Strategic move: (From left:) Chang, Liew, EcoWorld Malaysia executive chairman Tan Sri Liew Kee Sin and Tian Xiong at the launch of EcoWorld’s new industrial revenue pillar .
PETALING JAYA: Capitalising on Malaysia’s thriving information technology (IT) growth, Eco World Development Group Bhd
(EcoWorld Malaysia) has unveiled a new revenue pillar dubbed as Quantum, aiming to expand its industrial revenue stream to cater specifically to digital and high-tech ventures.
EcoWorld Malaysia’s strategic move follows robust growth in its Eco Business Parks (EBP) industrial pillar, achieving a remarkable 68% compounded annual growth rate (CAGR) in sales from 2020 to 2023.
EcoWorld Malaysia’s core revenue pillars include township developments Eco Townships, high-rise residential EcoRise, commercial shop lots EcoHub, and industrial business parks EBP.
With the addition of Quantum, EcoWorld Malaysia aims to strengthen and diversify its industrial portfolio further.
Initially focusing on off-plan sales of detached, semi-detached, and cluster factories within its industrial business parks, EcoWorld Malaysia has since diversified to include industrial land and built-to-suit facilities, attracting over 1,400 small and medium enterprise industrialists both locally and internationally.
The first Quantum series will be housed in Kulai, Iskandar Malaysia, spanning 403.78 acres and dubbed Quantum Edge.
Strategically rebranded to emphasise its focus on digital and high-tech enterprises, Quantum Edge, previously known as EBP VI, has already secured Microsoft as its anchor tenant.
Microsoft Payments (M) Sdn Bhd committed to purchasing 123.14 acres within the park for RM402.3mil, highlighting its appeal to major international firms expanding operations in Malaysia.
EcoWorld Malaysia deputy-chief executive officer (CEO) Liew Tian Xiong emphasised Quantum’s role in providing a conducive environment with robust infrastructure and green initiatives, supporting Malaysia’s economic transformation agenda. He also pointed out the importance of capturing a new client base, which Quantum facilitates by targeting high-tech industries.
“Quantum, our new industrial pillar, aims to diversify revenue streams and tap into emerging markets in technology-driven industries,” Liew told StarBiz at the launch of Quantum as EcoWorld Malaysia’s fifth revenue pillar.
“If we go under general EBP branding, it looks very much like traditional manufacturing. But when we talk about Quantum, precisely targeting high-tech industries, it opens our market to a whole new clientele.”
EcoWorld Malaysia’s industrial segment has witnessed growth since financial year 2020 (FY20), with revenue soaring from RM220mil to over RM1.04bil in FY23, reflecting a CAGR of 68%.
To date, the group has five EBP and one Quantum business park.
Looking ahead, president and CEO Datuk Chang Khim Wah said EcoWorld Malaysia is set to grow its industrial pillar - encompassing both EBP and Quantum - to generate revenues exceeding a billion ringgit, with anticipated annual growth.
Quantum, EcoWorld Malaysia’s fifth revenue pillar, is tailored for the high-tech sector, including artificial intelligence (AI), cloud computing, and advanced manufacturing and research and development.
“Quantum represents our redefined business park, designed to attract transformative players in research and technology, elevating Malaysia to new heights,” Chang said.
“Sustained demand from an expanding pool of high-tech and digital clients inspired us to conceptualise Quantum, aiming to broaden and deepen our market share in these sectors.”
Liew said the developer’s land banking efforts will now focus on acquiring suitable new sites for Quantum developments, in addition to its other revenue pillars.
“With a low net gearing of only 0.24 times as of April 30, 2024, and substantial cash inflows from the recent industrial land sale to Microsoft and other upcoming sales, the group is well-positioned to seize opportunities for strong business growth moving forward,” he added.
“Quantum represents the smallest discrete unit of any physical property, such as energy or matter. It signifies precision, fundamental building blocks, and transformative leaps in understanding and technology.
“This is how we envision our new Quantum revenue pillar, which is designed for market leaders to accelerate the growth of a digital and high-tech ecosystem that will propel EcoWorld Malaysia forward to stay competitive amidst the rapid technological changes we are seeing in the world today.”
Officiating the launch, Deputy Minister of Investment, Trade, and Industry Liew Chin Tong emphasised the shift from a land-based to a tech-based economy.
“We are entering a phase where we can transform land into technology-based offerings.
“The world is becoming more complex, but this also presents opportunities for Malaysia to become a technology hub. I congratulate EcoWorld Malaysia for their innovative approach and efforts to elevate Malaysia to the next level,” he said.
He added that the government has also emphasised the importance of power usage effectiveness, water usage efficiency, and localisation to ensure data centres are sustainable and utilised in the most effective manner.
