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Only data centres must meet 30 pct local content requirement — Exco

24 Nov 2025, 4:24 AM
Only data centres must meet 30 pct local content requirement — Exco
Only data centres must meet 30 pct local content requirement — Exco
Only data centres must meet 30 pct local content requirement — Exco

By Yasmin Ramlan

SHAH ALAM, Nov 24 — Selangor’s new requirement for 30 per cent local content currently applies only to data centres, said state executive councillor for investment, trade and mobility Ng Sze Han.

“This 30 per cent local content policy is for data centres for now, not for other sectors,” he said during the question and answer session at the Selangor State Legislative Assembly here today.

Ng said under the Local Economic Development (LED) policy, investors are required to use at least 30 per cent of Malaysian-made components in their operations, a move aimed at creating more opportunities for local SMEs in the fast-growing, high-impact data centre industry.

He said this in response to Batu Tiga state assemblyman Danial Al-Rashid Haron Aminar Rashid regarding the 30 per cent local content requirement, whether local SMEs could be involved in new investments, and how this policy would be applied.

Ng also outlined Selangor’s broader investment plans under the Second Selangor Plan (RS-2), which is scheduled to be rolled out next year, prioritising high-value industries like aerospace, electrical and electronics (E&E), and automotive.

He said these sectors will be supported by major infrastructure such as the Selangor Aero Park in Sepang and the Automotive Valley in Serendah.

Ng also highlighted the Selangor Greater Klang Valley (SGKV) initiative linking Shah Alam, Petaling Jaya, Subang Jaya and Klang as a new driver to attract more high-quality investments.

Earlier, he said Selangor had approved 948 manufacturing and services projects worth RM34.65 billion between January and June this year.

“Domestic investment contributed RM18.91 billion, while foreign investment totalled RM15.74 billion,” he said.

He added that information and communications technology (ICT) and real estate lead services investments, while transport equipment and E&E dominate manufacturing.

To sustain investment performance, he said the state has introduced facilitation measures, including monthly project coordination meetings and the new Speed Selangor initiative to streamline and expedite approvals and licensing.

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