KUALA LUMPUR (Feb 27): Digital investments in Malaysia more than tripled to hit a record high in 2024, amid the government’s push into artificial intelligence (AI) and advanced computing, latest government data showed.

Domestic and foreign investors poured RM163.6 billion into Malaysia’s digital sector, compared with RM46.8 billion in 2023, according to Malaysia Digital Economy Corporation, a government agency also known as MDEC set up to lead Malaysia’s digital economy.

“As an agency under the Ministry of Digital, MDEC continues to work closely with other government agencies to attract more strategic investments,” said MDEC chief executive officer Anuar Fariz Fadzil in a statement.

Investments in data centres and cloud infrastructure accounted for 76.8% of total approved digital investments in 2024. Malaysia has established a dedicated Data Centre Task Force to drive further growth and ensure that the sector stays in line with the country’s long-term sustainability goals.

The top foreign direct investments were from Singapore with RM57 billion planned, followed by the US (RM23 billion), China (RM12 billion), Australia (RM2.6 billion), and India (RM2 billion).

Domestic direct investments meanwhile were mostly focused in the Klang Valley at RM136 billion, followed by Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million), and Sarawak (RM280 million).

The latest findings come on the heels of the Malaysian Investment Development Authority (Mida) announcement that Malaysia secured RM378.5 billion in approved investments last year — the highest in the nation’s history — marking a near 15% increase from 2023.

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