2022 BUDGET: AIMS Group Applauds Government Effort Seek More Incentives for Data Centre Industry
Kuala Lumpur, 2 November 2021 – AIMS Data Centre ("AIMS") applauds the government on Budget 2022 that proposes a balanced set of measures to strengthen recovery, build resilience and drive reforms. Themed "Keluarga Malaysia, Makmur Sejahtera", the budget is comprehensive and inclusive, ensuring that no person or business is left behind in Malaysia's development, as announced on 29th October 2021 by the Minister of Finance, YB Senator Tengku Dato' Sri Zafrul Tengku Abdul Aziz.
Chiew Kok Hin, Chief Executive Officer of AIMS compliments the government's continuous effort to promote a sustainable digital economy by emphasising on rebuilding businesses and catalysing post-pandemic reforms. He highlights that it is imperative that the budget takes into account the provision of more incentives and tax exemptions especially for local players like AIMS.
"As we have seen a rapid increase in data centre reliance for cloud adoption to drive business sustainability and digitalisation, the provision will yield an additional boost to data centre industry growth, which is one of the fastest growing industries in the region," said Chiew. According to Arizton's market research report, Malaysia data centre market size will witness investments of USD 1.4 billion by 2026, growing at a CAGR of 7% during 2021-2026.
Further to that, Chiew said that the year 2021 has been a year of extreme challenges with major shifts in working practices, consumer behaviour, educational modes, and logistical chains, straining networks, cloud infrastructure, retail channels and customer relationship platforms. Apart from monetary incentives, he calls for the government to consider providing constructive and industry-friendly policy relief in years to come so that local data centres can continue to provide businesses with a reliable backbone for their digital initiatives.
"Data centre owners and operators would be able to increase its data centre footprint locally and regionally, spurring job growth and attracting large IT companies to the area. Foreign investors would look to Malaysia to expand their business and in turn, strengthen our digital economy," added Chiew.
As an established carrier-neutral data centre and co-location provider in the country and region, AIMS has established itself as a strategic value-creation partner, opening Malaysia up to more connections and further reinforcing our position as ASEAN's leading interconnection hub.