Malaysia ICT Economy Hits RM476.8 Billion as E-Commerce and Digital Growth Accelerate

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ICT industry, e-commerce value in 2025 hits RM476.8 billion, contributing 23.5% to Malaysia’s GDP

Malaysia’s ICT economy — comprising the information and communications technology (ICT) industry and e-commerce — reached a combined gross value added of RM476.8 billion in 2025, contributing 23.5% to the nation’s GDP, according to the Department of Statistics Malaysia (DoSM). Overall growth quickened to 5.6% in 2025, compared with 5.2% a year earlier, underscoring the continued expansion of digital-driven activities across the economy.

The ICT industry generated RM288.1 billion in gross value added in 2025. Within this, ICT services made up the largest share at 40.3%, followed by ICT manufacturing at 38.2%. Both segments recorded solid growth, with ICT services expanding by 7.6% and ICT manufacturing rising by 6.4%.

The remainder of the ICT industry’s value added came from ICT trade and the content and media segment, which contributed 15.3% and 6.2%, respectively. Together, these components reflect the diversified base of Malaysia’s digital economy, spanning services, production, trade, and digital content.

E-commerce continues to anchor digital adoption

E-commerce recorded gross value added of RM267.6 billion in 2025, representing a 13.2% share of the economy and expanding by 3.7% year-on-year. By economic activity, manufacturing remained the single largest contributor to e-commerce value added with a 50.5% share, growing by 1.3% in 2025. The services sector accounted for 47.0% and accelerated to 7.2% growth, up from 5.1% in 2024. These trends indicate broadening adoption of digital sales channels across both producers and service providers.

External trade in ICT products posts robust gains

Malaysia’s external trade in ICT products strengthened in 2025. Exports climbed 14.8% to RM513.6 billion, up sharply from 3.9% growth in 2024, reflecting resilient global demand and Malaysia’s competitive position in key ICT product categories. Imports also increased by 24.2% to RM405.3 billion (2024: 20.9%), in line with elevated domestic production and consumption needs tied to digitalisation. Net exports of ICT products registered a surplus of RM108.3 billion in 2025.

Employment expands in step with industry growth

Employment in the ICT industry rose by 1.1% to 1.27 million persons in 2025, representing 7.6% of total employment in Malaysia. ICT manufacturing accounted for the largest share of jobs at 35.1%, followed by ICT services at 29.0% and ICT trade at 23.4%. The employment profile highlights the sector’s role as a significant and diversified source of high-value job opportunities.

Key takeaways

  • ICT economy value added: RM476.8 billion in 2025, equal to 23.5% of GDP; overall growth at 5.6%.
  • ICT industry: RM288.1 billion; ICT services (40.3%) and ICT manufacturing (38.2%) led growth at 7.6% and 6.4%, respectively.
  • Other ICT components: ICT trade contributed 15.3%; content and media accounted for 6.2%.
  • E-commerce: RM267.6 billion, 13.2% share of the economy; up 3.7% year-on-year.
  • E-commerce by activity: Manufacturing contributed 50.5% (growth 1.3%); services 47.0% (growth 7.2%).
  • ICT product trade: Exports RM513.6 billion (+14.8%); imports RM405.3 billion (+24.2%); net surplus RM108.3 billion.
  • Employment: 1.27 million persons in ICT industry (+1.1%), making up 7.6% of national employment.

These figures signal sustained digital transformation across Malaysia’s economy, with ICT services and manufacturing as core pillars, e-commerce deepening its reach across sectors, and external trade in ICT products underpinning a strong surplus position. The steady rise in employment further reflects the sector’s contribution to growth, productivity, and high-value job creation.

Alexandra Bennett
Alexandra Bennetthttps://www.businessorbital.com/
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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