THE launch of the Penang Internet Exchange (PIX), powered by DE-CIX today, marks a significant milestone in Penang’s journey towards digital excellence, according to Chief Minister Chow Kon Yeow.
He said the project, a collaborative effort between Digital Penang and DE-CIX Malaysia, underscores the unwavering commitment of the Penang government to foster strategic partnerships between the public and private sectors. This commitment aims to position Penang as the digital hub in the region, aligning with the Penang2030 vision.
The chief minister also expressed gratitude to PDC Telecommunication Services for its sponsorship, acknowledging its pivotal role in ensuring the success of today’s launch at Jen By Shangri-La Hotel.
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Describing the Penang Internet Exchange as a digital tapestry, Chow highlighted its role in empowering citizens and acting as a catalyst for innovation, economic growth, and infrastructure development in the state.
“The strategic localisation of internet traffic exchange within Penang is poised to reduce network latency for internet users and ensure a faster online experience for all Penangites.
“An important element of the Penang2030 vision is for us to be able to harness and capture opportunities in the digital future.
“We must have in place the means or facilities to be future-ready. And the future is digital.
“In the digital world, it is neither the biggest nor strongest that wins but the small, smart, and nimble that changes and adapts who wins the game. Size or location no longer restricts us. Embracing digital is the way for us to extend our boundaries and tap into the global value chain,” Chow said in his speech before taking part in the PIX launching ceremony.
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A recent survey forecasted that the number of internet users in Malaysia would continuously increase by 5.68% between 2024 and 2028.
In Penang, 99.2% of its citizens are internet users in 2022, and according to the findings by PayNet, Penang is leading the nation with a 90% penetration rate of digital payments as of October 2023.
Chow said while the industrialisation journey took Penang 50 years to reach where it is today, he believes that five years in the digitalisation future would be impactful, let alone 10 or 15 years.
He said PIX is more than reducing the latency but a platform for businesses to grow, being connected to over 100 countries.
Chow called upon businesses and startups to seize the opportunities presented by this initiative, stressing that PIX has opened up a realm of possibilities that will serve as a potential game-changer for their endeavours while previously all traffic had to go through Kuala Lumpur, Johor and Singapore.
Among the dignitaries present at the ceremony were Gobind Singh Deo, Minister of Digital; Zairil Khir Johari, state executive councillor for Infrastructure, Transport and Digital; Wong Weng Yew, board member of DE-CIX Malaysia; Ivo Ivanow, CEO of DE-CIX Group AG and CEO of DE-CIX International; Ng Kwang Ming, CEO of Digital Penang; Mahadhir Aziz, CEO of MDEC, Datuk Aziz Bakar, CEO of Penang Development Corporation; and Datin S. Bharathi, general manager of Chief Minister Incorporated.
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Gobind said besides carrying out several digital initiatives at the national level, his ministry would also embark on utilising Artificial Intelligence (AI) technology in various government services to elevate the quality of services provided to the citizens.
He also acknowledged DE-CIX Malaysia’s commitment to linking regional connectivity beyond Penang.
Wong said PIX’s core objective is to enable Internet traffic localisation for Penang which would reduce application network latency between participating networks. This will, in turn, catalyse the adoption of IR4.0, VR and IoT applications, expediting the digital transformation in the state.
During a Q&A session, Wong said they would invest at least RM20 million in 10 years to put up the infrastructure to provide service and deliver a training academy to empower Penang businesses.
Ng said Digital Penang is prepared to continue leading the charge towards transforming Penang into a digitally enabled state.
He said PIX empowers local startups to fully harness the potential of digital technologies, such as cloud services. This reliable infrastructure is poised to provide our homegrown startups with a resilient platform to accelerate their digital initiatives.
“Digital enterprises relying on cloud services for storage and computing will experience improved performance on their applications. Furthermore, the improved connectivity opens up new avenues for collaboration and data exchange among various creative and tech-related businesses in the state including the Creative Digital District (CD2) and Penang’s Global Business Services (GBS) industry,” Ng said in his speech.
Story by K.H. Ong
Pix by Muhamad Amir Irsyad Omar
Video by Ahmad Adil Muhamad