DHI Water and Environment (M) Sdn. Bhd. incorporated in Malaysia in 2001 follows on from the success of Danish Hydraulic Institutes's branch office established in Malaysia in 1997 under the invitation of the Sabah State Government to form a project office as part of the West Coast of Sabah Shoreline Management Plan.

DHI Water and Environment (M) Sdn. Bhd. is a local Malaysian company with long-term foreign consultant staff representing about 20% of the work force. DHI Malaysia is based in Kota Kinabalu with a branch office in Kuala Lumpur.