PENANG has launched its own Internet exchange platform called the Penang Internet Exchange (PIX) which essentially sees faster connectivity and stronger access to the world wide web to strategically position the state as a regional hub for digitalisation.
The deal was secured as global exchange provider DE-CIX Malaysia announced the partnership with state-linked agency Digital Penang to establish PIX, which is powered by DE-CIX’s platform and supporting infrastructure.
Penang Development Corporation Telecommunication Services Sdn Bhd (PDC-TS), a subsidiary of the state development arm, will be helping to finance the initiative with the aim of propelling the state into a metropolis for regional internet traffic.
Chief Minister Chow Kon Yeow and Digital Minister Gobind Singh Deo jointly launched the PIX during a glittering ceremony at Jen Hotel in George Town today.
Gobind said that the PIX initiative represents part of the ministry's commitment to ensure that Internet access is given to all Malaysians at cost effective rates.
The digital economy now represents 23 percent of the national gross domestic product. Meanwhile, the number of Internet users in the southeast Asian region around Malaysian is about 350 million.
"Imagine if Penang or the country can tap the resources available among the 350 million users in the region,” Gobind said. “There is no doubt that the digital economy has an impact on us."
DE-CIX is the world’s leading operator of Internet exchanges.
It has around 50 locations in Europe, North America, Africa, the Middle East, and Asia, where it interconnects over 3,300 network operators (carriers), Internet service providers (ISPs), content providers, and enterprise networks from more than 100 countries, offering peering, cloud, and interconnection services.
Later, Chow together with DE-CIX CEO Ivo Ivanov and DE-CIX Malaysia board member Wong Weng Yew, as well as State Executive Councillor Zairil Khir Johari held a joint press conference.
They stressed that PIX is set to enhance Penang's role as a preferred investment destination for manufacturing and the services sector.
Chow said that Penang has among the highest Internet penetration rates in the country with 99.2% of its base population using the Internet. Of these, some 90% are into digital payments.
Hence, it is only logical for the state to pursue better Internet connectivity speed and access to other markets globally, he said.
Previously, Internet traffic in Penang was channelled mostly through exchanges in Kuala Lumpur, Johor and Singapore, but now the state has its own exchange protocols.
So the local latency (speed) for the transfer of data should become higher, he explained.
PIX has ten founding members at present. In the next three years DE-CIX Malaysia plans to expand the participants to 50.
DE-CIX Malaysia also plans to invest RM20 million over the next ten years to nurture PIX into a strong regional base for Internet connectivity.
Ivanov said that PIX will allow better access to the next-generation features of the Internet, including artificial intelligence (AI) and Cloud services.
“PIX will serve as a pivotal hub for local Internet activities that catalyse the widespread adoption of digital applications including IoT, AI and IR4.0,” said Ng Kwang Ming, CEO of Digital Penang.
“We anticipate investments from content providers, content delivery networks (CDNs), and various other Internet-related businesses, which will play a vital role in building the foundation of a robust data centre ecosystem in Penang.” – The Vibes, January 5, 2024
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