Digital investment in Malaysia has recorded a strong upward trajectory in the first half of this year, driven by growing investor confidence and riding on the back of our economy’s forecasted growth of 4% to 5% this year.
Under the Malaysia Digital (MD) initiative driven by Malaysia Digital Economy Corporation (MDEC), an agency under the Ministry of Digital, approved digital investment soared to RM66.22 billion in the first half of 2024 (H1 2024), signalling robust growth and resilience of the digital economy despite global geopolitical tensions.
This is a significant achievement and means that the H1 2024 figure has surpassed the full-year (FY2023) digital investment value recorded in 2023 (RM46.2 billion).
This investment inflow has resulted in creating 25,498 jobs in the first half of 2024, surpassing the 22,258 tally recorded for FY2023. The digital sector continues to be a powerhouse for high-skilled, high-income employment.
On the digital export front, as of June 2024, the Ministry’s efforts – via MDEC's partnerships and business matching programmes – have garnered export opportunities worth more than RM1.936 billion, involving 228 companies in 11 countries, namely Indonesia, Philippines, Cambodia, Türkiye, Spain, Saudi Arabia, Japan, Taiwan, Kenya, Tanzania and the United Kingdom. This is an increase of over 43% from the export opportunities value for the first half of 2023 (RM1.353 billion).
MDEC's DEX Connex initiatives in Philippines and Indonesia, and business missions have contributed to significant export opportunities numbers for the first half of 2024.
It is worth noting that data centres and cloud companies collectively contributed to the lion’s share of digital investment value across all sectors. Information Technology (Infotech) and Global Business Services (GBS) companies led in the area of digital job creation, as companies race to set up their centres of excellence and high-value GBS operations in Malaysia.
In H1 2024 too, 451 tech companies have been awarded the MD Status and have set up their businesses in Malaysia, by far surpassing FY2023’s total of 256 companies. Of these 451 companies, 39% are foreign companies contributing to foreign direct investment (FDI), while 61% are local.
Companies with MD Status are entitled to a number of incentives, rights and privileges from the Government, subject to necessary approvals and compliance of applicable conditions. Benefits include competitive tax incentives and duty import and sales tax exemption on the importation of multimedia equipment, access to local and foreign knowledge workers, exemption from local ownership requirements, and access to funding facilitation. MDEC acts as a high-powered implementation agency for MD.
These figures highlight the surging confidence of domestic and international investors, as well as leading tech companies in Malaysia's thriving digital ecosystem. Building on this momentum, the Ministry of Digital is committed to driving further growth and propelling Malaysia as a frontrunner in ASEAN's digital landscape and on the global front.
The Ministry of Digital, together with all its agencies, will forge strategic partnerships with the industry and other key stakeholders moving ahead, to create a competitive and world-class investment destination – one that is aligned with the aspirations of the MADANI Economy Framework and blueprints such as Malaysia Digital Economy Blueprint (MDEB) and the National Semiconductor Strategy (NSS).
GOBIND SINGH DEO
Minister of Digital
5 August 2024
