Technology Advancements Take Centre Stage at RAM Forum 2024 in Johor

Published on 30 Oct 2024.

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Chris Lee, RAM Group CEO (left) and Julie Ng, RAM CEO (right) with the RAM Forum 2024 Sponsors.

 

Johor Bahru – This year’s edition of the flagship RAM Forum, titled Technology Advancing Growth, brought together key voices from both the public and private sectors to discuss key technological and investment trends shaping Malaysia’s future, including the rapid rise of Johor as a key hub for data centre investments. In Johor Bahru this time around, the event was attended by some 200 delegates, featuring a total of 24 speakers and 7 corporate sponsors.

Julie Ng, Chief Executive of RAM Rating Services Berhad (RAM), set the tone for the forum, emphasising the need to embrace change to claim the future. “Today’s complex and intertwined megatrends, from geopolitical shifts and global warming to technological advances and demographic changes, require strategic positioning and a coordinated approach from Malaysia to remain competitive,” she said. “RAM is proud to facilitate these critical discussions that will help drive Malaysia’s ambition of becoming a high-technology nation by 2030.”

The Minister of Economy, YB Tuan Mohd Rafizi bin Ramli, in delivering the keynote address via video, highlighted the government’s strategic efforts in shaping key policies and initiatives such as the National Energy Transition Roadmap and the KL20 Action Plan. These masterplans aim to steer capital towards high-impact investments. The minister emphasised that Malaysia’s ability to balance the complex dynamics of technology, energy and geopolitics, while maintaining fiscal discipline, will be critical to securing the nation’s sustainable long-term economic growth.

The morning’s twin sessions on macroeconomic trends featured in-depth discussions on how Malaysia can effectively navigate the evolving landscape of US-China trade rivalry. These sessions were expertly moderated by Lee Heng Guie, Executive Director of the Socio-Economic Research Centre, and Professor Dr Evelyn Devadason from the University of Malaya, both of whom brought their extensive expertise to guide the spirited conversations. The consensus was for Malaysia to adopt flexible positioning with respect to geopolitical alignment, while availing itself of economic opportunities via conducive regulations, promoting domestic investments and upskilling the workforce, among other measures.

The second half of the forum focused on the theme of data centre investments in Malaysia, with topics ranging from technological advancements and energy requirements to financing structures and risks.

YBhg Tan Sri Abdul Razak bin Abdul Majid, Chairman of Tenaga Nasional Berhad, shared the utility’s initiatives and forward plans to meet the nation’s increasing energy demand, notably from energy-hungry data centres, while ensuring energy security and upholding sustainability goals. Meanwhile, Wai Mun Heng, CEO of YTL Data Centres, and Mahathir Said, Head of Data Centre at TM Global, gave the audience deeper insights and updates into their respective data centre investments. Advisor to Invest Johor, Adny Jaffedon, elaborated on the state government’s efforts to strengthen Johor’s position as a premier investment destination, with the Johor-Singapore Special Economic Zone augmenting its appeal.

The panels on financing delved into viable financing structures and the risk assessment of the rapidly growing and capital-intensive data centre sector. While data centre investments are still predominantly funded by private capital and bank loans, the Malaysian debt capital market presents an attractive upcoming funding option, given its robust depth and liquidity. Panellists discussed various structures that are commonly deployed globally and key risk considerations for data centre financing.

RAM’s exclusive study, “Data Centre Economy: Decoding the Costs and Benefits of a Data Centre Boom in Malaysia”, was launched during the forum. Tallying the total incoming pipeline of investments, the study evaluates potential demands on Malaysia’s domestic energy supply and Johor’s resources, while weighing the risks of data centre investments against their benefits to the nation. The RAM Data Centre Study is available for purchase at www.ram.com.my.

 

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

About RAM Rating Services Berhad (RAM Ratings)

Established in 1990, RAM Ratings is a leading credit rating agency registered under the Securities Commission’s Guidelines on Credit Rating Agencies. In addition to the provision of credit ratings for corporate bonds and sukuk and their issuers, RAM Ratings also provides research and publications on Islamic finance, fixed income and macro-economic and industry analysis as well as data analytics relating to credit risk, counterparty assessments and other related domains.

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