KUALA LUMPUR: The Angkasa-X Group of Companies (Angkasa-X) has announced plans to turn Penang into a regional space technology ecosystem hub, fostering local innovation and technology transfer while creating jobs and opportunities across Malaysia.
Its executive chairman and chief executive officer Dr Sean Seah said Angkasa-X, in partnership with Silkwave Holdings Ltd (Silkwave) that currently operates two GEO-satellite platforms, is set to establish a space technology ecosystem in Penang.
The plan is also to nurture the state into a supply chain and distribution hub for global satellite technologies for the ASEAN markets.
Sean said the Penang space technology ecosystem would include key satellite industries and academic institutions, focusing on research and development and intellectual property creation of next-generation satellite technologies and applications tailored to ASEAN.
"In our efforts to further boost the space technology ecosystem in Penang, we would also be seeking support from Hong Kong to recruit global satellite technology providers to establish their research and development and localisation centres in Penang for low-tariff market access to other ASEAN countries," said Sean in a statement today.
He was speaking after signing a memorandum of understanding (MoU) between Angkasa-X and Silkwave to establish a joint-venture strategic partnership to develop the world's first geostationary (GEO) Low Earth Orbit (LEO) integrated satellite network and service platform for ASEAN communities.
Silkwave is a subsidiary of Hong Kong Stock Exchange-listed CMMB Vision Holdings Ltd (CMMB), which engages in providing media and transmission services.
Meanwhile, Penang chief minister Chow Kon Yeow described the partnership as an innovative breakthrough for the state.
"I would like to congratulate both Angkasa-X and Silkwave for this collaboration which is expected to elevate further the liveability stature of Penang, one of the key goals of Penang 2030.
"Penang's strong talent pool has long been a key driver in the state's success in attracting strategic investments, especially in selected niche industries," said Chow.
"Penang has attracted strategic investments in the past years, which translated into creating thousands of high-quality job opportunities.
"With this strategic effort to transform Penang into a regional space technology ecosystem hub, it is set to attract more foreign direct investments into Penang," he said.
To note, from January 2021 to March 2020, Penang attracted RM24 billion in manufacturing investment, with 90 per cent coming from the electrical and electronics, equipment, and medical technology sectors.
"This partnership is set to accelerate the ASEAN countries into becoming full-fledged and advanced digital economies while enabling Angkasa-X and Silkwave to become ASEAN's first GEO-LEO satellite services operator through the 'A-SEANLINK Satellite Constellation'," said Sean, who also serves as the deputy chairman of both the Malaysian National Tech Association (PIKOM) and The World Information Technology and Services Alliance (WITSA).
Although the 11 ASEAN countries today has a population estimated at 675 million people, it is estimated that over 50 per cent or some 350 million people living in remote rural areas have inadequate or no internet connectivity.
"Even in most cities, internet access is widely under-provided, as it is plagued by insufficient bandwidth, high infrastructure cost, poor coverage, and expensive data charge," said Silkwave chairman and chief executive officer Charles Wong.
"Inadequate internet access is a significant impediment to the region's digital economic transformation. Satellite internet is seen as the most effective and cost-effective solution for resolving such issues and closing the digital divide with developed countries," added Charles, who is also chairman and chief executive officer of Silkwave's parent company CMMB.
Besides building a GEO-LEO converged satellite infrastructure to provide Satellite-As-A-Service (SAAS) to ASEAN countries, the partnership would also deploy a trial satellite service rollout in Malaysia to accelerate regional commercial rollouts.
Both companies would also be marketing the combined products and services under a joint service provider agreement to penetrate the ASEAN economies effectively.
Under the MoU, Angkasa-X and Silkwave aim to create the ASEAN-Greater Bay Area Space-Satellite Industry Alliance to accelerate technology and investment transfer to develop the ASEAN region as one of the world's world's largest satellite markets.
"The partnership is the first between a GEO and a LEO platform, which will bring about unprecedented synergies such as universal connectivity along with abundant low-cost and innovative infotainment and broadband data services to mass-market consumers throughout the ASEAN region," Charles said.
"It is set to usher in a new era of digital transformation for ASEAN, which see the region leapfrog into becoming one of the largest and most advanced satellite service markets in the world."
On the funding part, the Bank of Asia (BOA), licensed and regulated by the authorities of the British Virgin Islands, has been appointed as the global financial advisor for outreach to investors from ASEAN, the United Arab Emirates, Hong Kong and the United States of America.
BOA is involved in the consummation and further fundraising for Angkasa-X and Silkwave developments.
Together with its partners, BOA creates a Space Fund in Hong Kong to invest in Angkasa-X, Silkwave and other space technology development projects in Asia.
Bank of Asia chairman Carson Wen said the financial institution is very privileged to be involved in the Angkasa-X and Silkwave joint venture and are very excited with the huge 'blue ocean' ahead while also playing its part for underserved communities.
"This is the coming together of like-minded people with the expertise, resources and commitment to providing connectivity, infotainment and other valuable satellite services to the ASEAN population and enterprises at large," added Carson.
This GEO-LEO integrated satellite platform serves to address the region's varying needs in Internet connectivity, multimedia infotainment, vehicle-connected services, precision tracking and navigation, environmental monitoring and surveillance.
It also aims to accelerate the digital transformation to grow the digital economy for all communities in the ASEAN region.
GEO satellites circle the Earth above the equator, following the Earth's rotation at an altitude of 35,786 km, while LEO satellites normally rotate in Earth orbits of around 1,000 km but could be as low as 400 km above the surface of the earth.