Google invests in its first data centre in Malaysia, plus more headlines

For PropertyGuru’s real estate news roundup, Google has started construction on its first Malaysian data centre. In other headlines, while some real estate companies in Vietnam have paid large dividends to investors, many others in the sector still have to struggle to rotate capital sources to pay debts and reinvest. Lastly, second-hand condos in the Eastern Economic Corridor (EEC) provinces of Thailand are selling well in the second quarter of 2024.

Google invests USD2 billion in first Malaysian data centre

Google has initiated the construction of its inaugural data centre and cloud region in Malaysia, marking a significant development in Elmina Business Park, Selangor. The US-based technology giant’s investment of USD2 billion aims to bolster Google’s cloud capabilities, as well as artificial intelligence innovations and other digital services in the region. The economic impact of this development is projected to exceed USD3.2 billion and generate roughly 26,500 jobs by the end of this decade.

DataCenterNews Asia reports that the groundbreaking event coincided with Google’s “Mantap Malaysia Bersama AI” event, part of their Google for Malaysia series. The developments come in tandem with Google Cloud’s 2022 announcement of plans to establish a local cloud region, enhancing service speed and accessibility for enterprises in Malaysia. The envisaged cloud region is expected to offer high-performance and low-latency services, stringent data security, and compliance controls.

Prime Minister Dato’ Seri Anwar Ibrahim, who attended the event, acknowledged Google’s investment. He said, “We laud Google’s swiftness in establishing its data centre and cloud region in Malaysia. These state-of-the-art facilities will not only empower our manufacturing and service-based industries—particularly small and medium businesses—to leverage advanced technologies like AI and cloud computing, but also enhance our industries’ capacity to move up the global value chain.”

Google’s President and Chief Investment Officer, Ruth Porat, reiterated the company’s dedication to Malaysia’s digital transformation. “Today, Google reaffirms its support for advancing Malaysia’s digital future with the groundbreaking of our data centre and cloud region in Selangor,” she stated. Google’s investment strategy in Malaysia also encompasses digital skilling and sustainability initiatives, developed in concert with the Malaysian government.

Real estate companies in Vietnam still face pressure on capital sources

While some real estate companies have paid large dividends to investors, many others in the sector still have to struggle to rotate capital sources to pay debts and reinvest.

Since the beginning of the second quarter of 2024, some real estate companies have finalised the 2023 dividend payment in the form of stocks and cash to investors.

Some have recorded big payment rates, such as Machin01 Equipment Joint Stock Company (stock code MA1) with 120 percent. Other companies have also paid dividends from 5 percent to 15 percent.

According to finance and banking expert Nguyen Chi Hieu, the fact that many real estate companies have simultaneously paid dividends to investors reflects the positive recovery of the real estate market.

However, Hieu said in VietnamPlus that the payment does not accurately reflect the extent of the market’s recovery because the companies’ profits were mostly from the undistributed profits of previous years.

In contrast to the big dividend payments of some real estate companies, many other companies in the sector are still facing big difficulties and struggling with the rotation of capital to pay interest and recover.

Second-hand condos selling well in Thailand’s eastern corridor

Transfers of second-hand condos in the Eastern Economic Corridor (EEC) provinces in the second quarter of 2024 increased compared to new condos and both new and second-hand low-rise houses, primarily driven by units priced below 5 million baht, according to the Real Estate Information Center (REIC).

Siddhipen Siddharthapong, acting assistant director-general, said the situation indicated that buyers in Chon Buri, Rayong and Chachoengsao had a smaller budget to purchase homes amid the sluggish economy.

“When the economy slows down, second-hand homes tend to sell well because they are priced lower than new units and are often in more desirable locations,” she mentioned in Bangkok Post. “Second-hand condos are more preferable than second-hand low-rise houses, as buyers either cannot afford the latter or find that the options at the same price are located too far from their jobs.”

The Property Report editors wrote this article. For more information, email: [email protected].