Strong investor confidence highlights Malaysia’s rising status as a regional digital hub
Malaysia’s digital economy is seeing powerful momentum, with digital investments under the Malaysia Digital (MD) national initiative growing by an impressive 125% in Q2 2025 – from RM13.11 billion in Q1 to RM29.47 billion. This surge reaffirms Malaysia’s position as preferred foreign digital investment (FDI) destination in ASEAN, highlighting the country’s growing appeal as a top-tier hub for digital innovation and infrastructure.
As of June 2025, 261 companies have committed to a total of RM42.58 billion in investments through the MD initiative, with the potential to create over 17,000 knowledge-based jobs over the next five years.
Minister of Digital, YB Gobind Singh Deo, characterised the growth as a clear indicator of positive momentum,
“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”.
Global Players Betting Big on Malaysia
The top investors as of June 2025 hail from Singapore (RM13.91B), followed by the United States (RM6.44B) and China (RM2.97B), together contributing over 55% of total investments in the first half of 2025.
Leading the investment landscape is the Data Centre and Cloud vertical, contributing a substantial RM30.95 billion and expected to generate 1,440 knowledge workers. Data Centre (DC) companies alone have invested RM13.45 billion, drawn by Malaysia’s strategic location, infrastructure reliability and expanding regional connectivity.
Other high growth sectors include artificial intelligence (AI), attracting RM3.29 billion in investments and expected to generate 6,920 jobs – about 40% of total employment impact. Meanwhile, the Global Business Services (GBS) brings in RM4.99 billion, translating into 5,632 jobs.
A Digital Future in the Making
According to Anuar Fariz Fadzil, CEO of the Malaysia Digital Economy Corporation (MDEC), the spike in investments is more than just number – it’s a sign of Malaysia’s readiness to lead in innovation and job creation.
“The scale and quality of investments under Malaysia Digital reflect our focus on 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,” said Anuar.
“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,” said Gobind.
For more information on MDEC’s initiatives and support for digital investments, please visit https://mdec.my/malaysiadigital.
