Malaysia's MDEC reports more investments, new push for digital transformation

Digital investments under the Malaysia Digital (MD) national strategic initiative surged by 125% in Q2 2025, rising from RM13.11 B in Q125 to RM29.47 B. 

As of June 2025, a total of 261 companies approved under the MD initiative have collectively committed RM42.58 B in investments, with the potential to generate 17,495 knowledge workers over the next five years.

Malaysian Minister of Digital Gobind Singh Deo described the strong upward momentum as “exceptional growth which speaks volumes about our nation’s digital readiness, the strength of our innovation ecosystem, and the confidence that global investors have in Malaysia’s future”.

“Beyond numbers, these investments represent thousands of opportunities for the Malaysian workforce and a long-term uplift for our digital economy. The MD initiative is a proven platform to drive inclusive innovation and elevate our regional leadership in the digital space,” said Gobind.

MDEC separately introduced two new grants totalling RM2.9 M aimed at accelerating digital transformation in two of Malaysia’s most strategic sectors — AI and manufacturing.

Eligibility for these grants is exclusively extended to companies possessing MD or MSC Malaysia status, or to those with a pending MD status application at the time of applying for the grant. The two new grants — the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI) and the SmartMFG+ Incentive Programme – have been designed to support high-potential local companies by promoting innovation, developing export-ready digital solutions and creating high-skilled employment opportunities.

MDEC CEO Anuar Fariz Fadzil described the grants as both timely and strategic, giving a significant boost to Malaysia’s digital transformation agenda.

“MDAG-AI establishes a foundational framework for Malaysia to emerge as a preeminent hub for AI innovation, while SmartMFG+ lays the groundwork for widespread digitalisation across the manufacturing industry. Collectively, these initiatives serve as a dual engine to advance our digital ambitions,” said Anuar.