Kuala lumpur: Malaysia is now the fastest-growing digital economy in Southeast Asia (SEA), with an increase of 19 per cent year-on-year (y-o-y), and on track to reach a gross merchandise value (GMV) of USDollar39 billion (USDollar1=RM4.13) this year.
According to BERNAMA News Agency, the 10th edition of the e-Conomy Southeast Asia (SEA) Report 2025 by Google, Temasek, and Bain and Company attributes this growth to sustained consumer adoption and stable macroeconomic conditions, including contained inflation. At the regional level, Southeast Asia’s digital economy is projected to surpass USDollar300 billion in GMV by 2025, growing 15 per cent y-o-y and outperforming the region’s first forecast by 1.5 times. As the world’s fifth-largest economy with a population of over 680 million, Southeast Asia has rapidly digitalised over the past decade, demonstrating strong resilience and monetisation capabilities, despite global challenges such as COVID-19, inflation, and supply-chain pressures.
Meanwhile, Bain and Company partner Amanda Chin highlighted that e-commerce continues to expand at a healthy pace and is the biggest driver of Malaysia’s digital economy, targeting USDollar20 billion by 2025. The sector has grown 21 per cent y-o-y in GMV, the second-fastest rate in SEA, driven by increasing platform consolidation as major regional players leverage significant economies of scale, alongside the rise of video commerce, which has effectively converted consumer attention into sales with minimal friction. Artificial intelligence (AI) has also played a crucial role in how users research and make decisions, and how e-commerce platforms leverage AI for product recommendations. It is growing and becoming more diverse, playing a major role in building trust and providing more authentic recommendations.
On the online travel segment, Chin reported 19 per cent growth in GMV, the fastest in SEA, propelled by improved air connectivity, visa liberalisation measures, and large-scale digital tourism campaigns building momentum ahead of Visit Malaysia 2026. Total passenger arrivals to Malaysia have returned to near pre-pandemic levels, with both foreign arrivals and outbound travel helping sustain strong pricing power. Hoteliers in high-demand markets like Singapore and Malaysia have been able to raise average rates by over 20 per cent, returning to healthier profit margins and contributing to the sector’s overall value. As 2026 approaches, with the Visit Malaysia 2026 campaign, there are numerous initiatives underway, including partnerships with major online travel platforms, aiming for a 45 million visitor target, which fuels optimism about the outlook for online travel.
For digital financial services, Chin noted continued double-digit growth, with digital payments expected to reach USDollar213 billion, up 16 per cent y-o-y in gross transaction value by 2025. This momentum is driven by Malaysia’s rapid shift toward cashless payments, including a 28 per cent surge in digital payment usage reported by Bank Negara Malaysia. Cross-border acceptance has also expanded significantly, with the DuitNow QR standard now interoperable across an increasing number of SEA markets.