By Stephanie Dwilson | 2025-12-10

Malaysia intends to make history by building Southeast Asia’s first rocket launch pad, a key step in its plans to position the country as a space hub that will benefit from the region’s rapidly growing interest in the space domain.

The launch pad project, currently in the feasibility and site evaluation phase, marks a foundational step in Malaysia's long-term vision of establishing a dedicated "space city" and becoming the regional leader in satellite innovation.

Three locations are under consideration for the launch pad: one in the state of Pahang in peninsular Malaysia, and the other two in Sarawak and Sabah on the northern part of the island of Borneo.

Work is slated to begin in early 2029, with completion anticipated the same year, according to The Edge Malaysia news site.

Pahang has submitted a full feasibility study, which is being reviewed by a multi-agency committee, Deputy Minister of Science, Technology and Innovation Datuk Mohammad Yusof Apdal told reporters in late October.

Sabah has submitted an interim report, he said.

Once operational, the launch pad is projected to contribute more than $2.337 billion to Malaysia’s gross domestic product (GDP), according to Malaysian Space Agency (MYSA) director-general Datuk Azlikamil Napiah.

Its location near the equator will provide a competitive advantage, enabling rockets to reduce fuel costs and achieve more efficient launches, he said.

Beyond economic gain, the launch pad is expected to strengthen Malaysia’s role as a regional leader in space-based communication technology, weather monitoring and Earth observation satellites.

These are key factors in natural disaster response and digital connectivity.

Malaysia’s space ambitions

The planned rocket launch pad marks the first step in Malaysia’s broader strategic plan to become a competitive leader in the space domain.

This vision is outlined in its National Space Policy 2030, adopted in 2017, which is expected to add 5,000 new jobs to Malaysia’s economy, once it is fully realized.

The policy calls for the establishment of a space city that will serve as a hub for innovation and research.

Pahang is the primary location under consideration for the space city.

It calls for the establishment of Malaysia’s own Earth observational satellite; the production of satellite components and data-driven downstream services; and for the provision of rocket launch services to international and domestic clients.

It also seeks to establish strategic partnerships with private companies and investors.

This vision doesn’t just support national ambitions, MYSA director-general Napiah emphasized, but also will benefit local communities.

"Beyond attracting investment, the project will generate significant economic spillover for local communities through new infrastructure, energy projects and job opportunities," he said in a statement.

In addition to its space ambitions, Malaysia is pursuing a parallel strategy to become a global technology leader in the AI industry.

AI-infused satellite services are being integrated into Malaysia's defense strategy to enhance national security and resilience, among other applications.

The country plans to integrate AI deeply within its economy by developing AI-powered cities and public services, with a focus on inclusivity and sustainability.

The Malaysia Digital Economic Corporation is the nation’s primary agency spearheading this innovative initiative.

Several Malaysian cities are testing AI-driven systems, from optimizing traffic flow to improving emergency responses and providing faster disaster alerts.