The Malaysian Ministry of Digital announced that the country’s digital investment reached MYR 66.22 billion (USD 14.7 billion) in the first half of 2024 (1H 2024), showcasing the resilience of its digital economy amidst ongoing global geopolitical challenges. This figure marks a significant 43% increase over the total digital investment for the whole of 2023.
This positive trend indicates growing investor confidence and aligns with the country’s projected economic growth of 4-5% for the year. The surge in digital investment has led to the creation of 25,498 jobs in 1H 2024, establishing the digital sector as a key source of high-skilled, high-income employment. Data centers and cloud service providers have been the main drivers of this digital investment, leading across various sectors. Additionally, Information Technology (Infotech) and Global Business Services (GBS) firms have been particularly proactive in creating digital jobs by setting up centers of excellence and high-value operations in Malaysia.
Moreover, the Malaysia Digital Economy Corporation (MDEC), the government agency under Ministry of Digital overseeing the digital economy, has facilitated export opportunities through various partnerships and business matching programs, amounting to over MYR 1.93 billion (USD 427 million). This initiative has engaged 228 companies from 11 countries, including Indonesia, the Philippines, and the United Kingdom. In 1H 2024, 451 tech companies received the Malaysia Digital (MD) Status from MDEC, with 39% being foreign firms contributing to foreign direct investment. MD Status recipients benefit from various government incentives, including competitive tax advantages, multimedia equipment import exemptions, and access to a skilled workforce, thus fostering a favorable environment for continued investment and growth in the digital sector.
(Sources: The Edge Malaysia; New Straits Times)
