Malaysia's digital economy projected to reach 31 billion USD in 2024

Malaysia's digital economy is poised to reach 31 billion USD in gross merchandise value (GMV) in 2024, up 16% compared to last year, according to the latest e-Conomy Southeast Asia (SEA) 2024 report by Google, Temasek, and Bain & Company.

Speaking at a press conference to release the report on November 26, Google Malaysia Country Director Farhan Qureshi said Malaysia was among the top 10 countries globally driving AI search interest, especially in the education, marketing, and gaming sectors.

As more companies deploy AI to innovate, improve efficiencies, and customers’ experiences as well as bring new ideas to life, the demand for AI infrastructure will continue to grow.

Malaysia has recorded a large AI infrastructure investment among Southeast Asian countries at 15 billion USD in the first quarter of 2024.

The report estimates Malaysia's current data centre capacity at 120 megawatts and expects that to expand five times over the coming years.

The Malaysian government is pushing for a digital economy by prioritising AI and semiconductors. The report says e-commerce remained the largest contributor to digital economy, as the sector grew by 17% year-on-year to 16 billion USD. Meanwhile, food delivery and transportation grew 10% to 4 billion USD, driven by a recovery in international tourism demand./.

VNA