Google, Temasek, as well as Bain & Company recently released the eight edition of the e-Conomy SEA report for 2023. One of the most interesting findings revealed by the report is the GMV value of Malaysia’s digital economy, which is expected to hit $23 billion this year – that comes up to about RM108.5 billion.
The main driver behind this figure in Malaysia’s travel recovery; online travel itself contributes $4 billion this year. In fact, this sector recorded the fastest growth across the digital economy sectors with 49% year-on-year improvement, with outbound travel demand remaining elevated.
But the biggest contributor to Malaysia’s digital economy lies in ecommerce. Although growth in this sector is flattening locally – it only grew 4% between 2021 and 2022 – it accounts for 57% of total GMV in Malaysia with a whopping $13 billion in revenue. Ecommerce adoption is high in Kuala Lumpur and Selangor, but there is a gap in demand and supply in other areas of Peninsular Malaysia and East Malaysia.
“Malaysia’s GMV is projected to reach between $45 billion and $70 billion by 2030 and we’ve seen how the resurgence of tourism along with Malaysian consumers’ sticky digital behaviors in ecommerce and food delivery can contribute to this economic growth,” said the Country Director at Google Malaysia, Samuele Saini.
“With Malaysia making good progress in bridging connectivity gaps, addressing the digital participation beyond metro areas can prove to be a key in unlocking the next wave of growth,” he added.