
The recent proposed public domain name system (DNS) redirection might cause global technology companies to redirect data centre investment plans from Malaysia to Thailand or Indonesia.
An industry source told Malaysiakini that the original decision and subsequent U-turn indicated instability and a lack of coherent direction in the government’s decision-making.
They said the DNS redirection would affect many global tech companies that have investments in data centres in Johor.
“Despite the U-turn made by the government on the redirection, some companies are already planning contingency plans on future investments in Malaysia and that includes shifting these investments to Thailand or Indonesia,” said the source.
Yesterday, Communications Minister Fahmi Fadzil said the government has decided not to proceed with a plan requiring all internet service providers (ISPs) to implement DNS redirection by the end of this month.
He added that the Malaysian Communications and Multimedia Commission (MCMC) will continue to engage with stakeholders to cultivate a healthy online culture.
Over the weekend, the minister directed the MCMC to halt its DNS redirection proposal, following feedback from public consultations.
The commission previously clarified that the DNS redirection would target malicious websites, such as those involving pornography and online gambling, while legitimate sites would remain accessible.
Critics have said the move was an attempt to control public discourse by filtering out voices that challenge the government.
Manpower adjustments
The source suggested that affected companies are currently reviewing their headcount as staff may no longer be required if the plan to redirect investments takes root.
Johor has 14 data centres operated by 12 companies and is a hotspot for data centres in the country.
In May, Google announced that it earmarked US$2 billion (RM8.6 billion) to build its first data centre and cloud region in the country. Microsoft also allocated US$2.2 billion (RM9.5 billion) investment over the next four years to advance new cloud and artificial intelligence infrastructure (AI) here.
Others include TikTok’s parent company, ByteDance, which has committed US$6 billion (RM25.9 billion) of foreign direct investment to the Malaysian Investment Development Authority till 2031.
TikTok, through ByteDance System Sdn Bhd, has developed a data centre at Sedenak Tech Park in Kulai, Johor and is an anchor tenant in other data centres in the area.
It is understood the companies would honour existing commitments, but future investments could be rerouted.
https://www.malaysiakini.com/news/718913
Sep 12 2024, 07:50 AM, updated 2y ago
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