# Malaysia's Digital Economy in Numbers > A concise data reference on Malaysia's digital economy using only official Department of Statistics Malaysia (DOSM) figures — the contribution of ICT and e-commerce to GDP, gross value added, e-commerce transaction income, and internet penetration rates — plus an explanation of the differences between metrics that are frequently confused. - Category: technology - Language: en - Status: published - Updated: 2026-08-01 - Canonical: https://negaraku.md/en/technology/malaysia-digital-economy-in-numbers --- Every time someone says "Malaysia's digital economy is worth RM451 billion," the figure is correct — but it is almost never accompanied by what it actually measures. It is not online sales, not tech-company revenue, and not e-commerce transaction value. It is a value-added measure, and three different metrics are often lumped together as one. Here are the official figures, and what each one actually means. ## How big is Malaysia's digital economy? The Department of Statistics Malaysia (DOSM) measures the digital economy through the ICT Satellite Account, which sets the combined contribution of the ICT and e-commerce industries to Gross Domestic Product (GDP). It consists of two parts: the ICT industry's Gross Value Added (GVAICT), and the value added by e-commerce in **non**-ICT industries. | Year | Contribution to GDP | Value | GVAICT | E-commerce (non-ICT) | | --- | --- | --- | --- | --- | | 2023 | 23.5% | RM427.7 billion | 13.8% | 9.6% | | 2024 | 23.4% | RM451.3 billion | 13.9% | 9.5% | The contribution rose in ringgit terms even though the percentage dipped slightly in 2024 — because overall GDP also grew. Growth in ICT and e-commerce activity was recorded at 5.1 percent for 2024, compared with 3.5 percent in 2023 (both figures from the Malaysia Digital Economy 2025 release). ## What is the difference between GVAICT, e-commerce GVA and e-commerce income? This is the biggest source of confusion in coverage of Malaysia's digital economy. Three figures exist, all official, and all measuring different things. - **GVAICT** — value added by the ICT industry itself: RM252.0 billion in 2023. Its breakdown is ICT services (41.6%), ICT manufacturing (38.2%), ICT trade (14.2%) and content media (6.0%). - **E-commerce GVA** — value added by e-commerce activity across **all** sectors: RM248.2 billion in 2023, or 13.6 percent of GDP. Manufacturing contributed 51.8 percent and services 45.2 percent. - **E-commerce transaction income** — the gross transaction value, not value added: **RM1,230.1 billion** in 2024 (RM1,184.1 billion in 2023, RM1,126.9 billion in 2022). Note the order of magnitude. E-commerce value added (RM248.2 billion) and e-commerce transaction value (over RM1.2 trillion) differ by almost fivefold because one counts the value that is **added** and the other counts the total **money that changes hands**. Citing the larger figure as "the size of the digital economy" is one of the most frequent mistakes. ## Who works in the digital economy? ICT industry employment reached **1.24 million people** in 2023, growing 1.6 percent and representing 7.8 percent of Malaysia's total employment. Its breakdown by sector is manufacturing (35.6%), services (29.2%) and trade (22.4%) — a reminder that "the digital economy" in Malaysia is rooted in electronics manufacturing and not solely software companies. ## How many Malaysians connect to the internet? Penetration is measured separately, through DOSM's ICT Use and Access Report. The figures for 2025: | Indicator | 2025 rate | | --- | --- | | Internet use (individuals) | 98.3% | | Household internet access | 97.1% | | Household internet access — urban | 99.0% | | Household internet access — rural | 90.7% | | Mobile phone use | 99.6% | | Computer use | 81.5% | Individual internet use rose from 98.0 percent in 2024 to 98.3 percent in 2025 — already approaching saturation. The gap that remains is the urban–rural gap in household access: 99.0 percent in urban areas versus 90.7 percent in rural areas. Broadband penetration rates (mobile and fixed) are published separately by the Malaysian Communications and Multimedia Commission, not by DOSM. ## Which figures are most often misused? **Equating RM451.3 billion with online sales.** It is the combined ICT and e-commerce value-added contribution to GDP, not sales revenue. **Adding GVAICT and e-commerce GVA together.** The two overlap — some ICT value is also counted in e-commerce — so RM252.0 billion plus RM248.2 billion is **not** the size of the digital economy. **Citing RM1.2 trillion without the "transaction value" label.** The e-commerce income figure measures the total money flowing, not the value generated, and cannot be compared with GDP directly. **Assuming a falling percentage means the digital economy is shrinking.** The contribution fell from 23.5 to 23.4 percent between 2023 and 2024 even though its ringgit value rose by RM23.6 billion. ## What's next Before citing any of Malaysia's digital economy figures, first establish which metric you mean: GDP contribution (RM451.3 billion), value added (GVAICT or e-commerce GVA), or transaction value (RM1,230.1 billion). For the policy context and incentives that support the sector, see [MDEC's Digital Status](/technology/mdec-digital-status) and the [Digital Free Trade Zone](/technology/digital-free-trade-zone). The full ICT Satellite Account figures are updated annually by DOSM, usually in the fourth quarter, so recheck the reference year each time. ## Sources - Malaysia Digital Economy 2025 (tahun rujukan 2024) — https://www.dosm.gov.my/portal-main/release-content/malaysia-digital-economy-2025 (Department of Statistics Malaysia) - Malaysia Digital Economy 2024 (tahun rujukan 2023) — https://www.dosm.gov.my/portal-main/release-content/malaysia-digital-economy-2024 (Department of Statistics Malaysia) - Information and Communication Technology Satellite Account — https://www.dosm.gov.my/portal-main/release-content/information-and-communication-technology-satellite-account- (Department of Statistics Malaysia) - ICT Use and Access by Individuals and Households Survey Report 2025 — https://www.dosm.gov.my/portal-main/release-content/ict-use-and-access-by-individuals-and-households-survey-report-2025 (Department of Statistics Malaysia) --- Source of truth: https://github.com/negaraku-md/NegaraKu.md License: CC BY-SA 4.0