- Working with MIDA and MDEC unwaveringly to reach the 5 % growth target for 2025
- Data center, cloud equipment account for 77 % of total approved purchases
In a media release the Malaysia Digital Economy Corporation ( MDEC ) announced that digital investments hit a record US$ 36.7 billion ( RM163.6 billion ) in 2024, compared to US$ 10.5 billion ( RM46.8 billion ) in 2023. The organization, which is run by the Digital Ministry, attributed the report investments to a stable government and business-friendly policies that strengthened the nation’s status as a provincial tech hub.
Investor assurance in Malaysia as a leading online hub has increased thanks to strong infrastructure and proper public-private collaborations. A friendly regulatory framework and Malaysia’s drive into AI more accelerated growth, attracting high-value world opportunities, said MDEC.
The Malaysian Investment Development Authority ( MIDA ) announced that Malaysia secured RM378.5 billion in approved investments last year, the highest level in the country’s history, which is an 14.9 % increase from the previous record of RM329.5 billion in 2023.
According to Anuar Fariz Fadzil ( pic ), MDEC CEO,” MDEC continues to work closely with MIDA and other government agencies to attract more strategic investments.”.jpeg)
” Malaysia’s active investment environment cultivates strong cooperation among government departments and agencies, ensuring a coordinated effort to drive innovation, online growth and long-term financial prosperity for the nation”, added Anuar.
Foreign investor confidence in Malaysia’s digital sector remains strong, with substantial foreign direct investments ( FDI) inflows with the top five FDI coming from Singapore ( RM57 billion ), the United States ( RM23 billion ), China ( RM12 billion ), Australia ( RM2.6 billion ) and India ( RM2 billion ).
However, local direct investments ( DDI) continue to rise, with MDEC playing a key role through tactical initiatives and programs. The top five states by MD companies ‘ inflows were recorded in the Klang Valley ( RM136 billion ), Johor ( RM22 billion ), Penang ( RM3 billion ), Sabah ( RM423 million ) and Sarawak ( RM280 million ), reflecting a nationwide push for digitalisation and economic expansion beyond central regions.
[Ed: Note that the majority of the DDI purchases made by Malaysian Digital businesses are from foreign company subsidiaries with MD position.
In 2024, 76.8 % of all digital investments were approved, a sharp increase from 55.5 % in 2023, making up 76.8 % of those investments.  ,
]Ed: Notice that when it comes to FDI, approved investments announced do not always understand the real expense made , as these investment figures , are made based on projections of potential growth , and business conditions may change, thus affecting the eventual investments made. In some circumstances, the actual purchases made may be more than the stated images.
The formation of a dedicated Data Center Task Force, led by MITI Minister Zafrul Aziz and Digital Minister Gobind Singh Deo, will help the company advance deeper while maintaining a healthy balance between growth and economic role.
” MDEC will work closely with MIDA to achieve the 5 % investment growth target in 2025,” said Anuar,” stretched in maintaining this strong investment momentum.”