Putrajaya more committed to advancing digital infrastructure and economy
KUALA LUMPUR (Feb 26): DE-CIX, a carrier- and data-centre-neutral internet exchange point headquartered in Frankfurt, Germany, believes that the Malaysian government is becoming more committed to advancing its digital infrastructure and its economy.
In a commentary on the revised Budget 2023, DE-CIX Malaysia and Singapore management board member Wong Weng Yew said it is clear that the government intends to maximise the potential of the digital economy, particularly in its focus to improve internet connectivity throughout the country.
“With the government’s RM725 million investment allocation towards the Jendela project that aims to improve internet connectivity, it will help increase the overall reliability of Malaysia’s digital infrastructure and strengthen the network coverage of telco providers within rural areas.
“Doing so will enhance the internet connectivity for business owners and consumers, thus contributing towards the advancement of the Malaysian economy and bridging the internet access gap and providing a better future for those in the underserved community.
“Having said that, Malaysia is quickly becoming a digital hub in Southeast Asia. The country is home to a growing number of tech startups, data centre players and established tech companies, and its digital infrastructure continues to improve, with widespread 5G connectivity and high-speed internet access,” he said.
Wong said that as Malaysia continues to invest in technology and innovation, it is well positioned to become a leading player in the global digital economy.
“Furthermore, the extension of the incentive application period for Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until Dec 31, 2025 can encourage companies from various industries to explore eligible green activities, such as adopting environmentally friendly methods to improve the capabilities of sustainable data centres and enhance energy efficiency.
“With the recent tariff increase, this initiative will surely assist industry players making strides towards sustainable data centres with the development of green technology and renewable energy sources.
“This will be further complemented by the government’s decision to improve the guaranteed value of the Green Technology Financing Scheme (GTFS), which has been increased to RM3 billion until 2025, benefiting companies that are exploring the use of green technology,” he said.
Wong said businesses that revolve around transportation, energy, manufacturing and several others will be able to leverage the increased amount to further expand their operations or improve their sustainability efforts. – The Edge Markets