PETALING JAYA (Oct 12): Malaysia’s digital economy is anticipated to contribute 24.4% to gross domestic product (GDP) in 2023 and rise further to 25.5% next year, the National Tech Association of Malaysia (PIKOM) said.

Deputy chairman Alex Liew said the momentum will hold its strength amid the national economy forecast to grow 4.5% in 2024.

“The robust escalation of the digital economy, even amid global economic upheavals, has cemented its position as a crucial pillar of Malaysia's economic structure,” he said at a press conference on Malaysia's Digital Job Market and Economic Outlook 2023/2024 here on Thursday.

On the employment front, he said the digital job market has witnessed double-digit growth in tech salaries, mirroring an economy that is judiciously harnessing technology for heightened efficiency and productivity.

PIKOM advisor and research chair Woon Tai Hai said the tech sector has experienced a notable year-on-year salary growth of 13.9% in 2023, a stark contrast to the two per cent percentile range growth observed in the previous two years.

"PIKOM is projecting a 4.13% salary growth for 2024 in the sector, and an average annual growth rate of 6.45% over the next decade," he said.

Woon attributed this to the intensified competition for talent, the repatriation of skilled professionals post-pandemic, a weakening ringgit, accelerated digital transformation in the private sector and forward-thinking government policies.

Its chief executive officer Ong Kian Yew said the benchmarking technology salaries is pivotal as it serves as a lens through which Malaysia's competitive standing within the global and regional tech landscapes can be viewed, thereby nurturing innovation and informing policy-making.

The association has a company membership of more than 1,000 involve in tech product and services which command 80% of Malaysia’s total tech business.