KUALA LUMPUR - Malaysia recorded RM54.13 billion in approved investments under the Malaysia Digital initiative in the third quarter of 2025 (3Q25), creating 21,815 high-value jobs across 402 digital companies, according to the Malaysia Digital Economy Corp (MDEC).

The agency said the latest figures reflect sustained momentum in the country’s digital economy, strengthening Malaysia’s standing as a leading digital innovation hub in Asean while supporting its ambition to become an artificial intelligence (AI) nation by 2030.

“Despite cautious global investment conditions in 2025, Malaysia’s digital economy continued to pivot towards employment-intensive and high value segments, particularly in AI,” MDEC said in a statement.

AI-related investments accounted for 8,328 jobs, representing 38 per cent of total projected employment, underscoring growing demand for digital professionals, data scientists, AI engineers and specialised services talent.

Digital Minister Gobind Singh Deo said the investment performance signals Malaysia’s readiness to lead in the AI era and transition from being a technology user to a creator of globally competitive AI solutions.

“Becoming an AI nation by 2030 requires more than innovation. It demands strong digital foundations, trusted infrastructure, skilled talent, and robust global partnerships.

“The continued inflow of high-quality digital investments into Malaysia demonstrates international confidence in our policies, our talent, and our long-term vision for responsible and inclusive AI-driven growth,” he said.

MDEC noted that Singapore-based investors were the largest contributors to approved digital investments, amounting to RM25.1 billion, followed by domestic investments of RM17.2 billion.

The United States contributed RM6.4 billion, while China accounted for RM3 billion.

The Klang Valley remained the primary magnet for digital investments, with Kuala Lumpur and Selangor attracting 88 per cent of total approved investments, or RM47.8 billion, supported by mature infrastructure, strong talent pools and high ecosystem readiness.

The region also generated nearly 90 per cent of the 19,417 digital jobs created.

MDEC chief executive officer Anuar Fariz Fadzil said Malaysia continues to be a preferred destination for both foreign and local AI investments, driven by its strategic position as an Asean digital hub and its skilled workforce.

“MDEC’s commitment to developing future-ready talent in partnership with the tech industry has created a supportive ecosystem that enables innovation, scalability, and long-term growth.

“By providing targeted incentives, proactive investor facilitation, and close policy alignment, MDEC ensures a seamless investment journey while strengthening cross-border digital investment opportunities,” he said.

MDEC added that initiatives under the national Malaysia Digital strategy have attracted global players across high-value AI technology stacks, fostering a responsible and inclusive AI ecosystem that enables local companies to scale internationally, including those operating within the Johor–Singapore Special Economic Zone.

Data from the agency showed that approved digital investments surged 125 per cent quarter-on-quarter in 2Q25 to RM29.47 billion from RM13.11 billion in 1Q25.

Total digital investments reached RM163.6 billion in 2024, a sharp increase from RM46.8 billion in 2023.