KUALA LUMPUR: Malaysia has experienced a transformative shift in its technology landscape this year, marked by historic investments and forward-thinking policies that are reshaping the nation’s digital ecosystem. Emerging as a regional leader in the digital economy, Malaysia has attracted global attention and reaffirmed investor confidence in its potential.
According to BERNAMA News Agency, global technology powerhouses, including Amazon Web Services (AWS), Google, and Microsoft, have committed or expanded investments totaling US$16.9 billion (RM74.80 billion), solidifying Malaysia’s position as a prime destination for tech-driven growth. AWS announced a commitment of US$6.2 billion (RM29.2 billion) to establish the AWS Asia Pacific (Malaysia) Region, with expectations to contribute US$12.1 billion (RM57.3 billion) to Malaysia’s GDP by 2038 and create 3,500 jobs annually.
Microsoft pledged an investment of US$2.2 billion (RM10.5 billion) in Malaysia’s cloud and artificial intelligence (AI) segment over the
next four years. Microsoft’s CEO, Satya Nadella, noted Malaysia’s rapid growth on GitHub, with 680,000 developers representing a 28 percent year-on-year growth. Following Microsoft, Google is set to invest US$2 billion (RM9.4 billion), including developing its first Google data center and Google Cloud region to meet local and global cloud service demands. This investment is projected to support US$3.2 billion (RM15.04 billion) in economic impact and 26,500 jobs by 2030.
Additionally, Enovix Corporation inaugurated its first high-volume battery manufacturing facility in Malaysia, planning to invest US$1.2 billion (RM5.8 billion) over the next 15 years. Collectively, proposed investments from US tech firms, including Google, AWS, Microsoft, and Enovix Corp, amount to US$14.7 billion (RM63.02 billion).
In the first half of 2024, the Malaysia Digital initiative, led by the Malaysia Digital Economy Corporation (MDEC), achieved unprecedented success with approved digital investments reaching RM66.22 billion. This
surpasses the total recorded in 2023, creating 25,498 high-skilled jobs and generating RM1.94 billion in export opportunities, representing a 43 percent increase from the previous year.
The Malaysian government launched the Central Database Hub (PADU) as part of efforts towards ‘govtech,’ providing a safe, comprehensive national database. Prime Minister Datuk Seri Anwar Ibrahim unveiled the National Semiconductor Strategy to position Malaysia as a major global player in technology, aiming to attract RM500 billion of investments in the plan’s first phase.
Looking ahead, the government has proposed an allocation of RM10 million for the National AI Office and an increase in research and development funding to RM600 million under Budget 2025. These initiatives highlight the government’s commitment to strengthening participation in critical growth sectors like the semiconductor industry. The Ministry of Digital remains confident that the digital economy will achieve or surpass its target of contributing 25.5 per
cent to Malaysia’s GDP by the end of 2025.