KUALA LUMPUR: Digital economy may contribute an impressive 24.4 per cent to Malaysia's gross domestic product (GDP) this year against a backdrop of a forecasted economic growth of 4.2 per cent.
National Tech Association of Malaysia (Pikom) deputy chairman Alex Liew said the expected 24.4 per cent contribution signifies strong upwards momentum of the sector in Malaysia.
Pikom said the country's digital economy growth is expected to maintain momentum and set to touch 24.5 per cent contribution to GDP in 2024.
"Historical data supports this upwards trajectory, with the digital economy having contributed 23.2 per cent and 23.4 per cent in 2021 and 2022 respectively," he told reporters at the Insights into Malaysia's Digital Job Market & Economic Outlook 2023/24 briefing today.
"The digital economy strategic rolls in creating employment, facilitating remote work during and even post pandemic while fostering technological advancement and local innovation has played an intristic role in propelling the nation forward," said Liew.
On the employment front, the digital job market has witnessed double-digit growth in tech salaries, mirroring an economy that is harnessing technology for heightened efficiency and productivity.
The domestic tech sector in Malaysia has seen notable YoY salary growth of 13.9 per cent in 2023, a stark contrast to the 2.0 percentile range growth in the previous two years.
The growth this year is spurred by the 8.7 per cent and 9.3 per cent in the non-electronic (NE) and digital economy sectors.
Pikom is projecting a 4.13 per cent in YoY salary growth for the sector in 2024 and an average annual growth rate (AAGR) of 6.45 per cent over the next decade.
However, a recalibration is expected in 2025, where advertised salary growth is projected to stablise at 4.1 per cent, moderating from the high surge experienced this year.