Malaysia’s digital economy projected at US$48 billion as e-commerce expands
A joint industry report forecasts 20 per cent growth and estimates that Malaysia has about 17 million generative AI users.
Malaysia’s digital economy is forecast to generate US$48 billion (RM196 billion) in gross merchandise value (GMV), with growth of 20 per cent putting it level with Vietnam for Southeast Asia’s fastest expansion, according to a report from Google, Temasek and Bain & Company.
The companies’ 11th e-Conomy SEA report attributes the projected increase to e-commerce activity and greater adoption of artificial intelligence. E-commerce GMV is expected at US$25 billion, a year-on-year gain of 22 per cent, as businesses make greater use of AI tools, video commerce and automated services for sellers.
For online travel, the forecast is US$12 billion after growth of 15 per cent. Online media is projected at US$5 billion, an increase of 20 per cent. Mobility and food services are also expected to reach US$5 billion, with growth of 18 per cent.
Digital payments registered US$261 billion in gross transaction value, a rise of 17 per cent that placed Malaysia second behind Indonesia in Southeast Asia. Outstanding digital loans reached US$18 billion following expansion of 22 per cent, the report said.
The report estimates Malaysia’s generative AI user base at about 17 million, or 68 per cent of its working population, giving it the region’s second-highest adoption ranking. An estimated 45 to 50 per cent of national AI token usage comes from enterprise workloads.
For Southeast Asia overall, the report projects US$368 billion in digital GMV, representing growth of 17 per cent, and says the figure could reach US$1 trillion by 2035.
