Malaysia Telecom Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.08 Billion |
| Market Size (2029) | USD 11.08 Billion |
| CAGR (2024 - 2029) | 4.07 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Malaysia Telecom Market Analysis
The Malaysia Telecom Market size is estimated at USD 9.08 billion in 2024, and is expected to reach USD 11.08 billion by 2029, growing at a CAGR of 4.07% during the forecast period (2024-2029).
- Malaysia's telecom industry has a deep-rooted history and is forward-thinking in its future strategies. The growth of the telecom industry in Malaysia is expected to be driven by the increasing urban population and the widespread adoption of cell phones that support 3G, 4G, and 5G services. The utilization of the Internet of Things (IoT) is projected to play a significant role in the industry's development, connecting wired and wireless internet services.
- Major telecommunication companies in Malaysia are Celcom, Digi, Maxis, U Mobile, Telekom Malaysia, and Time dotCom. Over the past decade, the Malaysian telecom industry has undergone significant changes that have paved the way for the technological revolution currently taking place in the country. The government has consistently supported the idea that the telecom landscape in the country has been somewhat overcrowded, particularly in the mobile industry. Consequently, several major mergers have occurred, such as the Telekom and Celcom merger, which led to the formation of Axiata Group, and Maxis' acquisition of Time dotCom’s mobile unit, which effectively reduced the number of operators from five to three.
- In April 2023, Telekom Malaysia Berhad (TM), one of the leading converged telecommunications companies in Malaysia, was honored with the Telecom Company of the Year - Malaysia Award and the Wholesale Company Initiative of the Year - Malaysia Award at the Asian Telecom Awards. Additionally, TM played a crucial role in advancing Malaysia’s 5G ecosystem and expanding the country’s infrastructure through its extensive domestic fiber cable network spanning over 650,000 km and over 3 million high-speed broadband access ports across Malaysia. Such significant developments by regional players in the telecom industry will enhance the market's growth.
- Communication infrastructure in Peninsular Malaysia includes fixed and wireless networks like fiber networks, ADSL networks, mobile base stations, earth stations, and microwave link stations. As reported by GSMA Intelligence, Malaysia had 44.5 million cellular mobile connections at the start of 2024, which accounted for 129.2% of the total population. The number of mobile connections in Malaysia saw an increase of 169 thousand (+0.4%) between 2023 and 2024, indicating potential growth opportunities for the market.
- The nation's telecommunications industry has been leveraging IoT technologies in diverse ways. Within the industry, it is being employed to enhance efficiencies and optimize resource usage. Externally, IoT aids telecom companies in monitoring and forecasting data and updating customers on relevant information. Asset management and remote system monitoring stand out as prevalent IoT applications in the telecommunications industry. Telecom operators offer connectivity services to consumers through their IoT devices. Through IoT, the telecommunications industry can capitalize on its data and broaden its scope.
- As per MIDA, the telecommunications industry encompasses operations associated with communications and multimedia (telecommunications, postal, and broadcasting) overseen by the Malaysian Communications and Multimedia Commission (MCMC). The National Fiberisation and Connectivity Plan, NFCP (2019 – 2023), strives to offer sustainable, extensive, top-notch, and cost-effective connectivity. The government persists in promoting the participation of individuals and enterprises in advancing the digital economy in Malaysia amidst the Fourth Industrial Revolution. Such government initiatives to increase the availability of connectivity in the region will drive the market's growth over the coming years.
- The rise of intense competition within the telecommunications industry in Malaysia presents numerous obstacles. This could potentially trigger price battles, resulting in decreased profit margins for telecom firms. To uphold their market share, companies might have to allocate additional resources toward marketing strategies and customer retention initiatives. While fierce competition can stimulate innovation and enhance quality standards, it may also strain resources and contribute to market saturation.
Malaysia Telecom Market Trends
Rising Demand for 5G Driving the Market’s Growth
- MIDA reports that telecommunications companies in the region are currently establishing the foundation for the fifth generation (5G) of mobile internet connectivity to enhance speed and stability. The Malaysian government has unveiled ambitious investment strategies to elevate the country's digital technology standing in the near future. Furthermore, the expanding 5G utilization and governmental initiatives to enhance 5G coverage will contribute to substantial market growth over the coming years.
- In the past few years, Malaysia has been proactively advocating for the advancement of its digital economy. The implementation of 5G networks has the potential to boost economic progress and bolster a nation's competitiveness, enticing investments, fostering innovation, and amplifying productivity gains across diverse industries. Consequently, there is a significant emphasis on broadening 5G infrastructure in Malaysia to stimulate economic growth and maintain competitiveness internationally. As the utilization of 5G technology grows among enterprises and individuals, the demand for swift and reliable internet services will persistently rise, consequently propelling the growth of Malaysia's telecommunications market to greater heights.
- As of September 2023, the Communications and Digital Ministry of Malaysia reported that the rate of 5G adoption in the country remained low despite the extensive network coverage. The Ministry disclosed that the current adoption rate stood at 4.2%, even though the 5G network coverage had reached 68.8%. Additionally, the Ministry assured that the government is committed to further expanding 5G coverage, aiming to achieve 80% coverage in densely populated areas by the end of 2023. Furthermore, escalating investments to promote 5G adoption in the regional market are anticipated to have a substantial impact on the market.
- Additionally, Malaysian telecommunications companies such as Telekom Malaysia, CelcomDigi, YTL Communications, U Mobile, and Maxis have all agreed to the wholesale access agreement with state-owned network operator DNB. DNB was expected to continue expanding the 5G network infrastructure in the country until 80% coverage had been reached by the end of 2023. Furthermore, the Malaysian government confirmed that DNB will be privatized once it achieves its 5G population coverage goal. The government's announcement in May 2023 stated that a second 5G network would be deployed in 2024, with a new entity established to oversee Malaysia's second 5G network.
- Furthermore, DNB unveiled the largest 5G experience center in Malaysia in November 2023 in collaboration with Swedish vendor Ericsson. The primary objective of this state-of-the-art facility is to increase awareness and encourage the utilization of 5G technology throughout the country. This innovative center will function as an educational platform for customers, partners, industry professionals, academic institutions, and government authorities to explore the capabilities of 5G technology through interactive demonstrations and technology exhibitions.
- In February 2024, Telekom Malaysia’s enterprise division, TM One, revealed the establishment of two new laboratories designed to expedite the advancement of 5G-enabled digital services and solutions for major corporations and the government. The firm emphasized that both facilities would function as central locations for integrating cutting-edge technologies, concepts, and digital innovators. These 5G laboratories will offer a collaborative environment where the telecommunications company, its clients, and partners can explore and create customized solutions.
- Additionally, as per the Malaysian Communications and Multimedia Commission, there were roughly 8.2 million mobile broadband subscriptions utilizing 5G technology in Malaysia by the fourth quarter of 2023. This represented a significant rise from the approximately three million subscriptions recorded in the previous quarter. The increase in 5G mobile broadband subscriptions in the country has been substantial over the past year. Noteworthy companies like U Mobile and Celecom are playing a significant role by providing an exceptional average of 5G download speeds of over 400 Mbps. These substantial vendor activities are expected to stimulate the market in the country.
- The government's proactive involvement is crucial in realizing the national 5G connectivity goal. Malaysia has continuously dedicated resources to improve its digital infrastructure. Through initiatives like the National Fiberisation and Connectivity Plan (NFCP) and the MyDIGITAL program, Malaysia is already leading in connectivity compared to some neighboring countries. This strong foundation sets the stage for 5G integration and demonstrates readiness for next-generation technology in its digital infrastructure. The substantial government backing to enhance 5G is anticipated to greatly drive the market.
Data and Messaging Services Segment Expected to Hold a Significant Market Share
- The data and messaging services industry in the nation encompasses internet, SMS, and other communication services provided by both fixed and mobile networks. This industry is experiencing growth in Malaysia as a result of the implementation of 5G services and fiber-optic fixed internet connections, among other factors. Telecom companies are establishing collaborations, securing licensing deals, enhancing fiber and copper network infrastructure, and rolling out 5G services nationwide to meet the growing need for data and messaging services in the country.
- For instance, in July 2023, Hotlink introduced an upgraded prepaid plan that merges elements from the well-known Hotlink Unlimited and Hotlink Pantas plans. The new Hotlink Prepaid Plan provides added value, versatility, and a wider range of internet pass choices. Moreover, Hotlink gave out 20% cashback vouchers to customers who bought new internet passes at the launch. These notable advancements by the company are anticipated to further boost market prospects in the upcoming years.
- Moroever, the rising adoption of 5G technology, fueled by the growing consumer need for high-speed connections and extensive network expansions by the government and leading telecom companies, is projected to boost the demand for data services. Malaysia's initiative to extend 5G coverage to approximately 85% of rural residents by 2024 is expected to further stimulate growth. These substantial advancements in 5G technology will undoubtedly bolster the segment’s expansion in the coming years.
- The country's increasing adoption of digital business processes, including the utilization of internet-based services in various industries such as BFSIs, governments, retail, manufacturing, and healthcare, is driving the need for telecom service providers' data services across industries and among the population. This encompasses internet data packages for both prepaid and postpaid data services. Furthermore, market vendors are broadening their data service offerings to facilitate market expansion in Malaysia.
- The market has witnessed various acquisitions, investments, and partnerships between telecommunication companies in order to enhance their market share in mobile and fixed data services. For instance, in August 2023, Maxis introduced its long-awaited series of new plans featuring 5G services. These enhanced plans offer over twice the data for both 4G and 5G, along with extra bonus data for 5G. These plans are tailored to address the growing digital requirements of consumers and businesses, particularly in terms of video content consumption and productivity tools.
- Furthermore, the growth of the optical fiber network, implementation of mobile internet networks like 4G and 5G, and the demand for fast data and messaging services across various industries and retail customers to bolster the nation's digitalization plan are driving the data and messaging services market in the country’s telecommunications industry. As per Statistics Malaysia, in 2023, approximately 97.1% of the population in Malaysia had access to the 4G LTE mobile network. In contrast, around 95.3% had access to the previous 3G network in 2020. Such significant developments in the field of connectivity are expected to drive the segment's growth and enable more market opportunities for telecom players in the country.
Malaysia Telecom Industry Overview
The Malaysian telecom market is semi-consolidated, with major players like YTL Communications Sdn Bhd, Ansar Mobile (Redtone Digital Berhad), Celcomdigi Berhad, Maxis Berhad, and ONE XOX Sdn Bhd (XOX Sdn Bhd) operating in the market. Market players are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantages.
- April 2024 - U Mobile Sdn Bhd launched its first store in East Malaysia, located at Imago Shopping Mall, Kota Kinabalu, Sabah. The move highlighted the telco’s continuing efforts to expand its reach further and enhance customer engagement in the state. The full-service store is poised to provide customers with the complete range of U Mobile’s offerings and mobile digital experiences, such as an exclusive gaming corner for customers to test the power of U Mobile 5G.
- December 2023 - XOX Com entered into a Memorandum of Understanding (MoU) to discuss and explore business cooperation between the two parties, especially in the field of white-label mobile services, and to improve the digital lives of students from higher education institutions of Malaysia under the MYSISWA Program, particularly students from the UCSI University.
Malaysia Telecom Market Leaders
-
YTL Communications Sdn Bhd
-
Ansar Mobile (Redtone Digital Berhad)
-
Celcomdigi Berhad
-
Maxis Berhad
-
ONE XOX Sdn Bhd (XOX Sdn Bhd)
*Disclaimer: Major Players sorted in no particular order
Malaysia Telecom Market News
- March 2024: U Mobile Sdn Bhd introduced the U Home 5G broadband plan, which offers customers a hassle-free, plug-and-play solution to enjoy fiber-like speeds without having to hack or install ports. U Mobile made the experience even more seamless by introducing the U Home 5G CPE Bundle. Customers received a brand-new Wi-Fi-6 5G CPE for free when they signed up for the U Home 5G CPE bundle for 24 months at MYR 68 monthly. With this new bundle, customers would immediately get U Home 5G’s unbeatable 5G/4G high speeds, as they would not need to purchase a modem or router.
- February 2024: Ericsson and Digital Nasional Berhad (DNB) solidified their intentions to work together on 5G Advanced in order to uphold the DNB 5G network as one of the most high-performing networks globally. The decision to collaborate was formalized through the signing of a Memorandum of Understanding at the Mobile World Congress 2024 (MWC 24). The partnership will concentrate on improving the 5G user experience and expediting digital services for consumers, government, and businesses, which will also include providing on-demand services.
Malaysia Telecom Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Ecosystem Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 COVID-19 Impact on the Industry Ecosystem
4.5 Regulatory Landscape in Malaysia
4.6 Key Metrics Related to the Usage of Social Media in Malaysia
4.7 Overview of the MVNO Industry in Malaysia
4.7.1 Market Overview and Regulatory Guidelines
4.7.2 Insights into MVNO Subscriber Base and its Share of the Total Telecom Market
4.7.3 List of Top MVNOs Along with Their Host Network and Service Portfolio
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for 5G
5.1.2 Growth of IoT Usage in Telecom
5.2 Market Restrain
5.2.1 The Emergence of Stiff Competition is a Concern for the Industry
5.3 Analysis of the Market Based on Connectivity (Coverage to Include In-depth Trend Analysis)
5.3.1 Fixed Network
5.3.1.1 Broadband
5.3.1.2 Narrowband
5.3.2 Mobile Network
5.3.2.1 Smartphone and Mobile Penetration
5.3.2.2 Mobile Broadband
5.3.2.3 2G, 3G, 4G, and 5G Connections
5.3.2.4 Smart Home IoT and M2M Connections
5.4 Analysis of Telecom Towers
5.5 Technology Snapshot
5.6 Upcoming Digital Service and Business Model
6. MARKET SEGMENTATION
6.1 By Services
6.1.1 Voice Services
6.1.1.1 Wired
6.1.1.2 Wireless
6.1.2 Data and Messaging Services
6.1.3 OTT and PayTV Services
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 YTL Communications Sdn Bhd
7.1.2 Ansar Mobile (Redtone Digital Berhad)
7.1.3 Celcomdigi Berhad
7.1.4 Maxis Berhad
7.1.5 ONE XOX Sdn Bhd (XOX Sdn Bhd)
7.1.6 U Mobile Sdn Bhd (ST Telemedia)
7.1.7 Telekom Malaysia Berhad
7.1.8 Hellosim (Merchantrade Sdn Bhd)
7.1.9 Time Dotcom Bhd
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Malaysia Telecom Industry Segmentation
The telecommunications industry comprises companies that enable global communication through various means, such as telephones, internet, airwaves, and cables. The research report presents an analysis of the trends in Malaysia's telecom market and profiles the key vendors. It closely monitors the market's essential factors, growth drivers, and the prominent players in the industry. The Malaysian telecom market is segmented by services (voice services (wired, wireless), data and messaging services, OTT, and Pay-TV services). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Services | ||||
| ||||
| Data and Messaging Services | ||||
| OTT and PayTV Services |
Malaysia Telecom Market Research FAQs
How big is the Malaysia Telecom Market?
The Malaysia Telecom Market size is expected to reach USD 9.08 billion in 2024 and grow at a CAGR of 4.07% to reach USD 11.08 billion by 2029.
What is the current Malaysia Telecom Market size?
In 2024, the Malaysia Telecom Market size is expected to reach USD 9.08 billion.
Who are the key players in Malaysia Telecom Market?
YTL Communications Sdn Bhd, Ansar Mobile (Redtone Digital Berhad), Celcomdigi Berhad, Maxis Berhad and ONE XOX Sdn Bhd (XOX Sdn Bhd) are the major companies operating in the Malaysia Telecom Market.
What years does this Malaysia Telecom Market cover, and what was the market size in 2023?
In 2023, the Malaysia Telecom Market size was estimated at USD 8.71 billion. The report covers the Malaysia Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major trends influencing the Malaysia Telecom Market?
Key trends in the Malaysia Telecom Market are a) Rising adoption of 5G b) Increased data consumption c) Digital transformation initiatives
What are the major trends influencing the Malaysia Telecom Market?
Key trends in the Malaysia Telecom Market are a) Rising adoption of 5G b) Increased data consumption c) Digital transformation initiatives
Malaysia Telecom Industry Report
The telecom industry in Malaysia is experiencing robust growth, driven by the increasing adoption of advanced technologies such as 5G, IoT, and digital infrastructure enhancements. Market segments such as mobile subscribers and broadband services are expanding, with a significant push towards enhancing fiber optic networks and mobile data services to accommodate rising consumer and business demands. The integration of IoT is optimizing operational efficiencies and enhancing customer service capabilities, opening new revenue streams for telecommunication companies. The competitive landscape is witnessing strategic mergers and acquisitions, fostering a more consolidated market environment that could streamline services and boost market offerings. The deployment of 5G networks is transforming the telecom landscape by providing high-speed data services and supporting innovative applications, crucial for maintaining a competitive edge. Overall, the telecom industry in Malaysia is poised for sustained growth as telecommunication companies continuously explore new opportunities through strategic initiatives and investments in cutting-edge technologies. For detailed statistics on market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports.
