MALAYSIA’S digital
economy is estimated to be at US$21 billion (RM88.41 billion) in gross
merchandise value (GMV), according to the “e-Conomy SEA 2021: Roaring 20s — The
SEA Digital Decade” report by Google Inc, Temasek Holdings Ltd and Bain &
Co.
The report said
Malaysia’s fast digital adoption with 47% growth of the digital market from
US$14 billion to US$21 billion in 2021 was due to the 68% surge in e-commerce
and is expected to grow to US$19 billion by 2025.
The transport and food
sectors are also increasing by 35% while the online media sectors are at 14%
growth.
The three insights from
this year’s report on Malaysia’s increasing growth in the Internet economy
include exponential growth in digital consumers, digital merchants getting
tech-savvy and funding on track to reach new heights.
From the abrupt growth
in digital consumers during the pandemic, 94% until today prefer digital
transactions, which is on average 4.2 times more compared to pre-pandemic.
On tech-savvy merchants,
43% merchants believed that digital platforms have helped them survive the
pandemic.
Based on the report, 98%
merchants have accepted digital payments, 72% have begun using digital lending
solutions while 70% have embraced digital marketing tools.
Lastly, the investment
industry has remained strong in the digital services, namely sectors like
fintech, healthtech and edtech.
Google Malaysia MD Marc
Woo said Malaysia’s 2021 GMV is projected to hit US$35 billion by 2025 with an
85% permanent shift in digital adoption to utilise digital services.
“Many businesses have
opted for digital platforms and are expecting to increase the usage of digital
tools in the next five years,” he said in a statement yesterday.
He added that the
encouraging growth comes with initiatives such as MyDigital to cultivate the
country into a digitally-driven nation and a regional economy leader by 2030.
“This initiative
reinforces our obligation in creating a safe and inclusive digital economy that
is equitable to provide economic opportunity for the current and future
generations in our mission to advance Malaysia together,” he said.
Meanwhile, Temasek chief
investment strategist and head of South-East Asia Rohit Sipahimalani said the
digital adoption in the region has propelled its Internet economy to new
heights.
“Temasek looks forward
to increasing our investments in South-East Asia’s digital champions to
catalyse digital solutions and accelerate economic growth to provide job
opportunities for the local communities,” Rohit said.
According to Bain &
Co associate partner Willy Chang, as a result of a lengthy lockdown and in
addition to the strong growth of the digital economy, the company saw a
sticking shift in Malaysia’s digital consumer behaviour.
“Coupled with the
anticipated digital bank licenses, we are optimistic about the growth potential
ahead,” he added.
Source：The Malaysian Reserve
