By Selangor Journal Team
SHAH ALAM, Feb 27 — The Klang Valley is at the head of the list of the five states with the most digital investments, as investor confidence continues to build momentum in 2025.
The Malaysia Digital Economy Corporation (MDEC) said the Klang Valley recorded RM136 billion, followed by Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million), and Sarawak (RM280 million).
This reflects a nationwide push for digitalisation and economic expansion beyond the central regions.
"Digital investments in Malaysia are set to hit a record RM163.6 billion in 2024, compared to RM46.8 billion in 2023, driven by a stable government and pro-business policies in reinforcing the country’s reputation as a regional tech hub," it said in a statement today.
MDEC noted that investments in data centres and cloud infrastructure accounted for 76.8 per cent of total approved digital investments in 2024 for the whole country, a sharp rise from 55.5 per cent in 2023.
Its latest findings follow on the heels of the Malaysian Investment Development Authority (Mida) announcing that Malaysia secured RM378.5 billion in approved investments last year — the highest in the nation’s history — marking a 14.9 per cent year-on-year increase from the previous record of RM329.5 billion in 2023.
"Foreign investor confidence in Malaysia’s digital sector remains strong, with substantial-top five highest foreign direct investment inflows countries from Singapore (RM57 billion), the United States (RM23 billion), China (RM12 billion), Australia (RM2.6 billion), and India (RM2 billion).
"Strong infrastructure and strategic public-private partnerships have strengthened investor confidence in Malaysia as a leading digital hub," it said.
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Malaysia Digital Economy Corporation chief executive officer Anuar Fariz Fadzil speaks to the press during an event in Putrajaya on June 27, 2024. — Picture by BERNAMA[/caption]
MDEC chief executive officer Anuar Fariz Fadzil said that a supportive regulatory framework and Malaysia’s push into artificial intelligence and quantum computing further accelerated growth, attracting high-value global investments,
"As an agency under the Ministry of Digital, MDEC continues to work closely with Mida and other government agencies to attract more strategic investments.
“Malaysia’s dynamic investment landscape cultivates strong collaboration among government ministries and agencies, ensuring a coordinated effort to drive innovation, digital growth, and long-term economic prosperity for the nation," he said.
The establishment of a dedicated Data Centre Task Force, spearheaded by Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Digital Minister Gobind Singh Deo, is set to drive further growth while ensuring it aligns with long-term sustainability goals, balancing expansion with environmental responsibility.
“MDEC stands steadfast in sustaining this strong investment momentum and working closely with Mida to achieve the targeted five per cent investment growth in 2025,” Anuar said.
