Market Trends of Malaysia ICT Industry
This section covers the major market trends shaping the Malaysia ICT Market according to our research experts:
Poised to Become the Digital Hub of Asia
- Malaysia has long been a leader in the transition to the digital world. The obstacles associated with digitalization have been solved throughout the years by expanding countrywide connectivity, improving the flow and processing of data, and creating strong links between cutting-edge technology.
- The improved and redesigned project that succeeds MSC Malaysia is now called Malaysia Digital (MD). By ensuring equal access to digital resources, information, and employment opportunities, this new program would accelerate the development of Malaysia's digital economy and generate significant digital economic spillover. Malaysia Digital would spearhead the digital transformation of crucial target sectors with considerable development potential.
- Nine target sectors have been designated under Malaysia Digital as having strong development potential, opportunity, and significance for advancing Malaysia's upcoming digital economic transition. The nine categories are trade, agriculture, services, cities, health, finances, content, tourism, and the Islamic digital economy.
- Malaysia aspires to be a digital powerhouse for the region and a sustainable country. It is eager to increase the country's appeal to entrepreneurs and investors. To aid in the effort to accelerate the expansion of the country's digital economy, two Malaysian Digital Catalytic Programs were created.
- DE Rantau, an initiative that the Minister of Communications and Multimedia recently unveiled, aims to make Malaysia the preferred hub for digital nomads to increase digital adoption and foster professional mobility and travel around Malaysia. Digital trade attempts to promote interoperability, improve regulatory methods and standardization, and ease local and international commerce.
- According to the Minister of Communications and Multimedia Malaysia, MDEC would endeavor to spur the development of the digital ecosystem and ensure ongoing investments from technology businesses through strategic initiatives as the country's recognized agency for promoting digital assets.
- According to Google research, Malaysia's digital economy's gross merchandise value (GMV) was 21 billion USD in the current year. The country's e-commerce sector, which generated USD 14, made up the majority of the GMV of the digital economy, which was then boosted by online media, transportation, and food delivery.
Understand The Key Trends Shaping This Market
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Steady Pick Up of 5G
- The digital economy is supported in large part by 5G. To realize 5G, a government-controlled 5G single wholesale network by Digital Nasional Berhad (DNB), owned by the Malaysian Ministry of Finance, was established in March 2021 to deploy 5G infrastructure and extend 5G as a wholesale network.
- Although Malaysia's ambition for 5G has witnessed several setbacks, yet again, it is back on track with enhanced network coverage. The launch of Malaysia's fifth generation (5G) network is expected to benefit users in various ways if all goes according to plan. Malaysia is now moving to 5G, which has the potential to change how the nation's mobile technology operates completely.
- By 2025, Malaysia is predicted to have 2.1 million 5G customers, or 6.6 5G subscribers for every 100 residents, according to the Malaysian Investment Development Authority. By that time, Malaysia's gross domestic product is expected to benefit from 5G to the tune of RM5.3 billion (USD 1.1 billion).
- Over 30% of Malaysia's population currently has access to 5G, and the country is on course to meet the government's 80% coverage goal by 2024. To build out the nation's 5G services, four mobile carriers in Malaysia, namely Celcom, Digi, YTL, and TM, have finally sealed arrangements to obtain 65% of the government-owned 5G agency, Digital Nasional Berhad (DNB).
- Future 5G technology is extremely promising for moving Malaysia's smart city initiatives ahead. A smart city makes use of new and existing technologies, including 5G, the Internet of Things (IoT), big data, the cloud, edge computing, artificial intelligence (AI), and others, to improve service delivery to residents, increase citywide operations and services efficiency, and boost economic activity productivity while taking sustainability and the environment into consideration.
- According to a GSMA report, except for South Korea, Japan, Australia, and Singapore, most of the chosen nations in the Asia-Pacific area did not yet use 5G in 2020. By 2025, it was predicted that this would alter several nations, including Malaysia. The report forecasts by the end of 2025, there would be more than 19% of 5G mobile connection coverage across Malaysia.
