Digital investments in Malaysia hit a record MYR 163.6 billion ($36.81 billion) in 2024, compared to MYR 46.8 billion ($10.53 billion) in 2023, driven by a stable government and pro-business policies in reinforcing the country’s reputation as a regional tech hub, Malaysia Digital Economy Corporation (MDEC) said Thursday.

MDEC said in a statement that strong infrastructure and strategic public-private partnerships have strengthened investor confidence in Malaysia as a leading digital hub.

A supportive regulatory framework and Malaysia’s push into artificial intelligence (AI) and quantum computing further accelerated growth, attracting high-value global investments.

These latest findings from MDEC follow on the heels of the Malaysian Investment Development Authority (MIDA) announcing that Malaysia secured MYR 378.5 billion ($85.16 billion) in approved investments last year — the highest in the nation’s history — marking a 14.9 percent year-on-year increase from the previous record of MYR 329.5 billion ($74.14 billion) in 2023.

“Malaysia’s dynamic investment landscape cultivates strong collaboration among government ministries and agencies, ensuring a coordinated effort to drive innovation, digital growth and long-term economic prosperity for the nation,

“As an agency under the Ministry of Digital, MDEC continues to work closely with MIDA and other government agencies to attract more strategic investments,” said MDEC Chief Executive Officer Anuar Fariz Fadzil.

According to the statement, foreign investor confidence in Malaysia’s digital sector remains strong, with substantial top five highest foreign direct investment (FDI) inflows countries from Singapore (MYR 57 billion [$12.83 billion]), the United States (MYR 23 billion [$5.18 billion]), China (MYR 12 billion [$2.7 billion]), Australia (MYR 2.6 billion [$585 million]) and India (MYR 2 billion [$450 million]).

Meanwhile, Malaysia’s domestic direct investments (DDI) continue to rise, with MDEC playing a pivotal role through strategic initiatives and programs.

The top five states by Malaysia Digital (MD) companies’ inflows were recorded in the Klang Valley (MYR 136 billion [$30.6 billion]), Johor (MYR 22 billion [$4.95 billion]), Penang (MYR 3 billion [$675 million]), Sabah (MYR 423 million [$95.18 million]) and Sarawak (MYR 280 million [$63 million]), reflecting a nationwide push for digitalization and economic expansion beyond central regions.

Investments in data centers and cloud infrastructure accounted for 76.8 percent of total approved digital investments in 2024, a sharp rise from 55.5 percent in 2023.

The establishment of a dedicated Data Centre Task Force, spearheaded by the Ministry of Investment, Trade and Industry (MITI) Minister Tengku Zafrul Abdul Aziz and Digital Minister Gobind Singh Deo, is set to drive further growth while ensuring it aligns with long-term sustainability goals, balancing expansion with environmental responsibility, said the statement.

“MDEC stands steadfast in sustaining this strong investment momentum and working closely with MIDA to achieve the targeted 5 percent investment growth in 2025,” concluded Anuar.

MDEC aims to push for 25.5 percent digital economy contribution to Malaysia’s GDP by end-2025