Kuala lumpur: Every application for a new data centre project in Malaysia will undergo a stringent assessment process to ensure that electricity and water supplies for local households and industries are not affected, Deputy Investment, Trade and Industry Minister Sim Tze Tzin announced. He emphasized the government's commitment to safeguarding the country's energy security through careful evaluation of each project's investment needs, capacity, and other factors, as undertaken by the Data Centre Task Force (DCTF).

According to BERNAMA News Agency, Sim addressed the Dewan Negara during a question-and-answer session, responding to inquiries from Senator Susan Chemerai Anding about the government's efforts to maintain national energy security and electricity capacity for households and industries. Sim reassured that the government remains cautious in approving data centre applications to prevent any compromise on energy supplies.

Furthermore, in response to a supplementary question, Sim highlighted the New Incentive Framework (NIF), which considers providing incentives to multinational companies (MNCs) that introduce high-impact technologies and develop local vendors, notably in rural and less developed regions. This initiative aims to foster cooperation between MNCs and local companies, enabling small and medium enterprises (SMEs) to become suppliers to MNCs and encouraging at least 40 per cent local content through the Malaysia Certificate of Origin.

Sim's remarks were in reply to Senator Tan Sri Low Kian Chuan's question about government measures to ensure SMEs benefit from the spillover effects of multinational investments in sectors like artificial intelligence, semiconductors, and biotechnology. The government is actively conducting matching programs between MNCs and local companies to address this issue, Sim noted.