economy

Malaysia's e-commerce income hits RM918.2bil in first nine months of 2024

KUALA LUMPUR: Malaysia's e-commerce income reached RM918.2 billion in the first nine months of 2024, with the highest achieved in the second quarter of 2024 valued at RM309.8 billion, the Department of Statistics Malaysia (DOSM) said. 

Chief statistician Datuk Sf statistician Datuk Seri Dr Mohd Uzir Mahidini said Dr Mohd Uzir Mahidin said the third quarter of 2024 saw a slight decline of 0.6 per cent to RM307.9 billion compared to the previous quarter. 

"Despite this minor decrease, he said e-commerce remains a vital pillar of Malaysia's economic landscape," he said in a statement following the release of the Malaysia Digital Economy 2024 report. 

The ICT and e-commerce industry generated a value-added of RM427.7 billion in 2023, 3.9 per cent higher than RM411.6 billion last year. 

The contribution of ICT and e-commerce to the national economy rose to 23.5 per cent from 22.9 per cent in 2022, driven by the gross value added of the ICT industry (GVAICT) at 13.8 per cent and e-commerce from other industries at 9.6 per cent. 

GVAICT amounted to RM252 billion, growing 3.8 per cent compared to 11.4 per cent in the previous year, supported by ICT services, which contributed 41.6 per cent, followed by ICT manufacturing, ICT trade, and content and media, with shares of 38.2 per cent, 14.2 per cent, and 6.0 per cent, respectively. 

Mohd Uzir said the Malaysia Digital Economy 2024 report underscores the continued growth and importance of the digital economy, driven by e-commerce and the ICT sector. 

"The findings reflect a steady increase in the contribution of ICT to the national economy, with significant growth in both ICT services and e-commerce activities. 

"The widespread adoption of ICT across businesses and households further strengthens Malaysia's position in the global digital landscape, highlighting the country's potential for continued innovation and growth in the digital economy," he added. 

Mohd Uzir stated that the Economic Census (BE2023) for the reference year 2022, which covers active business establishments across all economic sectors, recorded a total of 78,236 establishments that were involved in e-commerce transactions, generating an income of RM1.13 trillion. 

In terms of e-commerce income by market segment, the domestic market outperformed the international market, contributing RM1 trillion (89.1 per cent), while the international market contributed RM123.4 billion (10.9 per cent). 

The survey also found that 99.3 per cent of households in Malaysia had access to mobile phones, with 97.6 per cent preferring smartphones, while 16.3 per cent of households were still comfortable using feature phones. 

Moreover, 96.4 per cent of households had internet access, and 91.6 per cent had computers. Mobile broadband was the preferred option for internet access (95.3 per cent), compared to fixed broadband (47.1 per cent).

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