Digital Minister says the next phase must turn more than RM144 billion in approved data-centre and cloud commitments into Malaysian innovation, businesses, talent and lasting economic value
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
PETALING JAYA, Sept 28 – Malaysia must move beyond merely hosting data centres and foreign technology investments and build the capabilities to create, commercialise and ultimately own a greater share of its digital future, Digital Minister Gobind Singh Deo said today.
Opening the MDX Forum 2026, Gobind said Malaysia had performed strongly in attracting digital investment, recording more than RM144 billion in approved data-centre and cloud commitments, with hyperscalers being developed across Selangor, Johor and other states.
But he said the question that would define Malaysia’s next decade was fundamentally different.
“Who actually profits from this infrastructure?” Gobind asked.
Malaysia, he said, must decide whether it remains primarily a consumer of technologies developed elsewhere or builds the capabilities to create, commercialise and compete globally. Gobind drew a clear distinction between hosting digital infrastructure and developing the higher-value economic activities that can grow around it.
“A fully operational data centre employs a few dozen people. But an AI services industry, a cloud operations hub, or a regional digital headquarters employs thousands. And it pulls an entire nation’s economy forward,” he said.
“That distinction is where the future of our economy will be decided.”
Representatives of 12 companies recognised with Malaysia Digital (MD) Status at the MDX Forum 2026 in Petaling Jaya. Digital Minister Gobind Singh Deo (middle), next to him on the right is MDEC Chairman Ganesh Kumar Bangah, Sixth from the left is MDEC CEO Anuar Fariz Fadzil.
He summed up the government’s ambition in a pointed message: “Our job today is to ensure we don’t just host the digital future.We Build it. We Run it, and we Own it.” From Investment To Economic Value.
The message was at the heart of MDX Forum 2026, which brought together around 300 representatives from global investors, technology companies, state agencies and Malaysian enterprises to examine how Malaysia can translate digital investment into tangible economic value.
The forum was organised by the Malaysia Digital Economy Corporation (MDEC), an agency under the Ministry of Digital.The challenge is becoming increasingly significant as Malaysia’s digital investment pipeline expands.
As of the second quarter of 2026, more than 7,000 companies had been awarded Malaysia Digital Status, with over 4,400 active companies.
Of the 119 companies approved during the quarter, 44 were primarily involved in artificial intelligence, while AI, data centre and cloud, and global business services together accounted for nearly 70 per cent of new approvals.
According to MDEC, the 119 companies are projected to contribute RM133.6 billion in investments and 4,922 jobs over their first five years.
The figures underscore the scale of Malaysia’s digital investment pipeline, but the message emerging from the forum was that the country’s next phase must increasingly be judged by what happens after those investments arrive.
Digital Minister Gobind Singh Deo engages the panel with a question during an in-conversation session at MDX Forum 2026 in Petaling Jaya on Sept 28, as industry leaders discuss Malaysia’s digital and AI transformation
MDEC chairman Ganesh Kumar Bangah said Malaysia’s AI opportunity was no longer simply about adopting the technology.
“Malaysia’s AI opportunity is no longer simply about adopting AI. It is about building an AI economy around it,” he said.
“The real question is whether AI is creating measurable value by helping businesses become more productive, enabling SMEs to scale, creating Malaysian products and services, and opening higher-value opportunities for our people.”
Ganesh said this would require an ecosystem of companies that build AI, businesses that adopt it, talent capable of working with it, investors willing to back it and markets where Malaysian solutions can grow.From Technology Consumer To Creator.
Gobind said the Ministry of Digital had a responsibility to bring together the essential components of Malaysia’s digital and AI transformation under a coherent national agenda.
That requires aligning policy with digital infrastructure, strengthening the country’s data foundations, advancing AI governance, securing online assets and developing the talent required for an increasingly digital-driven economy.
More importantly, he said, Malaysia must create an environment in which businesses of all sizes can confidently adopt new technologies, strengthen their capabilities, innovate and compete in regional and global markets.
Gobind said the establishment of AI Malaysia Berhad was part of that architecture.
The entity coordinates implementation of the National AI Action Plan while strengthening national AI capabilities, governance, trust, international partnerships and AI safety.
The government is also strengthening its data foundations through the Public Sector Data Digitalisation Policy and expansion of MyGDX, while GovTech Malaysia is modernising digital public services and strengthening cloud capabilities, cybersecurity, digital trust and responsible AI governance. Government As A Platform For Innovation
Gobind said the government must also demonstrate how technology can address real-world challenges.
Through the Government Innovation Initiative, public-sector challenges are being brought to the technology ecosystem, creating opportunities for what he described as “Made by Malaysia” solutions.
Rather than viewing government solely as a purchaser of technology, the approach is intended to give Malaysian companies opportunities to demonstrate their technologies in actual operating environments.
The government is also exploring the next generation of digital public services through MyGOV Malaysia and Agentic AI, including systems that could better understand context and assist citizens across digital government services, supported by appropriate governance and guardrails.
Making AI Work For MSMEs
Malaysia’s micro, small and medium enterprises are another important part of the strategy.
Gobind said digitalisation and AI must become more accessible, practical and commercially relevant for MSMEs.
For Malaysia Digital companies, he said, this means creating stronger pathways towards commercialisation, investment and international markets.
Programmes such as the Malaysia Digital Acceleration Grant for Artificial Intelligence (MDAG-AI) support Malaysia Digital companies in developing and commercialising AI solutions.
MDEC, he added, can further strengthen its role as a strategic connector between government and industry by supporting commercialisation and connecting businesses with talent and capital. States Seek A Place In The AI Value Chain
MDX Forum 2026 also placed particular emphasis on the role of states in capturing value from Malaysia’s expanding digital economy.
Rather than pursuing identical investment propositions, states were encouraged to identify where their existing economic strengths and capabilities could position them within the AI value chain.
The opportunities extend beyond data centres into cloud, cybersecurity, semiconductors, advanced manufacturing, energy solutions and AI services, as well as the application of AI across established industries.
MDEC chairman Ganesh Kumar Bangah (left) and AI technologist and Sosa Research founder Jason Sosa discuss “What Malaysia Builds Next” during an in-conversation session at MDX Forum 2026 in Petaling Jaya on Sept 28, exploring what AI-native transformation means for businesses and Malaysia’s evolving digital economy. – TNS News photo
During the forum, 12 companies were recognised with Malaysia Digital Status, representing activities including AI, data centre and cloud, Internet of Things, fintech and creative media technology.
The new recipients are located across Johor, Kedah, Melaka, Perak, Penang, Putrajaya, Selangor and Kuala Lumpur, with both Malaysian- and foreign-owned companies represented. What Happens After Investment Lands
MDEC chief executive officer Anuar Fariz Fadzil said Malaysia’s next phase of digital growth would ultimately be defined by what happens after investment lands in the country.
Investment creates lasting value, he said, when it goes beyond the initial project to strengthen Malaysian businesses, develop skilled talent, generate new demand and create opportunities across the states.
“Our focus is therefore not simply on attracting more investment but connecting that investment to the wider Malaysian digital ecosystem so that more businesses and communities can participate in the AI economy,” Anuar said.
“The next chapter will not be defined simply by how much Malaysia invests in AI, but it will be defined by the value Malaysia creates with it.”
Gobind said that by 2030, Malaysia should be recognised not simply for how quickly it adopts AI, but for how effectively it uses the technology to strengthen its economy, develop talent, build globally competitive companies and create meaningful value for its people.
“Let us take Malaysian ideas further, transform innovation into commercial success, and give our companies and talent the confidence to compete on the global stage,” he said.
He added that Malaysia must move forward with a shared determination to build an AI-driven future that creates lasting value and greater opportunities for Malaysians.
- TNS News