The Malaysian ICT industry has been growing tremendously in the last 2 decades. Besides 2020 when the COVID-19 pandemic happened, the growth and spending of the ICT industry have been very steady and stable. The original projection of ICT spending in Malaysia was expected to hit USD25 billion by 2023 and this might not be too far from the target even with the pandemic. This is because ICT products and services have become a more integral part of the economy and the people of Malaysia.
Numbers and figures
What makes the ICT business so lucrative and crucial is that there is always a demand for innovative products and services. It also means that they constantly contribute to the GDP of the country. In fact:
- The ICT industry has contributed to the GDP at an average of 10% every year. This is seen between 2010 and 2017 when it grew from about RM105 billion to RM178 billion
- ICT contributes 13.2% share of the country’s GDP.
- E-commerce of non-ICT industry contributes to 5.1% which means, ICT businesses contribute to a total of 18.3% overall.
Traits and elements of businesses
ICT businesses in Malaysia operate in various capacities. They include:
- Companies that offer services and shared services such as data centers and outsourcing
- IT retail which are mainly involved in peripherals and equipment. This includes completed machines like laptops, servers and desktop computers.
- E-commerce related companies that provide shopping, services and others. This also covers e-logistics and online delivery systems.
- Specialized services that provide customized tools like software development, database management and big data applications.
- Digital marketing and online analytics. There is a growing trend of companies offering data analytics and data science services using tools that can benefit businesses in sales, marketing and other segments.
- Automation and related services – Software and applications that can improve business efficiency and operations.
- Entertainment and leisure applications.
