Malaysia’s E-Commerce Income Hits RM1.29 Trillion In 2024, As Adoption Expands

The country’s digital economy continued to strengthen in 2024, with nearly all establishments adopting digital tools and e-commerce income reaching RM1.29 trillion, according to the Department of Statistics Malaysia’s (DOSM) Usage of ICT and E-commerce (ICTEC) by Establishment 2025 publication.

The report, which tracks information and communications technology (ICT) usage and e-commerce activities among Malaysian establishments, showed that 97.2% of businesses used computers including personal computers, laptops and tablets in 2024.

This represented an increase of 0.6 percentage points from 96.6% recorded in 2023, reflecting continued digital adoption across Malaysia’s business landscape.

Internet adoption also improved, with 95.3% of establishments having internet access in 2024 compared with 94% in the previous year.

DOSM said the increase reflected ongoing efforts to strengthen digital infrastructure and expand digital connectivity nationwide.

The proportion of businesses with a web presence also grew, rising to 74.4% in 2024 from 72.7% in 2023, indicating greater participation by companies in online platforms and digital channels.

Malaysia’s e-commerce sector recorded continued growth, with total income from online transactions rising to RM1.29 trillion in 2024, compared with RM1.18 trillion in 2023.

The increase represented an annual growth rate of 8.8%, supported by stronger digital commerce activity across major economic sectors.

The Services sector recorded the largest increase, with e-commerce income rising to RM639.8 billion in 2024 from RM583 billion previously, representing growth of 9.7%.

Meanwhile, the Manufacturing sector generated RM633.5 billion in e-commerce income, up 7.9% from the previous year.

The domestic market continued to dominate Malaysia’s e-commerce landscape, contributing RM1.15 trillion in 2024 compared with RM1.05 trillion in 2023.

This represented an annual growth rate of 9.2%.

Manufacturing remained the largest contributor to domestic e-commerce transactions, recording RM587.4 billion, an increase of 8.1% from RM543.3 billion in 2023.

The international market also expanded, with e-commerce income increasing to RM138 billion in 2024, up 5.2% from RM131.1 billion previously.

Within international e-commerce activity, the Services sector was the largest contributor, generating RM89.4 billion, compared with RM84.9 billion in 2023.

Business-to-Business (B2B) transactions remained the largest contributor to Malaysia’s e-commerce income, reaching RM879.6 billion in 2024.

The figure represented a 7.6% increase from RM817.1 billion recorded in the previous year.

Business-to-Consumer (B2C) transactions also showed strong momentum, rising 11.3% to RM374.7 billion from RM336.6 billion.

Meanwhile, Business-to-Government (B2G) transactions increased 11.4%, reaching RM33.8 billion in 2024 compared with RM30.4 billion in 2023.

DOSM said the continued expansion of ICT usage and e-commerce activity highlights the growing role of digital technologies in improving business operations, market access and economic growth across Malaysia’s key sectors.

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