Digital Economy Malaysia 2026: Size, Growth and Share of GDP

2. How Big Is the Digital Economy in Malaysia?

Quick Answer: The digital economy in Malaysia contributed RM451.3 billion, or 23.4% of the economy, in 2024. The ICT industry made up 13.9% and e-commerce by non-ICT industries 9.5%. It grew 5.1%, faster than 3.5% a year earlier. This is DOSM’s latest official figure; 2025 data has not been released yet.

The headline value, growth, exports and jobs come from DOSM’s ICT Satellite Account 2024, and the 13.9% and 9.5% split from DOSM’s Malaysia Digital Economy 2025. Three points stand out for business owners:

• About RM1 in every RM4 of output is digital. That is a big market, but it also means three quarters of the economy still runs mostly offline.
• Hardware matters as much as apps. DOSM reports ICT manufacturing grew 7.4% in 2024, faster than ICT services at 3.3%. Malaysia’s digital economy is partly a chip and electronics story, not just online shopping.
• One in four firms still has no web presence. With 74.4% of establishments online in DOSM’s 2024 survey, a gap remains. Our SME digital adoption in Malaysia report looks at that gap in detail.

3. What Counts as the Digital Economy in Malaysia?

Quick Answer: DOSM defines the digital economy as the ICT industry plus e-commerce carried out by all other industries, measured as value added. That is why its share is about 23%. E-commerce income of over RM1.2 trillion and consultancy figures in US dollars measure different things, so they should never be compared with it directly.

Most confusion about the digital economy in Malaysia comes from comparing numbers that were never meant to match. Here are the three measures you will meet most often:

The DOSM share is the one to quote when someone asks about GDP. MITI’s digital economy page adds one more cut: e-commerce alone added RM258.2 billion, or 13.4% of GDP, in 2024. For a marketer, the consumer GMV figure is often the most useful, because it tracks what shoppers actually spend. Our e-commerce statistics for Malaysia go deeper on that side.

4. How Fast Is Malaysia’s Digital Economy Growing?

Quick Answer: In ringgit, steadily: from RM267.7 billion in 2018 to RM451.3 billion in 2024. As a share of the economy, it jumped from 18.5% to 22.6% during the 2020 pandemic, then flattened at about 23% to 23.5% from 2021 to 2024. Growth slowed from 14.3% in 2022 to 3.5% in 2023, before recovering to 5.1%.

The series is built from DOSM’s 2018 release, its 2020 ICT Satellite Account, its 2021 ICT Satellite Account and Malaysia Digital Economy 2024. The revised 22.9% for 2022 comes from MIDA’s summary of DOSM’s 2024 release; DOSM first reported 23.0%.

What the trend tells you:

• The pandemic did the heavy lifting. The share rose four points between 2018 and 2020. Since then, digital activity has grown roughly in line with the rest of the economy.
• Revisions are normal. DOSM first put 2023 growth at 3.9%, then revised it to 3.5% in Malaysia Digital Economy 2025. Always cite the latest edition.
• Ringgit growth still matters. The digital economy added about RM24 billion in 2024 alone (ZenWeb’s calculation from DOSM figures), which is new spending somebody captures.

5. Is Malaysia on Track for Its Digital Economy Targets?

Quick Answer: Possibly, but it is not confirmed yet. MDEC aimed for 25.5% of GDP by the end of 2025, and in August 2026 the Digital Minister said the share had reached 25.5%. DOSM’s latest official reading is still 23.4% for 2024. Its 2025 figure is due on 15 October 2026. The next goal is 30% by 2030.

The 25.5% goal was restated by MDEC’s chief executive in February 2025, as Bernama reported. The 30% goal for 2030 was reaffirmed by the Digital Minister, as Digital News Asia reported in September 2025. In August 2026, the minister said the share stood at 25.5% last year, as The Star reported, but he did not name the data source. If DOSM confirms it, that would be a jump of about two points in a year. Three forces could explain a jump like that:

• Data centres. The e-Conomy SEA 2025 Malaysia report says data centre capacity reached 690 MW in the first half of 2025, up from 120 MW in 2024.
• Digital investment. Bernama’s MDEC report also notes RM163.6 billion of approved digital investments in 2024, up 250% from 2023.
• SME adoption. Grants push smaller firms online. Our guide to the SME Digital Grant for marketing explains how to claim it.

Our view: data centres lift ICT output, but they create few customer-facing jobs or sales. For most SMEs, the targets matter less than whether their own customers have moved online. Regional data helps here. Our Selangor, Kuala Lumpur, Johor Bahru, Cyberjaya and Kuching guides show how digital demand differs by location.

6. Where Does Malaysia’s E-Commerce Income Come From?

Quick Answer: Mostly from businesses selling to other businesses. In 2024, e-commerce income reached RM1,288.1 billion, up 8.8%. Business-to-business sales made up RM879.6 billion, about two thirds. Business-to-consumer sales were RM374.7 billion but grew faster, at 11.3%. Nearly nine in ten ringgit were earned from domestic buyers.

These figures come from DOSM’s Usage of ICT and E-Commerce by Establishment 2025. For more recent signals, BernamaBiz reported DOSM’s quarterly e-commerce income at RM338 billion in the second quarter of 2026, up 2.9% year on year. What this means in practice:

• B2B is the quiet giant. Suppliers, distributors and manufacturers earn most online revenue, often through portals and repeat orders. B2B firms need search visibility and a credible website more than viral content.
• Consumer sales grow fastest. B2C income rose 11.3%. Our e-commerce market share in Malaysia report shows which platforms take those sales.
• Exporting online is still small. International income was about 11% of the total (ZenWeb’s calculation), so there is room for cross-border growth.

7. How Much Do Malaysian Consumers Spend Online?

Quick Answer: About US$39 billion in 2025, according to the e-Conomy SEA 2025 report by Google, Temasek and Bain. That covers e-commerce, ride-hailing and food delivery, online travel and online media. E-commerce was the largest part at US$20 billion. Bain’s outlook puts consumer spending at roughly US$45 billion to US$70 billion by 2030.

The figures come from the e-Conomy SEA 2025 Malaysia report. Total GMV rose about 18% in 2025, from US$33 billion to US$39 billion (ZenWeb’s calculation from the report’s rounded figures). For marketers, this is the closest thing to a “consumer wallet” view:

• Half of digital spending is online shopping. Our online shopping habits in Malaysia report explains why and how people buy.
• Payments are going cashless. The e-Conomy SEA Malaysia report puts digital payment value at US$213 billion in 2025. See our e-wallet usage in Malaysia and cashless payments in Malaysia data.
• Spending power is uneven. Online spend follows income. Our median household income by state and B40, M40 and T20 income groups guides help you target the right buyers.

8. What This Means for Your Marketing in 2026

Quick Answer: The digital economy in Malaysia is large and growing steadily, but no longer booming. That rewards businesses that win share: a website that converts, search visibility where buyers compare, paid ads measured by cost per sale, and offline channels used only where the data supports them.

Here is the five-step approach we use when a client asks how big their online opportunity really is:

1. Size your own slice first. Combine national data with your audience. Our Malaysia population data for advertisers and Gen Z Malaysia statistics show who is buying.
2. Fix the website before buying traffic. With one in four firms still without a web presence, a fast, clear site is a real edge. Our web design services focus on enquiries, not looks alone.
3. Be found where B2B and B2C buyers compare. SEO captures steady demand, while Google Ads catches buyers ready to act today.
4. Use social ads to create demand. For consumer products, Meta Ads reach the shoppers driving the 11.3% growth in business-to-consumer sales.
5. Add offline only with a clear test. A digital billboard can build local awareness, and telemarketing can suit some B2B lists. Measure both against your digital cost per lead.

All five steps work best as one plan under our digital marketing services, so every channel is judged on the same sales numbers.

9. Conclusion

Quick Answer: Malaysia’s digital economy was worth RM451.3 billion, or 23.4% of the economy, in 2024. The share held near 23% from 2021 to 2024. The minister reports 25.5% for 2025, pending DOSM’s figures, and the goal is 30% by 2030. Either way, e-commerce income and consumer online spending keep growing, which is where businesses find new sales.

The digital economy Malaysia figures will update soon: DOSM’s 2025 share is due on 15 October 2026, with a wider digital economy release on 26 November 2026. When they arrive, check the measure, the year and any revisions before you quote them.

If you want help turning this data into a plan for your own business, our digital marketing team can map where your buyers are online and what it costs to reach them.

10. Frequently Asked Questions

1. How much does the digital economy contribute to Malaysia’s GDP?

According to DOSM, ICT and e-commerce contributed 23.4% of Malaysia’s economy in 2024, worth RM451.3 billion. The ICT industry accounted for 13.9% and e-commerce by non-ICT industries for 9.5%. This is the latest official figure.

2. What is the digital economy in Malaysia?

DOSM defines it as the ICT industry, covering ICT manufacturing, services, trade and content and media, plus e-commerce carried out by all other industries. It is measured as value added, so it can be compared with GDP.

3. What is Malaysia’s digital economy target?

MDEC aimed for the digital economy to reach 25.5% of GDP by the end of 2025, and the government has set a goal of 30% by 2030. The Digital Minister said in August 2026 that the 2025 share was 25.5%; DOSM’s latest official reading, for 2024, was 23.4%.

4. When will the 2025 digital economy figure be released?

DOSM lists its ICT Satellite Account release for 15 October 2026 and its next Malaysia Digital Economy publication for 26 November 2026. Until then, 2024 is the latest official year.

5. How big is e-commerce in Malaysia?

Malaysian establishments earned RM1,288.1 billion from e-commerce in 2024, up 8.8%, mostly from business-to-business sales. Consumer digital spending, measured differently by the e-Conomy SEA report, reached about US$39 billion in 2025.