KUALA LUMPUR: Malaysia is poised for significant data centre growth this year fuelled by substantial investments from major technology companies, according to Public Investment Bank Bhd (PublicInvest).
The firm sees positive inflows for the various industries in Malaysia following a sharp increase in data centre investments.
"Data centres are a critical component in powering the growing digital economy, and Malaysia can specialise in data services, particularly those related to generative artificial intelligence (AI), which have applications across various industries like healthcare and services, leading to improved service quality and innovative solutions.
"This will help the country to broaden beyond semiconductors and gain from the technology transfer from big tech companies," it said.
Meanwhile, PublicInvest said that despite various trade concerns over the heightening trade tension, the year of 2025 is touted to be a time of technology breakthroughs, which will see many opportunities to invest, innovate, and develop.
The firm believes AI remains at the forefront of key topics, as did cybersecurity, cloud computing, and robotics.
"We also gather that some local automated test equipment (ATE) makers have started receiving more enquiries in the last 2 months, although the outlook visibility remains short.
"In the local scene, data centre play continues to be in the limelight.
"Overall, we are selectively upbeat on the technology stocks, as certain segments like automotive are still facing a challenging outlook. Maintain overweight on the sector, and our top picks are Cloudpoint Technology Bhd and QES Group Bhd," it added.