Malaysia Southeast Asia’s fastest growing digital economy
Malaysia is now the fastest-growing digital economy in Southeast Asia (SEA), with an increase of 19 percent year-on-year
KUALA LUMPUR, Malaysia (MNTV) –Malaysia is now the fastest-growing digital economy in Southeast Asia (SEA), with an increase of 19 percent year-on-year (y-o-y), and on track to reach gross merchandise value (GMV) of $39 billion this year, reports The Edge Malaysia.
According to the 10th edition of e-Conomy Southeast Asia (SEA) Report 2025 by Google, Temasek and Bain & Company, the growth is supported by sustained consumer adoption and stable macroeconomic conditions, including contained inflation.
“At the regional level, Southeast Asia’s digital economy is projected to surpass $300 billion in GMV by 2025, growing 15 pc 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 digitalized over the past decade, showing strong resilience and monetisation capabilities, despite global headwinds such as Covid-19, inflation and supply-chain pressures,” it said in a joint statement on Tuesday.
Bain & Company partner Amanda Chin said e-commerce continues to expand at a healthy pace, making up the biggest driver of Malaysia’s digital economy, set to reach $20 billion by the end of this year.
She said the sector has grown 21 pc y-o-y in GMV, the second-fastest rate in SEA, supported by increasing platform consolidation as major regional players leverage significant economies of scale, as well as the rise of video commerce.
“Artificial intelligence (AI) has also played a key 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, and we see it playing a major role in building trust and providing more authentic recommendations,” she said.
On the online travel segment, Chin said the sector recorded 19 pc growth in GMV — the fastest in SEA — driven by improved air connectivity, visa liberalisation measures and large-scale digital tourism campaigns that are building momentum ahead of Visit Malaysia 2026.
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