KUALA LUMPUR: New research by Knight Frank Malaysia reveals that digital investments in Malaysia are evolving, emphasising the need for certified, digitally ready buildings. The findings from a whitepaper developed with the Malaysia Digital Economy Corporation (MDEC) indicate that RM342.6bil in digital investments were approved from 2H2022 to 2H2025 across 1,969 Malaysia Digital (MD) companies, projected to generate approximately 114,854 jobs, predominantly in knowledge-based roles.
Digital activity remains highly concentrated in Klang Valley, Johor and Penang, which together account for around 95% of approved MD companies. This concentration reflects the maturity of these ecosystems and their ability to support large-scale, technology-driven operations. “The scale of digital investment is significant but what stands out is its composition. Growth is being driven by long-term activities, which makes location and building suitability more important,” said Knight Frank Consultancy research executive director Amy Wong.
Klang Valley attracts 1,656 multinational companies and over RM256bil in approved investments, with key sectors like data centres, cloud services, AI and global business services. Approximately 55% of foreign firms operate from purpose-built offices, highlighting the need for stable infrastructure. However, only 13% of MD companies are in MD-certified premises and 15% in green-certified buildings. Upcoming office supply is primarily Grade A, designed to be ESG-aligned and tech-enabled.
“Malaysia’s digital economy has moved beyond the early growth phase. As investments scale and knowledge-based employment expands, occupiers are becoming more discerning. Decisions are increasingly shaped by building-level considerations such as infrastructure resilience, sustainability credentials and governance standards, alongside location and talent,” said Knight Frank Malaysia group managing director Keith Frank.
The whitepaper was launched at Menara Merdeka 118. Digital Minister Gobind Singh Deo and MDEC chief executive officer Anuar Fariz Fadzil were present.
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