Malaysia’s Digital Economy To Reach US$48 Bln GMV in 2026, Matching Vietnam’s Growth
KUALA LUMPUR, Oct 28 (Bernama) -- Malaysia’s digital economy is projected to reach US$48 billion (US$1=RM4.08) in gross merchandise value (GMV) this year, according to the 11th edition of the annual e-Conomy SEA Report 2026.
The Building the Intelligent Economy report by Google, Temasek, and Bain & Company stated that Malaysia, expanding at 20 per cent year-on-year (y-o-y), matches Vietnam as the fastest-growing digital economy in Southeast Asia (SEA).
“This momentum is powered by double-digit expansion across every sector, driven by primary growth enablers in e-commerce, online travel, online media, and mobility and food,” it said in a joint statement.
Google Malaysia & Singapore managing director Ben King said co-leading the region at 20 per cent growth demonstrates the underlying resilience of Malaysia’s digital ecosystem.
“What sets this market apart commercially is the maturity of its workloads: nearly half of all AI consumption is enterprise-led, and session depth outpaces the regional benchmark by 22 per cent.
“The companies that thrive in the next decade will be those that integrate intelligent automation directly into their customer journeys and core operations,” he said.
Meanwhile, Bain & Company partner Dhruva Murugasu said Malaysia ranks among Southeast Asia’s most advanced AI markets, second in the region for both adoption and depth of use, reflecting strategic policy shifts under the Digital Action Plan and the AI Nation 2030 agenda.
“As AI becomes more deeply embedded across sectors, the winners will be those that redesign workflows and organisations around it, not just those that deploy it fastest.
“Getting this right will be critical to cementing Malaysia’s position as a leading AI hub for the region,” he said.
The key findings for Malaysia from the report include resilient double-digit growth across digital sectors; an advanced artificial intelligence (AI) market defined by high conversational depth; AI infrastructure and investment to support Malaysia's next phase of digital growth; and pioneer statutory protections for the gig economy workforce.
It said Malaysia's e-commerce sector remains the country's largest digital economy contributor, growing 22 per cent y-o-y to reach US$25 billion in GMV.
“Meanwhile, approximately 17 million Malaysians now use generative AI, representing 68 per cent of the working population. Local users also lead the region in visual creativity with the heaviest use of image generation in Southeast Asia, where one in five users on Gemini requests an image.
“This usage underscores a rapid transition from initial experimentation into routine personal and professional workflows,” it said.
The findings also stated that Malaysia's expanding data centre ecosystem is supporting growing demand for AI and cloud services, reinforcing its position as one of Southeast Asia's emerging AI infrastructure hubs.
“Meanwhile, Malaysia became the first country in Southeast Asia to put its gig economy onto a statutory footing. Formally coming into force on March 31, 2026, the Gig Workers Act 2025 (Act 872) extends legal safeguards to over 1.6 million workers, including platform delivery riders, driver-partners, and digital freelancers,” said the report.
Regionally, Southeast Asia's digital economy is projected to grow 17 per cent y-o-y to reach US$368 billion in GMV in 2026 and is on track to reach US$1 trillion by 2035.
Generative AI adoption is scaling rapidly, with approximately 243 million people across the Southeast Asia-6 economies now using the technology -- representing 58 per cent of the working population.
-- BERNAMA
