DE-CIX Sees Malaysia Becoming A Major Sub-Regional Interconnectivity Centre

DE-CIX is the operator of the world’s largest neutral interconnection ecosystem and one of the Internet Exchanges demonstrates, through its white paper, Malaysia is ready to become a sub-regional interconnectivity hub for Southeast Asia.

Malaysia has what it takes to fulfil the major content hub of Singapore by providing regional interconnection for growing local needs.

The white paper; “New interconnection markets in Southeast Asia” was authorised and researched and written by the neutral telecommunications analyst TeleGeography. TeleGeography focused on an excessive reliance on Singapore as the regional and global hub resulting in an increasing demand for more widely distributed carriers and data centers.

The CEO of DE-CIX International, Ivo Ivanov claimed that the shift of hub will not reduce the need for strong hubs like Singapore but works as the supplement with greater peering, networking and computing resources.

The findings then figured out that the rising demand for network interconnection localisation on a sub-regional level. One of the justifications is network concentration in one city is not ideal to secure valid service in unstable situations. Also, the high colocation costs in Singapore which is 25% pricier than New York’s average price per kilowatt.

Other than that, there are operational uncertainty in the other regional hub market, Hong Kong due to political instability. Last one being the nascent demands in Southeast Asia have rapidly thriving market for global bandwidth, saturated telecommunications markets, and an enthusiasm for local interconnection.

The report also has recognised Kuala Lumpur to be part of two of the top ten largest Internet routes in Asia, both of which have been accumulating international Internet bandwidth at more than 60% Compounded Annual Growth Rate (CAGR) since 2015. This indicates a demand for a strong interconnection ecosystem in this market, while the increasing cloud activity in Jakarta and Kuala Lumpur conveys immediate potential.

According to Mr. Weng Yew Wong, Board of Management of DE-CIX Malaysia and Singapore, the white paper disclosed that the Southeast Asian demands are already highly interconnected and possess regional self-reliance and the consumers at any of the trades will be able to shortly access networks at any of the other DE-CIX IXs in the region.

Announced at the end of 2019, the joint venture DE-CIX Malaysia, which currently operates two Internet Exchanges in the greater Kuala Lumpur and Johor Bahru area, was founded by DE-CIX and local Malaysian Internet Exchange provider JBIX.

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