Time's list, out on Tuesday, comprises young singers, sports stars, technology and science whiz kids, authors and media icons who have become inspirations for youngsters across the world due to their spectacular achievements through their work and passion.
The magazine said Malia, 15, and her younger sister Sasha act with the "poise of adults" at high-profile events like their father's second presidential inaugural address.
"Thanks in part to Michelle Obama, they seem to lead as normal lives as they can while still meeting the demands of being in the limelight. President Obama often mentions his daughters in speeches, and says that they influenced his stance on gay marriage," the magazine said.
Malala's vocal activism for girls' right to education made her a target of the Taliban, who shot her in the head as she was returning home in her school bus in Pakistan last year.
From being nominated for the Nobel Peace Prize, winning the Sakharov Prize for Freedom of Thought and a Clinton Global Citizen Award to discussing education rights with President Obama, meeting the Queen of England and addressing the United Nations, the 16-year-old has the world applauding her dreams, courage and vision.
"After surviving the attack, (Malala) didn't hide in fear but strengthened her voice. The world has been listening," Time said.
Malala had also met Malia when she visited the White House last month to meet President Obama and First Lady Michelle. Also on the list is singer and pop icon Justin Bieber.
The 19-year-old Canadian-born pop star has become an "industry to himself", valued by Forbes at USD 58 million.     He released his first single at age 15, and in 2010, became the youngest solo male artist to hit the number one spot on the Billboard Hot 100 music charts.
The list includes 16-year-old Lydia Ko, a New Zealand golfer born in South Korea who has multiple Ladies Professional Golf Association (LPGA) wins. Ko is the youngest person ever to win a professional golf tour event and the youngest person ever to win an LPGA event.
Another sports icon on the list is swimmer Missy Franklin, 18, who won six gold medals at the 2012 London Olympics becoming the "winningest female swimmer ever at a world meet" as well as the fifth swimmer to capture six or more golds at a world’s meet or the Olympics.


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