The enterprise information and communication technology (ICT) market in Malaysia is expected to grow at a rate of 15.5% annually from 2023 to 2028. This growth is being driven by businesses and the government's efforts in digital transformation, according to GlobalData.
GlobalData's ‘Malaysia Enterprise ICT Country Intelligence Report,’ predicts that the ICT market in Malaysia will increase from USD 23.2 billion in 2023 to USD 47.7 billion in 2028. This growth aligns with the positive investment sentiment among enterprises.
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Services Segment Leads Revenue Growth
A survey conducted by GlobalData found that 91.2% of key ICT decision makers in enterprises reported an increase in their ICT budgets compared to the previous year. Out of the three IT infrastructure segments—hardware, software, and services—the services segment is expected to have the highest revenue growth over the forecast period. This growth is mainly due to the strong performance of cloud computing services, boasting an anticipated revenue growth rate of 23.8% during the forecast period.
Pragyan Tarasia, a Technology Analyst at GlobalData, noted that businesses, governments, and educational institutions in Malaysia are increasingly using cloud services for data storage and processing. This trend is expected to drive digital technology adoption, expand the e-commerce sector, and develop the 5G network, ultimately transforming the country's digital landscape.
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ICT to Enhance Manufacturing Sector
The manufacturing sector was the largest contributor to ICT revenue in 2023, according to GlobalData's forecast. This sector is projected to grow at a rate of 5.3% from 2023 to 2028, accounting for 9.0% of the total cumulative ICT revenue during that period. The adoption of Industry 4.0 technologies, such as IoT, robotics, AI, and advanced analytics, are driving the increased use of ICT in the manufacturing sector in Malaysia.
Tarasia concluded that Malaysia's ICT market is expected to grow steadily in the coming years, supported by financing guarantees, tax incentives, and digital grants, all of which aim to enhance SME competitiveness and promote digital adoption to drive ICT market growth.
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