Digital investments in Malaysia hit a record RM163.6 billion in 2024, more than triple of the RM46.8 billion in 2023.
According to a press release by MDEC, this is thanks to a stable government and pro-business policies in reinforcing the country’s reputation as a regional tech hub.
Moreover, strong infrastructure and strategic public-private partnerships have strengthened investor confidence in Malaysia as a leading digital hub.
MDEC further added that a supportive regulatory framework and Malaysia’s push into AI and quantum computing further accelerated growth, attracting high-value global investments.
These include investments from global giants like Google, Microsoft, and Bytedance.
This report follows the Malaysian Investment Development Authority (MIDA)’s announcement that Malaysia secured RM378.5 billion in approved investments in total last year.
This is the highest in Malaysia’s history, marking a 14.9% year-on-year increase from the previous record of RM329.5 billion in 2023.
“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 CEO Anuar Fariz Fadzil.
Attracting foreign and domestic investments
It’s clear that foreign investor confidence in Malaysia’s digital sector remains strong.
MDEC reported that the substantial top five countries with the highest foreign direct investment (FDI) inflows are Singapore (RM57 billion), the United States (RM23 billion), China (RM12 billion), Australia (RM2.6 billion), and India (RM2 billion).
At the same time, domestic direct investments (DDI) continue to rise. MDEC has played a pivotal role in this through strategic initiatives and programmes.
The top five states by Malaysia Digital (MD) companies’ inflows were recorded in the Klang Valley (RM136 billion), Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million) and Sarawak (RM280 million).
Investments in data centres and cloud infrastructure accounted for 76.8% of total approved digital investments in 2024, a sharp rise from 55.5% in 2023.
The establishment of a dedicated Data Centre Task Force, spearheaded by MITI Minister Tengku Datuk Seri Zafrul Tengku 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.
Anuar shared, “MDEC stands steadfast in sustaining this strong investment momentum and working closely with MIDA to achieve the targeted 5% investment growth in 2025.”
Tapping into the money
With Malaysia’s digital investments reaching unprecedented heights, there’s no better time for Malaysian SMEs and startups to ride this wave of growth.
The presence of global tech giants like Google and Microsoft signals opportunities for local businesses to embrace AI, cloud computing, and next-gen digital solutions.
Paired with strong government support and rising domestic investments, the stage is set for homegrown innovators to scale, compete, and lead in the digital economy.
Featured Image Credit: Microsoft
