Malaysia recorded a 125% surge in digital investments in Q2 2025 under the Malaysia Digital initiative, reaching RM29.47 billion and cementing its status as ASEAN’s top destination for foreign digital investment. The growth highlights investor confidence in Malaysia’s innovation ecosystem, infrastructure, and digital talent pool.
MALAYSIA, 10 JULY 2025 – Malaysia’s digital economy continues to gain strong momentum, with digital investments under the Malaysia Digital (MD) national initiative surging by 125% in the second quarter of 2025, rising from RM13.11 billion in Q1 to RM29.47 billion. This dramatic increase affirms Malaysia’s growing appeal as the preferred destination for foreign digital investment (FDI) in Southeast Asia.
As of June 2025, 261 companies approved under the MD framework have collectively committed a total of RM42.58 billion in digital investments, with the potential to create 17,495 knowledge-based jobs across the nation over the next five years.
Minister of Digital Gobind Singh Deo hailed the performance as “exceptional growth which speaks volumes about our nation’s digital readiness, the strength of our innovation ecosystem, and the confidence that global investors have in Malaysia’s future.” He added that “beyond the numbers, these investments represent thousands of career opportunities for Malaysians and a long-term uplift for the national digital economy. The MD initiative is a proven platform to drive inclusive innovation and elevate our leadership in the region.”
The latest data shows Singapore leading as the top source of approved digital investments, contributing RM13.91 billion, or 33% of the total. This was followed by investors from the United States (RM6.44 billion, 15%) and China (RM2.97 billion, 7%), underscoring strong regional and global interest in Malaysia’s digital transformation journey.
The Data Centre and Cloud sector emerged as the largest investment vertical, accounting for RM30.95 billion in value and expected to generate 1,440 knowledge jobs. Within this segment, data centre companies alone committed RM13.45 billion, a strong endorsement of Malaysia’s digital infrastructure and regional connectivity.
Artificial Intelligence (AI) was another standout growth area, attracting RM3.29 billion in investment and poised to create approximately 6,920 jobs, making up 40% of the total projected employment from all sectors. In parallel, the Global Business Services (GBS) segment drew RM4.99 billion, with an estimated 5,632 jobs, or 32% of total job creation.
Commenting on the results, Malaysia Digital Economy Corporation (MDEC) CEO Anuar Fariz Fadzil emphasised the tangible, real-world outcomes from the MD initiative. “The scale and quality of investments under Malaysia Digital reflect our focus on driving catalytic impact — in value, in innovation, and in job creation,” he said. “MDEC will continue to enhance investor facilitation, talent pipeline development, and strategic ecosystem partnerships to ensure Malaysia remains the region’s most dynamic and future-ready digital economy.”
Looking ahead, both the Ministry of Digital and MDEC remain committed to reinforcing Malaysia’s position as a digital hub. “As the Malaysia Digital initiative continues to gain strong global traction, we will drive forward our mission to advance innovation, inclusion, and economic growth,” said Minister Gobind.
