The Malaysia Digital Economy Corporation (MDEC) said Monday it is dedicated and committed to support Malaysia in achieving or surpassing the 25.5 percent digital economy contribution to gross domestic product (GDP) by year-end through initiatives that catalyze digital transformation, talent development and technology adoption across businesses.
MDEC said in a statement that the digital economy will continue to serve as a strategic engine of growth for Malaysia due to its essential role in driving innovation, enhancing productivity and fostering new business models across industries.
Its Chief Executive Officer Anuar Fariz Fadzil said that Malaysia’s proactive digital policies, particularly in artificial intelligence (AI), and talent development have collectively positioned Malaysia as a regional hub for digital excellence.
“Public-private collaborations further enhance our nation’s leadership in AI and quantum computing, driving transformative impacts across sectors like manufacturing, finance, and services,” he said.
According to him, the agency’s goal is to enhance small and medium-sized enterprise (SME) competitiveness, continue attracting high-quality investments and develop a digitally skilled workforce ready for the future.
He highlighted foreign direct investments (FDIs) as a key driver of national growth, as shown in data center investments.
“Malaysia has attracted over MYR 86 billion ($19.35 billion) in data center investments in 2024, establishing our nation as Southeast Asia’s leading data center hub with 77 data centers throughout the country,” he said.
Last Friday, Bank Negara Malaysia (BNM) announced that the Malaysian economy grew by 5.1 percent in 2024 (2023: 3.6 percent), driven by a rebound in exports, strong investment
approvals, and progress in multi-year public-private projects, including catalytic initiatives under the Digital Economy Blueprint and the New Industrial Master Plan 2030.
“This growth reflects the resilience and dynamism of Malaysia’s economy, with the digital economy playing an increasingly significant role in driving economic recovery and future prosperity,” Anuar added.
According to the statement, digital investments played an instrumental role in contributing to the overall Malaysia’s GDP growth of 5.1 percent in 2024.
Under Malaysia Digital (MD), the total approved digital investments in the 2024 was recorded at MYR 163.6 billion ($36.81 billion), surpassing the approved digital investment value for 2023 by 250 percent.
The digital investment inflow during this period were also creating more than 48,000 jobs, surpassing the 2023 total by 109 percent.
These are tangible indicators that the digital industry continues to be a powerhouse for high-skilled, high-income employment, said the statement.
The statement also highlighted that Malaysia is well positioned to be the gateway into ASEAN market with top 5 FDI inflows into Malaysia coming from Singapore, United States, China, Australia and India.
With abundance of land, talent and geographical positioning of Malaysia the heart of ASEAN, driving the digital investment cluster for Malaysia are the global business services (MYR 139 billion [$31.27 billion]), information technology (MYR 23 billion [$5.17 billion]) and creative content (MYR 887 million [$199.57 million]) creating a combined total of over 48,000 high value jobs.
Major investments come into Klang Valley (MYR 136 billion [$30.6 billion]), Johor (MYR 22 billion [$4.95 billion]), Penang (MYR 3 billion [$670 million]), Sabah (MYR 423 million [$95.17 million]) and Sarawak (MYR 280 million [$63 million]).
According to the statement, a strong area of focus for MDEC is the acceleration of state-level digital growth, aiming to enhance digital infrastructure, nurture AI ecosystems, and drive SME digitalization to elevate national competitiveness.
This focused approach is aimed at empowering states to leverage their unique strengths while contributing to Malaysia’s broader digital economy objectives.
“MDEC will continue to play our part in attracting marquee AI companies to establish operations in various state throughout Malaysia,
“We are also actively promoting Malaysian tech champions and supporting their expansion into foreign markets for export purposes,” said Anuar.
He has also recently described Johor as “a state brimming with huge potential in the digital economy, with its strategic location and progressive policies providing a strong foundation for innovation and growth.”
“Johor has the potential to become a regional hub for data centers, fintech, and digital content, supported by the Johor-Singapore Special Economic Zone and the Iskandar Animation and Games Hub, making it well-positioned to attract international investments and create high-value job opportunities,” he said.
He said MDEC is committed to working hand-in-hand with its state partners to translate these strategies into meaningful outcomes that benefit businesses and the people across
Malaysia.
MDEC launches initiative to accelerate SME digital transformation across Malaysia