Speech by SMS Low Yen Ling at the TM Nxera Data Centre Groundbreaking Ceremony

Yang Berhormat Gobind Singh Deo, Minister of Digital of Malaysia,

Yang Berhormat Lee Ting Han, Chairman of the Johor State Investment, Trade, Consumer Affairs and Human Resources Committee,

Mr Bill Chang, CEO of Nxera and Singtel Digital Infraco,

Distinguished Guests,

Ladies and Gentlemen,

Good morning.

1. Thank you for the privilege of witnessing the groundbreaking of the TM Nxera Data Centre in Johor today. This is a significant joint venture between Singtel and Telekom Malaysia to develop next-generation data centres that will serve the needs of an increasingly digitalised economy.

Longstanding Singapore-Malaysia Relations

2. Our countries, Singapore and Malaysia, share a unique and close relationship. We are bound by geography and a shared history. Our people share deep kinship and cultural ties.

3. This year, we celebrate the 100^th Anniversary of the Causeway, one of the world's busiest border crossing points. The Causeway also reflects the strong and vibrant links between our countries and people.

4. Our economic ties are closely intertwined.

a. Singapore and Malaysia consistently rank high as each other's trading partners. In 2023, Singapore was Malaysia's second-largest trading partner, while Malaysia was Singapore's third-largest.

b. In 2023, Singapore accounted for more than 20% of the total FDI Malaysia received.

c. This joint venture between the two leading telcos in the region, Singtel and Telekom Malaysia, is an excellent example of how Singapore companies have secured partnerships in Malaysia and are expanding their regional operations. The new TM Nxera data centre will see a joint investment of up to RM 1.15 billion over the next five years.

Deepening Singapore-Malaysia Economic Collaboration

5. I just returned from Kuala Lumpur earlier this week, where I was part of Senior Minister Lee Hsien Loong's delegation on a visit to Malaysia. I am excited that there are many areas our countries can work on together, especially in the emerging areas of the green economy and digital economy.

6. Our proximity to Malaysia provides many opportunities for Singapore companies and businesses. A recent survey by the Singapore Business Federation found that 93% of respondents view Johor as an attractive investment destination, and 50% are already operating in the state. We have many fresh possibilities to capture as we work together to support and enable Singapore companies to expand into Johor and other parts of Malaysia.

7. Structural shifts in the global economy have led many investors to turn their interest towards Southeast Asia to locate their companies and seize business opportunities. Singapore and Malaysia have an exciting chance to capture this emerging flow of FDI. In 2022, Malaysia and Singapore accounted for 70% of total FDI inflows into ASEAN. It is, therefore, vital to explore and chart our path to realise the potential of both our economies.

8. Since the signing of the MoU earlier this year, we have been in active discussions with our Malaysian counterparts, both the Federal and Johor State Governments, on the Johor-Singapore Special Economic Zone (JS-SEZ) initiative.

9. The JS-SEZ aims to facilitate the flow of goods and people between Singapore and Johor and strengthen Johor's investment ecosystem. Both sides are working hand-in-hand to attract global inflows and help Singapore companies expand.

10. I am happy to note that early initiatives, such as passport-free QR code clearance at land checkpoints, have been implemented or piloted on both sides. Malaysia also plans to set up a one-stop investment facilitation centre in Johor to support Singapore and Global Enterprises. It will be the first such centre outside Kuala Lumpur.

11. Today's groundbreaking ceremony is a testimony to the thriving spirit of cooperation between Singapore and Malaysia. It also underscores the vast potential that Singapore and Malaysia can attain by collaborating in the JS-SEZ.

Differentiating Factor of TM Nxera Data Centre

12. Earlier in the speech, I spoke about emerging areas that Singapore and Malaysia can cooperate on. During Prime Minister Anwar's first official visit to Singapore, Singapore and Malaysia signed the Framework of Cooperation in Digital Economy in 2023. Our countries have since deepened our cooperation in cross-border digital payments via the linkage between PayNow and DuitNow. We are currently in discussions on cross-border e-invoicing. Data centres play a key role as the backbone to support future growth in the digital economy.

13. We look forward to the TM Nxera Data Centre enhancing Malaysia, Johor and Singapore's digital economies. It has several features that will boost businesses and digitalisation:

a. The TM Nxera Data Centre is engineered for enterprises to achieve high compute digitalisation. It offers Graphics Processing Units (GPUs) as a service which enables and enhances emerging technologies like artificial intelligence (AI).

b. The TM Nxera Data Centre will serve the needs of companies that employ AI capabilities by offering a multi-network and multi-cloud environment.

c. This data centre will be built according to high standards of energy and water efficiency, at 64MW for its initial phase and with the potential to scale up to 200MW according to market demand. This reflects Singtel and Telekom Malaysia's commitment to greater energy efficiency and sustainable practices.

14. Last but not least, this data centre will also offer new job opportunities and roles for our people, both directly and indirectly.

a. Specifically, the TM Nxera Data Centre will start a regional data centre academy in collaboration with institutes of higher learning in Malaysia.

b. This will help nurture and prepare young Malaysians for opportunities in the digital sector by ensuring they have the skills required for such roles.

Closing

15. As we make the JS-SEZ more attractive to global investors and deepen our bilateral cooperation, Singapore and Malaysia will continue to work together to leverage each other's complementary strengths to drive more economic growth.

16. I trust that the TM Nxera Data Centre will be the first of many such collaborations under the JS-SEZ as our bilateral economic relations continue to grow from strength to strength.

Thank you.

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