KUALA LUMPUR, 17 February 2025 – Malaysia’s digital economy remains at the forefront of national growth, with an increasing focus on enhancing innovation, boosting productivity, and shaping new business models that transcend industries. The Malaysia Digital Economy Corporation (MDEC) is steadfast in its role as a catalyst for the country’s digital transformation.
CEO Anuar Fariz Fadzil highlighted that Malaysia’s strategic focus on digital initiatives, particularly Artificial Intelligence (AI) and talent development, has positioned the country as a regional leader in digital excellence. Public-private collaborations further bolster Malaysia’s role as a hub for groundbreaking technologies like AI and quantum computing, with transformative impacts across various sectors including manufacturing, finance, and services.
“We remain committed to reaching or surpassing the 25.5% digital economy contribution to GDP by the end of 2025,” Anuar said. “MDEC is actively advancing digital transformation, talent development, and technology adoption to help businesses evolve and thrive in the digital age.”
The digital sector continues to be a significant driver for the national economy, with foreign direct investments (FDIs) playing a pivotal role in shaping Malaysia’s economic landscape. Data centre investments reached an impressive RM86 billion in 2024, solidifying Malaysia as Southeast Asia’s leading data centre hub, with 77 data centres nationwide.
Malaysia’s economic growth saw a significant boost in 2024, with the country’s GDP growing by 5.1%, surpassing the 3.6% growth recorded in 2023. The growth was driven by strong export performance, substantial investment approvals, and progress in long-term public-private projects, including digital economy initiatives under the Digital Economy Blueprint and the New Industrial Master Plan 2030.
“The digital economy is an increasingly significant pillar of Malaysia’s recovery and prosperity,” Anuar emphasized. “The acceleration of digital investments is providing essential support for job creation, high-value employment, and national competitiveness.”
Under the Malaysia Digital (MD) initiative, approved digital investments for 2024 reached RM163.6 billion, exceeding 2023’s total by an extraordinary 250%. These investments have created over 48,000 new jobs, more than doubling the number of jobs created in the previous year, further demonstrating the growing role of the digital industry as a key driver of high-skilled employment.
Malaysia’s strategic location at the heart of ASEAN, coupled with its rich talent pool and expansive land resources, makes it an attractive destination for global investment. Top FDI inflows come from countries like Singapore, the United States, China, Australia, and India. Key sectors such as Global Business Services (RM139 billion), Information Technology (RM23 billion), and Creative Content (RM887 million) are all contributing to Malaysia’s vibrant digital economy and creating a significant number of high-value jobs.
MDEC’s emphasis on state-level digital development aims to enhance digital infrastructure, foster AI ecosystems, and drive digital transformation for SMEs across the nation. This state-focused strategy ensures that every region can contribute meaningfully to Malaysia’s overall digital economy goals.
“We will continue to attract world-class AI companies to set up operations in different states and promote the expansion of our homegrown tech champions into international markets,” Anuar said.
Anuar recently led a delegation to Johor, where he met with Chief Minister Datuk Onn Hafiz Ghazi and other state leaders to explore opportunities for collaboration. Anuar recognized Johor as a state with immense potential in the digital economy, owing to its strategic location and progressive policies that foster innovation and growth.
“Johor is on track to become a key regional hub for data centres, fintech, and digital content, supported by initiatives like the Johor-Singapore Special Economic Zone and the Iskandar Animation and Games Hub,” Anuar said. “These initiatives create an environment ripe for attracting international investments and generating high-value job opportunities.”
MDEC is set to return to Johor in the coming week to implement the plans discussed, ensuring that these digital economy initiatives are carried forward with actionable results.
