PETALING JAYA: Global technology companies are increasingly viewing Malaysia not just as a manufacturing base, but as a strategic hub for advanced engineering, digital operations and artificial intelligence (AI)-related infrastructure amid rising semiconductor and data centre (DC) investments in South-East Asia.
The shift comes as multinational companies look to deepen higher-value capabilities in areas such as AI-driven manufacturing, power systems, automation and digital infrastructure, while tapping Malaysia’s engineering talent pool and growing semiconductor ecosystem.
Schneider Electric Malaysia country president Eugene Quah said the group’s focus in Malaysia is on strengthening the capabilities that customers need as DCs become more power-intensive, software-defined and AI-ready.
“This is not only about technology deployment. It is also about building the right engineering, services and digital expertise to support customers across the full lifecycle of their facilities.
“DCs today require deeper integration between electrical systems, cooling, software, operations and maintenance.
“That is where Schneider Electric sees Malaysia playing an important regional role. A good example is our Schneider Electric Regional Training Centre for South-East Asia in Petaling Jaya, which provides hands-on training across areas such as electrical distribution, UPS, digital power and DC solutions,” he told StarBiz in an exclusive interview.
Schneider Electric operates in Malaysia as an energy technology partner, providing solutions in energy management, industrial automation, and digital software.
Their local footprint spans corporate operations, engineering and training facilities, service capabilities and support for sectors such as DCs.
That said, Quah added that Malaysia’s role is not limited to equipment training. He said as infrastructure becomes more connected and complex, customers need teams who understand how power, cooling, digital systems and services work together across the full lifecycle.
As such, the group’s strategy is focused on strengthening engineering, services, digital and technical capabilities locally, so that Malaysia can support more complex DCs and critical infrastructure projects across the region.
“Our long-term strategy in Malaysia is about building regional readiness. We see Malaysia not only as a fast-growing DC market, but also as a base for technical talent, digital capability, services expertise and customer support across the region.
“As demand grows, our priority is to help customers deploy faster, operate more efficiently and build the resilience needed for AI and digital infrastructure at scale.”
For the country to become a long-term hub for Schneider Electric in South-East Asia (versus as just a project-based market), Quah said the Malaysian market needs to move beyond individual projects and foster conditions needed for sustained growth.
This means consistent demand, reliable infrastructure, strong technical talent, a mature partner ecosystem and policy direction that gives companies the confidence to invest for the long term.
The good news is, Malaysia already has several of these fundamentals in place.
“The country has momentum across DCs, manufacturing, semiconductors, energy transition and digital infrastructure.
“It also has strategic advantages in location, connectivity and access to regional markets. These factors make Malaysia an important market for Schneider Electric in South-East Asia.”
He added that “for us, Malaysia is already more than a project-based market. Our continued investment in local capability, services and customer support reflects our confidence in Malaysia’s long-term role”.
Nonetheless, Quah said if policy, infrastructure, talent and industry collaboration continue to move in the same direction, Malaysia can play a larger role not only as a destination for DC investments, but as a centre of capability for the wider South-East Asian digital economy.
Talent availability for instance remains one of the key issues the industry needs to address as Malaysia’s DC market scales.
Quah said the demand is not only for more engineers, but also for people with the right combination of skills across power systems, cooling, automation, software, cybersecurity and digital operations.
“For DCs, this is especially important as infrastructure becomes more complex. High-density and AI-ready facilities require teams who understand electrical architecture, thermal management, monitoring systems, controls and asset performance. These are no longer isolated skill sets,” he said.
The group is also exploring opportunities to support more Technical and Vocational Education and Training in these areas, so that talent development can keep pace with investment, he added.
The push towards higher-value digital and AI-related capabilities is also reshaping how semiconductor firms position their Malaysian operations.
GlobalFoundries senior director of operations in Malaysia & India Yvonne Keil said the group’s Penang hub, which opened in 2023, has grown to more than 450 employees since, supporting the company’s global operations.
This facility functions as a remote command centre to monitor key production processes, performance metrics and tool uptime across all GlobalFoundries’ global manufacturing sites in Singapore, the United States and Europe.
According to Keil, the Penang operation forms part of GlobalFoundries’ Global Fab Engineering Services model, a virtual fab approach that complements its geographically diversified fabs through engineering support, process optimisation and manufacturing analytics.
Keil said Malaysia’s engineering talent base, semiconductor expertise and ecosystem connectivity continue to make the country an attractive location for higher-value semiconductor operations.
“We see the most immediate opportunity in Malaysia is in building on our digital manufacturing capabilities, anchored by our Penang hub.
“As part of our Global Fab Engineering Services model, the team already supports highly connected, round-the-clock operations across our global fabs.
“Looking ahead, we will continue to deepen strengths in areas such as manufacturing analytics, automation and AI-driven optimisation, a natural extension of the work being done in Penang today,” she told StarBiz.
GlobalFoundries has a major manufacturing presence in Singapore, where it runs multiple wafer fabrication plants producing chips for automotive, communications and industrial applications.
Keil said Singapore and Malaysia bring different and complementary strengths to the semiconductor ecosystem. In particular, the proximity between Singapore and Malaysia is a distinct advantage when it comes to cross-border operations and talent development across South-East Asia.
“Malaysia’s strong concentration of suppliers, engineering talent and manufacturing expertise continue to make this location an attractive space for our industry. We have also been impressed by how quickly teams here have adapted to highly connected, global manufacturing workflows.”
“With Malaysia ramping up its National Semiconductor Strategy, we see a real opportunity for GlobalFoundries to contribute to this momentum,” she said.
