Kuala lumpur: Malaysia is seeing strong momentum in data centre and advanced manufacturing developments, driven by rising foreign direct investment (FDI) and the Johor-Singapore Special Economic Zone (JS-SEZ), according to Australia-based project advisory and management consultancy firm, TBH Consultancy. According to BERNAMA News Agency, TBH Consultancy's country manager, Michael Tan, highlighted that the JS-SEZ acts as a major growth catalyst by accelerating cross-border investment between both countries. "The JS-SEZ is a coordinated economic ecosystem designed to attract global firms, accelerate FDI and integrate markets between Malaysia and Singapore. The benefits will be twofold: direct infrastructure delivery and the indirect developments that this growth will generate," he told Bernama in an exclusive interview. Tan emphasized that the JS-SEZ will spur development projects in Johor Bahru, Iskandar Puteri, and surrounding areas, alongside new industrial parks, logistics hubs, and data centre developmen ts. He pointed out that the FDIs are also likely to be concentrated in high-tech data centres, driving demand for logistics, warehousing, and wider supply-chain hubs. Addressing the power and water issues common in data centre projects, Tan noted that the availability of these resources has become the main bottleneck for Malaysia's data centre industry, and construction sector players must adapt quickly to address this challenge. "The resource demands of data centres require a holistic, lifecycle-based planning approach that integrates resource management and project controls from the earliest stages," he said. Tan further explained that Johor's decision to ban approvals for water-intensive Tier 1 and Tier 2 facilities-some of which can consume up to 50 million litres of water per day-highlights that resource management is now a fundamental planning and regulatory risk. Future projects must prioritize sustainable site selection and alternative cooling technologies to protect the community water supply while supporting Malaysia's energy transition goals. He added that sustainability must also be embedded into how projects are delivered, with indicators such as water-use efficiency and carbon footprint becoming core performance metrics rather than compliance items. "Against this backdrop, project execution has become increasingly planning-centric. Early planning and coordination now involve the participation of specialist contractors, vendors, and authorities, helping to reduce risks during the execution phase," Tan stated. Tan also mentioned that Malaysia's strong growth in infrastructure, energy, and digital development has created an increasing demand for specialist project management and advisory services, particularly for complex and high-risk programmes. He believes that Malaysia will be a focal point for major regional technology and renewable energy developments over the short to medium term. Looking ahead, Tan identified the biggest challenge for the construction sector as no longer the availability of projects, but the ability to execute them efficiently amid growing complexity and constraints. Despite these headwinds, he sees significant opportunities for companies that can adapt. "Contractors with strong mission-critical delivery teams and fast-track construction capability will be well positioned to benefit from the growth in data centres and advanced manufacturing," he said. Tan concluded by stating that stronger upfront planning, closer collaboration across the value chain, and the broader use of digital and data-driven tools can substantially improve productivity and resilience across the industry.