Malaysia’s digital investments are projected to surge to RM163.6 billion in 2024, more than tripling from RM46.8 billion in 2023, fueled by a stable government, pro-business policies, and advancements in AI and quantum computing. The influx of foreign and domestic investments cements Malaysia’s position as a regional tech hub, with a strong focus on data centers and cloud infrastructure.
MALAYSIA, 27 February 2025 – Malaysia is poised to achieve a historic RM163.6 billion in digital investments in 2024, marking a significant leap from RM46.8 billion in 2023, according to the Malaysia Digital Economy Corporation (MDEC). This growth is driven by the government’s pro-business policies, stable economic environment, and the country’s push into emerging technologies such as artificial intelligence (AI) and quantum computing.
MDEC highlighted that Malaysia’s strong digital infrastructure and strategic public-private partnerships continue to bolster investor confidence, positioning the nation as a leading digital hub in the region. The surge in digital investments aligns with broader economic growth, as the Malaysian Investment Development Authority (MIDA) reported a record-breaking RM378.5 billion in total approved investments in 2023, a 14.9% increase from the previous year.
“As an agency under the Ministry of Digital, MDEC works closely with MIDA and other government bodies to attract high-value investments,” said MDEC CEO Anuar Fariz Fadzil. “Malaysia’s dynamic investment landscape fosters collaboration between government ministries and agencies, driving innovation, digital expansion, and long-term economic growth.”
Foreign and Domestic Investors Drive Growth
Malaysia’s digital sector continues to attract strong foreign direct investments (FDI), with Singapore leading at RM57 billion, followed by the United States (RM23 billion), China (RM12 billion), Australia (RM2.6 billion), and India (RM2 billion). Meanwhile, domestic direct investments (DDI) are also on the rise, with key inflows recorded in the Klang Valley (RM136 billion), Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million), and Sarawak (RM280 million), reflecting a nationwide push for digital transformation.
Investments in data centers and cloud infrastructure have become a dominant force, comprising 76.8% of total approved digital investments in 2024—an increase from 55.5% in 2023. To support this expansion, the Malaysian government has established a dedicated Data Centre Task Force, led by Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Minister of Digital Gobind Singh Deo. This initiative aims to ensure sustainable growth while balancing economic expansion with environmental responsibility.
“MDEC is committed to maintaining this investment momentum and collaborating with MIDA to achieve a 5% growth target in 2025,” Anuar concluded.
