Malaysia’s digital investments hit record US$36.7bil in 2024

• MDEC steadfast in working with MIDA to achieve 5% growth target for 2025
• Data centre, cloud infrastructure account for 77% of total approved investments

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 agency under the Digital Ministry attributed the record investments down to a stable government with pro-business policies reinforcing the country’s reputation as a regional tech hub.

Strong infrastructure and strategic public-private partnerships have strengthened investor confidence in Malaysia as a leading digital hub. A supportive regulatory framework and Malaysia’s push into AI further accelerated growth, attracting high-value global investments, said MDEC.

The update from MDEC follows on the heels of the Malaysian Investment Development Authority (MIDA) announcing that Malaysia secured RM378.5 billion in approved investments last year — the highest in the nation’s history — marking a 14.9% year-on-year increase from the previous record of RM329.5 billion in 2023.

“MDEC continues to work closely with MIDA and other government agencies to attract more strategic investments,” said Anuar Fariz Fadzil (pic), MDEC CEO.

“Malaysia’s dynamic investment landscape cultivates strong collaboration among government ministries and agencies, ensuring a coordinated effort to drive innovation, digital growth and long-term economic 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).

Meanwhile, domestic direct investments (DDI) continue to rise, with MDEC playing a pivotal role through strategic initiatives and programmes. 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 most of the DDI investments made by Malaysian Digital companies are from subsidiaries of international companies that have MD status.]

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. 

[Ed: Note that when it comes to FDI, approved investments announced do not always realise the actual investment made as these investment figures are made based on projections of future growth and business conditions can change, therefore affecting the eventual investments made. In some cases, the actual investments made can be higher than the announced figures.]

The establishment of a dedicated Data Centre Task Force, spearheaded by MITI Minister Zafrul 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.

“MDEC stands steadfast in sustaining this strong investment momentum and working closely with MIDA to achieve the targeted 5% investment growth in 2025,” said Anuar.