Malaysia ICT Market Size (2024 - 2029)

The market size of the ICT sector in Malaysia is expected to grow significantly in the coming years, primarily driven by increased digitalization across all major industrial sectors and high broadband penetration compared to other Asian nations. The demand for ICT goods and services is anticipated to remain high due to the rollout of 5G, hybrid business models, digital banking, and tech-savvy consumers. The government's Economic Stimulus Package, which offers financial incentives for digital transformation, is also expected to contribute to the market expansion. However, the cost of digitization remains a significant challenge for businesses. Despite this, the sector continues to thrive due to the government's robust policies, national development focus on high-tech, and the availability of skilled labor. The increased use of technology in daily life and work-from-home arrangements during the Covid-19 pandemic have further boosted the sales of ICT goods and services, underscoring the rapid digitalization of the economy and society.

Market Size of Malaysia ICT Industry

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Malaysia ICT Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 27.20 Billion
Market Size (2029) USD 39.18 Billion
CAGR (2024 - 2029) 7.57 %
Market Concentration Low

Major Players

Malaysia ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Malaysia ICT Market Analysis

The Malaysia ICT Market size is estimated at USD 27.20 billion in 2024, and is expected to reach USD 39.18 billion by 2029, growing at a CAGR of 7.57% during the forecast period (2024-2029).

The increased digitalization of processes across all significant industrial sectors is mainly responsible for this growth. Also, compared to other Asian neighboring nations, Malaysia is expected to witness a comparatively high broadband penetration.

  • The demand for ICT goods and services would continue to be high, mainly attributable to the rollout of 5G, hybrid business models, digital banking, and consumers who keep up with the newest trends. According to the Department of Statistics Malaysia (DOSM), ICT contributed 23.2% of Malaysia's gross domestic product (GDP) in the last year, with an increase of 12.1% from the past year. As per the report, e-commerce in the ICT sector contributed 3.8% to GDP, while e-commerce in other sectors contributed 9.2%.
  • The Economic Stimulus Package of the Malaysian government offers significant financial incentives for digital transformation, connectivity, security, satellite broadband, digital infrastructure for buildings, 5G ecosystems, and process automation. After the pandemic, the government's focus started focusing more on modernizing and standardizing Malaysia's industrial sector and worldwide supply chain network, which is likely to result in a further increase in demand for automation and digitalization exports.
  • However, it is crucial to overcome some significant obstacles to secure the long-term survival of Malaysia's businesses in the post-pandemic world and beyond. The expense of funding or digitizing is one of the biggest obstacles. These costs include software subscriptions, digital devices, and internet connectivity.
  • The robust core government policies, high-tech-focused national development, and accessibility of trained labor in the Malaysian ICT market have helped the sector thrive in the nation. Notably, the government has given the Internet of Things (IoT) sub-sector significant attention, which has led to several market alliances.
  • Work-from-home (WFH) arrangements used under Covid-19 have increased ICT goods and services sales in Malaysia. Today, technology is employed everywhere in our daily lives, from communications to decision-making. Not only is digitalization the foundation of the economy, but it is also quickly evolving into the foundation of society. The government is battling to keep up with the rapid speed of digitalization while sustaining, directing, and offering support for the economy and society to grow with the technologies.

Malaysia ICT Industry Segmentation

Information and Communication Technologies or ICT is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services enabling users to store, access, transmit, retrieve, and manipulate information in a digital form.

Malaysia's ICT Market is segmented by type (Hardware, Software, IT Services, and Telecommunication Services), the size of the enterprise (Small and Medium Enterprise and Large Enterprises), by industry vertical (BFSI, IT and Telecom, Government, Retail and E-commerce, Manufacturing, and Energy and Utilities). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Type
Hardware
Software
IT Services
Telecommunication Services
By Size of Enterprise
Small and Medium Enterprises
Large Enterprises
By Industry Vertical
BFSI
IT and Telecom
Government
Retail and E-commerce
Manufacturing
Energy and Utilities
Other Industry Verticals

Malaysia ICT Market Size Summary

The Malaysian ICT market is expected to see significant growth in the coming years, driven by the increasing digitalization of processes across all major industrial sectors. Factors such as high broadband penetration compared to other Asian nations, the rollout of 5G, hybrid business models, digital banking, and tech-savvy consumers are expected to fuel this growth. The ICT sector has contributed significantly to Malaysia's GDP, with e-commerce playing a crucial role. The government's Economic Stimulus Package, which offers financial incentives for digital transformation, is also expected to drive market growth. However, challenges such as the high cost of digitization need to be addressed for the long-term survival of businesses in the post-pandemic world. Despite these challenges, the combination of government policies, a focus on high-tech development, and the availability of skilled labor have helped the ICT sector thrive in Malaysia. The government has paid particular attention to the Internet of Things (IoT) sub-sector, leading to several market alliances. The increase in work-from-home arrangements due to Covid-19 has also boosted sales of ICT goods and services in the country.

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Malaysia ICT Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hardware

      2. 2.1.2 Software

      3. 2.1.3 IT Services

      4. 2.1.4 Telecommunication Services

    2. 2.2 By Size of Enterprise

      1. 2.2.1 Small and Medium Enterprises

      2. 2.2.2 Large Enterprises

    3. 2.3 By Industry Vertical

      1. 2.3.1 BFSI

      2. 2.3.2 IT and Telecom

      3. 2.3.3 Government

      4. 2.3.4 Retail and E-commerce

      5. 2.3.5 Manufacturing

      6. 2.3.6 Energy and Utilities

      7. 2.3.7 Other Industry Verticals

Malaysia ICT Market Size FAQs

The Malaysia ICT Market size is expected to reach USD 27.20 billion in 2024 and grow at a CAGR of 7.57% to reach USD 39.18 billion by 2029.

In 2024, the Malaysia ICT Market size is expected to reach USD 27.20 billion.

Malaysia ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)