A Data Economy – Set Up a Data Centre in Malaysia

How to Set Up Data Centre in MalaysiaJoin the wave of the new economy and set up a data centre in Malaysia with 3E Accounting’s pocket read.

Malaysia has the potential to become the epicentre for e-commerce and digital services. It is already home to data centres from strong global players such as Alibaba Cloud, Google and Amazon Web. The data centre market is expected to reach USD800 million by 2025. Set up a data centre in Malaysia and ride the momentum into the new data economy.

 

A Data Economy – Set Up a Data Centre in Malaysia

Join the wave of the new economy and set up a data centre in Malaysia with 3E Accounting’s pocket read.

Malaysia has the potential to become the epicentre for e-commerce and digital services. It is already home to data centres from strong global players such as Alibaba Cloud, Google and Amazon Web. The data centre market is expected to reach USD800 million by 2025. Set up a data centre in Malaysia and ride the momentum into the new data economy.

 

Big Data Big Business

Data centres are driving the new data economy, and Malaysia is on track to be a data centre hub in Southeast Asia. Improved connectivity, readily available and affordable land, as well as competitive power tariffs, have improved Malaysia’s standing. Malaysia is also building up its infrastructure and ensuring more transparent governance to attract potential investors.

Data centres are physical storage sites that house all the facilities, software and hardware, that enable data applications and sharing. These include business activities such as emails, file sharing, big data, CRMs (customer relationship management), etc.

Data centres require space big enough to house hardware which includes uninterruptible power supplies, cooling systems, cables, etc. Data centres can be of many varieties. Some of the more popular ones are:

  • DCs that are on-site i.e. built and housed within the company premises. These can be wholly owned and managed by the company (an Enterprise DCs) or managed by a third-party (a Managed Services DCs)
  • DCs that are off-site and accessible online (a Cloud DC) or entirely housed and managed by a third-party (a Colocation DC)

Before you set up a data centre in Malaysia, it is advisable to register and incorporate your company. The Company Commission of Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM) online portal facilitates company registration. These are the types of companies that can be incorporated:

  • Sole Proprietorship
  • Partnership or Limited Liability Partnership (LLP)
  • Private or Public Limited Company (Sdn. Bhd. Or Berhad)
  • Companies limited by guarantee

For the purposes of a data centre, a Sdn. Bhd. or Berhad would be advisable. These have separate legal entities and offer limited liability to shareholders. Following company incorporation, registration with the Inland Revenue Board of Malaysia (LHDN) must be done, in particular for a Sales Tax license.

Licenses, permits and approvals can be applied for from the Malaysian Government’s licensing portal or Pihak Berkuasa Melesen (PBM). Licensing is specific to the location and issued by either the Federal Government and or State authorities. Licenses are divided into three broad categories:

  • General
  • Industry or sector-specific
  • Activity specific

Depending on the exact structure and nature of your data centre business, some of the approvals can overlap and include:

  • License from the Telecommunication sector.
  • Approvals under occupational safety and health.
  • Approvals for machinery fitness, building plans, etc.
  • Pollution control certification, etc.

 

The Inroads to Success

Behind every successful start-up, is a solid partnership and support system. 3E Accounting can provide all the help you need to set up a data centre in Malaysia. As business consultants with a tried and tested track record, 3E Accounting offers impeccable service and the best business solutions.

Contact 3E Accounting today for an alliance that offers customizable business solutions like no other.

How to Set Up Data Centre in Malaysia