By Yasmin Ramlan
KUALA LUMPUR, Oct 10 — Selangor has introduced the Local Economy Development (LED) policy for the data centre and digital infrastructure industry to capture a significant share of Asean’s projected US$11 billion (approximately RM47 billion) market by 2028 and help realise Malaysia’s vision of transforming from a technology consumer into innovation creator.
State executive councillor for investment, trade, and mobility Ng Sze Han said the policy reflects Selangor’s leadership role as Malaysia’s economic powerhouse.
“As the economic powerhouse of Malaysia, contributing 26.2 per cent to the national GDP (gross domestic product), we understand our responsibility to lead.
“We see it in the startups pitching, the SMEs (small and medium enterprises) adopting new technologies, and the industries hiring our top talent,” he said in his opening remarks at the artificial intelligence (AI) conference at the Selangor Smart City and Digital Economy Convention (SDEC) 2025.
The event was held in conjunction with the Selangor International Business Summit (SIBS) 2025, at Kuala Lumpur Convention Centre, here today.
Ng said the LED policy is designed to increase Malaysian participation in high-value activities within the fast-growing data centre sector while maintaining global standards.
“We are encouraging new data centre investments to incorporate 30 per cent local content within three years, focusing on servers, storage, networking equipment, power and cooling systems, and renewable energy solutions,” he said.
Yesterday, Menteri Besar Dato’ Seri Amirudin announced the LED policy for data centres, aiming for 30 per cent local content within three years.
He said the policy is also set to boost supply-chain resilience, reduce lead times, and empower local vendors, all while upholding global standards.
Meanwhile, Ng stated that the implementation of the policy would be practical and phased to account for the country’s developing capabilities.
“Our goal is mutually beneficial — to build stronger supply chains, reduce lead times, and cultivate a competitive local ecosystem, all without compromising the world-class uptime, reliability, and security that are non-negotiable,” he said.
He said the Semiconductor IC Design Park, under the state agency Selangor Information and Digital Economy Corporation (Sidec), will serve as the driving force behind the state’s innovation agenda.
He added that through Sidec and the Advanced Semiconductor Academy of Malaysia (Asem), the state will also train engineers, certify local suppliers, and provide shared labs and reference design facilities for SMEs to innovate without high costs.
“This park is already a vibrant hub, uniting 14 companies, key industry partners, and universities to accelerate innovation.”
