KUALA LUMPUR,– Southeast Asia’s latest digital economy report highlights that Malaysia’s digital economy is expected to grow to USD 31 billion (approximately THB 1.07 trillion) in 2024, marking a 16% increase from 2023.
The report, jointly released by Google, Temasek, and Bain & Company on Tuesday (November 26), emphasizes that Malaysia’s digital economy is advancing towards profitability while maintaining double-digit growth in gross merchandise value (GMV). Key drivers include deeper digital engagement among users, efficient monetization strategies, and the recovery of sectors previously impacted by the pandemic.
E-commerce Leads the Growth
E-commerce remains the primary contributor to Malaysia’s digital economy, with GMV rising 17% year-on-year to USD 16 billion (approximately THB 550.79 billion). This growth is fueled by major e-commerce platforms reinvesting in GMV growth and the increasing prevalence of video-based commerce.
Online Travel Booms
The online travel services sector experienced the fastest GMV growth, surging 19% year-on-year to USD 8 billion (approximately THB 275.39 billion). The recovery in international travel has been a significant factor, with Malaysia’s tourism sector projected to surpass pre-pandemic levels.
Food Delivery and Transportation Recovery
Food delivery and transportation services grew by 10% year-on-year, reaching a GMV of USD 4 billion (approximately THB 137.7 billion). This sector’s recovery is driven by rising commuter demand and international travel.
Media and Gaming Flourish
The online media sector continues to thrive, with GMV growth of 10% year-on-year, also reaching USD 4 billion (approximately THB 137.7 billion). Increasing popularity of digital content, gaming, and streaming services contributes significantly to this expansion.
Digital Finance on the Rise
Digital financial services are steadily climbing, supported by Malaysia’s digital banks introducing accessible and attractive features to a growing user base.
Data Center Expansion and AI Investment
Malaysia’s data center capacity currently stands at 120 megawatts, with projections to expand fivefold in the coming years. Investments in artificial intelligence (AI) infrastructure reached USD 15 billion (approximately THB 516.36 billion) in the first half of 2024 alone.
The report underscores Malaysia’s robust infrastructure and strategic initiatives as key enablers of sustained digital economic growth, positioning the country as a leader in Southeast Asia’s evolving digital landscape. (TNA)
