KUALA LUMPUR, Nov. 26 (Xinhua) -- Malaysia's digital economy is poised to reach 31 billion U.S. dollars in gross merchandise value (GMV) in 2024, an increase of 16 percent from 2023, according to the latest e-Conomy SEA 2024 report by Google, Temasek and Bain & Company.
The trio said in a statement on Tuesday that Malaysia's digital economy has progressed towards profitability while maintaining double-digit growth for GMV.
Deeper digital participation among users, effective monetization strategies, and the recovery of pandemic-impacted sectors are expected to drive continued growth, said the statement.
According to the report, e-commerce remains the largest contributor to the digital economy in Malaysia with its GMV growing by 17 percent year on year to 16 billion U.S. dollars in 2024, as major ecommerce platforms reinvest in GMV growth, paired with the rise of video commerce.
Meanwhile, online travel posted the fastest GMV growth compared to other sectors at 19 percent year-on-year growth to reach 8 billion dollars in GMV in 2024 as Malaysia's international tourism is experiencing a robust recovery and expected to exceed pre-pandemic levels in 2024.
Food delivery and transport sector in Malaysia has also grown 10 percent year-on-year to reach 4 billion dollars in GMV in 2024, driven by the recovery of commuter demand and international travel.
Online media in Malaysia has also shown consistent growth with its GMV expected to grow 10 percent year-on-year to 4 billion dollars in 2024, driven by the increasing popularity of digital content, games and streaming services.
Malaysia's digital financial services also continue on an upward trajectory as various Malaysia's digital banks offer compelling features and ease of access.
The report also estimated Malaysia's current data center capacity at 120MW and expects that to expand five times over the coming years.
It is noted that Malaysia has recorded a large artificial intelligence (AI) infrastructure investment among Southeast Asia countries at 15 billion dollars in the first half of 2024. ■