On February 25, 2025, Malaysian Trade Minister announced a record of $85.8 billion of approved investments in 2024, an increase of 14.9% from the previous year. This is including significant investment from major U.S. tech companies active in the data center, AI, cloud computing, semiconductor fabrication, and ICT space at large. Investment influx in this sector has placed the country as a top destination for high-tech investments in the region. Moreover, it has prompted Prime Minister Anwar Ibrahim and the Minister of Economy Rafizi Ramli to emphasized commitment to make Malaysia a global center for digital infrastructure and chip production.
To support this vision, the Malaysian Government has designed a range of financial incentives to attract digital infrastructure projects. Further building on its 2022 Digital Ecosystem Acceleration (DESAC), additional regulatory framework and incentives may emerge to solidify the transformation from being a traditional manufacturing base to an innovation-driven economy. Moreover, PM Anwar set a target to produce indigenous Graphics Processing Units (GPUs) and chips in the next decade - a pivotal step to elevate its digital manufacturing sectors.
In 2025, Malaysian Semiconductors market is projected to reach USD18.54 billion revenue with a 10.33% CAGR. Meanwhile Malaysian digital transformation market is expected to reach USD 10.68 billion in 2025 and grow at 18.92% CAGR. Recently, Malaysia’s position as a growing tech hub is evidenced by Johor Baru being recognized as the fastest-growing data center market in Southeast Asia. These great potentials, combined with the accelerated efforts to improve favorable business environment and digital upskilling, may provide clear pathways to achieve PM Anwar’s ambition to drive Malaysia as a chip production and digital technology hub.
