Malaysia viewed as trusted digital bridge for global tech investment

• Malaysia aims to remain technology-neutral amid growing global competition
• Strong investment pipeline and AI ambitions position country as a scalable ASEAN digital hub

Malaysia is positioning itself as a trusted, open and rules-based digital hub that welcomes global technology investment without being anchored to any single technology bloc or ecosystem.

Gobind Singh Deo, digital minister, said Malaysia’s approach is not about choosing between competing technology blocs, but about working with responsible international partners while safeguarding national interests, data governance, cybersecurity and digital sovereignty.

“Malaysia’s position is clear. We will remain open to global technology partnerships, but we are also deeply committed to national sovereignty in how we shape and govern our digital future,” he said in a statement to Digital News Asia.

“Malaysia’s strength lies in our ability to serve as a trusted ASEAN base for global technology investment, supported by safeguards around data protection, cybersecurity, infrastructure resilience and national digital sovereignty,” he added.

The approach is anchored in the Thirteenth Malaysia Plan (RMK13) and supported by the AI Technology Action Plan 2030, which outlines Malaysia’s ambition to become an AI Nation by 2030 that is advanced, inclusive, trusted and sustainable.

“This is not a standalone digital agenda, but a structural shift in how Malaysia grows, with artificial intelligence, advanced technologies and innovation-led industries becoming core drivers of economic transformation,” Gobind said.

He stressed that the benefits of technology and AI must extend beyond large corporations, advanced industries and urban centres to all Malaysians.

“Our objective is to ensure that the rakyat benefit through better services, more high-value jobs, wider access to digital tools and greater opportunities for businesses, including MSMEs, to participate in the digital economy,” he said.

Malaysia secured US$21 billion (RM87 billion) in approved digital investments last year, which is expected to generate more than 31,000 high-value jobs.

Domestic investors contributed US$9 billion (RM37 billion), followed by Singapore at US$8 billion (RM32 billion), the United States at US$3 billion (RM11 billion) and China at US$894 million (RM4 billion). AI is expected to generate more than 12,600 jobs, alongside contributions from global business services, data centres and cloud, creative technologies and the Internet of Things.

Gobind said the diversity of investment sources demonstrates that Malaysia’s digital economy is being shaped by domestic, regional and global participation rather than reliance on a single bloc.

Malaysia has also focused on strengthening its digital backbone and governance framework to support future growth. This includes commitments from global technology companies such as Google, AWS, Oracle, Alibaba and Huawei, as well as AI and infrastructure collaborations involving Microsoft and NVIDIA.

The government has introduced measures including the Personal Data Protection (Amendment) Act 2024, the Data Sharing Act 2025 and the Cyber Security Act 2024 to strengthen data protection, cybersecurity readiness, public sector data governance and institutional oversight, which are important to investor confidence.

At the regional level, Malaysia is contributing to a more integrated digital environment through the ASEAN Regional Framework on Cross-Border Cloud Computing, which establishes shared principles for cloud governance, data protection, regulatory access and Trusted Data Corridors.

Gobind said resilience is also being strengthened across the digital infrastructure chain, with Malaysia expanding international connectivity options, enhancing domestic peering and encouraging redundancy across cloud and network architectures.

The growth of the Malaysia Internet Exchange (MyIX) reflects increasing digital activity, with internet traffic rising 16% to 2,527Gbps as of February 2026, indicating stronger localisation of traffic, improved efficiency and reduced dependency on external routes.

“Taken together, Malaysia is building a digital ecosystem where policy, infrastructure, talent, trust and investment reinforce one another,” Gobind said.

“This creates an environment that is open to global participation, supported by clear governance and capable of sustaining high-value digital growth while strengthening Malaysia’s role as a scalable hub for ASEAN,” he added.

Taken together, these foundations position Malaysia to become a confident and successful AI Nation — powered by a strong partnership among government, industry and the rakyat.

“Malaysia’s approach treats AI as a national capability built on trust, sovereignty and inclusion,” Gobind said.

“With clear governance, resilient infrastructure and sustained investment in talent, innovation can scale responsibly while delivering real benefits to citizens, workers and businesses. This alignment of policy, technology and people ensures Malaysia’s AI future is trusted, people-centred and capable of driving inclusive, long-term growth,” he added.