Malaysia Telecom Market Size (2024 - 2029)

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 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.