Kuala Lumpur, 27 January 2026 – Malaysia’s information and communications technology (ICT) and e-commerce sectors jointly accounted for a significant 23.4 per cent of the nation’s gross domestic product (GDP) in 2024, underscoring the rapid expansion and structural importance of the digital economy in the country’s broader growth story.
According to official statistics released this month, the combined value-add from the ICT and e-commerce industries reflects strong digital adoption across households and businesses, strengthened digital infrastructure, and sustained investment in tech-enabled services, all pivotal to Malaysia’s economic transformation and competitiveness in the region.
Digital Growth in the National Economy
The ICT sector, encompassing activities such as telecommunications, software and IT services, digital content creation and tech manufacturing, continued to expand in 2024, supported by robust demand for connectivity, cloud services and enterprise digitalisation. Meanwhile, Malaysia’s e-commerce ecosystem experienced increased consumer engagement, broader merchant participation and higher online transaction volumes, driven in part by shifting consumption preferences and improved last-mile logistics networks.
Government agencies noted that this performance was underpinned by both domestic digital adoption and international linkages, as global companies expand regional operations and local startups scale cross-border services.
Policy and Infrastructure Support
Analysts highlighted that the latest contribution figures are the result of coordinated policy efforts, including digital infrastructure upgrades, regulatory frameworks conducive to innovation, and targeted initiatives to boost digital skills, startup growth and tech investment. These measures have helped accelerate uptake of digital solutions among micro, small and medium enterprises (MSMEs) and larger firms alike.
Malaysia’s national digital agenda, aligned with broader economic plans and Malaysia’s AI and digital transformation priorities, has emphasised connectivity, cybersecurity, digital literacy and financial technology innovation as key enablers for sustained sector growth.
Implications for Jobs and Investment
The expanding footprint of the ICT and e-commerce sectors is also notable for its implications on employment and foreign investment. Growth in digital services has supported new job creation, particularly in tech occupations, digital marketing, logistics technology and creative content production. Foreign direct investment (FDI) into Malaysia’s digital economy has likewise gained momentum, reflecting confidence among global investors in the country’s digital infrastructure and talent base.
Outlook for 2026 and Beyond
With digital adoption continuing to rise and new technologies, such as artificial intelligence, fintech platforms and data centre capacity, becoming more entrenched in economic activity, observers say that the contribution of ICT and e-commerce to Malaysia’s GDP is likely to remain significant in the coming years.
Policymakers and industry stakeholders alike are focused on sustaining momentum by addressing challenges such as digital skills gaps, equitable access to technology across regions, and seamless regulatory frameworks that support innovation while safeguarding consumer and business interests.
