Sime Darby Property, EPF, LTAT set up RM1.25b Elmina data centre fund
Sime Darby Property, the Employees Provident Fund and the Armed Forces Fund Board are establishing a RM1.25 billion fund to develop data centres and logistics assets in Elmina, Selangor, under Malaysia's Budget 2027. The initiative is part of RM25 billion in domestic investments mobilised through go
PETALING JAYA: Sime Darby Property, the Employees Provident Fund (EPF) and the Armed Forces Fund Board (LTAT) are establishing a RM1.25 billion New Economy Venture Fund to develop data centres and logistics assets in Elmina, Selangor, under Budget 2027.
According to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim's Budget speech, the initiative forms part of RM25 billion in domestic investments being mobilised by government-linked investment companies through GEAR-uP. The Elmina fund covers both data centres and logistics assets, though the speech does not specify how much will be allocated to each segment.
The investment is presented as a national energy measure, with no specific allocation identified for data centres. UEM Lestra will separately invest RM1 billion, including in an energy storage project at Kuala Lumpur International Airport and a hybrid energy project with a capacity of one gigawatt in Johor.
KWAP's RM1 billion Climate Fund will also support green projects, including renewable energy and decarbonisation. To encourage companies to adopt green technology, the government will improve tax incentives and extend them until Dec 31, 2030. Companies undertaking green and sustainable technology projects, including electric vehicle charging stations, will qualify for investment tax allowances of up to 100%. Companies purchasing green technology assets for their own use will also qualify for allowances of up to 100%.
The Budget also outlines plans for a sovereign AI cloud to keep Malaysians' data and the country's strategic information under national control, though the initiative remains at the planning stage. Alongside digital infrastructure, the government is advancing industrial development and connectivity in the Johor-Singapore Special Economic Zone (JS-SEZ). Nexus Sedenak is identified as a new industrial growth centre in the northern part of the zone, with investment potential of RM12 billion and 45,000 jobs.
The road from the Sedenak interchange is being upgraded, followed by facilities to support connections to major ports and regional trade networks. Anwar and Singapore Prime Minister Lawrence Wong are scheduled to launch the JS-SEZ master plan and blueprint at the end of this year. A special task force will coordinate negotiations across agencies to attract leading companies in strategic sectors through a 'Queen Bee' approach.
The speech also highlights the involvement of Petronas and TNB in the cross-border ASEAN Power Grid project, describing it as a means of strengthening energy security and regional connectivity. On telecommunications infrastructure, the JENDELA project involves a total investment of RM5 billion to strengthen national internet connectivity. Priorities for 2027 include extending 4G coverage to all Orang Asli villages, providing internet access along 7,000km of roads and 1,700km of railway, and implementing the MADANI Submarine Cable, known as SALAM.
