MIDA catalyses Malaysia’s economic resilience, future growth in dynamic global landscape
12 Jan 2025
Malaysia’s investment landscape in 2024 has once again showcased its resilience and adaptability, with the Malaysian Investment Development Authority (Mida) at the forefront of driving economic growth through strategic investments, human capital development, digital and green economy initiatives.
Mida’s role in catalysing Malaysia’s economic development is underscored by its success in attracting investments worth RM254.7 billion in the first nine months of 2024, a 10.7% year-on-year (y-o-y) increase. These investments span the services, manufacturing, and primary sectors, resulting in 4,753 new projects and generating 159,347 jobs, reflecting y-o-y growth of 75.9% in job creation.
Domestic investments contributed RM148 billion (58.1%), reflecting strong confidence in the government’s clear policies and the resilience of local businesses. Meanwhile, foreign investments accounted for RM106.7 billion (41.9%), with key contributors including Germany, China and the United States.
Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said: “These investment figures reflect Malaysia’s strengthening position as a premier investment destination. Our success in attracting both domestic and foreign investments underscores the effectiveness of our strategic initiatives in fostering an innovation-driven economy,” he told Bernama.
In alignment with Malaysia’s National Investment Aspirations, Mida has been at the forefront of driving the growth of the digital economy.
From January to September 2024, the Digital Investment Office, a strategic collaborative platform between Mida and Malaysia Digital Economy Corporation (MDEC), approved RM64.8 billion worth of digital investments, focusing on advancing technology adoption such as artificial intelligence (AI), data analytics, and automation to propel Malaysia’s digital transformation.
“Malaysia is well-positioned to leverage 5G Advanced, AI, and cloud computing to accelerate economic growth.
These advancements, underpinned by the MyDIGITAL Blueprint and National 4IR Policy, are fostering a vibrant digital ecosystem and establishing Malaysia as a regional innovation hub,” noted Sikh Shamsul.
One of the standout sectors in 2024 has been the rapid growth of data centres, which attracted US$10.7 billion (RM46.9 billion) in investment commitments from the major data centre and cloud players.
These facilities are indispensable pillars of modern infrastructure, enabling seamless interconnectivity across industries and regions.
Malaysia’s robust infrastructure, competitive energy costs, sustainability initiatives, rapid digitalisation adoption and strategic location have cemented its position as a regional hub for global technology giants and cloud service providers.
The growth of data centres and cloud activities not only drives a more digitally inclusive society, ensuring every user can benefit from the digital economy, but also develops the local supply chains, increased demand for renewable energy and technology solutions as well as upskilling of talent to meet industry needs.
Key projects include investments by Google, Oracle and Microsoft creating thousands of high-value direct and indirect jobs, fostering knowledge transfer and promoting technological innovation.
“Malaysia Digital Economy Corporation is committed to streamlining the development process for data centres and proactively addressing challenges to ensure Malaysia remains attractive to investors. A key initiative in this effort is the Data Centre Investment Coordination Task Force, which assumes a pivotal role in facilitating and expediting data centre-related matters,” the Mida CEO said
Sikh Shamsul also stated that the Malaysian government’s guidelines for the sustainable development of data centres provide a comprehensive framework to ensure these facilities operate efficiently, sustainably, and in an environmentally friendly manner.
“This initiative aligns Malaysia’s ambitions with its long-term goal of achieving net-zero emissions by 2050,” he added.
“To drive progress across all sectors, we are focused on developing a highly skilled and adaptable workforce. Our partnerships with the Ministry of Higher Education and the Malaysian Technical Universities Network are essential to equipping Malaysians with the skills needed for the jobs of the future,” said Sikh Shamsul.
Mida is actively working to diversify Malaysia’s economic base by focusing on new growth areas such as renewable energy, e-mobility, biofuels, and rare-earth elements. These efforts align with Malaysia’s strategic plans to achieve net-zero greenhouse gas emissions by 2050 and foster a green economy.
Malaysia has set ambitious targets to increase the share of renewable energy in its power mix, aiming for 70% by 2050 as part of its commitment to achieving net-zero emissions.
Mida’s initiatives are integral to this transition, positioning Malaysia as a prime green investment hub by 2030, aligned with the Green Investment Strategy target.
Additionally, the government’s National Energy Transition Roadmap outlines key projects and initiatives to support this energy transition.
“We are not just building a resilient economy for today, but a thriving and inclusive one for generations to come. Our commitment to attracting investments in the new growth areas, coupled with our unwavering focus on human capital development, will ensure Malaysia remains a competitive force in the global landscape,” Sikh Shamsul said.
Source: The Sun
