Malaysia boosts investment in green technology, digital transformation

Malaysia is unlocking high-impact investments at the intersection of sustainability and digital transformation, a key priority under the MADANI government’s green growth agenda.

Speaking at the Malaysia’s National Economic Forum 2025 on Thursday, Minister of Science, Technology and Innovation Chang Lih Kang said Malaysian Government is promoting innovation in carbon management, hydrogen energy, green materials and circular economy models to accelerate the nation’s low-carbon transition.

As part of its long-term clean energy strategy, the government, he said, is also exploring advanced nuclear technologies, including Small Modular Reactors (SMRs), which offer potential not only for decarbonisation but also for driving high-value research and development (R&D), technology transfer and skilled talent development.

In the coming time, Malaysia is positioning itself as a regional hub for advanced materials, especially rare earth elements (REE), which are essential to green technologies, electric vehicles and digital industries.

Chang further said the government is working to strengthen local capabilities across the entire value chain, from sustainable extraction to downstream high-tech applications, through strategic roadmaps such as the National Advanced Materials Technology Roadmap.

With a 17% increase in private-sector R&D investment recorded in 2024, particularly in clean energy and digital health, investor confidence is rising.

“To build on this momentum, efforts are being made to de-risk deep-tech investments through matching grants, co-investment models and collaborative public-private platforms that foster innovation and long-term growth,” Chang said.

On the National Biotechnology Policy (DBN 2.0), biotechnology is driving growth in biopharmaceuticals, industrial and agricultural biotech, with ambitions to position Malaysia as a regional bio-based hub aligned with sustainability and ESG (Environmental, Social and Governance) goals.

The National Economic Forum 2025 themed ‘Turning Strategy into Reality: Institutional Delivery, Economic Resilience and Investor Confidence’, aims to serve as a platform for robust dialogues and collaborative solutions to address the evolving challenges facing Malaysia amidst global economic realignment, technological disruption and sustainable growth.

It focused on positioning Malaysia strategically for the next phase of growth by cultivating a forward-thinking economic ecosystem driven by investment, innovation and inclusivity.