Malaysia’s digital investments under the Malaysia Digital (MD) national strategic initiative surged by 125 percent to MYR 29.47 billion (6.95 billion U.S. dollars) in the second quarter of 2025, rising from MYR 13.11 billion ($3.09 billion) in the first quarter, Malaysia Digital Economy Corporation (MDEC) said Monday.
The government agency said in a statement that Malaysia’s digital economy continues to chart strong growth, fueled by sustained investor confidence and a vibrant ecosystem of innovation, talent and infrastructure.
The growth of investment reaffirmed Malaysia’s position as a preferred foreign digital investment (FDI) location in ASEAN.
As of June 2025, a total of 261 companies approved under the MD initiative have collectively committed 42.58 billion ringgit ($10.05 billion) in investments, with the potential to generate 17,495 knowledge workers over the next five years.
Minister of Digital Gobind Singh Deo described the strong upward momentum 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”.
“Beyond numbers, these investments represent thousands of opportunities for the Malaysian workforce and a long-term uplift for our digital economy. The MD initiative is a proven platform to drive inclusive innovation and elevate our regional leadership in the digital space,” said Gobind.
According to the statement, the top three sources of approved digital investment as of June 2025 were Singapore-based investors, who committed MYR 13.91 billion ($3.28 billion), accounting for 33 percent of the total investment.
This was followed by investors from United States, with 6.44 billion ringgit ($1.52 billion), representing 15 percent, and China, with MYR 2.97 billion ($700 million), comprising 7 percent of the investments.
Leading the investment landscape is the data center and cloud vertical, which contributed MYR 30.95 billion ($7.3 billion) and expected to generate 1,440 knowledge workers due to strong demand for regional data infrastructure.
Notably, data center companies alone committed MYR 13.45 billion ($3.17 billion), highlighting investor confidence in Malaysia’s digital infrastructure and regional connectivity.
Other high growth, expanding sectors include artificial intelligence (AI), which attracted MYR 3.29 billion ($780 million) in investments, with an estimated 6,920 jobs created, representing 40 percent of the total projected employment.
Meanwhile, global business services (GBS), with investment amounting to MYR 4.99 billion ($1.18 billion), is expected to create 5,632 jobs, or 32 percent of total job creation.
Malaysia Digital Economy Corporation (MDEC) Chief Executive Officer Anuar Fariz Fadzil said the tangible outcomes of Malaysia Digital reflect not just investment volume but also real impact on the ground.
“The scale and quality of investments under Malaysia Digital reflect our focus on driving catalytic impact — in value, in innovation, and in job creation,
“MDEC will continue to strengthen investor facilitation, talent development, and ecosystem partnerships to ensure Malaysia remains the region’s most dynamic and future-ready digital economy,” he added.
Gobind also concluded that as the Malaysia Digital initiative continues to gain strong global traction, the Ministry of Digital and MDEC remain steadfast in our commitment to driving digital economy growth, advancing innovation and inclusion, and reinforcing Malaysia’s position as a leading digital hub in Southeast Asia.
MDEC aims to push for 25.5 percent digital economy contribution to Malaysia’s GDP by end-2025