Malaysia’s digital economy is set to continue playing a pivotal role in the nation’s growth, serving as a strategic engine of innovation, productivity, and the development of new business models across various sectors. The country’s proactive digital policies, particularly in artificial intelligence (AI) and talent development, have firmly positioned Malaysia as a leader in digital excellence in the region.
According to MDEC (Malaysia Digital Economy Corporation) CEO Anuar Fariz Fadzil, these efforts are transforming Malaysia into a regional hub for advanced digital technologies. “Public-private collaborations are further strengthening our nation’s leadership in AI and quantum computing, creating transformative effects across key sectors, including manufacturing, finance, and services,” he said.
Anuar emphasized that MDEC’s commitment is focused on ensuring Malaysia surpasses its goal of a 25.5% digital economy contribution to GDP by the end of the year. The organization aims to achieve this through initiatives that foster digital transformation, talent development, and widespread technology adoption, particularly across small and medium-sized enterprises (SMEs).
“Enhancing the competitiveness of SMEs, attracting high-quality investments, and building a digitally skilled workforce ready for the future are among our primary goals,” Anuar added.
Foreign direct investments (FDIs) continue to be a major driver of national growth, with the digital economy at the forefront. Malaysia has successfully attracted over RM86 billion in data centre investments in 2024, positioning the country as Southeast Asia’s leading data centre hub, housing 77 centres nationwide.
Bank Negara Malaysia (BNM) recently reported that Malaysia’s economy grew by 5.1% in 2024, a significant rebound from the previous year’s growth of 3.6%. This growth was driven by strong export performance, robust investment approvals, and the advancement of public-private projects, including key initiatives under the Digital Economy Blueprint and the New Industrial Master Plan 2030.
“This growth is a testament to the resilience and dynamism of Malaysia’s economy, with the digital economy playing an increasingly crucial role in the country’s economic recovery and future prosperity,” said Anuar. He further explained that digital investments were instrumental in contributing to the nation’s GDP growth, with the total approved digital investments for 2024 reaching RM163.6 billion, exceeding the previous year’s investments by 250%. This surge in investments also generated over 48,000 high-value jobs, a 109% increase compared to 2023.
Malaysia is increasingly recognized as a gateway to the ASEAN market, with the top sources of FDIs being Singapore, the United States, China, Australia, and India. With its strategic location, skilled talent pool, and vast land resources, Malaysia is well-positioned to drive digital investment in key sectors such as Global Business Services (RM139 billion), Information Technology (RM23 billion), and Creative Content (RM887 million), creating over 48,000 high-quality jobs.
A major focus for MDEC in 2025 is the acceleration of digital growth at the state level. This includes enhancing digital infrastructure, fostering AI ecosystems, and driving SME digitalization, with the aim of elevating national competitiveness. MDEC’s state-level approach empowers individual states to leverage their unique strengths and contribute to the broader objectives of the national digital economy.
“MDEC remains committed to attracting leading AI companies to establish operations in various states across Malaysia,” Anuar said. “We are also actively supporting Malaysian tech champions in their efforts to expand into international markets, promoting local innovations for export.”
Recently, Anuar led an MDEC delegation to Johor to discuss collaborative opportunities with Johor Chief Minister Datuk Onn Hafiz Ghazi and other state leaders. Anuar highlighted Johor’s potential as a regional hub for data centres, fintech, and digital content, underscoring the importance of strategic initiatives such as the Johor-Singapore Special Economic Zone and the Iskandar Animation and Games Hub.
“Johor’s strategic location and progressive policies provide a solid foundation for innovation and growth. It is well-positioned to attract international investments and create high-value job opportunities,” Anuar noted.
MDEC will return to Johor in the coming week to continue its discussions and take concrete steps to advance the identified initiatives. “We are fully committed to working hand-in-hand with our state partners to bring these strategies to life and ensure they deliver meaningful benefits to businesses and the people of Malaysia,” Anuar concluded.
