DEVELOPMENT OF HIGH-CAPACITY OPTICAL FIBER STRENGTHENS SELANGOR'S DIGITAL ECONOMY

SHAH ALAM, Dec 22 (Bernama) -- The development of a high-capacity fibre optic network in Selangor is being viewed as a long-term strategic investment that can enhance the socio-economic well-being of the people and strengthen the state’s competitiveness in the digital economy, in line with the growing recognition of internet access as the fourth utility in modern development.

Director of Future Cities Research Institute (FCRI), a joint research institute between Sunway University and Lancaster University, Prof Ir Rosdiadee Nordin, said high-capacity fibre optic infrastructure enables faster and more stable internet access on a large scale, forming a critical foundation for Selangor’s digital economic transformation.

He said the development would bring significant benefits, particularly to residents and small and medium enterprises (SMEs) in peripheral and rural areas.

“High-quality internet access allows communities and businesses to adopt cloud-based automation and a wide range of artificial intelligence (AI) applications that are increasingly embedded in daily life and business operations.

“Although the initial investment in fibre optic infrastructure is substantial, the long-term returns in terms of economic growth, productivity gains and enhanced state competitiveness far outweigh the costs,” he told Bernama today.

Rosdiadee was commenting on the Selangor government’s strategic move to strengthen digital infrastructure through the Fiberisation–Cyberjaya Project, which has been positioned as a basic necessity on par with roads, water supply and electricity.

Selangor Menteri Besar Datuk Seri Amirudin Shari, when launching the initiative last Thursday, said the 41.1-kilometre high-capacity underground fibre optic project in Cyberjaya is being led by state-owned digital infrastructure company SmartSel Sdn Bhd, in collaboration with OCK Group Berhad as the project implementer.

Amirudin said the project represents the first phase in the development of the Selangor Dark Fibre Network, an 889-kilometre state-owned optical fibre network that is open, neutral and high-speed.

Commenting further, Rosdiadee said state ownership of the optical fibre network would help bridge the digital divide between urban and rural areas while ensuring more inclusive development.

“The open network model not only encourages competition and lowers prices for consumers, but also expands internet coverage, supports digital economy growth and helps develop highly skilled human capital in the long term,” he said.

He added that similar models have been successfully implemented in several developed cities, including Stockholm through Sweden’s Stokab initiative, as well as Chattanooga and Utah in the United States.

“This approach helps prevent market price manipulation and ensures digital infrastructure development prioritises public well-being rather than purely commercial profit,” he said.

Meanwhile, an economic analyst at University College i-CATS Kuching, Prof Datuk Dr Shazali Abu Mansor, said investment in fibre optic infrastructure would further enhance Selangor’s appeal as a hub for digital economy investments.

He said the expansion of the digital economy could boost productivity and reduce business transaction costs, strengthening the state’s competitiveness at both national and global levels.

“Overall, this strategic shift towards digital infrastructure development positions Selangor not only as a physically advanced state, but also as a smart, resilient state ready to face future economic challenges,” he said.

Amirudin, when tabling the 2026 State Budget last Nov 14, said the state government would develop a master plan for the Selangor Dark Fibre Network through a subsidiary of Menteri Besar (Incorporated) Selangor (MBI) and SmartSel to explore new revenue streams.

He said the development of the 889-kilometre fibre network, with an estimated cost of RM267 million, is expected to provide Selangor with a high-speed fibre optic backbone and potentially generate returns of RM196 million within five years, reinforcing the state’s position as a national leader in the digital economy.

-- BERNAMA