Malaysia

Digital Economy contributes nearly a quarter of GDP as government pushes inclusive tech growth

Information and communications technology and e-commerce accounted for 23.4 per cent of Malaysia’s gross domestic product in 2024

Updated 8 months ago · Published on 26 Jan 2026 12:43PM

Digital Economy contributes nearly a quarter of GDP as government pushes inclusive tech growth
The government is expected to advance initiatives in digital literacy, artificial intelligence, and equitable access as part of its 2025–2030 Digital Economy Roadmap - January 26, 2026

MALAYSIA’S information and communications technology (ICT) and e-commerce sectors contributed RM451.3 billion, or 23.4 per cent, to the nation’s gross domestic product in 2024, underscoring the growing significance of the digital economy in the country’s overall economic landscape.

Minister of Digital Gobind Singh Deo highlighted the figures during a parliamentary session, noting that these metrics are among the key indicators used to chart the progress of Malaysia’s Digital Economy for 2025–2030 in line with the 13th Malaysia Plan and the 2026–2030 Digital Economy Action Framework.

“Up to June 2024, cumulative digital investment in the country reached RM589.9 billion, generating 245,602 employment opportunities. Over the same period, cumulative digital economy revenue was recorded at RM845.6 billion,” he said.

Gobind explained that the ministry tracks progress through additional measures, including export performance, e-commerce adoption rates, the number of certified Malaysia Digital companies, and Malaysia’s standing in global rankings.

He stressed that the government is committed to ensuring digitalisation does not exacerbate social inequality.

“Therefore, the government is committed to ensuring that digital initiatives do not widen social disparities by making digital inclusivity a core principle of policy implementation.

“The Ministry of Digital implements various open-access programmes to enhance digital literacy and skills, targeting low-income groups, the elderly, persons with disabilities, and rural communities,” he said.

On the development of artificial intelligence, Gobind acknowledged the pressing need to nurture local AI expertise and strengthen research and development capacities.

“The establishment of the National AI Office (NAIO) and the enactment of the 2025 Data Sharing Act are critical initial steps to support the country’s AI ecosystem, ensuring ethical and effective data use.

“We require expertise, sufficient funding, and close industry collaboration to realise Malaysia’s aspiration of becoming an AI nation by 2030,” he said.

Gobind also outlined the Malaysian Digital Inclusion Index (MyIKD), which measures the societal impact of digitalisation and AI on socio-economic development.

“MyIKD evaluates five core aspects: accessibility, affordability, ability, relevance, and the readiness and adaptability of society to digital technologies.

This index will be a key tool in assessing whether investments and new technologies genuinely benefit citizens and in guiding continuous policy improvements,” he explained. - January 26, 2026

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