Malaysia’s digital economy is set to reach US$45-US$70 billion (RM201.2-RM312.9 billion) in Gross Merchandise Value (GMV) by 2030. The growth would be propelled by e-commerce and online travel, according to e-Conomy SEA 2024 report jointly released by Google Malaysia, Temasek and Naom & Company.
The report stated that the digital financial services category is on an upward trajectory supported by digital payments, digital lending, digital wealth and digital insurance.
“In 2024, digital payments have recorded RM768.84 billion in Gross Transaction Value (GTV), followed by RM53.64 billion in loan book balance through digital lending.
“Digital assets under management have reached RM58.11 billion in 2024 while insurance premiums transacted via digital underwriting services have amounted to RM2.23 billion,” the report stated.
Meanwhile, Digital Ministry Secretary General Fabian Bigar, who delivered Digital Minister Gobind Singh Deo’s speech during the event, said as Malaysia’s digital economy is set to reach 25.5% of Malaysia’s GDP, Malaysia is well-positioned to rise with the digital boom given the country’s robust digital infrastructure, comprehensive regulatory framework as well as skilled cyber workforce.
“The comparative advantages can be encapsulated into infrastructure, cybersecurity and talent,” Fabian said, adding that the digital wave could bring as much as RM14.3 billion worth of investment that will, in turn, create 26,500 jobs in Malaysia.
To cope with the regional and global digitalisation forces, Fabian revealed that Malaysia has charted the National Cloud Policy and has established the National AI Office (NAIO).
Fabian said the National Cloud Policy focuses on four core areas: Public service innovation and efficiency, economic competitiveness and growth, user trust and data security, and citizen empowerment through digital inclusivity.
“The NAIO, meanwhile, aims to enhance the country’s AI capacity by fostering innovation, promoting cross-sector collaboration and supporting the integration of AI into government, industry and societal frameworks. NAIO will be a key driver in advancing Malaysia’s AI infrastructure and promoting regional AI development given the country’s ASEAN chairmanship in 2025.
“As Malaysia assumes the ASEAN Chairmanship next year, we aim to be a regional champion for digital policies that are forward-looking and transformative as we promote a regulatory environment that encourages technological advancement and nurtures cross-border collaboration. The e-Conomy report is a powerful call for the people of Malaysia to work together and realise Malaysia’s full digital potential,” Fabian said.
