Malaysia is poised to capture a significant share of the global digital market, with the local digital economy projected to contribute 25.5% to the gross domestic product (GDP) by the end of 2025, according to Digital Minister Gobind Singh Deo. He cited research from Forrester, predicting the global digital economy will reach US$16.5 trillion by 2028.
The minister expressed confidence in surpassing the GDP target, having noted that Malaysia was at 23.5% last year. "From what we have seen in the last eight months, I am confident we will not only achieve that target but surpass it," he stated at the Malaysia-India Business Council (MIBC) annual dinner.
Gobind attributed the optimism to substantial investments from major technology firms, including AWS, Intel, Google, ByteDance, Nvidia, Meta, and Oracle. He remarked that these companies are investing billions of US dollars to establish or expand their operations in Malaysia, primarily in the data centre and semiconductor sectors. He added, "International investors have faith and confidence in Malaysia due to our business-friendly policies, stable government, good infrastructure and strategic location."
To further enhance Malaysia's digital economy and its spillover effects, the ministry is concentrating on three key pillars: building infrastructure, creating digital resilience, and developing talent. These initiatives are essential for positioning Malaysia as a premier digital hub in the region.
Gobind noted that collaboration is crucial for success, highlighting India as a significant partner in this endeavour. "Our governments exchanged eight memoranda of understanding to further strengthen our working relationship in various areas, including in the field of digital technologies," he stated.
Furthermore, Gobind indicated that MIBC is well positioned to assist organisations looking to collaborate with Indian or India-based companies. Such partnerships are vital, allowing Malaysian firms to access India's vast market. Additionally, Malaysia could serve as India's gateway to Southeast Asia, particularly as the nation will assume the ASEAN chair next year.
