Malaysia's digital economy — the combined ICT and e-commerce industries as measured by DOSM's ICT Satellite Account — contributed 23.4 percent, or RM451.3 billion, to GDP in 2024, up from 23.5 percent (RM427.7 billion) in 2023. This figure is not the same as e-commerce transaction income, which reached RM1,230.1 billion in 2024. At the household level, 97.1 percent of Malaysian households had internet access in 2025 and 98.3 percent of individuals used the internet.
- ICT and e-commerce contributed 23.4% or RM451.3 billion to GDP in 2024, up from RM427.7 billion (23.5%) in 2023
- That contribution consists of the ICT industry's Gross Value Added (GVAICT) at 13.9% and e-commerce in non-ICT industries at 9.5% for 2024
- GVAICT was worth RM252.0 billion and e-commerce GVA RM248.2 billion in 2023 — two different value-added measures, not sales revenue
- E-commerce transaction income (gross transaction value) was RM1,230.1 billion in 2024, a concept entirely different from e-commerce GVA
- ICT industry employment reached 1.24 million people in 2023, or 7.8% of Malaysia's total employment
- Household internet access was 97.1% in 2025 (urban 99.0%, rural 90.7%); individual internet use 98.3%
Who this applies to: Analysts, journalists, policymakers and marketers who need to cite Malaysia's digital economy figures accurately and know which metric they are using.
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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 and the 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.
Does 'RM451 billion' mean RM451 billion in online sales?
No. RM451.3 billion (2024) is the combined contribution of ICT and e-commerce to GDP — a gross value-added measure, not sales revenue nor transaction value. Gross e-commerce transaction value is measured separately and is far larger, at RM1,230.1 billion in 2024.
What is the difference between GVAICT and e-commerce GVA?
GVAICT is the value added by the ICT industry itself (ICT manufacturing, services, trade and content media), worth RM252.0 billion in 2023. E-commerce GVA is the value added by e-commerce activity across all sectors of the economy, worth RM248.2 billion in 2023. The two partly overlap, so they cannot simply be added together to get the size of the digital economy.
What is Malaysia's internet penetration rate?
According to DOSM's ICT Use and Access Report 2025, 97.1 percent of households had internet access and 98.3 percent of individuals used the internet in 2025. An urban–rural gap persists: urban household access was 99.0 percent versus 90.7 percent rural.
Who publishes Malaysia's official digital economy figures?
The Department of Statistics Malaysia (DOSM) publishes the ICT Satellite Account annually (the Malaysia Digital Economy release), which sets the contribution of ICT and e-commerce to GDP. DOSM also conducts the ICT Use and Access Report for household and individual penetration figures. Broadband penetration rates are published separately by the Malaysian Communications and Multimedia Commission (MCMC).
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Kadar pertumbuhan 2023 disemak semula: keluaran Ekonomi Digital 2025 (rujukan 2024) melaporkan pertumbuhan 2023 sebagai 3.5%, sedangkan keluaran Ekonomi Digital 2024 (rujukan 2023) melaporkannya sebagai 3.9%. Draf ini menggunakan 3.5% untuk konsisten dengan keluaran yang sama sebagai angka 5.1% (2024). Sahkan angka mana yang hendak dipaparkan.
- Baris sumbangan 2022 (22.9% / RM411.6 bilion) telah DIBUANG kerana ia tidak dibawa sebagai pembanding dalam mana-mana keluaran DOSM yang dipetik, dan keluaran rujukan-tahun-2022 (Ekonomi Digital 2023) tidak dapat dicapai untuk pengesahan (ralat pangkalan data laman DOSM). Jika garis tren tiga tahun dikehendaki, petik keluaran Ekonomi Digital 2023 secara langsung sebaik sahaja ia boleh dicapai.
- Dakwaan kualitatif tentang jalur lebar mudah alih vs tetap dan kaitannya dengan pendapatan negeri telah DIBUANG kerana tiada sumber MCMC dalam sources[]. Jika hendak dikembalikan, tambah petikan MCMC (mis. laporan penembusan jalur lebar SKMM) yang telah dicapai.
- GVA e-dagang '13.6% daripada KDNK' (2023) disahkan pada halaman Akaun Satelit ICT DOSM; sahkan sekali lagi terhadap jadual rasmi jika dipetik dalam liputan berimpak tinggi.
Sources
- Malaysia Digital Economy 2025 (tahun rujukan 2024) — Department of Statistics Malaysia
- Malaysia Digital Economy 2024 (tahun rujukan 2023) — Department of Statistics Malaysia
- Information and Communication Technology Satellite Account — Department of Statistics Malaysia
- ICT Use and Access by Individuals and Households Survey Report 2025 — Department of Statistics Malaysia
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 1 Aug 2026 | Approved and published. | — |