KUALA LUMPUR (Dec 19): Malaysia’s e-commerce income grew by 4% to RM918.2 billion in the first nine months of 2024 (9M2024), with the highest surge recorded in the second quarter (2Q2024), amounting to RM309.8 billion, the Department of Statistics Malaysia (DOSM) said.

In 3Q2024, e-commerce income, which consists of the Information and Communication Technology (ICT) sector’s contribution to the economy, as well as its services, access, and usage performance, saw a slight decline of 0.6% to RM307.9 billion compared to 2Q2024.

“Despite this minor decrease, e-commerce remains a vital pillar of Malaysia’s economic landscape,” chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement. 

The ICT and e-commerce industry generated a value-added of RM427.7 billion in 2023, up from RM411.6 billion in 2022, reflecting a growth of 3.9%.

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

GVAICT amounted to RM252.0 billion, growing by 3.8% compared to 11.4% in the previous year, with ICT services making the largest contribution at 41.6%, followed by ICT manufacturing, ICT trade, and content and media, with shares of 38.2%, 14.2%, and 6.0%, respectively.

“In conclusion, 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 show a steady increase in the contribution of ICT to the national economy, with significant growth in ICT services and e-commerce activities,” he said.

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.

The Economic Census (BE2023) for the reference year 2022, covering all active business establishments across all economic sectors, recorded 78,236 establishments involved in e-commerce transactions, generating RM1.13 trillion in income.

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

E-commerce income by customer type showed that business-to-business transactions recorded the highest contribution, amounting to RM786.5 billion (69.8%), followed by business-to-consumer transactions at RM312.6 billion (27.7%) and business-to-government transactions at RM27.8 billion (2.5%).

The 2023 survey also found that 99.3% of households in Malaysia had access to mobile phones, with 97.6% preferred smartphones, while 16.3% of households were still comfortable using feature phones.

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

“In urban areas, 98.4%  of households had internet access, compared to 89.8% in rural areas,” he said.

In terms of individual ICT usage in 2023, 80.4% of individuals used computers, with 86.0% in urban areas, and 63.6% in rural areas.

Putrajaya recorded the highest percentage of computer usage and internet access by individuals, at 97.7% and 99.9%, respectively, he added.

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