MDEC To Push For 25.5 Pct Digital Economy Contribution To Malaysia's GDP By End-2025

KUALA LUMPUR, Feb 18 (Bernama) -- The Malaysian Digital Economy Corporation (MDEC) will support Malaysia to achieve or surpass the 25.5 per cent digital economy contribution to gross domestic product (GDP) by the end of 2025, said its chief executive officer (CEO) Anuar Fariz Fadzil.

In a statement today, Anuar said this would be accomplished through initiatives that catalyse digital transformation, talent development and technology adoption across businesses.

He said the digital economy would continue to serve as a strategic engine of growth for Malaysia due to its essential role in driving innovation, enhancing productivity and fostering new business models across industries.

Anuar highlighted foreign direct investments (FDI) as a key driver of national growth, citing data centre investments.

“Malaysia has attracted over RM86 billion in data centre investments in 2024, establishing our nation as Southeast Asia’s leading data centre hub with 77 data centres throughout the country,” he said.

Last Friday, Bank Negara Malaysia (BNM) announced that the Malaysian economy grew by 5.1 per cent in 2024 (2023: 3.6 per cent), driven by a rebound in exports, strong investment approvals and progress in multi-year public-private projects, including catalytic initiatives under the Digital Economy Blueprint and the New Industrial Master Plan 2030.

“This growth reflects the resilience and dynamism of Malaysia’s economy, with the digital economy playing an increasingly significant role in driving economic recovery and future prosperity,” said Anuar.

According to MDEC, digital investments played an instrumental role in contributing to the overall national GDP growth of 5.1 per cent in 2024.

Under the Malaysia Digital (MD) initiative, the total approved digital investments in 2024 amounted to RM163.6 billion, surpassing the approved digital investment value for 2023 by 250 per cent.

The digital investment inflow during this period also created more than 48,000 jobs, surpassing the 2023 total by 109 per cent.

These are tangible indicators that the digital industry continues to be a powerhouse for high-skilled, high-income employment.

Malaysia’s proactive digital policies, particularly in artificial intelligence (AI) and talent development, have collectively positioned the country as a regional hub for digital excellence, said Anuar.

“Public-private collaborations further enhance our nation’s leadership in AI and quantum computing, driving transformative impacts across sectors like manufacturing, finance, and services.

“Our goal is to enhance small and medium enterprises (SME) competitiveness, continue attracting high-quality investments, and develop a digitally skilled workforce ready for the future,” he said.

A strong area of focus for MDEC is the acceleration of state-level digital growth, aiming to enhance digital infrastructure, nurture AI ecosystems and drive SME digitalisation to elevate national competitiveness.

This focused approach seeks to empower states to leverage their unique strengths while contributing to Malaysia’s broader digital economy objectives.

Recently, Anuar led an MDEC delegation to Johor for discussions with Johor Menteri Besar Datuk Onn Hafiz Ghazi and other state leaders to explore collaborative opportunities and align key initiatives.

The MDEC CEO described Johor as “a state brimming with huge potential in the digital economy, with its strategic location and progressive policies providing a strong foundation for innovation and growth.”

“Johor has the potential to become a regional hub for data centres, fintech (financial technology) and digital content, supported by the Johor-Singapore Special Economic Zone and the Iskandar Animation and Games Hub, making it well-positioned to attract international investments and create high-value job opportunities,” Anuar said.

The MDEC team will return to Johor soon to follow up on these plans, focusing on concrete actions to drive the identified initiatives forward.

Anuar said MDEC is committed to working hand-in-hand with its state partners to translate these strategies into meaningful outcomes that benefit businesses and the rakyat across Malaysia.

“MDEC will continue to play our part in attracting marquee AI companies to establish operations in various states throughout Malaysia.

“We are also actively promoting Malaysian tech (technology) champions and supporting their expansion into foreign markets for export purposes,” he said.

Statistics indicate that Malaysia is well positioned to be the gateway into the ASEAN market, with the top five FDI inflows coming from Singapore, the United States, China, Australia and India.

With an abundance of land, talent, and geographical positioning of Malaysia at the heart of ASEAN, the country’s digital investment cluster is driven by global business services (RM139 billion), information technology (RM23 billion) and creative content (RM887 million), creating a combined total of over 48,000 high-value jobs.

Major investments that come into the Klang Valley stood at RM136 billion, followed by Johor (RM22 billion), Penang (RM3 billion), Sabah (RM423 million) and Sarawak (RM280 million), said MDEC.

-- BERNAMA