Latest news with #PearlComputing
New Straits Times
4 days ago
- Business
- New Straits Times
13MP to set stage for construction boost in 2026 Budget
KUALA LUMPUR: The 13th Malaysia Plan (13MP) is poised to pave the way for the 2026 Budget to deliver a positive boost to the construction sector, said CGS International Research. It said the plan's RM430 billion in development spending, or RM86 billion a year, could trigger major infrastructure projects before the next general election in February 2028. While federal budgets have typically been a non-event for the construction sector, CGS International expects the Oct 25 Budget 2026 to be different. "In our view, the 2026 Budget will be the platform for the Prime Minister to set the tone for the rollout of key infrastructure projects prior to the next general elections which must be called by Feb 2028. "Hence, we expect his tone to change from the 2025 Budget where he said, "now is not the time to roll out mega projects"," it said in a note. CGS International believes that the firm's conviction is validated by the unwinding of subsidies and implementation of the Sales and Service Tax, giving the government additional revenues. "Also, we think the government realises construction has a strong multiplier effect given its strong correlation with gross domestic product growth," it said. Meanwhile, CGS International expects data centre (DC) awards to accelerate in the second half of 2025 (2H25) and calendar year 2026 . The firm gathered there are five DC tenders for Pearl Computing which will be awarded from third quarter (Q3) of 2025 and including the Negri Sembilan land, the number of tenders could rise to at least 13. "In the building material space like cement, there is also further evidence that the DC rollout has picked up steam with strong growth and margin expansion for MCement's ready mixed concrete division. "We believe the upside for DCs will come from the series of land purchases by Microsoft in 2023 and 2024 in Johor, as the tenders have yet to open," it said. For the next six months, CGS International believes investors should focus on visibility of contract awards and headline newsflow, and to a lesser extent on earnings delivery. In addition, the firm has maintained Overweight on the sector with its top picks including Gamuda Bhd, IJM Corp Bhd and Malayan Cement Bhd. "However, the downside risks include stiff competition in the DC space, higher foreign worker levy and material costs. "Re-rating catalysts are faster project rollouts and increased foreign direct investment," it added.
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
Google unit awards data centre contract to Gamuda
Google said it was investing US$2 billion in Malaysia to develop data centres and a cloud facility in the Southeast Asian country. (Reuters pic) KUALA LUMPUR : Malaysian infrastructure firm Gamuda Bhd won a data centre contract worth over RM1 billion (US$237 million) from Google's Malaysian affiliate, according to company filings. Gamuda said it will also sell 389 acres of land in Negeri Sembilan to Pearl Computing Malaysia Sdn Bhd for about RM455 million, on which the latter will build data centres. Pearl Computing is wholly owned by Raiden APAC Pte Ltd, which is in turn owned by Google, according to company filings. The data centre project will include the construction of a water treatment plant with a capacity of 65 million litres and an off-river storage system. Google previously said it was investing US$2 billion in Malaysia to develop data centres and a cloud facility in the Southeast Asian country. Last year, Pearl Computing signed a RM5.6 billion build-and-lease deal for data centres in Malaysia with a unit of Kuala Lumpur-listed Sime Darby Property Bhd.
