KUALA LUMPUR, March 3, 2025 – Malaysia’s digital investment sector has reached an unprecedented milestone, hitting RM163.6 billion in 2024, a significant increase from RM46.8 billion in 2023. The surge in investments is attributed to a stable government, pro-business policies, and Malaysia’s positioning as a regional technology hub.
Strong infrastructure and strategic public-private partnerships have played a crucial role in strengthening investor confidence. Malaysia’s push into emerging technologies such as artificial intelligence (AI) and quantum computing, alongside a supportive regulatory framework, has further driven high-value global investments, according to the Malaysia Digital Economy Corporation (MDEC).
These figures align with the Malaysian Investment Development Authority’s (MIDA) announcement that the country secured RM378.5 billion in approved investments last year, the highest in Malaysia’s history. This marks a 14.9% year-on-year increase from the previous record of RM329.5 billion in 2023.
MDEC CEO Anuar Fariz Fadzil highlighted the agency’s commitment to working closely with MIDA and other government agencies to attract strategic investments. He noted that Malaysia’s dynamic investment landscape fosters collaboration between ministries and agencies, ensuring coordinated efforts to drive innovation, digital growth, and long-term economic prosperity.
Foreign direct investment (FDI) in Malaysia’s digital sector remains robust, with the top five contributing countries being Singapore (RM57 billion), the United States (RM23 billion), China (RM12 billion), Australia (RM2.6 billion), and India (RM2 billion). Meanwhile, domestic direct investments (DDI) have also continued to rise, fueled by MDEC’s strategic initiatives and programs. The Klang Valley led the way in digital investment inflows with RM136 billion, followed by Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million), and Sarawak (RM280 million), showcasing Malaysia’s commitment to nationwide digitalisation and economic expansion beyond central regions.
Investments in data centres and cloud infrastructure accounted for 76.8% of total approved digital investments in 2024, up from 55.5% in 2023. This growth has been supported by the establishment of a dedicated Data Centre Task Force, led by MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Digital Minister Gobind Singh Deo. The task force aims to drive further digital expansion while ensuring sustainability and environmental responsibility.
Looking ahead, MDEC remains committed to maintaining this strong investment momentum and working in close collaboration with MIDA to achieve a targeted 5% investment growth in 2025.