KUALA LUMPUR, 7 July 2025 – Malaysia’s digital economy continues to chart strong growth, fuelled by sustained investor confidence and a vibrant ecosystem of innovation, talent and infrastructure.  Digital investments under the Malaysia Digital (MD) national strategic initiative surged by 125% in Q2 2025, rising from RM13.11 billion in Q1 to RM29.47 billion, reaffirming 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 RM42.58 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.

The top 3 sources of approved digital investment as of June 2025 were Singapore-based investors, who committed RM13.91 billion, accounting for 33% of the total investment. This was followed by investors from United States, with RM6.44 billion, representing 15%, and China, with RM2.97 billion, comprising 7% of the investments.

Leading the investment landscape is the Data Centre and Cloud vertical, which contributed RM30.95 billion and expected to generate 1,440 knowledge workers due to strong demand for regional data infrastructure. Notably, Data Centre (DC) companies alone committed RM13.45 billion, highlighting investor confidence in Malaysia’s digital infrastructure and regional connectivity.

Other high growth, expanding sectors include artificial intelligence (AI), which attracted RM3.29 billion in investments, with an estimated 6,920 jobs created, representing 40% of the total projected employment.

Meanwhile, Global Business Services (GBS), with investment amounting to RM4.99 billion, is expected to create 5,632 jobs, or 32% of total job creation.

Malaysia Digital Economy Corporation (MDEC) CEO, 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 said.

“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,” concluded Gobind.

For more information on MDEC’s initiatives and support for digital investments, please visit https://mdec.my/malaysiadigital.

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Issued by:

Corporate Communications Division

Malaysia Digital Economy Corporation (MDEC)