, with commercial operations targeted by 31 December 2029.
The request for proposal (RFP) documents for the first and second packages will be available from 27 July to 7 August 2026, while RFP documents for the third package will be available from 17 August to 28 August.
ADB COMMITS USD 75.8 MN TO MALAYSIA’S FIRST DATA CENTER SUKUK
The Asian Development Bank (ADB) has committed up to MYR 300 Mn (USD 75.8 Mn) to an Islamic bond (sukuk) issued by Sime Darby Property NEV (Holdings) Sdn Bhd to advance Malaysia’s digital infrastructure. Marking ADB’s inaugural investment in Islamic finance, the proceeds will fund energy-efficient, sustainable data centers at Elmina Business Park near Kuala Lumpur. Additional commitments from Maybank Islamic Berhad and OCBC Al-Amin Bank Berhad, alongside a partial guarantee from the Credit Guarantee & Investment Facility, further support the issuance.
Structured under a private equity real estate fund, the initiative combines green Islamic financing with institutional private equity to support Malaysia’s national roadmap for digital transformation. Qualifying as a green instrument under international sustainable bond standards, the project aligns with the country's objective to expand cloud services and attract high-tech investments. Beyond direct capital investment, ADB served as the joint sustainability structuring advisor through its GSS+ Initiative to help establish the developer's green finance framework.
This transaction forms part of ADB’s broader commitment to mobilise USD 20 Bn by 2035 for digital infrastructure, artificial intelligence, and regional digital corridors across Asia and the Pacific. The project also contributes to ADB’s USD 6 Bn effort aimed at deepening Southeast Asian capital markets and expanding Shariah-compliant financing. By backing scalable, sustainable data assets, the initiative strengthens Malaysia’s position as a regional digital economy hub while reinforcing disciplined capital management in real estate development.
MALAYSIA LAYS THE GROUNDWORK FOR A NATIONAL GREEN HYDROGEN ECOSYSTEM
Malaysia is actively developing a comprehensive standards framework to guide the growth and regulation of its emerging hydrogen industry. Spearheaded by the Ministry of Science, Technology and Innovation, this initiative will oversee the entire hydrogen value chain and implement crucial certification schemes, including guarantees of origin. The government is heavily focused on reinforcing all related standards, regulations, and legislative measures to establish a solid foundation for the sector. These foundational efforts aim to ensure a standardized, secure, and globally compliant clean energy market.
The advancement of the country's green hydrogen capabilities is strategically coordinated through the Hydrogen Economy and Technology Roadmap spanning from 2023 to 2050. This long-term roadmap provides a clear, actionable direction for comprehensive sector governance, technological advancement, and specialized talent development. These coordinated measures are specifically designed to align seamlessly with broader national energy policies while supporting the sustainable expansion of the green hydrogen market. Ultimately, this creates a unified, national approach to building a robust clean energy ecosystem.
Major regional projects are already underway, most notably the Green Hydrogen Hub in Tasik Kenyir, which targets a massive annual production of up to 2.5 million tonnes by 2050. Additionally, the industry's specialized value chain is rapidly expanding into Kertih, which is designated to function as a primary production hub for green fuels and products. Meanwhile, facilities in Pengerang are being strategically optimized to concentrate on manufacturing sustainable aviation fuel and hydrotreated vegetable oil. These specialized hubs represent a significant collaborative push by major energy corporations to scale up the nation's green output.
MALAYSIA'S SIME DARBY PROPERTY LAUNCHES FINANCING FOR DATA CENTRE, LOGISTICS ASSETS
Sime Darby Property NEV has launched a USD 556 Mn (RM 2.6 Bn) Sukuk Programme to finance industrial assets and hyperscale data centers. This initiative notably includes the world's first Green Sukuk specifically designed for hyperscale data facilities. A major portion of the funds will support the creation of custom-built data centers located at Elmina Business Park. These state-of-the-art facilities are slated for completion in 2027. Additionally, they are already secured by a comprehensive 20-year lease agreement with a multinational technology corporation.
Beyond data centers, the financial proceeds will also facilitate the construction of a specialized automated distribution warehouse within the City of Elmina. This logistics asset is targeted to be fully operational by the end of 2027. It is anchored by a solid 15-year lease arrangement with a prominent local hypermarket operator. To ensure alignment with international sustainability standards, the company established a dedicated Green Finance Framework for this issuance. This framework successfully achieved a prestigious Gold impact assessment from Marc Solutions for meeting strict green finance criteria.
This financial strategy represents a major milestone in expanding the company's recurring income and new economy ventures. The firm is recognized as the first Malaysian developer to successfully combine Islamic financing with an institutional real estate private equity structure. This approach strongly reinforces their ongoing dedication to sustainable development and disciplined capital management. Ultimately, the initiative solidifies the developer's competitive position within the rapidly expanding digital economy while delivering high-quality assets for global technology operators.
VCI GLOBAL LAUNCHES SOVEREIGN AI CLOUD PLATFORM IN MALAYSIA
VCI Global Limited has launched V Gallant AI Neo Cloud (VGAIN Cloud), a sovereign artificial intelligence (AI) cloud platform in Malaysia through its wholly owned technology subsidiary, V Gallant Limited. The platform is designed to provide post-quantum-ready encryption and high-performance computing capabilities for enterprises, government-linked organizations, financial institutions, and other regulated industries handling sensitive data and mission-critical workloads. The launch is supported by a planned first-phase investment of USD 6 Mn to deploy NVIDIA Blackwell-class GPU and Intel-powered CPU systems across selected locations in Selangor and Kuala Lumpur.
The company has established its first VGAIN Cloud flagship facility in Selangor, which will serve as the initial commercial onboarding, demonstration, and deployment hub. The platform is designed to scale to up to 1,000 NVIDIA Blackwell-class GPUs, subject to customer demand, hardware availability, site conditions, and project economics. The first deployment phase, expected to be completed over approx. 18 months, is being implemented in partnership with Omnia Nexus Group and will support applications including agentic AI, private large language models (LLMs), AI inference, confidential data processing, cybersecurity, and enterprise automation.
VCI Global plans to expand the platform across selected locations in Kuala Lumpur using a distributed AI compute pod strategy to bring AI computing capacity closer to enterprise customers and support localized AI workloads. The company expects growing demand for AI computing, sovereign cloud infrastructure, and secure data processing in Malaysia and Southeast Asia to drive adoption of the platform, which is intended to provide scalable AI infrastructure for enterprises operating in regulated and data-sensitive environments.
MALAYSIA AWARDS USD 44.08 MN CONTRACT FOR JOHOR–SINGAPORE VEHICLE ENTRY PERMIT SYSTEM
Malaysia’s Ministry of Transport has awarded a USD 44.08 Mn (MYR 178.29 Mn) contract to Integriti Padu Sdn Bhd to develop, operate and maintain the Road Charge/Vehicle Entry Permit (RC/VEP) system at the Malaysia–Singapore border. The six-year contract was awarded on May 26, 2026, following a request for proposals issued in June 2025. The RC/VEP system is designed to regulate foreign-registered vehicles entering Malaysia and improve the enforcement and collection of outstanding traffic summons before vehicles exit the country.
The contract covers the development, operation and maintenance of the RC/VEP system. Foreign-registered private vehicles entering Malaysia are required to pay a MYR 20 (USD 4.92) road charge per entry and install a Vehicle Entry Permit (VEP) RFID tag, which is valid for five years. The RFID tag can also be used for electronic toll payments on compatible Malaysian highways. The government is also studying the expansion of the RC/VEP system to eight checkpoints along the Malaysia–Thailand border, although the newly awarded contract does not include this northern rollout.
TENDER ISSUED FOR TRANSIT-ORIENTED DEVELOPMENT AT ECRL DUNGUN STATION
The Terengganu State Public Works Department (JKR Terengganu) has invited bids for the development of a transit-oriented development (TOD) at the East Coast Rail Link (ECRL) Dungun Station in Terengganu, Malaysia. The tender covers the construction of the TOD and associated infrastructure to support the station and its surrounding area.
The scope of the contract includes the construction of the Dungun TOD project and related supporting infrastructure. The development is intended to enhance connectivity around the ECRL station while promoting integrated land use and improving access to the rail network through a mixed-use, transit-oriented environment.
The tender submission deadline is September 7, 2026. Interested bidders may obtain additional information from the Terengganu State Public Works Department (JKR Terengganu), located in Kuala Terengganu, Malaysia.
AUGUST 2026
AIRTRUNK SECURES USD 2.32 BN GREEN FINANCING FOR JOHOR DATA CENTRE CAMPUS
AirTrunk has secured USD 2.325 Bn (MYR 9.5 Bn) in green financing under its Green Financing Framework to support the development of its JHB2 hyperscale data centre campus in Johor Bahru, Malaysia. The transaction is the largest green project financing for a single data centre in Malaysia and AirTrunk’s largest single-asset financing to date. The funding will support the expansion of digital infrastructure to meet growing demand for cloud computing and artificial intelligence (AI) services while promoting sustainable infrastructure development.
The JHB2 facility is being designed to achieve a Power Usage Effectiveness (PUE) of 1.37 and will incorporate advanced water-efficient cooling technologies to reduce energy and water consumption. Margin savings generated through the financing will also support community initiatives in Malaysia, including recycled water programmes with Gravity Water and Water Watch Penang, disaster relief through MERCY Malaysia, and STEM education programmes in partnership with Universiti Teknologi Malaysia (UTM).
The financing was supported by a consortium of 30 local and international financial institutions, including the International Finance Corporation (IFC), marking AirTrunk’s first financing partnership with the World Bank Group member. The company stated that the financing supports its broader sustainability strategy and its commitment to achieving net-zero emissions by 2030 through investments in energy-efficient digital infrastructure, renewable energy procurement, water stewardship, and community partnerships across the Asia-Pacific and Middle East.
VANTRIS ENERGY SECURES OFFSHORE CONTRACTS IN MALAYSIA
Vantris Energy has secured offshore transportation and installation work and tender-assisted drilling rig contracts in Malaysia, increasing its order book to more than USD 1.47 Bn (MYR 6 Bn). Its indirect wholly owned subsidiary, VTEB Offshore, received a work order from Petronas Carigali under an existing offshore facilities contract.
The engineering and construction works commenced in the second quarter of 2026 and are expected to be completed in the third quarter of 2027. Separately, Vantris Energy’s drilling business received a notice of assignment from Petronas Carigali and a contract from Vestigo Petroleum for drilling rig services. Offshore development drilling campaigns are scheduled to commence sequentially in the third quarter of 2026.
The contracts strengthen Vantris Energy’s position in Malaysia’s offshore market following the completion of its restructuring. The company said it will focus on offshore installation opportunities aligned with its risk profile and maintain its drilling operations in established markets where it has existing capabilities and customer relationships.
BATANG LUPAR 1 BRIDGE OPENS AS PART OF USD 2.7 BN SARAWAK ROAD DEVELOPMENT PROGRAMME
The Batang Lupar 1 Bridge in Sarawak, Malaysia, has opened to traffic as part of the Coastal Road Network and Second Trunk Road project, which has an overall construction cost of USD 2.7 Bn. The project is financed by the Sarawak government and the new bridge is not tolled.
The cable-stayed Batang Lupar 1 Bridge spans 4.9 km and connects Sebuyau and Triso. Construction began in 2021 and the bridge comprises 87 piers, with a wider central span to allow vessels to pass beneath. The crossing has a single traffic lane in each direction and replaces the previous ferry service, reducing journey times between the two locations.
The bridge forms part of Sarawak’s wider programme to improve road connectivity and replace ferry crossings with fixed links. The state has plans to construct 21 bridges in total, of which 10 have been completed and six ferry services have been phased out. A further eight bridges are expected to be completed by the end of 2026.
The development is being delivered under the 12th Malaysia Plan and is intended to strengthen road connectivity across Sarawak. The replacement of ferry services with bridges is also expected to improve the continuity of road travel and reduce reliance on river crossings.
STT GDC SECURES USD 1.37 BN GREEN FINANCING FOR JOHOR DATA CENTRE CAMPUS
ST Telemedia Global Data Centres (STT GDC) has secured a green financing facility of up to USD 1.37 Bn (MYR 5.6 Bn) to support the development of its STT Johor data centre campus at Nusa Cemerlang Industrial Park in Johor, Malaysia. The financing includes a Green Loan Facility for Phase 1 and was arranged by a consortium comprising United Overseas Bank (Malaysia) as Sole Coordinator and Mandated Lead Arranger, with OCBC Bank (Malaysia), Standard Chartered Bank Malaysia and CIMB Bank as Mandated Lead Arrangers.
Located in Iskandar Puteri, STT Johor is planned with up to 166 MW of IT load capacity. The campus is being developed to support cloud computing, artificial intelligence (AI), high-performance computing and other digital workloads. The financing framework is intended to support the development of sustainable and energy-efficient digital infrastructure.
STT GDC reported that renewable energy accounted for 83.2% of its electricity consumption in 2025, while carbon intensity was 70.5% below its 2021 baseline. The company also reported an average power usage effectiveness (PUE) of 1.44 and a 41.2% improvement in water usage effectiveness (WUE) compared with its 2020 baseline.
The campus is positioned to support the Johor-Singapore Special Economic Zone (JS-SEZ), with its proximity to Singapore, access to power infrastructure and connectivity supporting its development as a digital infrastructure location. STT GDC said the financing will enable further campus development in coordination with government agencies, utilities and other stakeholders.
YTL POWER AND JLAND GROUP TO DEVELOP UP TO 1.5 GW DATA CENTRE CAMPUS IN JOHOR
YTL Power International and JLand Group are partnering to develop a new gigawatt-scale data centre campus in Johor, Malaysia, with planned capacity of between 1.3 GW and 1.5 GW. The project is intended to meet growing regional demand for cloud computing and artificial intelligence (AI) workloads.
The proposed campus will complement YTL Power’s existing Green Data Centre Park in Kulai, which has a planned capacity of up to 1.2 GW. Together, the two Johor campuses could provide up to 2.7 GW of data centre capacity.
YTL Power subsidiary SIPP Power Sdn Bhd will acquire approx 145 acres within Sedenak Tech Park West (STeP), with an option to acquire up to a further 400 acres for future expansion. JLand Group, as master developer of Ibrahim Technopolis (IBTEC), will support the development of the infrastructure and wider ecosystem required for the project. Malaysia’s state utility Tenaga Nasional Bhd (TNB) is also developing a new 500 kV substation at STeP West. The substation is expected to support energy supply agreements between YTL Power and prospective data centre customers.
YTL Power is reportedly considering an IPO for its data centre business in 2027, potentially valuing the unit at USD 6.92 Bn (MYR 28 Bn), and is also exploring its first sukuk financing dedicated to its data centre operations. The company is targeting further expansion, including around 1 GW in the Klang Valley and potential projects in Thailand, Indonesia, Japan and the UK, which could take its overall data centre capacity to 3 GW–4 GW.
FOUNDER ENERGY SECURES SUBCONTRACT FOR 29.99MWAC SOLAR PROJECT IN KEDAH
Founder Energy Sdn Bhd, a subsidiary of Founder Group Limited, has been engaged as a subcontractor under Malaysia’s Corporate Green Power Programme (CGPP) for the procurement, electrical and mechanical installation, testing and commissioning of a 29.99MWac solar photovoltaic project in Kuala Muda, Kedah. The subcontract is valued at MYR 6.05 Mn (USD 1.49 Mn). Founder Energy will undertake the works up to the interconnection point, excluding major equipment to be procured directly by the main contractor.
The project will involve procurement, electrical and mechanical installation, testing and commissioning of the solar facility. Founder Energy will also secure and maintain the approvals, licences, clearances and permits required for construction and operation and ensure compliance with Prudent Utility Practices and the requirements of Tenaga Nasional Berhad (TNB). The project will have an installed capacity of 29.99MW.
The project is being developed under Malaysia’s CGPP as part of the country’s broader renewable energy expansion under the National Energy Transition Roadmap (NETR), which targets a 70% renewable energy capacity share by 2050. Malaysia launched the 2,500MW Large-Scale Solar 6 (LSS6) programme in July 2026, with expected investment of USD 3.2 Bn (MYR 13 Bn) to USD 3.7 Bn (MYR 15 Bn). Founder Group provides engineering, procurement, construction and commissioning (EPCC), as well as asset lifecycle management and solar operations and maintenance services.
IJM CONSTRUCTION ADDS USD 225 MN SEMICONDUCTOR, MEDICAL DEVICE PROJECTS
IJM Construction Sdn Bhd, a wholly owned subsidiary of IJM Corp Bhd, has added two fast-track projects worth a combined USD 225 Mn (MYR 909.5 Mn) to its FY2027 order book.
The projects comprise a USD 112.50 Mn (MYR 455 Mn) contract for civil, structural and architectural works for an automated storage and retrieval system warehouse at a multinational technology company’s semiconductor facility in Kulim, Kedah, and a contract to build a medical device manufacturing facility for Intuitive Surgical Malaysia Sdn Bhd at Bandar Cassia Technology Park, Batu Kawan, Penang. Both projects are scheduled for completion within 18 months.
IJM said the Intuitive Surgical project will support the manufacture of surgical instruments and electromechanical devices used in minimally invasive robotic-assisted surgery, and marks IJM Construction’s second medical device manufacturing project.
The latest wins bring IJM Construction’s outstanding order book to MYR 14.51 Bn (USD 3.57 Bn), with advanced industrial facilities accounting for about 55% of its domestic order book. The projects strengthen IJM Construction’s presence in semiconductor and medical device manufacturing, while extending its capabilities into higher-value sectors.
The group continues to leverage industrialised construction methods, including industrialised building system solutions and off-site fabrication, to improve productivity, quality and execution certainty. IJM said continued investments in semiconductor, E&E, medical technology and digital infrastructure in Malaysia are supporting demand for advanced industrial facilities.
SEPTEMBER 2026
FOUNDER ENERGY TARGETS LSS6 SOLAR AND STORAGE PROJECTS IN MALAYSIA
Founder Energy Sdn. Bhd., a subsidiary of Founder Group Limited, is actively tendering for infrastructure projects under Malaysia’s Large-Scale Solar 6 (LSS6) programme. Launched by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) in July 2026, the initiative offers 2,500 MW of solar capacity and 1,250 MW of battery energy storage system (BESS) capacity, targeting full commercial operation by December 31, 2029.
The nationwide clean energy programme is anticipated to drive MYR 13 Bn–MYR 15 Bn (USD3.20 Bn–USD3.70 Bn) in private investments. Having previously delivered over 70 engineering, procurement, construction, and commissioning (EPCC) projects representing more than 1 GWp of combined DC solar capacity across Peninsular Malaysia, Founder Energy is now pursuing EPCC and long-term operations and maintenance roles, supported by its advanced AI-driven capabilities.
SUNGROW, ERS ENERGY REACH 1 GWH ENERGY STORAGE MILESTONE IN SOUTHEAST ASIA
Sungrow and ERS Energy have reached 1 GWh of combined energy storage projects across Malaysia and the Philippines. The portfolio includes the 441 MWh MyBeST battery energy storage system (BESS) in Bahau, Malaysia, and a 556 MWh, four-hour BESS being developed for ACEN in the Philippines.
The MyBeST project is part of Malaysia’s national large-scale energy storage initiative and is intended to support grid flexibility and solar integration. In the Philippines, the ACEN project will feature grid-forming capability and participate in the Wholesale Electricity Spot Market, enabling stored electricity to be dispatched according to market conditions and providing grid support.
MALAYSIA ANNOUNCES 250 MW RENEWABLE ENERGY FIT QUOTA FOR 2027
The Government of Malaysia has announced a 250 MW renewable energy Feed-in Tariff (FiT) quota for 2027 to support clean energy generation and attract investment. The quota will be allocated through an online bidding process for biogas, biomass and small hydropower projects in Peninsular Malaysia and the Federal Territory of Labuan. The allocation includes 30 MW for biogas, 120 MW for biomass and 100 MW for small hydropower.
The programme is expected to attract around RM 3 Bn (USD 690 Mn) in investment and create more than 5,000 direct and indirect jobs. Eligible projects could begin supplying renewable electricity from 2030. The initiative supports Malaysia’s target of increasing renewable energy’s share of electricity generation to 70% by 2050. Since the FiT programme began in 2011, 1,660.50 MW of renewable energy capacity has been approved across 9,658 projects.
reNIKOLA SIGNS 30-YEAR PPA FOR 250 MW SOLAR PROJECT IN SARAWAK
reNIKOLA Gedong Solar Sdn Bhd, a subsidiary of reNIKOLA Holdings Sdn Bhd, has signed a 30-year power purchase agreement with Syarikat Sesco Berhad to develop a large-scale solar photovoltaic facility in Gedong, Sarawak.
The project involves an investment of approx. MYR 1.00 Bn (USD 0.24 Bn) and will feature a capacity of 250MWac alongside an installed peak capacity reaching up to 363MWp.
This venture marks reNIKOLA’s entry into Sarawak's renewable energy market, aiming to stimulate regional economic activity through local job creation and procurement while supporting the state's long-term sustainability goals.
TENCENT CLOUD AND BOOST TO EXPAND AI AND CLOUD INFRASTRUCTURE IN MALAYSIA AND INDONESIA
Tencent Cloud has partnered with Boost, a regional fintech and digital banking company, to support the expansion of its digital infrastructure across Malaysia and Indonesia. The collaboration covers three areas: scalable Infrastructure-as-a-Service (IaaS), AI development and Tencent Cloud Super App as a Service (TCSAS). The cloud infrastructure will support Boost’s operations and expansion across both markets, while the companies will jointly develop AI products and use Tencent Cloud’s existing AI solutions.
Boost will also use TCSAS to integrate multiple financial services into a unified application for consumers and businesses. The partnership forms part of Tencent Cloud’s broader expansion in Southeast Asia, following the establishment of its first Malaysian Cloud Region in Johor and recent collaboration with Malaysian telecommunications operator U Mobile on enterprise 5G and AI solutions.
MALAYSIA’S PNB TARGETS USD 3.7 BN FOR GREEN AND CLIMATE TRANSITION ASSETS BY 2030
Malaysia’s state-owned investment firm Permodalan Nasional Berhad (PNB) plans to allocate MYR 15 Bn (USD 3.68 Bn) toward green and climate transition assets by the year 2030. This investment target is a key component of the newly launched Sustainability Framework 2026, which outlines the firm's strategic approach to long-term value creation and sustainable development.
Additionally, the firm intends to direct MYR 500 Mn (USD 122.7 Mn) toward various social impact initiatives. The overarching framework establishes a structured capital allocation model designed to foster a resilient economy, manage climate-related risks, and support enduring value generation.
SD GUTHRIE-GAMUDA-GENTARI JV SIGNS 21-YEAR RENEWABLE ENERGY DEAL FOR DATA CENTRES IN MALAYSIA
G3nerasi Kinta Sdn Bhd, a joint venture between SD Guthrie, Gamuda, and Gentari Renewables, has entered into a term sheet for a 21-year renewable energy supply contract in Malaysia. Signed under the Corporate Renewable Energy Supply Scheme (CRESS), the deal powers data centres operated by a US-based multinational technology company. The project comprises a hybrid utility-scale solar photovoltaic plant in Perak with a minimum net capacity of 680 MWac alongside a four-hour battery energy storage system.
The venture is estimated to generate gross revenue exceeding MYR 10 Bn (USD 2.5 Bn) over the 21-year offtake period, targeting commercial operations by 2029. Fully owned parent firm G3nerasi Mutiara divides its equity among SD Guthrie Renewable Energy at 33.5%, Gamuda Energy at 33%, and Gentari Renewables at 33.5%. Storage and regulatory agreements are scheduled for completion by the first quarter of 2027, with funding sourced via project financing and partner equity contributions.
TREASURE GLOBAL SUBSIDIARY TADAA ENTERS AI TECHNOLOGY PARTNERSHIP FOR PROPOSED 360 MW MALAYSIA SOLAR FARM
Treasure Global’s subsidiary, Tadaa Technology, has partnered with Kainan to provide AI-enabled solutions for a proposed MYR 1.50 Bn (USD 367 Mn) solar farm in Malaysia. Spanning approx. 1,000 acres with a planned 360 MW capacity, the facility is designed to power a data centre under a 25-year supply arrangement. Tadaa will implement the digital infrastructure—including IoT connectivity, energy management, and predictive maintenance—targeting approx. MYR 29.86 Mn (USD 7.3 Mn) in annual recurring technology revenue upon full deployment.
The initiative provides an operational framework to validate and scale the company's AI-driven energy management capabilities across Southeast Asia as regional data centre power requirements surge. The venture also aligns with Malaysia’s National Energy Transition Roadmap, which targets renewable sources to represent 40% of installed power capacity by 2035 and 70% by 2050. In addition, the deployment positions the business within an expanding clean energy sector, where global annual solar investments were projected to reach MYR 1.84 Trn (USD 450 Bn).
PERAK SEEKS USD 343 MN IN BUDGET 2027 FOR KEY WATER INFRASTRUCTURE
Perak is requesting at least RM1.4 Bn (USD 343 Mn) in the upcoming Federal Budget to fund critical water infrastructure, centered on transferring water from Sungai Perak to Bukit Merah. The project is designed to relieve local farmers facing recurring droughts and supply the Kerian Integrated Green Industrial Park, with potential treated water sales to Penang if a surplus occurs. Projected to cost between MYR 1.4 Bn (USD 343 Mn) and MYR 2 Bn (USD 490 Mn) for initial pump and tunnel construction alone, the network is targeted for completion by 2030 or 2031.
The primary infrastructure is slated for federal funding via the Energy Transition and Water Transformation Ministry, while secondary stages will rely on consortium financing and loans. In addition to water security, the state is seeking urgent federal allocations to repair dilapidated school buildings and expand classroom capacity ahead of concurrent Year One enrollments. Rapid regional growth has likewise driven demands for new single-session schools to eliminate double sessions and provide stable learning environments.
KEY ASIC, CT VISION SIGN MOU FOR 330MV GREEN AI DATA CENTRE PROJECT
Key ASIC Bhd has signed an initial 10-year memorandum of understanding with Hong Kong-listed CT Vision Holdings to jointly develop a 300MW Green AI data centre in Malaysia. The facility is planned to reach full IT capacity within five years of commercial operation while maintaining a design power usage effectiveness of no more than 1.20. It also targets securing at least 50% of its total power requirements from renewable energy sources to support intensive AI workloads.
Key ASIC will provide energy-efficient chip designs, power-management architecture, and technical support, licensing project-specific intellectual property to CT Vision on a perpetual, royalty-free basis. CT Vision will contribute international financing and renewable energy capabilities spanning solar, wind, and biomass systems. Formal commercial terms, including pricing and operational thresholds, will be finalized in subsequent definitive agreements.
NEW JOHOR BAHRU COURT COMPLEX AMONG 11 JUDICIAL PROJECTS WORTH USD 180 MN NATIONWIDE
The new Johor Bahru court complex in Kota Iskandar has been completed as part of 11 nationwide judicial infrastructure developments valued collectively at MYR 736 Mn (USD 180 Mn). Originally approved under the 11th Malaysia Plan, the project was executed via a design-and-build model at an approved cost of MYR 200 Mn (USD 49 Mn). Works commenced in February 2023 and concluded strictly within the allocated budget and schedule.
Covering 6.88 hectares, the complex blends modern amenities with traditional Malay architectural heritage, featuring regional gambir, black pepper, and kerawang motifs. The facility houses 24 courtrooms—spanning Special, High, Sessions, and Magistrates’ jurisdictions—alongside administrative suites, judges' chambers, and segregated holding corridors. Full operations are scheduled to begin early next year following royal consent, after which the former downtown court premises will be returned to the state government.
ERS ENERGY CROSSES 1.5 GWH BESS MILESTONE
ERS Energy has exceeded 1.5 gigawatt-hours (GWh) in cumulative utility-scale battery energy storage system (BESS) capacity across Southeast Asia, securing the majority of these contracts within the past 12 months. Key developments include a 520 megawatt-hour (MWh) project for ACEN in Zambales, Philippines, and two contracts totaling 800MWh under Malaysia’s Battery Energy Storage Programme (MyBeST). These initiatives mark the company's strategic expansion beyond solar engineering, procurement, construction, and commissioning into large-scale energy storage integration.
The projects are designed to stabilize regional electrical grids and manage the intermittency associated with rapid clean energy deployment. Company leadership noted that reaching this milestone reflects rigorous project execution, partner trust, and the capability to convert regional clean energy targets into functional grid infrastructure. Moving ahead, the firm is targeting further utility-scale storage opportunities across Malaysia, the Philippines, Vietnam, and Australia to address expanding renewable penetration and flexibility requirements.
List of key transactions - Malaysia Q3 2026
Source: YOG INFRA analysis
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