MALAYSIA is obsessed with buzzwords. Today, we hear “environment, sustainability and governance (ESG)”, “data centres”, and “artificial intelligence (AI)” bandied about.

Most, if not all, government initiatives are centred around these the sexy subjects of the day.

Power your business with AI. Ensure it is ESG compliant. Invest in the data centre phenomenon. Build data centres with embedded AI and integrated ESG.

These are sophisticated trends with high barriers to entry. These are also self-moving trends, in that, being the general direction of industries, they are bound to hit our shores without much government assistance or involvement anyway.

The learning curve to master these trends is steep, and infrastructure needs to be developed before these buzzwords translate into actionable businesses and profits.

Many awareness campaigns, training courses, and business assistance plans, such as pioneer status tax exemptions, are being introduced to encourage participation in these new business trends.

This is all well and good, but typically only a small percentage of companies are able to leverage these, leaving the bulk of our businesses, especially micro-SMEs, quite isolated and unable to reap the benefits of these programmes, apart from the odd outsourced work or boutique firms serving these new business areas.

To close this gap, current businesses can be trained to cater to these new areas.

Data centres, for example, typically come with office facilities to house administration personnel. Both the office and data hall would require cleaners and maintenance staff—opportunities for local companies.

Other non-technical areas that will benefit include logistics, power management, building and facility management, and food and beverage.

Similarly, knowledge-based jobs such as smart hands and remote hands (remote troubleshooting for hosted services) and server maintenanc would be in demand. Firms offering these services need to be alert to the arising opportunities and prepared for them.

Semi- and non-technical roles in ESG, such as solar panel installation and maintenance, wiring and cabling, maintenance of water harvesting systems and carbon level readers, present opportunities for jobs and business growth.

Although AI appears to be a complicated technology, it is powered by chipsets and semiconductors, a field in which Malaysia is a major player.

Training engineers to fulfil this demand, as well as skilled factory workers and supervisors, would attract foreign corporations looking to pivot to AI hardware production and consider Malaysia as a choice destination for this.

Applied AI also requires programming languages to perform development work to build both new and current AI use cases.

Supporting infrastructure, including institutions of education and training, also benefits from the increased interest in these new fields, drawing an influx of students and trainees who are trying to break into these new industries.

Perhaps these educational centres can also cater to the semi-skilled workers mentioned, to develop technical and vocational courses in preparation for the increased demand arising from the growth in AI, ESG, and data storage.

To fully maximise this potential, perhaps a percentage of the trainees can be from the B40 segment or from marginalised communities, allowing them to leapfrog into a highly relevant and fast-growing segment.

In pursuing idealistic and long-term national goals, it would be prudent to expand related supporting industries to grow both in tandem with one another.

Apart from fulfilling rising local demand and reducing currency outflow, it could lift the potential of local companies to perform such contracts or tasks in neighbouring countries as well.

In developing the core businesses, it is important to develop their supporting industries, to help complete an attractive landscape that would appeal to investors. – July 18, 2024.

* Emmanuel Joseph firmly believes that Klang is the best place on Earth, and that motivated people can do far more good than any leader with motive.