Malaysia digital initiative draws US$3.8B in early 2025 investments

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Malaysia’s digital economy attracted substantial investment in the early months of the year, with approved investments under the MalaysiaDigital (MD) initiative reaching RM16.2 billion (US$3.8 billion) between January and April.

This significant inflow is seen as solidifying Malaysia’s position as ASEAN’s tech hub.

Also Read: The future of work and Malaysia’s role as a Southeast Asian hub in 2025

The digital economy is highlighted as a strategic engine of growth, expected to create jobs, open new opportunities, and foster local innovation for businesses and citizens nationwide.

Minister of Digital Gobind Singh Deo said that this strong investment momentum is projected to create 6,480 job opportunities and strengthen Malaysia’s standing as a regional digital leader.

These new opportunities aim to provide more gainful employment for Malaysians while nurturing a new generation of innovators and digital talent vital for the nation’s future growth.

The investments approved during this period involved 148 companies awarded MD status.

From an innovation perspective, artificial intelligence (AI) companies represented the largest share of these investments at 27 per cent, followed by the data centres & cloud subsectors at 23 per cent, and global business services accounting for 11.5 per cent.

Malaysia Digital Economy Corporation (MDEC) CEO Anuar Fariz Fadzil commented that the strong investment momentum reflects global investors’ trust in Malaysia’s digital ecosystem. He attributed this confidence to Malaysia’s world-class infrastructure, competitive talent, and progressive policies under the Malaysia Digital initiative.

Also Read: A startup’s roadmap to success in Malaysia: Key government agencies and their support systems

Fadzil added that the focus extends beyond building capabilities to nurturing a ‘national culture of innovation’ that drives long-term growth and opportunities for Malaysia.

The approved investments underscore Malaysia’s ongoing efforts to expand its digital infrastructure and talent pool, reinforcing its ambitions to be a key player in Southeast Asia’s technology landscape.

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