CORPORATE JARGONS - WHAT THEY DON'T TELL YOU - THE BOMBASTIC TERMS THAT UNDERMINE GOVERNANCE PRACTICES

Disclaimer: The observations shared in this article highlight corporate practices that can obscure transparency, governance, and accountability. They are not meant to suggest that all corporations engage in such practices. Many organisations are upholding the highest standards of ethics, governance, and ESG compliance, and are demonstrating exemplary leadership and integrity in their operations. The purpose of this discussion is to encourage scrutiny, informed oversight, and continuous improvement in corporate practices.

In today’s corporate landscape, language has become a powerful shield.

Annual reports, sustainability statements, investor briefings and press releases are increasingly filled with impressive-sounding terms : order books, adjusted earnings, strategic partnerships, net-zero commitments. None of these are inherently wrong.

But when clarity, metrics, and accountability are missing, language becomes a tool of concealment rather than communication.

This is where credibility, good practices of management systems and board governance expectations quietly erode.

Below are common corporate terms that deserve closer scrutiny, especially by boards, auditors, regulators, and stakeholders.

1. ORDER BOOK VALUE

A large order book is often presented as proof of future strength.

Governance question: 

• How much is legally binding versus indicative?

• What is the cancellation risk and margin quality?

From governance standpoint, overstating certainty misleads stakeholders and distorts risk disclosure.

2. “MISCELLAENEOUS" or “OTHER” ITEMS

These are often dismissed as immaterial.

Red flag: When “miscellaneous” becomes material in size, it signals weak internal controls and poor financial transparency both inconsistent with good practices on accurate record-keeping.

3. ADJUSTED EBITDA

Adjustments are sometimes necessary.

Governance failure occurs when:  Recurring costs are repeatedly labelled “exceptional” to manufacture performance.

Boards should ask: Why does the business need constant adjustment to look viable?

4. NON-RECURRING/ONE-OFF ITEMS

If a “one-off” appears every year, it is no longer one-off.

This practice undermines truthful reporting, a core requirement of ethical governance and anti-corruption frameworks.

5. STRATEGIC PARTNERSHIPS

Often announced with fanfare.

Key oversight questions:

• Is there capital commitment or just an MoU?

• Are responsibilities and risks clearly allocated?

Anti Corruption Practices expects clear due diligence on partners, not headline-driven alliances.

6. PIPLELINE PROJECTS

A pipeline is potential not performance.

Boards should demand:

• Approval status,

• Funding certainty,

• Historical conversion rates

Without this, pipeline disclosures become optimism bias masquerading as strategy.

7. REVENUE GROWTH

Revenue growth alone does not indicate value creation.

From a governance lens:

• Are margins sustainable?

• Are receivables ballooning?

Is growth driven by discounting or risk-taking?

Cash integrity matters more than top-line numbers.

8. COST OPTIMIZATION AND EFFICIENCY INITIATIVES

Cost optimisation is often celebrated.

But what is being cut? Training? maintenance? safety? and compliance? - cuts from these items may boost short-term figures while creating long-term ESG and operational risks.

9. “STRONG BALANCE SHEET”

This phrase deserves interrogation.

Boards must look beyond headline ratios to:

• Off-balance-sheet obligations,

• Short-term liquidity dependence,

• Covenant exposure

True financial resilience is stress-tested, not asserted.

10. DEFERRED REVENUE

Often framed as future income.

In reality, it is a delivery obligation. Failure to deliver can trigger penalties, refunds, or reputational damage directly impacting ESG trust.

11. FAIR VALUE GAINS

Valuation gains are not cash.

When executive incentives are linked to unrealised gains, governance misalignment emerges, contradicting responsible remuneration principles.

12. RELATED PARTY TRANSACTIONS

Legal does not automatically mean "ethical".

Anti-Corruption practices and good governance require:

• Transparent pricing,

• Independent approval,

• Minority shareholder protection

13. GOING CONCERN STATEMENTS

A going concern statement signals survival, not strength.

Boards should ensure stakeholders understand the assumptions behind continuity, not just the conclusion.

14. DIGITAL TRANSFORMATION/AI-DRIVEN/ESG LED

Buzzwords are not strategies.

Boards should demand evidence of:

• Implementation,

• ROI

• Risk management and controls

PowerPoint compliance is not operational compliance.

15. GREENWASHING - THE ESG CREDIBILITY CRISIS

Perhaps the most damaging practice today.

Common patterns include:

• Selective emissions reporting (Scope 3 ignored),

• Heavy reliance on offsets instead of reductions,

• Sustainability claims without third-party assurance,

ESG without verifiable data, targets, and accountability is greenwashing branding not responsibility.

Governance reminds us that misrepresentation is a corruption risk, even when framed as sustainability.

What This Means for Boards

Modern boards are no longer judged only on financial performance. They are expected to ensure:

• Truthful, complete, and balanced disclosure,

• Ethical conduct embedded in systems, not slogans,

• ESG claims aligned with operational reality

Anti-Corruption principles reflected in decision-making (not just certification)

15. CORPORATE JARGON AND IMPACT ON STOCK MARKET PRICING

Corporate language doesn’t just influence internal governance, it can have a direct impact on market perception and stock valuation.

When public companies use bombastic terms, order books, adjusted EBITDA, pipeline projects, or ESG/green claims  without full transparency, Investors may overestimate future cash flows or profitability, driving share prices higher than fundamentals justify.

Short-term enthusiasm can mask long-term risks, such as margin erosion, unsustainable cost cuts, or one-off accounting adjustments. 

Greenwashing or exaggerated ESG claims can temporarily attract ESG-focused funds, yet may lead to reputational and financial risk if claims are later questioned.

Conversely, strong, transparent reporting builds credibility, leading to more stable valuation, lower cost of capital, and better investor confidence.

Stock markets react not just to actual performance, but to narratives, trust, and perceived governance quality. Boards, auditors, and investors should recognize that clarity and accountability in corporate communication are as critical as the underlying numbers themselves.

In short - the way a company presents itself is inseparable from how the market values it. Misleading or vague corporate language can inflate short-term pricing but undermines long-term shareholder trust and market efficiency.

BRIEF CONCLUSION (for now)

The louder the language, the greater the duty to question it.

Strong organisations do not hide behind terms. They explain them, evidence them, and invite scrutiny. That is the real test of governance, ESG integrity, and leadership accountability. 

From Production to Knowledge: Why Malaysia and ASEAN’s Digital Economy Is Still Stuck and What Policy Must Change - By Nik Zafri

Read this article as well : 

SHARING ECONOMY VS TRADITIONAL BRICK AND MORTAR IN THE 21ST CENTURY – BY NIK ZAFRI

By Nik Zafri

Summary

Malaysia and ASEAN have made significant strides in digitalisation, from e‑government services and fintech adoption to AI roadmaps and smart cities. Yet beneath this progress lies a structural contradiction: our digital economy largely operates on a production‑based (P‑based) capitalist logic, rather than a true knowledge‑based (K‑based) economy that digital technology promises.

This article will try to address the constraint is not technological capability, but policy design, governance frameworks, and legacy measurement systems. Without deliberate reform, digitalisation will continue to amplify consumption, inequality, and environmental stress rather than generate shared intelligence, resilience, and long‑term value.

1. THE ASEAN-MALAYSIAN DIGITAL PARADOX

Malaysia’s digital agenda supported by initiatives such as #MyDIGITAL, #Industry4WRD, National AI Roadmaps, and various smart city programmes emphasises:

• Platform growth,

• Startup ecosystems,

• Cashless payments

• E‑commerce expansion

Across ASEAN, similar patterns emerge in Singapore, Indonesia, Vietnam, and Thailand.

However, most digital success is still measured by:

• Gross transaction value (GTV),

• User acquisition numbers,

• Platform scale,

• Contribution to GDP

These are P‑based indicators, not K‑based ones. The result is a digital economy that sells more efficiently, but does not necessarily think better.

2. WHY P-BASED LOGIC PERSISTS IN POLICY

2.1 GDP and Fiscal Metrics Dominate

Public policy continues to rely on GDP growth, consumption, and investment flows as primary indicators of success. Knowledge creation, prevention of loss, environmental preservation, and social trust, all critical in ASEAN’s climate‑vulnerable context remain largely invisible to national accounts.

2.2 Investment and Incentive Structures

Government grants, tax incentives, and venture funding prioritise:

• Scale,

• Speed,

• Monetisation

Rarely do they reward:

• Knowledge transfer,

• Skills deepening,

• Open data contribution,

• Reduction of systemic risk

This biases innovation toward platforms that extract value rather than systems that distribute intelligence.

3. P‑BASED VS K-BASED ECONOMY (Policy Lens)

4. THE ASEAN CONTEXT : Why This Matters More Here

ASEAN economies face overlapping challenges:

• Climate vulnerability (floods, heat, food security),

• Ageing infrastructure,

• Youth underemployment,

• Skills mismatch,

• Environmental degradation

A P‑based digital economy worsens these by encouraging over‑consumption and resource strain. A K‑based economy, by contrast, prioritises:

• Predictive systems,

• Preventive policy,

• Skills intelligence,

• Regional knowledge sharing

For Malaysia, this aligns directly with national aspirations on sustainability, ESG leadership, and high‑income status.

5. GOVERNANCE GAPS HOLDING BACK THE TRANSITION

• Policy Silos : Digital, climate, education, and economic policies operate independently,

• Outdated Accounting : Intangible assets and avoided losses are not recognised,

• Platform Regulation : Focused on competition, not knowledge responsibility,

• Public Procurement : Rewards lowest cost, not highest intelligence,

• Data Governance : Treats data as commodity rather than public infrastructure

6. POLICY RECOMMENDATIONS FOR MALAYSIA AND ASEAN

6.1 Redefine National Success Metrics

• Complement GDP with knowledge, resilience, and risk‑reduction indicators,

• Integrate ESG, SDG, and climate intelligence into fiscal planning

6.2 Reform Digital Incentives

Tie grants and tax incentives to measurable knowledge transfer

Reward platforms that reduce systemic costs (energy, fraud, waste)

6.3 Treat Data as Strategic Infrastructure

(which is the very reason why we need a real working Data Centers not for fancy but what works and benefits us)

• Establish trusted data commons for climate, health, and finance
• Encourage cross‑ASEAN data interoperability

6.4 Embed Knowledge in Public Procurement

• Prioritise solutions that improve decision quality, not just cost savings,

• Value learning systems, not one‑off deliverables

6.5 Strengthen Regional Knowledge Cooperation

• ASEAN‑level platforms for shared intelligence on climate, supply chains, and security,

• Reduce duplication through collective learning

7. REFRAMING DIGITAL TRANSFORMATION

Digital transformation must shift from:

• Faster consumption to Smarter decisions,

• Platform scale to System intelligence,

• User capture to Capability building

AI, analytics, and automation should be deployed to prevent harm, optimise resources, and raise collective competence, not merely to increase sales.

CONCLUSION : A POLICY CHOICE, NOT A TECHNOLOGY PROBLEM

Malaysia and ASEAN do not lack digital infrastructure, talent, or ambition. What is missing is policy alignment with a knowledge‑based future.

The continued dominance of a P‑based digital economy is a governance choice,  reinforced by outdated metrics, incentives, and power structures. Transitioning to a K‑based economy requires courage to redefine value, patience to invest long‑term, and humility to share intelligence across institutions and borders.

We are not constrained by technology. We are constrained by how we choose to measure success.

The digital future will not be decided by how much we produce or consume but by how well we learn, adapt, and govern together.

The Volume Advantage: Why Competitive Pricing and High Turnover Beat High Margins in a Value-Driven Market - by Nik Zafri

A simple business scenario:

 The cost of one product is RM0.50.

• Seller A buys 1,000 units and resells them at RM1.00 (a 50% margin)
• Seller B buys 500 units and sells them at RM0.80 (a 30% margin).

Both offer the same product quality and service. However, within one week, A only manages to sell 100 units, while B sells all 500 units and continues receiving similar demand.

1. Lower Margin, Higher Volume Can Outperform Higher Margin, Lower Volume

• A sells at a higher profit per unit (RM0.50) but only manages to sell 100 units.
• B sells at a lower profit per unit (RM0.30) and manages to sell 500 units, fully clearing stock.

 In absolute profit terms:

• A’s profit: 100 units × RM0.50 = RM50
• B’s profit: 500 units × RM0.30 = RM150

So, B earns 3 times more profit despite a lower margin.

Lesson 1 - A business strategy cannot rely solely on high margins. Competitive pricing + high turnover often leads to better total profit.

2. The Market Dictates the Price - Not the Seller

Both products are identical in quality and service. Yet customers prefer the cheaper option.

Lesson 2 : Customers will gravitate to the price that feels fair and offers value, especially when comparing identical products. Pricing must align with what the market is willing to pay.

3. Accessibility and Affordability Expand Your Customer Base

A higher price reduces your reachable market. B’s lower price makes it accessible to more buyers, which increases volume.

Lesson 3 : Sometimes, the best approach is to reduce your margin but widen your reach.

4. Cash Flow Matters

• B sells all 500 units, turning stock into cash quickly.
• A sells slowly, locking capital in inventory.

Lesson 4 : High turnover improves cash flow, reduces risk of dead stock, and allows faster reinvestment.

5. Customer Behavior: Perception of Fairness and Trust

Even if quality and service are the same, customers may perceive A’s pricing as too high, creating resistance.

Lesson 5 : Customers are more likely to trust a price that aligns with their perception of value.

6. Long-Term Advantage - Repeat Customers

If B continues providing good value, customers remember the “fair price” and come back.

A risks losing customers permanently if perceived as overpriced.

7. Strategy Must Match Market Conditions

• A is using a premium pricing strategy in a market that behaves like a value-driven market.
• B is aligning with what the market wants.

Lesson 6 : Choose a strategy that fits the market, not the seller’s personal preference.

In short : A’s mistake is prioritizing profit margin instead of total profit and turnover. B wins because of competitive pricing, faster cash flow, and better alignment with customer expectations.

8. Understanding the Surroundings

What Seller B is doing reflects a deeper understanding of economic reality and customer psychology during a downturn.

i. B Recognizes Reduced Purchasing Power

In a slow or uncertain economy, customers:

• become more price-sensitive
• compare options more carefully
• cut back on non-essentials
• prefer lower-priced alternatives even if quality is the same

Seller B's pricing aligns with this behaviour, making it easier for customers to continue buying.

 

ii. B Reduces the Customer’s Financial Burden

By lowering margin and offering a fairer price:

• customers feel less “pain of paying”
• they can buy more or more frequently
• they perceive B as understanding and trustworthy

This builds loyalty - very valuable in tough times.

iii. B Helps Customers Regain Purchasing Power

When a seller provides value pricing:

• customers conserve money
• they can buy other necessities
• they feel more in control of their spending

This creates repeat demand because customers feel respected.

iv. Pricing Strategy Reflects Situational Awareness

• Seller A uses a premium-pricing mindset in a value-driven market.
• Seller B uses a market-aligned strategy, showing awareness of inflation, declining disposable income, cost-of-living pressures and competitive landscape

This awareness is a major advantage, especially when consumers are cautious.

v) B Gains Trust During Hard Times

Customers remember sellers who:

• remained affordable
• did not take advantage of the situation
• provided consistent value

This often results in long-term loyalty even after the economy improves.

In short : Yes - Seller B’s success strongly indicates that:

• B understands the economic downturn
• B empathizes with customers’ reduced purchasing power
• B adapts pricing to match real-world conditions

 

9. B Hires a Worker (10 sen/day) While A Sells Alone

a. B Invests in Leverage while A Relies Only on Himself

B understands that:

• One person alone can only sell so much,
• By hiring help, he increases capacity, reach, and speed.

Even though the worker is paid 10 sen per day, B trades a small cost for a large increase in sales volume.

A, however, is limited by time, physical ability, energy, customer reach

This is a classic difference between working IN the business vs working ON the business.

b. B Converts Cost into Growth

B’s commission cost is tiny compared to his profit:

• Total profit: RM150
• Worker cost (example: if 7 days × RM0.10): RM0.70
• Net profit: RM149.30

The worker cost is less than 1% of B’s earnings (to me, this is good trade-off)

This shows B understands scalability.

c. A Avoids Expenses but Also Avoids Growth

A tries to “save money” by doing it alone.

This is common among small businesses, but:

• Saving costs does not equal making profit.
• Doing everything alone slows the business.
• Opportunity cost becomes huge.

A’s choice actually costs him more because he misses out on potential sales.

d. B Creates Employment and Strengthens Community Trust

Hiring someone even for a small commission:

• builds goodwill

• creates local support

• strengthens reputation

• increases customer trust (“This seller is growing”)

Customers often prefer businesses that create jobs rather than solo traders who appear stagnant.

v) B Understands That Cash Flow Is King

The faster the stock clears:

the faster money returns, the faster B can reinvest, the faster B grows

Hiring help accelerates this cycle.

A, by relying on only himself, slows everything down.

vi. B Is Playing a Long-Term Game, A Is Stuck in Day-to-Day Survival

• B is building a system.

• A is building self-dependence only.

Systems win long-term.

In summary

Seller B shows understanding of:

• leverage
• business scaling
• cash flow management
• customer behaviour
• market environment
• productivity
• long-term business mindset

Seller A focuses on:

• saving costs
• doing it alone
• short-term thinking
• limited growth

CONCLUSION

The scenario of Seller A and Seller B decisively illustrates that a successful business strategy cannot rely solely on high margins. Seller Bs victory, earning triple the profit (RM150 vs. RM50) despite a lower margin, highlights the power of competitive pricing, high turnover, and strategic alignment with customer expectations. 

By recognizing reduced purchasing power in the market and prioritizing cash flow and accessibility , Seller B not only maximized absolute profit but also cultivated customer trust and loyalty by offering perceived fairness and value. Furthermore, Bs willingness to leverage a worker for a small cost demonstrates an understanding of scalability and long-term systems thinking over As focus on cost-saving and self-dependence. 

Ultimately, success comes from choosing a strategy that fits the market, not the sellers personal preference.

THOUGHT FOR THE DAY - 21/10/2025

I must have spoken about this too many times but let's just do a quick reminder.

Copying and pasting content literally from ChatGPT or other AI-assisted applications can often be detected. Unique punctuation styles, language patterns, scattered emojis and image metadata make it easy to trace such material through reverse searches.

While AI tools can enhance productivity, it is essential to review, rephrase, and verify the accuracy of the generated text. As someone accustomed to traditional writing methods, I can easily identify grammatical inconsistencies, contextual errors, irrelevant data, wrong sampling, factual errors or deviations from the original topic.

It doesn’t feel organic when the person simply lets AI do the work and allows it to spread without even caring what has been written. Writing should still reflect the writer’s own thought process and understanding.

Educators and supervisors frequently emphasize comprehension over completion (of course they do have "Anti-ChatGPT/AI"), they will ask whether the writer truly understands their work. Therefore, use AI responsibly and ensure that your writing reflects your personal understanding and critical thinking.

Data Centers in Malaysia: Purpose, Potential, and Challenges - Overview by Nik Zafri

1) INTRODUCTION

In today's digitally driven world, data centers form the backbone of national infrastructure. Malaysia has been steadily positioning itself as a strategic hub for data center development, thanks to its stable climate, strategic geographic location in Southeast Asia, robust connectivity, and pro-investment government policies. But beyond the appeal lies the complex reality of running and maintaining high-performance data centers.

2) PURPOSE

Data centers are specialized facilities designed to store, process, and disseminate digital data. They host the infrastructure that supports cloud computing, enterprise operations, government digital transformation initiatives, content delivery, banking and finance transactions, e-commerce platforms, and a vast range of online services.

Organizations depend on data centers for:

• Data storage and backup
• Secure hosting environments
• Disaster recovery and business continuity
• Real-time data processing
• Edge computing and IoT integration

In short, data centers are the nervous system of modern economies, quietly powering everything from emails to AI workloads.

2.1 WHY IT MATTERS

Data centers store, process, and manage the data that powers:

• E-commerce and online banking,
• Cloud computing and SaaS platforms,
• Smart cities and IoT ecosystems (Urban Intelligence)
• AI and big data analytics
• Business continuity and Integrity
• Disaster recovery solutions

Malaysia’s appeal as a data center location includes:

• Proximity to global undersea cable landing points,
• Growing demand from the ASEAN digital economy, 
• Competitive energy prices and workforce,
• Political neutrality, compared to other regional hubs

2.2 INDUSTRY GROWTH

According to MDEC, Malaysia has attracted over RM10 billion in data center investments over the past five years. Demand is expected to double by 2030, driven by cloud adoption, 5G, and AI.

Globally, Malaysia ranks in the top 5 emerging APAC data center markets, with multiple projects in progress or recently completed.

3) ADVANTAGES

3.1 Strategic Location - Malaysia’s proximity to major Asian markets makes it an ideal node in regional data flow.

3.2 Competitive Energy Costs - Energy prices remain relatively competitive compared to neighboring countries, critical for an industry that is extremely power-intensive.

3.3 Regulatory Support - The Malaysian government has introduced incentives for digital infrastructure investments under its various economic blueprints and digital economy initiatives.

3.4 Abundant Talent Pool - Local universities and polytechnics are producing graduates in ICT, engineering, and technical fields that support operations and maintenance needs.

3.5 Political Stability and Neutrality - For global companies concerned with data sovereignty and neutrality, Malaysia remains a stable and neutral ground.

4) CHALLENGES

Despite the growth and demand, data centers face multiple operational and maintenance issues, such as:

4.1 Power Reliability and Redundancy - Even short interruptions in power can lead to data loss or downtime. Although backup systems (like UPS and generators) are standard, poor maintenance or system misconfigurations can lead to failure during critical moments.

Some sites face unexpected generator failures due to irregular servicing or fuel contamination. In one real-world scenario, a testing exercise revealed backup power would not kick in within 10 seconds, a violation of Tier III design expectations.

Requiring - Strict load testing regimes, fuel conditioning, and biannual third-party audits of generator and UPS systems.

4.2 Cooling System Efficiency - Malaysia’s tropical climate demands efficient and scalable cooling systems. Overreliance on traditional air conditioning systems leads to higher energy consumption and operational costs.

At least one facility experienced 15% higher PUE (Power Usage Effectiveness) than design specs due to unsealed raised floors and inefficient hot aisle containment. This raised operational costs significantly.

4.3 Security Threats - Both cybersecurity and physical security are ongoing concerns. Breaches whether digital or physical can result in substantial financial and reputational damage. Many operators still rely on legacy security systems. One attempted intrusion during a patching window exploited outdated firewall settings. While no data was lost, it triggered urgent compliance reviews.

4.4 Resource Management - This includes everything from water for cooling to land use and waste disposal (especially for e-waste and batteries). Improper handling poses environmental and compliance risks.

4.5 Latency and Connectivity Bottlenecks - As demand grows, ensuring low-latency and high-bandwidth connectivity becomes increasingly challenging, especially when scaling out to meet regional or edge-computing needs.

4.6 Maintenance Downtime - Scheduled maintenance can still pose risks if not properly coordinated with clients and redundancies. Poorly planned upgrades may cause unexpected interruptions.

5) MITIGATION

To keep operations efficient and sustainable, data center developers and operators adopt several best practices:

5.1 Tiered Redundancy Designs - Using globally recognized standards such as Tier ratings, data centers can plan for different levels of fault tolerance and downtime acceptability.

A Tier III-level facility experienced significant downtime risk during an annual preventive maintenance when a generator load bank failed. This led to reengineering of their maintenance coordination process using a three-layer escalation protocol, including simulation testing of N+1 configurations.

The lesson: "Redundancy on paper is not resilience in practice without rigorous testing and alignment with live operational behaviors."

5.2 Efficient Cooling Solutions - Implementing advanced technologies like liquid cooling, hot/cold aisle containment, and AI-based temperature optimization systems can greatly reduce power usage. (e.g.) Adoption of liquid cooling, AI-controlled HVAC, CFD simulation for airflow design.

5.3 Regular Audits and Testing - Continuous commissioning, predictive maintenance, and disaster simulation exercises ensure system readiness and resilience.

5.4 Adoption of Green Technologies - Use of renewable energy sources, energy-efficient servers, and LEED-certified building materials can reduce carbon footprint and improve ESG compliance. This is also related to Climate Change which is addressed in ABMS ISO 37001 where the companies need to start developing the system and applied for certification.

5.5 Cybersecurity Frameworks - Implementing zero-trust architectures, regular penetration testing, and compliance with relevant standards to enhance security readiness. (e.g. Shift toward Zero Trust Architecture, network segmentation, and regular penetration testing per ISO/IEC 27001 and NIST SP 800-53)

5.6 Environmental, Social, and Governance (ESG) compliance is becoming non-negotiable. Stakeholders, especially global hyperscalers are demanding green certifications and energy usage transparency.

Key metrics to monitor:

• Power Usage Effectiveness (PUE): Optimal < 1.5
• Water Usage Effectiveness (WUE): Minimal where air-cooled solutions are viable
• Renewable Energy %: Still below 15% for most Malaysian DCs (2024)

5.7 Up-skilling Workforce - There’s an ongoing shortage of Uptime-certified engineers and facility managers. Most sites operate with lean teams, increasing the risk of fatigue-related human error. Continuous training and certification for data center staff is vital to keep up with evolving technologies and protocols. 

6.0 WHAT FUTURE-READY DATA CENTERS TO LOOK LIKE

• Design for Modularity and Scalability
• Avoid over-provisioning. Build in phases, leveraging prefabricated solutions.
• Implement AI-Driven Monitoring
• Use predictive maintenance, anomaly detection, and real-time environmental monitoring.
• Green Certification Pathway

Plan for LEED, GreenRE, or ISO 50001 and ABMS ISO 37001 (2025) compliance from the design phase.

6.1 Community Engagement and Transparency

As energy-intensive operations, data centers must engage openly with local communities, sharing ESG reports and impact disclosures.

6. CONCLUSION

Malaysia’s data center industry is poised for continued growth, fueled by digital transformation, e-commerce expansion, and regional demand. However, as reliance on data increases, so does the complexity of maintaining these mission-critical facilities. With proper design, proactive risk management, and sustainable practices, Malaysia can continue to offer reliable and efficient data center services contributing significantly to both its economy and digital aspirations.

9 QUALITIES TO BECOME A GOOD LEADER - NIK ZAFRI

These are insights I’ve gathered over the last 30 years through experience and observation. When I first wrote this in 1999, there were 14 points but I’ve since summarize them into 9 core qualities, refined to suit 2025 and beyond. I’ve made them clear, memorable, and practical for everyday leadership.

It's my version of "Leadership" module

Of course, it shouldn’t take you another 30 years to apply them. Who knows, your leadership journey might just begin today.

1) KNOWLEDGABLE 

A good leader must possess strong domain knowledge and be well-informed about the industry, current trends, and the specifics of the organization. This includes:

• Technical expertise and decision-making frameworks,
• Understanding the roles and responsibilities of the team,
• Being aware of external factors like market forces, regulations, and competitors.
• Staying updated through continuous learning, training, and reading.

Why it matters: A knowledgeable leader earns respect, gives informed direction, and avoids costly mistakes.

2) DO THE RIGHT THING

Integrity and ethics are non-negotiable traits of leadership. 

• Stand for principles even when it’s hard or unpopular,
• Uphold fairness, transparency, and accountability,
• Be a role model in behavior, honesty, and consistency, lead by example

Why it matters: People follow leaders they trust. 

Doing the right thing builds long-term loyalty and credibility.

3) HEAD TO THE RIGHT DIRECTION

Leadership is about setting and aligning everyone with a clear vision.

• Set logical, measurable and achievable goals based on strategic foresight,
• Align the team’s work with the organization’s mission and values.
• Periodically reassess the path to ensure relevance.

Why it matters: A leader without direction leads a team to confusion. Purposeful direction gives clarity and unity.

4) WORK HARDER

Effort and commitment are infectious.

• Show dedication and passion through your work ethic.
• Don’t shy away from getting your hands dirty when needed.
• Be willing to put in the extra time to support your team or resolve crisis.

Why it matters: Hardworking leaders inspire their teams to rise above mediocrity and follow by example.

5) THINK OF NEW WAYS

If you're a seasoned professional, you may need to work with the younger generation. Innovation keeps the organization relevant and competitive.

• Be open to change and embrace creative thinking,
• Encourage brainstorming and experimentation without fear of failure (should you fail, do it again),
• Look for improvements in processes, products, and people development.

Why it matters: Stagnation is the enemy of progress. Leaders must innovate to adapt and thrive.

6) MAKE THE BEST DECISION

Not a popular decision, but the best decision

• Decision-making is at the heart of leadership,
• Base your choices on facts, resources, data, experience, and intuition, 
• Involve stakeholders when appropriate, but take responsibility and to be accountable,
• Balance risks and rewards with long-term implications in mind.

Why it matters: The ability to make timely, sound decisions determines whether a team succeeds or struggles.

7) BUSINESS SUSTAINABILITY

Leadership must consider long-term viability, not just short-term gains.

• Balance economic success with environmental and social responsibility (ESG), 
• Invest in people, processes, and technologies that support sustainable growth.
• Make ethical decisions that preserve reputation and resources.

Why it matters: Sustainability ensures your organization endures and thrives in an ever-changing world.

8) BE A GOOD LISTENER

Effective communication starts with listening.

Practice active listening, seek to understand, not just to respond,

Show genuine empathy and openness to different views and feedback,

Use listening as a tool to detect problems early and build trust.

Why it matters: People feel valued and motivated when they are heard. It improves morale, loyalty, and problem-solving. (AND always reward good ideas)

9) CONTINUAL IMPROVEMENT

Strive for excellence, not perfection.

Promote a culture where learning and improvement are continuous,

Encourage reflection, feedback, and growth - personally and organizationally,

Invest in upskilling, process optimization, and quality enhancement.

Why it matters: In a rapidly evolving world, continuous improvement is necessary to stay competitive and agile.

CONCLUSION 

"The impact of doing something is FAR more greater than doing nothing at all" - Nik Zafri

"True leadership is not about authority, it's about responsibility, humility, and vision" - Nik Zafri

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