KUALA LUMPUR (July 7): Total investments under the Malaysia Digital (MD) national initiative surged 125% to RM29.47 billion in the second quarter of 2025, from RM13.11 billion the first quarter, driven largely by robust activity in the data centre and cloud computing segments, said the Malaysia Digital Economy Corporation (MDEC).
The surge reaffirms Malaysia’s position as the preferred digital foreign direct investment (FDI) destination in Asean, said MDEC in a statement on Monday.
"These investments represent thousands of opportunities for the Malaysian workforce and a long-term uplift for our digital economy," the agency quoted Digital Minister Gobind Singh Deo as saying. The minister described the trend as “exceptional growth” reflecting the nation's digital readiness, innovation strength, and investor confidence.
The top three sources of approved digital investment as at end-June 2025 were led by Singapore (with commitments of RM13.91 billion or 33% of total investment), the US (RM6.44 billion or 15%), and China (RM2.97 billion or 7%).
Sectoral wise, data centre and cloud vertical remained the leading investment driver contributing RM30.95 billion in approved investments and is expected to create 1,440 high-skilled jobs to support rising regional demand for digital infrastructure.
"Data centre companies alone committed RM13.45 billion, highlighting investor confidence in Malaysia’s digital infrastructure and regional connectivity," MDEC said.
Other high growth and expanding sectors that the agency noted include artificial intelligence that attracted RM3.29 billion in investments, expected to generate 6,920 jobs or 40% of total projected employment. Meanwhile, the global business services segment secured RM4.99 billion, potentially creating 5,632 jobs or 32% of total employment opportunities under MD.
MDEC CEO Anuar Fariz Fadzil said the latest numbers highlight the impact-centric direction of the MD initiative. “The scale and quality of investments under MD reflect our focus on driving catalytic impact — in value, in innovation, and in job creation.”
He added that MDEC will continue to strengthen investor facilitation, talent development, and ecosystem partnerships to ensure Malaysia remains the region’s most dynamic and future-ready digital economy.