Google, Temasek, along with Bain & Company have released the ninth edition of the e-Conomy SEA report for 2024. The biggest difference compared to last year’s report is the shift to profitability, and this year’s gross merchandise value (GMV) is expected to reach $31 billion too; that’s a 16% increase compared to 2023.

The biggest contributor to Malaysia’s digital economy remains the ecommerce sector, which sees a 17% growth to $16 billion GMV in 2024. This is attributed to large ecommerce platforms reinvesting in GMV growth along with the rise of video commerce.

Beyond that, online travel also sees the fastest GMV growth compared to other sectors at 19% year-on-year increase, reaching $8 billion GMV in 2024. In fact, Malaysia’s international tourism is expected to exceed pre-pandemic levels this year too, showing robust recovery of the sector.

“Southeast Asia’s digital economy continues to do well, with continued double-digit GMV and revenue growth and a surge in profitability across sectors led by key players. Likewise in Malaysia, we see a healthy digital economy driven by ecommerce, online travel, and digital financial services,” said Amanda Chin, Partner, Bain & Company.