Malaysia Cloud and Data Centre Industry Overview

Tan Tze Meng | Head of Cloud & Data Centres | MDeC

2

GKL

Palm Oil

Oil, Gas &

Energy Financial

Services

CCI

Healthcare

Wholesale

& Retail

Agriculture

Education

Electrical

Electronics

12 NKEAs

to boost the economy

Receives extra focus on

public investment &

policies for growth

Tourism

Business

Services

EPP2

Shared Services

and Outsourcing

(SSO)

EPP1

Aviation MRO

EPP3

Data Centres

EPP4

Green

Technology

EPP5

Pure-play

Engineering

Services

EPP6

Shipbuilding/

Ship Repair

EPP7

Attracting

Aerospace OEMs

3

EPP2

Shared Services

and Outsourcing

(SSO)

EPP1

Aviation MRO

EPP3

Data Centres

EPP4

Green

Technology

EPP5

Pure-play

Engineering

Services

EPP6

Shipbuilding/

Ship Repair

EPP7

Attracting

Aerospace OEMs

Business Services EPP 3

Positioning Malaysia as a world class Data Centre Hub

GKL

Palm Oil

Oil, Gas &

Energy Financial

Services

CCI

Healthcare

Wholesale

& Retail

Agriculture

Education

Electrical

Electronics

Tourism

Business Services

4

Grow Local DC players

• Growing the local data centre industry into

globally competitive players

• Key initiatives

o Enhance the credibility of data

centres through industry certification

o Grow DC capacity through private

investment

Attract anchor MNCs

• Attracting anchor multinationals to setup Data

Center operations in Malaysia

• Building DC parks with world-class and competitive

telco, power and infra

• Key initiatives:

o Facilitating foreign direct investment from

anchor MNCs

o Identify designated areas & pool the

infrastructure for DC parks

Key Initiatives of EPP3: Making Malaysia a World-Class Data Centre Hub

5

Develop

World-class Data Centre Parks

Enhance

And Upgrade

Connectivity

Adopt

Best-in-class Regulatory Framework

Grow Capacity Of The

DC Industry

Achieve

Global

Certification

Increase

Manpower

Capability

Key initiatives to support growth of Local DC players

6

Grow Local DC players

• Growing the local data centre industry

into globally competitive players

• Key initiatives

o Enhance the credibility of data

centres through industry

certification

o Grow DC capacity through private

investment

Attract anchor MNCs

• Attracting anchor multinationals to setup Data

Center operations in Malaysia

• Building DC parks with world-class and competitive

telco, power and infra

• Key initiatives:

o Facilitating foreign direct investment from

anchor MNCs

o Identify designated areas & pool the

infrastructure for DC parks

Key Initiatives of EPP3: Making Malaysia a World-Class Data Centre Hub

7

Technology

Communication

Industry Development

Mediation

Alignment

Facilitation

Incentives

Corridors

Local Authorities

DCTF

The Data Centre Task Force was formed to facilitate foreign DC investments in Malaysia

The DCTF complements one another’s role in ensuring the

success in attracting major investors into the country

Industry Performance

2014 Revenue Analysis

99

38%

40%

26%

15%

2015

Projection

RM915M

Industry revenues

915

1010

Managed Services,

50%

Who. Space Rental,

12%

Who. Co-Lo, 12%

Cloud, 6%

Disaster Recovery,

6%

Others, 5%

Co-Lo, 3%

Network Resale, 3%Space Rental, 2% Internet, 1%

Office Rental, 0%

2014 Revenue by services

11

Federal, 29%

State, 0%

Telecommunications,

15%

Banking, Finance

Services, 19%

Oil and Gas, 2%

Healthcare, 1%

Manufacturing, 2%

Transportation and

Logistics, 0%

Content and

Technology

Companies, 17%

Others, 15%

2014 Revenue Breakdown by Sector

12120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014

Domestic, 93%

Domestic, 81%

Foreign, 7%

Foreign, 18%

2013 vs 2014: domestic vs foreign

1313

5%

30%

4%

13%

20%

28%

6%

50%

6%

15% 14%

9%

0%

10%

20%

30%

40%

50%

60%

Cloud Computing Managed Services Disaster Recovery Co-location Space Rental Others

2013 2014

2013 vs 2014: revenue by services

1414

23%

0%

22%20%

0% 0% 0% 0%

16%17%

29%

0%

15%

19%

2% 1% 2%0%

17%

15%

0%

5%

10%

15%

20%

25%

30%

35%

2013 2014

2013 vs 2014: revenue by sectors

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