In 2024, Malaysia's Investment Development Authority (MIDA) reported attracting RM254.7 billion in investments, marking a 10.7% year-on-year increase. This surge resulted in the creation of 159,347 jobs through 4,753 new projects. Domestic investments accounted for RM148.0 billion (58.1%), while foreign investments reached RM106.7 billion (41.9%), with key contributors being Germany, China, and the USA [17cbcc94].
The digital economy is a significant focus for Malaysia, with approved digital investments totaling RM64.8 billion. Notably, data centers have attracted US$10.7 billion (RM46.9 billion), underscoring the country's strategic push towards becoming a digital economy hub [17cbcc94]. MIDA's CEO, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, highlighted Malaysia's investment potential, particularly in sectors aligned with sustainability and technology.
As Malaysia prepares to chair ASEAN in 2025, MIDA aims to enhance regional economic integration while supporting initiatives that promote net-zero emissions by 2050. The agency has achieved an impressive 84.3% success rate in project implementation and is focusing on renewable energy, e-mobility, and biofuels, with a goal of achieving 70% renewable energy by 2050 [17cbcc94].
In conjunction with these developments, the ASEAN region is expected to see significant benefits for its micro, small, and medium enterprises (MSMEs) through the Digital Economy Framework Agreement (DEFA), projected to create an economic value of US$2 trillion by 2030. Negotiations for the DEFA began in 2023 and are expected to conclude in 2025 under Malaysia's chairmanship. Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of International Trade and Industry, emphasized the importance of bridging the digital divide among ASEAN nations to ensure equitable growth [ced4aedd].
The overall GDP of ASEAN is projected to reach US$3.8 trillion in 2023, making it the fifth-largest economy globally, with aspirations to become the fourth-largest economy by 2030. The digital economy within ASEAN is expected to grow to US$1 trillion by the same year, underscoring the critical role of digital transformation in driving economic growth [ced4aedd].
To support this growth, the Malaysia Digital Economy Corporation (MDEC) is exploring new international markets through its GAIN programme, which facilitates entry into 17 global markets. This initiative aligns with the broader goal of attracting investments in key areas such as artificial intelligence, blockchain, and cybersecurity [24964c15].
However, the region faces challenges, particularly from cybercrime, which costs ASEAN economies over US$100 billion annually. Addressing these security concerns will be vital for the sustainable growth of the digital economy [ced4aedd].
The ENS 2024 event in Dubai, taking place from October 13-16, will feature 6,500 companies and 1,800 startups, showcasing Malaysia's commitment to expanding its digital economy on a global scale [24964c15].