South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
China’s November Economic Data Signals Slowing Industrial Output and Weak Consumer Demand 
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
Oil Prices Rebound as U.S.-Venezuela Tensions Offset Oversupply Concerns 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
U.S. Stock Futures Mixed as Tech and AI Stocks Face Pressure Ahead of CPI Data 
Asian Technology and Chipmaking Stocks Slide as AI Spending Concerns Shake Markets 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
Malaysia, once a hotspot for data centre investments, is reining in expansion as it faces power and water constraints and rising geopolitical pressure. The country has attracted major players like Microsoft, Amazon, Google, Tencent, Huawei, and Alibaba, with Johor emerging as a key hub thanks to its proximity to Singapore. According to DC Byte, Malaysia accounts for over two-thirds of Southeast Asia’s data centre capacity under construction, fueled by spillover from costly Singapore.
However, growth has slowed as Malaysia introduces stricter vetting of projects and enforces permits for exports and transits of U.S.-made high-performance chips such as Nvidia’s. These measures follow U.S. concerns that Chinese firms could use Malaysian data centres as backdoors to access restricted AI chips. While Chinese alternatives exist, they remain inferior for training cutting-edge AI models, placing China at a disadvantage compared to U.S. rivals.
China’s “AI Belt and Road” strategy, launched in 2021, encouraged data centre expansion abroad, including in Belt and Road partners like Malaysia. GDS Holdings established a hyperscale campus in Johor, later spinning off its overseas operations into DayOne to reduce exposure to U.S. restrictions. Singapore’s limited new data centre capacity further highlights Johor’s appeal, with 42 projects worth 164.45 billion ringgit ($39.08 billion) approved by mid-2025, representing nearly 79% of Malaysia’s IT capacity.
Yet, Johor authorities have tightened sustainability requirements, rejecting about 30% of applications in 2024 for failing to meet energy and water usage standards. Analysts warn that Southeast Asia may face growing scrutiny and tariffs as U.S.-China trade tensions intensify, potentially curbing the success of Chinese-backed data centre projects in the region.
