KUALA LUMPUR (Feb 17): Grab’s services, including ride-hailing and delivery, contributed nearly RM10 billion to the Malaysian economy, a study by a local economic consultancy firm released on Monday showed.

That’s equivalent to about 0.5% of Malaysia’s total gross domestic product in 2023, according to EconWorks, which said it independently conducted the research. Every RM1 generated by Grab transactions creates an additional RM1.50 of economic activity through a multiplier effect, EconWorks said.

“The report highlights the advantages of Malaysia’s supportive business environment, which is now focused on the digital economy, enabling platform companies like Grab to thrive and contribute meaningfully to the economy,” said EconWorks managing director Dr Wan Khatina Nawawi.

The report focuses only on Grab’s on-demand transport and delivery services. The Nasdaq-listed firm also has embedded financial services such as banking and insurance in its main superapp on mobile phones.

The data used by EconWorks to estimate economic contribution is obtained from 2023 data on final sales made by Grab’s various businesses, including revenue received by Grab, its driver-partners and merchant-partners, provided by the Singapore-headquartered company.

“By quantifying these contributions, this study provides a comprehensive view of how Grab and its stakeholders interact with the broader Malaysian economy, facilitating economic growth,” Wan Khatina added.

Grab-related activities created up to 277,237 opportunities for individuals to earn an income, meaning that for every 64 individuals in Malaysia’s labour force, one has an earning directly or indirectly supported by Grab, the report said.

Individuals and businesses generated up to RM3.7 billion in additional household income from the platform, including salaries earned by Grab employees, earnings by driver-partners, revenue by merchant-partners, as well as incomes for workers across their combined supply chains, it noted.

“Looking ahead, Grab’s continued partnership with both the government and industry stakeholders will be important in driving Malaysia's economic growth and sustainable development,” Digital Minister Gobind Singh Deo wrote in the foreword of the report.