Digital minister: Malaysia draws RM16.2b digital investments by mid-April, data centres and AI drive boom

Malay Mail

29-04-2025

GEORGE TOWN, April 29 — Malaysia has recorded total investments of RM16.2 billion from digital companies between January and mid-April this year.
Digital minister Gobind Singh Deo today said the investments are expected to create some 6,500 jobs over the next five years.
He said Malaysia has a total 3,891 active Malaysia Digital (MD) companies with 254 in the northern region.
'Data centres and cloud investments lead the way contributing RM9.9 billion or more than 60 per cent of the total,' he said in his speech at the Malaysia Digital Open Day at UAB Building here.
He said artificial intelligence (AI) companies also make up the largest share of new MD-status companies at 27 per cent, followed by data centres (23 per cent) and global business services (11.5 per cent).
Gobind said investor confidence in Malaysia has remained strong with the top five sources of foreign direct investments coming from Netherlands, Singapore, Hong Kong, India and the United Kingdom.
To date, he said Penang has attracted RM1.23 billion in MD-approved investments with 266 jobs expected to be created.
'While 93 per cent of these investments are driven by data centre and cloud, more than 60 per cent of job opportunities are in high-value sectors such as IC (integrated circuit) design and embedded software,' he said.
'Malaysia's commitment to stable governance, investor-friendly policies and digital innovation is what continues to earn the trust of global investors,' he added.
He said Malaysia's digital economy agenda is focused on building a vibrant ecosystem that enables businesses to thrive, empowers communities through technology and ensures that the benefits of digitalisation are felt across all layers of society.
He added that Malaysia will be hosting the Malaysia AI Summit 2025 that will bring together policymakers, researchers and global tech leaders to shape the future of AI in Southeast Asia.
Malaysia will also host the Smart City Expo Kuala Lumpur 2025 that will showcase innovative urban solutions as well as foster collaboration among Asean countries, he said.
'With this series of international and regional events, Malaysia is poised to become the regional tech hub for digital innovation, supporting digital transformation and driving sustainable urban development,' he said.
He said the establishment of a regional office in Penang to serve Penang, Kedah, Perak and Perlis will link local stakeholders to national programmes, talent development efforts and digital ecosystem support.