Malaysia ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Malaysia ICT Market Analysis

The Malaysia ICT Market size is estimated at USD 24.57 billion in 2024, and is expected to reach USD 36.63 billion by 2029, at a CAGR of 8.31% during the forecast period (2024-2029).

In recent years, Malaysia has been fervently championing its digital economy. Initiatives like the Digital Free Trade Zone (DFTZ) and the Malaysia Digital Hub have been launched to lure foreign investments and nurture local tech startups. As a cornerstone of its Digital Economy Plan, the government unveiled the MyDIGITAL program. With an eye on 2030, the government envisions transforming Malaysia into a high-income, digitally-driven nation and a regional digital economy leader. Through the Cloud First plan under the MyDIGITAL framework, Malaysia is poised to bolster its status as a regional data hub.

• Leveraging digital technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), big data analytics, and cloud computing, the government aims to propel digitalization across all sectors. Emerging technologies like virtual reality, blockchain, digital payments, 5G, and robotic process automation are rapidly gaining traction, accelerating digital transformation across industries. This burgeoning demand for digital technologies in Malaysia signals significant export opportunities for U.S. businesses.
• As highlighted in the 2024 Economic Report by the Federal Department of Foreign Affairs (Eidgenössisches Departement für auswärtige Angelegenheiten), Malaysia positions itself as an open economy and trading nation. The government's ambitious "Ekonomi Madani" framework envisions the country as a sustainable, prosperous, and high-income nation, with a pronounced emphasis on decarbonizing the economy.
• Recognizing the potential economic boost, Malaysia initially opted for a single network strategy for 5G deployment in the country. In March 2021, the Malaysian government established Digital Nasional Berhad (DNB) to roll out a nationwide single wholesale network (SWN) for 5G coverage.
• The Malaysian government is actively enhancing its digital ecosystem by collaborating with global technology providers. This collaboration opens doors for international digital tech firms to introduce their offerings in Malaysia, as well as across the Association of Southeast Asian Nations (ASEAN) region.
• Key focus areas include artificial intelligence (AI), the Internet of Things (IoT), cloud technology, financial technology (fintech), and cybersecurity. With significant investments in data centers, 5G telecom networks, and AI, officials are positioning Malaysia as the digital economy hub of ASEAN.
• Digitalization is increasingly shaping the Malaysian economic landscape. The country's overall rates of digitization and digital adoption among businesses remain relatively low. According to the World Bank, larger firms in Malaysia are adopting digital technology at rates significantly higher than Micro, Small, and Medium Enterprises (MSMEs). Consequently, MSMEs are reaping only a fraction of the potential benefits. A major hurdle for widespread digitalization among Malaysian firms, particularly Small and Medium Enterprises (SMEs), is the associated costs. These costs encompass internet connectivity, digital hardware, software subscriptions, and worker upskilling. Notably, around 50% of Malaysian SMEs identify funding as a primary barrier to digitalization.
• The pandemic underscored the significance of a robust digital economy. In response, the Malaysian government has prioritized Information and Communications Technology (ICT) training, workforce development, e-government services, and the seamless integration of emerging technologies into daily operations.
• According to the Malaysia Digital Economy Corporation (MDEC), there's a palpable urgency among local businesses to adopt digital solutions in the post-COVID landscape. A recent survey highlighted that 94% of Malaysian companies intend to expedite technology adoption in the next few years. MDEC also forecasts a dramatic surge in Malaysia's digital economy spending, jumping from RM 1.0 billion (USD 0.22 billion) in 2021 to an anticipated RM 11.4 billion (USD 2.55 billion) by 2025.

Malaysia ICT Market Trends

IT Services Type Segment is Expected to Hold Significant Market Share

Malaysia ICT Industry Segmentation

Information and Communication Technologies, or ICT, is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the Internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services, that enable users to store, access, transmit, retrieve, and manipulate information in digital form.

The market is defined by the revenue accrued from the sale of ICT solutions offered by players operating in the Malaysian market.

The Malaysia ICT Market is segmented by type (hardware, software, IT services, telecommunication services), size of the enterprise (small and medium enterprises, large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and E-commerce, manufacturing, energy, and utilities). The report offers market forecasts and size in value (USD) for all the above segments.