Malaysia has become a thriving centre for innovation and technology, with a strong entrepreneurial culture and a thriving start-up environment. With more money being spent on cable landing stations, underwater cables, 5G, and fiber connections, Malaysia is quickly becoming as a regional hub for data centers and a desirable place to invest.

Malaysia became the most sought-after Southeast Asian destination for data center investments in 2022, surpassing both Indonesia and Thailand with 113 megawatts (MW) of data center utilisation.

According to Infinaxis, Malaysia's data center market is expected to develop at a rate of 7% between 2022 and 2027, reaching a valuation of about US$2 billion. Employment opportunities and rippling economic consequences result from this. In Malaysia in 2021, ICT employment growth outpaced that of other industries, making up 44% of all new jobs created.

In addition, the Persatuan Industri Komputer dan Multimedia Malaysia (Pikom) projects that the GDP of Malaysia will be boosted by the digital economy by 25.5% in the following year and by 24.4% this year. Estimates indicate that the digital sector will contribute significantly to Malaysia's GDP in 2022 and 2021, accounting for 23.2% and 23.4% of GDP, respectively. The resilience of the digital economy in the face of worldwide economic uncertainty has solidified its standing as a cornerstone of Malaysia's economy.

Pikom also predicts that compensation for digital talent advertising would increase by double digits this year, by 13.9%, and the next year, by 4.1%. Pay increases were driven by heightened competition for talent, the return of skilled workers after COVID-19, the depreciation of the ringgit, the acceleration of the digital revolution of the business sector, and progressive government programs.

However, Malaysia comes in at number ten when its highest decile of income distribution is compared to the same portion in twenty other nations. Malaysia is ranked seventeenth in terms of average wage rates. This could explain the decline in digital talent in our nation. Consequently, it becomes essential to give the retention of our country's digital talent first priority.

Generative AI, another name for artificial intelligence technology, holds the ability to generate well-paying jobs and unlock Malaysia's economic potential worth up to US$113.4 billion (RM536.1 billion). CEO pay ranged from RM30,000 to RM65,000 across 22 industries. The highest paying industries are banking, financial services, and IT hardware.

Companies in the digital technology sector make up over 50% of the world economy. The World Economic Forum (WEF) projects that in ten years, digital economic value will make up 70% of new value. To prepare for occupations in the digital economy and digital technologies, Malaysia has to offer an ecosystem and a skilled workforce in science, technology, engineering, and mathematics (STEM). Eight out of ten new jobs demand digital technology skills, and the number of technical jobs has almost tripled, according to a WEF report.

Positive initiatives such as #Mydigitalmaker drive the Madani Economy framework.

The Malaysian Digital Economy Corporation (MDEC) launched the #Mydigitalmaker campaign. More than 2.5 million kids have benefited from it since 2016. Students learn AI, game development, coding, drone technology, and other subjects through this initiative. It encourages participation and awareness in order to change the unhealthy lifestyles that Malaysian teenagers lead. A project-based learning educational model called Ecole 42 Kuala Lumpur (42KL) also gets pupils ready for a career in software engineering. To develop IT skills for the digital economy is its aim.

In order to get ready for a Golden Digital Decade, Malaysia has created a thorough strategic plan to improve cybersecurity, digital economic growth, and communication infrastructure. The tactics to boost digital adoption include expanding financial instruments, matching grants, funding support, capability building, and mentorship. The Communications Ministry was given RM2.84 billion in Budget 2024 to assist the creative and digital industries. It consists of RM100 million in grants for SME and microbusiness digitalization, RM900 million in loans for SME automation and digitalization, RM60 million in CyberSecurity Malaysia, RM40 million in Shop Malaysia Online, and so forth.

Over the years, MDEC has awarded RM15.8 million to winners of the Digital Content Creators Challenge (DC3) and sponsored 372 projects. DC3 is a platform that runs on competitions and helps content creators produce digital content and intellectual property of the highest caliber. Digital content production firms can apply for the program in four areas: interactive media, gaming, comic books, and animation. The creative business in Malaysia gains from this programme, which cultivates a flourishing creator environment.

To promote economic cooperation, China and Malaysia have established the Belt and Road Overseas Venture Incubator (BROVI). Similar social and economic growth strategies that prioritize technology innovation are implemented by China and Malaysia. The realization of comprehensive and sustainable development goals for all people, irrespective of race, socioeconomic class, or religion, is a shared objective between the Malaysia Madani and the Belt and Road Initiative (BRI), which offers a clear path for the development of bilateral relations. Both countries have accomplished amazing things, such as groundbreaking initiatives like Alibaba's Digital Free Trade Zone (DFTZ), the "Two Countries, Twin Parks" campaign, and the East Coast Rail Link (ECRL), which have had a significant positive impact on the economy and society.

In the previous year, China and Malaysia's bilateral trade reached an unprecedented $203.6 billion, with $12.5 billion in Chinese investments in Malaysia accounting for 33.9% of the nation's total foreign direct investment. Both high-tech cooperation and Chinese high-tech companies' investments in Malaysia are growing. Tanjung Malim is going to become a regional auto metropolis thanks to increased investment from Geely Automobile. China is prepared to work with Malaysia to implement a number of projects and make significant strides in the direction of realizing a common future vision.

The 50th anniversary of China and Malaysia's diplomatic relations' founding will also occur next year. China and Malaysia are dependable allies with a cordial history of communication. China and Malaysia will maintain their current level of cooperation in research and development as well as high-tech application. To encourage academic cooperation between the two nations, for instance, the Malaysia-China Belt and Road Institute (MCBRI) was recently established.

China and Malaysia benefit from each other's advantages in communications and digital economies. We anticipate that in order to speed up technical advancement and raise living standards for both populations, more Chinese businesses will make investments in Malaysia's digital economy and will work together more on digital communications projects.