Malaysia is projected to achieve a Gross Merchandise Value of up to US$70 billion by 2030, driven by advancements in digital financial services and a robust digital infrastructure.
Malaysia’s digital economy is poised for significant growth, with projections indicating a potential Gross Merchandise Value (GMV) of between US$45 billion and US$70 billion by 2030. According to the e-Conomy SEA 2024 report, jointly published by Google Malaysia, Temasek, and Naom & Company, the digital economy is expected to reach US$31 billion in GMV by 2024, driven largely by the surge in e-commerce and online travel sectors.
The report highlights a notable trajectory in digital financial services, supported by several key areas, including digital payments, digital lending, digital wealth management, and digital insurance. By 2024, transactions in digital payments are estimated to achieve a Gross Transaction Value (GTV) of approximately US$172 billion. Concurrently, the digital lending sector is set to record a loan book balance of around US$12 billion, while assets under management (AUM) in the digital sphere will reach US$13 billion. Additionally, premiums collected through digital insurance underwriting are projected to amount to US$500 million.
The digital economy’s contribution to Malaysia’s Gross Domestic Product (GDP) is projected to reach 25.5%, suggesting that the country is well-equipped to leverage the ongoing digital boom. The current landscape is reinforced by Malaysia’s robust digital infrastructure, a comprehensive regulatory framework, and a skilled cyber workforce. Digital Minister Gobind Singh Deo, represented by Secretary General Fabian Bigar, articulated that the comparative advantages for Malaysia can be consolidated into the acronym “ICT,” standing for Infrastructure, Cybersecurity, and Talent.
The anticipated digital transformation is likely to attract investments of up to US$3.2 billion, potentially creating approximately 26,500 jobs across the nation. In preparation to meet regional and global digitalisation challenges, Malaysia has recently introduced the National Cloud Policy and established the National AI Office (NAIO).
The National Cloud Policy is designed around four fundamental pillars: enhancing public service innovation and efficiency, bolstering economic competitiveness and growth, ensuring user trust and data security, and fostering citizen empowerment through digital inclusivity.
Meanwhile, the NAIO’s primary objective is to elevate the nation’s capabilities in artificial intelligence. This office will drive innovation, facilitate cross-sector collaboration, and support the incorporation of AI into government, industry, and societal contexts. The NAIO is anticipated to play a pivotal role in advancing Malaysia’s AI infrastructure, particularly as it prepares for its role as ASEAN Chair in 2025.
Minister Gobind Singh Deo expressed that with Malaysia set to take on the ASEAN Chairmanship next year, the country aims to position itself as a regional leader in forward-thinking and transformative digital policies. The minister highlighted the importance of cultivating a regulatory environment that promotes technological advancement while fostering cross-border collaboration. The findings from the e-Conomy report serve as an impetus for Malaysians to unite in realising the nation’s full digital potential.
Source: Noah Wire Services
- https://marketech-apac.com/malaysias-digital-economy-sees-16-increase-to-reach-31b-in-gmv/ – Corroborates the projection of Malaysia’s digital economy reaching $31 billion in GMV by 2024 and the growth driven by e-commerce and online travel sectors.
- https://marketech-apac.com/malaysias-digital-economy-sees-16-increase-to-reach-31b-in-gmv/ – Supports the estimated Gross Transaction Value (GTV) of digital payments reaching $172 billion by 2024 and other digital financial services projections.
- https://accesspartnership.com/advancing-malaysias-digital-potential-through-ai-with-google/ – Provides details on the digital economy’s contribution to Malaysia’s GDP and the importance of digital infrastructure and a skilled cyber workforce.
- https://www.trade.gov/country-commercial-guides/malaysia-digital-economy – Reinforces Malaysia’s robust digital infrastructure, comprehensive regulatory framework, and skilled cyber workforce.
- https://marketech-apac.com/malaysias-digital-economy-sees-16-increase-to-reach-31b-in-gmv/ – Discusses the introduction of the National Cloud Policy and the establishment of the National AI Office (NAIO) to meet digitalisation challenges.
- https://www.trade.gov/country-commercial-guides/malaysia-digital-economy – Details the National Cloud Policy’s pillars and the NAIO’s objectives in advancing AI infrastructure.
- https://accesspartnership.com/advancing-malaysias-digital-potential-through-ai-with-google/ – Supports the anticipated creation of approximately 26,500 jobs and investments of up to $3.2 billion in the digital sector.
- https://www.statista.com/statistics/1346891/malaysia-gmv-of-digital-economy/ – Forecasts the GMV of Malaysia’s digital economy to reach over $45 billion by 2030.
- https://www.trade.gov/country-commercial-guides/malaysia-digital-economy – Highlights Malaysia’s preparations for its role as ASEAN Chair in 2025 and its aim to be a regional leader in digital policies.
- https://www.ekonomi.gov.my/sites/default/files/2021-02/malaysia-digital-economy-blueprint.pdf – Outlines the Malaysia Digital Economy Blueprint and its strategic steps to drive digitalization and achieve sustainable growth.
- https://marketech-apac.com/malaysias-digital-economy-sees-16-increase-to-reach-31b-in-gmv/ – Emphasizes the importance of a regulatory environment that promotes technological advancement and cross-border collaboration.
