Malaysia ICT Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Malaysia ICT Market size is estimated at USD 28.65 billion in 2025, and is expected to reach USD 44.38 billion by 2030, at a CAGR of 9.15% during the forecast period (2025-2030).

With a robust digital infrastructure and a populace adept in technology, Malaysia stands out as a prominent country in Southeast Asia's Information and Communications Technology (ICT) arena. The country's ICT landscape encompasses a wide array of sectors, including hardware, software, services, and telecommunications, serving diverse industry verticals.

Key Highlights

• Initiatives such as the Digital Free Trade Zone (DFTZ) and the Malaysia Digital Hub are designed to lure foreign investments and bolster local tech startups. The Digital Economy Plan, the MyDIGITAL program, aspires to elevate Malaysia to the status of a high-income, digitally-driven nation by 2030. Furthermore, the Cloud First initiative under MyDIGITAL is strategically positioning Malaysia as a pivotal data hub in the region.
• The Malaysian government, recognizing the potential economic boost from 5G, established Digital Nasional Berhad (DNB) to spearhead the country's nationwide single wholesale network (SWN) rollout.
• However, Malaysia's 5G deployment stumbled as major operators, including Celcom Axiata Berhad, Maxis Berhad, Digi Telecommunications Sdn. Bhd., and U Mobile Sdn. Bhd. pushed back against the plan. Consequently, the rollout grappled with challenges, including the limitations of a single network structure and concerns over interconnection costs.
• To strengthen its digital landscape, Malaysia is partnering with global tech leaders. These collaborations not only facilitate the entry of international tech companies into Malaysia but also broaden their influence across the ASEAN region.
• Digitalization is reshaping Malaysia's economic landscape. Yet, the country's overall rates of digitization and digital adoption among businesses lag. The World Bank reports that larger Malaysian firms are embracing digital technology at rates far outpacing those of Micro, Small, and Medium Enterprises (MSMEs). As a result, MSMEs are only tapping into a fraction of the potential benefits.

Malaysia ICT Market Trends

IT Security/Cybersecurity Segment to Hold Significant Market Share

• The Malaysian cybersecurity landscape is experiencing a significant surge in cyber incidents, necessitating an intensified strategic response. Data released by Cybersecurity Malaysia indicates a total of 5,664 incidents in 2024, with fraud constituting the most substantial threat, accounting for 3,817 cases. This escalating trend underscores the growing vulnerability of both public and private sectors to cyberattacks.
• The Ministry of Digital highlights the increasing prevalence of ransomware, particularly within the financial sector and the broader APAC region. This threat is exacerbated by the accessibility of ransomware-as-a-service offerings on the dark web, lowering the technical barrier to entry for malicious actors. A particularly concerning trend is the rise of double extortion ransomware, wherein attackers not only encrypt data but also exfiltrate sensitive information, threatening its public disclosure. This development renders ransom payments an unreliable guarantee of data security.
• The observed increase in cyber incidents, particularly fraud and ransomware attacks, necessitates the implementation of a comprehensive incident response framework. Experts emphasize the critical need for proactive collaboration across sectors and the enactment of new legislation to bolster cybersecurity defenses. The urgency of these measures is highlighted by the over 4,000 incidents reported in 2024, demonstrating the immediate and pervasive nature of the threat.
• The escalating number of cyber incidents is anticipated to drive a heightened demand for cybersecurity solutions and services within Malaysia. Organizations must prioritize the strengthening of their cybersecurity infrastructure, focusing on vulnerability mitigation, credential protection, and robust incident response capabilities.
• The healthcare sector in Malaysia has experienced a notable rise in cyber incidents. Cybercriminals continue to target healthcare services, jeopardizing critical infrastructure and operations. In 2024, Cybersecurity Malaysia recorded 2,518 security incidents, including spam, fraud, malicious activities, and intrusions. Additionally, a report by the National ICT Association of Malaysia (Pikom) revealed that nearly 70% of companies experienced cyber breaches over the past three years.
• As a result, the adoption of robust cybersecurity measures to protect personal data and ensure the reliability of public services dependent on digital technologies is expected to drive the demand for IT security and cybersecurity solutions in the country during the forecast period.

Retail and E-commerce Industry Vertical Segment is Expected to Hold Significant Market Share

• The Malaysian ICT market is experiencing robust growth, fueled by the increasing digitalization of the retail and e-commerce sectors. These industries are rapidly adopting technology solutions to enhance operational efficiency, improve customer experience, and gain a competitive edge.
• Announced in October 2024, the collaboration between the Malaysia Retail Chain Association (MRCA) and Maxis, a telecommunications provider in Malaysia, marks a pivotal step toward accelerating 5G technology adoption in the retail sector. This partnership aims to capitalize on 5G's high-speed connectivity and low latency to enhance in-store customer experiences, improve operational efficiency, and introduce advanced retail solutions such as augmented reality (AR) and virtual reality (VR) applications. This initiative is expected to boost demand for 5G-enabled devices, network infrastructure, and related ICT solutions.
• Moreover, retailers are increasingly adopting omnichannel strategies to provide a seamless shopping experience across online and offline channels. This requires integrated ICT solutions, such as point-of-sale (POS) systems, inventory management software, and customer relationship management (CRM) platforms, to manage sales, inventory, and customer data across multiple touchpoints. The growing demand for omnichannel solutions is driving the adoption of cloud-based platforms, data analytics, and mobile technologies in the retail sector.
• E-commerce companies are investing in warehouse automation solutions to improve efficiency and manage the growing volume of online orders. For instance, in March 2024, Mydin Mohamed Holdings Berhad (MYDIN) implemented Zebra Technologies Corporation’s warehouse mobility solution at its distribution center at Seremban to support its fast-growing e-commerce business. This will provide opportunities for the vendors offering solutions such as barcode scanners, mobile computers, and warehouse management systems (WMS) in the e-commerce sector.
• Effective delivery and logistics are essential for the expansion of e-commerce. Companies are implementing technological solutions, such as route optimization software, real-time tracking systems, and last-mile delivery innovations, to optimize operations, reduce costs, and improve customer satisfaction. This trend is driving the increased adoption of GPS tracking, mobile applications, and data analytics in the e-commerce logistics sector.
• As retail and e-commerce businesses continue to evolve and embrace digital transformation to overcome challenges related to operational efficiency, the demand for various IT solutions will continue to rise, creating significant opportunities for technology providers and contributing to the country's digital economy.

Malaysia ICT Industry Overview

In Malaysia’s Information and Communications Technology (ICT) market, competition is fierce, with only minor differences in hardware and software offerings. Numerous companies compete for identical services. Conversely, IT services such as big data, mobility, and the Internet of Things face less competition thanks to their distinct product differentiation.

Key factors shaping this competitive landscape include sustainable advantages through innovation, levels of market penetration, exit barriers, dynamics of strategic power, and the concentration ratio of firms.

Brand identity, strong competitive strategies, and levels of transparency play pivotal roles in shaping competition in the market.

Vendors that offer innovative, integrated solutions enjoy a competitive advantage over those that concentrate solely on hardware or software. Their bargaining power is greater than that of enterprise division operators, as differentiation is closely tied to specific application areas.

Market players are actively working to enhance their competitiveness, leading to a sustained high intensity of competitive rivalry. Some of the major market players are Tata Consultancy Services (TCS), IBM Corporation, Hewlett Packard Enterprise (HPE), DXC Technology Company, and Honeywell International Inc.

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