In projecting its FY2024 results, the government notes that data centers and cloud infrastructure are a major driver of digital investments

As we approach the end of FY2024, governments have begun unveiling projections of how their initiatives have been performing.

On February 27, 2025, the Malaysia Digital Economy Corporation (MDEC), a government agency under the Malaysian Investment Development Authority (MIDA) and tasked with driving Malaysia’s digital economy, released projections forecasting digital investments in the country to reach RM163.6bn for FY2024.

This is a step up from the RM46.8bn recorded in FY2023, reflecting the country’s growth aspirations in the global digital landscape. The announcement follows a report from MIDA, the government’s principal agency for promoting and coordinating industrial development, which recorded RM378.5bn in approved investments for 2023 — up from RM329.5bn in 2022.

Malaysia’s digital economy has been a key focus of the government’s economic strategy, aimed at positioning the nation as a regional technology hub. MDEC has credited this investment surge to the country’s efforts to bolster infrastructure, public-private partnerships, and regulatory frameworks.

Domestically, direct investments have soared, with the Klang Valley leading at RM136bn, followed by Johor at RM22bn, Penang at RM3bn, Sabah at RM423m, and Sarawak at RM280m. These figures underscore Malaysia’s efforts to digitalize multiple regions to enhance connectivity and economic opportunities nationwide.

A major driver of this growth is the focus on data centers and cloud infrastructure, which accounted for 76.8% of MDEC’s projected digital investments for FY2024, up from the 55.5% of 2023. These facilities are vital to Malaysia’s digital transformation, supporting everything from e-commerce to advanced tech research. To ensure sustainable progress, a Data Centre Task Force was announced on February 25, 2025, tasked with balancing sector expansion with environmental considerations.

Said MDEC CEO Anuar Fariz Fadzil: “MDEC continues to work closely with MIDA and other government agencies to attract more strategic investments. MDEC stands steadfast in sustaining this strong investment momentum and working closely with MIDA to achieve the targeted 5% investment growth in 2025.”