Malaysia Information and Communication Technology (ICT) Growth

Malaysia’s Digital Transformation continues to drive demand for U.S. technologies in ICT as Malaysia seeks to become the digital hub in Southeast Asia. According to the Department of Statistics Malaysia, ICT contributed 22.6% to Malaysia’s GDP in 2020. The ICT sector is expected to grow from US$16.5 billion in 2019 to an estimated US$25.2 billion in 2023. Much of that growth is driven by the increased digitalization of processes across all major industrial sectors. Major ICT opportunities for U.S. companies exporting to Malaysia include Data Systems Integration, Cloud Computing Internet of Things, Cybersecurity, Big Data Analytics, and Emerging Digital Technologies. 
 
Currently, ICT laws and policies are still being drafted, revised, and reviewed by the Malaysian government to be more in line with regional and international standards. Some policies under review include PDPA, Cybersecurity, Data Localization, Cloud Service. The government of Malaysia’s Economic Stimulus Package provides strong incentives in digital transformation, connectivity, security, satellite broadband, digital infrastructure for buildings, 5G ecosystems, and intelligent automation. The demand for automation and digitalization exports is expected to continue to grow post-pandemic due to a government focus on modernizing and standardizing Malaysia’s manufacturing sector and global supply chain network. Malaysia’s second-tier manufacturers, component manufacturers, and service providers are being offered incentives by the Malaysian government to increase digital integration and expand automation to remain competitive. 

To learn more about upcoming events to connect U.S. companies and Malaysian stakeholders in the areas of ICT, contact Kisok Arumagam at offiice.kualalumpur@trade.gov.