Malaysia’s ICT and E-Commerce Sectors Thrive, Contribute RM412.3 Billion to Economy in 2022

Malaysia’s Information and Communications Technology (ICT) and e-commerce sectors have experienced remarkable growth, contributing RM412.3 billion to the economy in 2022, marking a substantial 14.8% increase from the previous year. The Gross Value Added ICT Industry (GVAICT) and e-commerce played significant roles in this growth. Employment in the ICT industry also increased, emphasizing the importance of the technology-based and digital industry in Malaysia’s economic landscape.

16 October 2023 – The Department of Statistics Malaysia (DOSM) has revealed that Malaysia’s Information and Communications Technology (ICT) and e-commerce sectors jointly contributed 23% or RM412.3 billion to the nation’s economy in 2022, reflecting a substantial 14.8% growth from RM359.3 billion in the previous year.

The recently published Information and Communications Technology Satellite Account (ICTSA) 2022, as released by DOSM, highlights that this significant contribution was divided between the Gross Value Added ICT Industry (GVAICT) at 13.6% and e-commerce within other industries at 9.4%.

Datuk Seri Dr. Mohd Uzir Mahidin, Chief Statistician, noted that the combined growth rate of ICT and e-commerce surged to 14.8%, surpassing the 12.2% increase observed in the prior year. GVAICT played a pivotal role in this growth, accounting for RM243.7 billion, marking a remarkable growth of 12.4% compared to the 7.8% recorded in the previous year.

Dr. Mohd Uzir elaborated, “This growth was supported by the ICT manufacturing industry, which displayed an impressive growth rate of 21.3%, a notable leap from the 11.0% growth observed in 2021.”

Key contributors to the ICT manufacturing industry remained components and electronic boards, communication equipment, and consumer electronics, accounting for 35.7% of the industry’s contributions.

E-commerce played a significant role, registering a Gross Value Added of RM239.1 billion, reflecting an 18.9% growth in 2022, compared to the 22.7% growth experienced in the previous year.

Dr. Mohd Uzir highlighted, “The contribution of e-commerce to the gross domestic product reached 13.3%, with e-commerce in ICT industries representing 3.9%, and e-commerce in other industries contributing 9.4%. The manufacturing sector continued to be a substantial contributor to e-commerce’s Gross Value Added, accounting for 53.4%, followed by the services sector at 43.0%.”

Furthermore, the ICT industry witnessed a 1% increase in employment, reaching 1.22 million individuals in 2022, with a substantial contribution of 7.9% to the total employment sector. This contribution was primarily driven by the ICT manufacturing sector at 36.1%, followed by ICT services at 29.3%, and ICT trade at 21.7%.

Dr. Mohd Uzir underscored the significance of the technology-based and digital industry as highlighted in the 12th Malaysia Plan Mid-Term Review for 2021-2025. The government’s focus on advanced technology adoption, including artificial intelligence, advanced materials, and quantum computing, serves as a cornerstone for industry growth.

He emphasized that this initiative aligns with the government’s commitment to fostering economic participation across all segments of society through digital platforms and innovative business models. Dr. Mohd Uzir concluded, “Malaysia’s digital future is centered on creating an ecosystem that nurtures innovation, attracts investment, and propels the nation toward a prosperous and sustainable future.” – ref: The Edge Malaysia

Author: Terry KS

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