With an expected economic growth of 4.2%, Malaysia’s digital economy is expected to contribute an outstanding 24.4% of the country’s GDP this year.
The estimated 24.4 percent contribution, according to Alex Liew, vice head of the National Tech Association of Malaysia (Pikom), represents the sector’s strong rising momentum in Malaysia. According to Pikom, the expansion of the nation’s digital economy is anticipated to keep up its speed and reach a contribution to GDP of 24.5 percent in 2024.
At the Insights into Malaysia’s Digital Job Market & Economic Outlook 2023/24 event today, he told reporters, “Historical data supports this upwards trajectory, with the digital economy having contributed 23.2 percent and 23.4 percent in 2021 and 2022, respectively.”
“The digital economy’s strategic roles in creating employment, facilitating remote work during and even post pandemic while fostering technological advancement and local innovation has played an intrinsic role in propelling the nation forward,” Liew stated.
On the employment front, the tech job market has seen double-digit salary growth, reflecting an industry that is utilising technology for increased production and efficiency. In Malaysia, the local IT industry has experienced a remarkable YoY compensation increase of 13.9% in 2023, which contrasts sharply with the 2.0 percentile range rise in the two years prior.
This year’s growth is fueled by the non-electronic (NE) economy’s 8.7% and digital economy’s 9.3% growth rates. For the industry, Pikom anticipates pay growth of 4.13 percent year over year (YoY) in 2024 and an average annual growth rate (AAGR) of 6.45 percent for the following ten years.
Unadvertised income growth is forecast to stabilise at 4.1 percent in 2025, decreasing from the strong spike seen this year, but a recalibration is anticipated.
