Malaysia Leads Region as Fastest-growing Digital Economy, Set to Hit Us$39 Bln GMV in 2025
KUALA LUMPUR, Nov 25 (Bernama) -- Malaysia is now the fastest-growing digital economy in Southeast Asia (SEA), with an increase of 19 per cent year-on-year (y-o-y), and on track to reach gross merchandise value (GMV) of US$39 billion (US$1=RM4.13) this year.
According to the 10th edition of e-Conomy Southeast Asia (SEA) Report 2025 by Google, Temasek and Bain & Company, the growth is supported by sustained consumer adoption and stable macroeconomic conditions, including contained inflation.
"At the regional level, Southeast Asia’s digital economy is projected to surpass US$300 billion in GMV by 2025, growing 15 per cent y-o-y and outperforming the region’s first forecast by 1.5 times.
"As the world’s fifth largest economy with a population of over 680 million, Southeast Asia has rapidly digitalised over the past decade, showing strong resilience and monetisation capabilities, despite global headwinds such as COVID-19, inflation, and supply-chain pressures," it said in a joint statement on Tuesday.
Meanwhile, Bain & Company partner Amanda Chin said e-commerce continues to expand at a healthy pace, making up the biggest driver of Malaysia’s digital economy, to reach US$20 billion by 2025.
She said the sector has grown 21 per cent y-o-y in GMV, the second-fastest rate in SEA, supported by increasing platform consolidation as major regional players leverage significant economies of scale, as well as the rise of video commerce, which has converted consumer attention into sales with minimal friction.
"Artificial intelligence (AI) has also played a key role in how users research and make decisions, and how e-commerce platforms leverage AI for product recommendations.
"It is growing and becoming more diverse, and we see it playing a major role in building trust and providing more authentic recommendations," she said during the presentation of the e-Conomy SEA Report 2025 here, on Tuesday.
On the online travel segment, Chin said the sector recorded 19 per cent growth in GMV — the fastest in SEA — driven by improved air connectivity, visa liberalisation measures, and large-scale digital tourism campaigns that are building momentum ahead of Visit Malaysia 2026.
She said total passenger arrivals to Malaysia have returned to near pre-pandemic levels, while both foreign arrivals and outbound travel have helped sustain strong pricing power.
“As you look at hoteliers in high-demand markets like Singapore and Malaysia, we have been able to raise average rates by over 20 per cent, returning to healthier profit margins and contributing to the sector’s overall value,” she said.
“As we approach 2026, which coincides with our Visit Malaysia 2026 campaign, there are many initiatives underway, including partnerships with major online travel platforms. We are really aiming for a 45 million visitor target, so we are very optimistic about the outlook for online travel,” she said.
For digital financial services, Chin said the segment continued to record double-digit growth, with digital payments expected to reach US$213 billion, up 16 per cent y-o-y in gross transaction value by 2025.
She said this momentum is driven by Malaysia’s rapid shift toward cashless payments, including a 28 per cent surge in digital payment usage reported by Bank Negara Malaysia, while cross-border acceptance has also expanded significantly, with the DuitNow QR standard now interoperable across an increasing number of SEA markets.
-- BERNAMA
