Penang and Kedah, long recognised as Malaysia’s industrial heartlands, are transforming into vibrant digital hubs.
PETALING JAYA: Penang and Kedah, long recognised as Malaysia’s industrial heartlands, are transforming into vibrant digital hubs, according to Open DC Sdn Bhd founder and managing director Wong Weng Yew.
He said traditionally seen as manufacturing powerhouses, these northern states are undergoing a digital transformation that is set to enhance global competitiveness.
“Those are strong foundations that continue to drive Malaysia’s economy.
What is happening is both industries are going through an important phase of digital transformation, which would enhance their productivity and global competitiveness.
“When we first started, most of Malaysia’s data centres and connectivity infrastructure were in the Klang Valley.
We saw an opportunity and a responsibility to help bring that growth up north so that places such as Penang and Kedah could also benefit from better digital access and low-latency connectivity.”
Founded to bridge the digital divide, Open DC aims to create neutral interconnection hubs that simplify connectivity for underserved regions, reduce latency and enable better collaboration between enterprises, telcos and cloud providers.
Wong highlighted the critical, yet often unseen, role of data centres in driving technological advancement.
“Data centres and interconnection platforms are the backbone of this transformation, enabling everything from seamless communication to advanced technologies to thrive.”
He said the northern region is witnessing positive momentum from this shift, with local businesses enjoying robust network connectivity and access to cloud infrastructure, allowing them to scale faster and operate more efficiently.
“This shift is not just about technology.
It is also about economic empowerment, enabling communities and businesses to participate fully in Malaysia’s digital future.”
He also said Malaysia’s digital economy continues to show strong progress under the Malaysia Digital initiative, with total approved investments reaching RM16.2 billion between January and April this year, reflecting global investor confidence in the nation’s digital ecosystem.
The Northern Corridor Economic Region (NCER), encompassing Kedah and Penang, has long been a beacon of growth, attracting high-value investments and fostering private sector participation.
Led by the Northern Corridor Implementation Authority, the NCER is transforming into a world-class economic and technology hub.
“With a strategic focus on manufacturing, agribusiness and green innovation, the region offers a dynamic ecosystem for businesses to grow and innovate.”
Kedah recorded RM20.38 billion in realised investments in 2024, up from RM11.6 billion the previous year.
“Penang is known globally for its manufacturing excellence while Kedah is emerging as a strategic location for infrastructure expansion.
“When we looked at the digital landscape, we saw a clear opportunity to complement that strength with digital infrastructure, particularly data centres that could support local industries and international demand.”
Wong added that Open DC’s PE2 data centre, located in Bayan Lepas Technology Park, is a significant step towards strengthening Malaysia’s data centre ecosystem.
“Designed to serve enterprises, technology providers and hyperscale customers, PE2 embodies the company’s vision for a connected and resilient northern digital ecosystem.
“Our expansion with PE2 in Penang is part of that vision to build a connected ecosystem that positions the northern region as a key digital gateway for Malaysia and the region.”
