Malaysia’s Digital Investments Soar in Q2 2025, Reinforcing Its Position as ASEAN’s Leading Digital Hub. Malaysia’s digital economy continues to gain strong momentum, driven by robust investor confidence and a thriving ecosystem of innovation, skilled talent, and advanced infrastructure. In the second quarter of 2025, digital investments under the Malaysia Digital (MD) national strategic initiative surged by an impressive 125%, growing from RM13.11 billion in Q1 to RM29.47 billion. This significant leap reaffirms Malaysia’s reputation as a top destination for foreign digital investments (FDI) in the ASEAN region.
As of June 2025, a total of 261 companies approved under the MD initiative have collectively pledged RM42.58 billion in investments, with the potential to create 17,495 high-value knowledge-based jobs over the next five years. Minister of Digital, Gobind Singh Deo, described this remarkable growth as a testament to Malaysia’s digital readiness, the strength of its innovation-driven ecosystem, and the trust of global investors in the country’s digital future. “These investments go beyond figures — they represent thousands of career opportunities for Malaysians and a long-term boost for our digital economy,” said Gobind. He also emphasized that the MD initiative remains a powerful engine for inclusive innovation and regional digital leadership.
The top three sources of approved digital investments as of mid-2025 are led by Singapore, which committed RM13.91 billion (33% of total investment), followed by the United States at RM6.44 billion (15%) and China at RM2.97 billion (7%). The Data Centre and Cloud sector emerged as the leading investment vertical, contributing RM30.95 billion and expected to generate 1,440 knowledge jobs due to surging demand for regional data infrastructure. Notably, data centre companies alone accounted for RM13.45 billion, showcasing high investor confidence in Malaysia’s digital infrastructure and strategic connectivity.
Other fast-growing sectors include artificial intelligence (AI), which drew RM3.29 billion in investments and is projected to create 6,920 jobs — the largest contributor to total projected employment at 40%. The Global Business Services (GBS) sector also saw strong interest, securing RM4.99 billion in investments and expected to add 5,632 jobs, or 32% of the total.
Malaysia Digital Economy Corporation (MDEC) CEO, Anuar Fariz Fadzil, highlighted that the impact of the Malaysia Digital initiative goes beyond investment value. “The scale and quality of these investments demonstrate our commitment to delivering catalytic outcomes — in innovation, job creation, and ecosystem development. MDEC will continue enhancing investor support, talent pipelines, and strategic partnerships to maintain Malaysia’s edge as Southeast Asia’s most future-ready digital economy,” he said.
As global interest in Malaysia’s digital sector continues to rise, the Ministry of Digital and MDEC remain committed to accelerating innovation, promoting inclusive growth, and strengthening the nation’s position as a premier digital hub in the region. For more details on Malaysia Digital and MDEC’s ongoing initiatives, visit https://mdec.my/malaysiadigital.