Joint initiatives between Google and the Government of Malaysia aim to create high-value jobs and bring the benefits of AI to local communities and companies, in alignment with the MADANI Economy Framework
The Government of Malaysia and Google today announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the fast-growing digital economy. The collaboration brings both parties together to help businesses of all sizes advance their digital competitiveness through skilling programs, investment in digital infrastructure, responsible artificial intelligence (AI) innovation, and cloud-first policies.
These initiatives build on Google’s investments in Malaysia over the last 12 years. In 2022 alone, the company’s products and programs supported more than 47,900 jobs and also contributed, both directly and indirectly, an estimated US$2.8 billion in economic benefits to local businesses.
Dato' Seri Anwar Ibrahim, Prime Minister of Malaysia, said: “Malaysia’s MADANI Economy Framework aims to increase the size of our economic pie, as well as ensure that all stakeholders—particularly rakyat and small businesses—will enjoy the ensuing socio-economic benefits. This latest commitment by Google, aimed at accelerating local innovation and talent development in the field of AI, will certainly boost the nation's digital competitiveness, in line with the MADANI Economy Framework and the New Industrial Master Plan 2030 (NIMP 2030).”
Ruth Porat, President & Chief Investment Officer; Chief Financial Officer, Alphabet and Google, said: “The partnership we are announcing today with the Government of Malaysia aligns Google’s local mission of Advancing Malaysia Together with the government’s goal to create a supportive ecosystem for innovation that includes more meaningful and equitable job opportunities. To advance these shared goals, we intend to assist Malaysian organizations in addressing real-world challenges using AI, and utilizing Google Cloud technologies to rapidly implement solutions for economic growth and public good. As the country makes strides toward digitalization and AI adoption across industries, this collaboration recognizes the importance of no-cost access to digital skilling programs to empower all Malaysians to participate in a thriving and inclusive digital economy. We are excited to explore the opportunities that this partnership will bring to Malaysia.”
Inclusive skilling opportunities for 300,000 Malaysians by 2026
To provide Malaysians from all backgrounds with more digital training opportunities, Google Cloud, CloudMile, and Trainocate are making five digital learning paths available at no cost. Accessible through the Go Cloud program—which aims to upskill 300,000 Malaysians by 2026—the learning paths consist of online courses to help individuals better apply generative AI (gen AI), data analytics, and cloud-based productivity tools. Learners who complete the five learning paths will earn digital skills badges that they can share on their resumes and extended 30-day access to more learning paths at no cost.
This builds on Gemilang, a digital training program that has provided 31,000 Google Career Certificate scholarships to less fortunate individuals in partnership with educational institutions and nonprofits. This helps Malaysians earn professional certifications—at no cost—for entry-level jobs in high-demand fields such as data analytics; IT support; as well as e-commerce and digital marketing.
Digital infrastructure to help companies expand online and overseas
Google's investments in infrastructure play a critical role in enabling more local companies, including small and medium-sized enterprises (SMEs), to expand their operations regionally. This is in alignment with the NIMP 2030, whose mission includes ensuring that Malaysian SMEs and manufacturing companies are appropriately enabled to embrace technology and digitalization rapidly.
With the support of the Government of Malaysia, Google is now exploring the potential establishment of an in-country Google data center to power digital services.
Accelerating AI innovation to boost economic competitiveness
The Government and Google Cloud will embark on joint AI launchpad initiatives to create new jobs, enhance public service delivery, and help local companies tap into global markets. These may include:
Empowering public and private sector organizations to address real-world challenges with gen AI and take advantage of Google Cloud technologies to rapidly deploy scalable solutions for productivity gains and public good. Priority areas include improving digital government services, financial inclusion, healthcare, and education, and advancing Industry 4.0.
Digitalization projects to keep communities safe from natural disasters and make low carbon mobility more accessible for Malaysians. The projects will look to leverage Google Cloud’s AI capabilities to prompt decisions to, for example, divert traffic or evacuate people ahead of an extreme weather event, recommend investment locations for more electric vehicle (EV) charging stations, enable lower-cost smart charging for users, and build a scalable energy exchange to support renewable energy exports, in alignment with Malaysia’s National Energy Transition Roadmap.
Protecting public sector entities, businesses, and citizens against malicious cyber activity. The Government and Google Cloud will engage in cyber threat information exchange and joint capability building, in view of potentially establishing a National CyberShield Center of Excellence. This will enable the Government to combine automation, analytics, threat intelligence, and AI to detect, investigate, and defend against cyber attacks on critical national infrastructure.
Developing cloud-first policies for the AI economy
Google will support the Government’s refinement of its existing Cloud First Policy for Malaysia, contributing policy expertise and its Secure AI Framework to account for the latest advancements in cloud computing and AI. This reinforces the Government’s efforts to prioritize the use of resilient, cost-efficient, and innovation-driven cloud services over capital-intensive on-premise systems, while aligning with global best practices on data privacy and security standards.
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Google, Temasek dan Bain & Company mengeluarkan edisi ke-8 laporan e-Conomy SEA bertajuk “Mencapai tahap baharu: mengemudi laluan ke arah pertumbuhan keuntungan (Reaching new heights: navigating the path to profitable growth)”. Penemuan itu mendedahkan bahawa walaupun berdepan dengan cabaran makroekonomi global, nilai dagangan kasar (GMV) Asia Tenggara (SEA) mengekalkan trajektori menaik dan dijangka mencecah AS$218 bilion, peningkatan sebanyak 11% tahun ke tahun (YoY). Perolehan daripada ekonomi digital Asia Tenggara dijangka mencecah AS$100 bilion tahun ini, mencatatkan pertumbuhan 8x ganda dalam tempoh 8 tahun yang lalu. Ini merupakan tahun pertama laporan itu mendedahkan angka hasil sebagai tambahan kepada GMV, memberikan gambaran yang lebih terperinci tentang bagaimana perniagaan mempercepatkan pertumbuhan tatkala cabaran makroekonomi. Ia juga perlu menyelami peluang untuk meningkatkan penyertaan digital untuk merungkai pertumbuhan selanjutnya dalam dekad digital bagi rantau ini. Laporan e-Conomy SEA 2023 menunjukkan bahawa perniagaan digital di Asia Tenggara telah berjaya mengewangkan ekonomi digital - beralih daripada pemerolehan pengguna kepada memperdalam penglibatan dengan pelanggan sedia ada. Rantau ini secara konsisten mengekalkan pertumbuhan GMV dan pertumbuhan hasil, sejurusnya membuktikan bahawa pengewangan dan pertumbuhan pasaran keseluruhan tidak bertentangan. Berikut adalah cerapan utama daripada laporan tahun ini mengenai Malaysia.
Permintaan domestik Malaysia kekal teguh meskipun terdapat cabaran luaran
Perbelanjaan isi rumah semakin meningkat, termasuk pekerjaan dan gaji. Sebagai hasil, permintaan domestik akan mendorong pertumbuhan ekonomi di pasaran. Namun, seiring dengan peralihan serantau dan global ke arah kos modal yang tinggi dan isu-isu berkaitan kitar hayat pembiayaan, pelaburan dalam syarikat digital Malaysia merosot ke tahap terendah dalam 6 tahun selepas rekod tertinggi.
Di sebalik peningkatan pelaburan berhemah, ‘dry powder’ di Asia Tenggara telah meningkat kepada AS$15.7 bilion pada akhir tahun 2022 daripada AS$12.4 bilion pada tahun 2021. Ini menunjukkan bahawa terdapat modal yang tersedia bagi syarikat yang mampu menunjukkan laluan yang jelas ke arah keuntungan dan membuktikan kepada pelabur bahawa mereka mempunyai pilihan keluar yang kukuh.
Pemulihan perjalanan Malaysia memacu ekonomi digital kepada AS$23B pada tahun 2023, pecutan e-dagang diperlukan untuk mencecah ~AS$30B menjelang tahun 2025
Perjalanan Dalam Talian merupakan pemacu utama ekonomi digital Malaysia pada tahun 2023, mencecah AS$4 bilion. Sektor ini mencatatkan pertumbuhan terpantas merentasi sektor ekonomi digital – sebanyak 49% tahun ke tahun. Permintaan perjalanan keluar kekal tinggi, mendorong pemulihan berterusan dan pertumbuhan jangka pendek dalam industri perjalanan digital.
Malaysia mempunyai sektor Pengangkutan dan Penghantaran Makanan yang paling pesat berkembang di Asia Tenggara. Sektor ini berkembang sebanyak 16%, didorong oleh pulangan para penduduk Malaysia kepada aktiviti luar talian dan pilihan berterusan untuk penghantaran makanan. Walaupun jumlah pengunjung di pusat-pusat membeli-belah telah kembali pulih kepada tahap sebelum pandemik dan industri makanan dan minuman mengalami peningkatan, pengguna Malaysia masih mengamalkan kebiasaan digital yang memudahkan kehidupan mereka, seperti penghantaran makanan dan e-dagang.
Pertumbuhan e-dagang mendatar selepas berkembang sebanyak 4% antara tahun 2021 dan 2022 daripada pertumbuhan yang didorong oleh pandemik, namun ia kekal sebagai sektor ekonomi digital terbesar Malaysia pada AS$13 bilion, menyumbang sebanyak 57% daripada jumlah GMV. E-dagang mendapat penerimaan yang tinggi di Kuala Lumpur dan Selangor. Walau bagaimanapun, terdapat jurang yang berterusan antara jurang permintaan dan bekalan di kawasan lain di Semenanjung Malaysia dan Malaysia Timur, yang memberikan peluang kepada pemain e-dagang untuk berkembang di kawasan tersebut.
Penerimaan perkhidmatan kewangan digital (DFS) terus berkembang dengan pesat, menjadikan Malaysia sebagai pasaran pembayaran digital terbesar kedua di rantau Asia Tenggara
Perubahan tingkah laku daripada luar talian ke dalam talian yang tidak dapat diubah terus mendorong pertumbuhan penerimaan DFS, dan wang tunai bukan lagi yang terunggul dengan kod QR dan bentuk pembayaran digital lain yang menjadi semakin meluas. Pembayaran digital adalah pemacu nilai terbesar dalam kategori DFS di Malaysia - AS$165 bilion GTV pada tahun 2023 - dipercepat oleh sokongan kerajaan terhadap penerimaan pembayaran digital dan pengagihan manfaat kepada komuniti berpendapatan rendah melalui “e-wallet”. Ini menjadikan Malaysia sebagai pasaran pembayaran digital terbesar kedua di rantau Asia Tenggara pada tahun 2023.
Kekayaan digital berkembang sebanyak 61% tahun ke tahun - terpantas di antara semua kategori DFS - dan dijangka akan menjadi sektor DFS kedua terbesar di Malaysia menjelang tahun 2030. Minat yang semakin meningkat terhadap kekayaan digital memberikan peluang yang lumayan bagi institusi perkhidmatan kewangan yang telah mapan untuk mengekalkan pelanggan bernilai tinggi. Memandangkan persaingan antara pemain DFS semakin sengit, industri teknologi kewangan (FinTech) berciri “pure-play” telah memperluaskan perkhidmatan pinjaman mereka kepada kumpulan yang tidak mempunyai akses perkhidmatan bank, manakala institusi perkhidmatan kewangan yang telah mapan dengan cepat telah mengalihkan pangkalan pelanggan sedia ada mereka yang besar kepada perkhidmatan digital.
Memperluas kedalaman penyertaan digital diperlukan untuk membolehkan gelombang pertumbuhan seterusnya
Malaysia telah melihat kemajuan yang baik dalam kemasukan digital, memasuki kawasan luar bandar untuk merapatkan jurang ketersambungan. Peratusan isi rumah yang mempunyai akses internet menyaksikan peningkatan daripada 76% kepada 97% untuk bandar dan 49% kepada 89% untuk luar bandar, dalam tempoh 2015 - 2022. Walau bagaimanapun, pengguna di luar kawasan metro berisiko menghadapi pelebaran jurang ekonomi digital apabila melibatkan penyertaan digital - penglibatan aktif dalam ekonomi digital melalui penggunaan produk atau perkhidmatan merentasi sektor.
Lebih daripada 70% daripada nilai transaksi ekonomi digital di Asia Tenggara dilakukan oleh 30% pembelanja teratas. Di Malaysia, pengguna bernilai tinggi (HVU) ini membelanjakan 5.3x amaun yang dibelanjakan oleh bukan HVU dalam talian. Lebih separuh daripada HVU tinggal di luar kawasan metro, membuktikan bahawa peluang untuk perniagaan digital berkembang wujud di luar kawasan metro seperti Kuala Lumpur dan Selangor.
Merapatkan jurang penyertaan digital adalah tanggungjawab kolektif semua pihak berkepentingan ekonomi digital. Menghapuskan halangan, seperti isu bekalan dan keselamatan, boleh meningkatkan penyertaan bukan HVU dan membolehkan ekonomi digital Malaysia mencapai potensi penuhnya - AS$30 bilion GMV menjelang tahun 2025.
“GMV Malaysia diunjurkan mencecah antara AS$45B dan AS$70B menjelang tahun 2030 dan kami telah melihat bagaimana kebangkitan semula sektor pelancongan dan tingkah laku digital pengguna Malaysia dalam e-dagang dan penghantaran makanan boleh menyumbang kepada pertumbuhan ekonomi ini. Dengan pencapaian kemajuan yang baik oleh Malaysia dalam merapatkan jurang ketersambungan, menangani penyertaan digital di luar kawasan metro boleh terbukti menjadi kunci dalam merungkai gelombang pertumbuhan seterusnya,” kata Samuele Saini, Pengarah Negara, Google Malaysia.
“Ia sangat luar biasa bahawa kedua-dua GMV ekonomi digital Asia Tenggara dan hasil meneruskan momentum pertumbuhan dua angka mereka, dengan hasil mencecah paras AS$100B pada tahun 2023. Ini menunjukkan daya tahan ekonomi digital Asia Tenggara dan bahawa pemain utama sedang meningkatkan kemajuan ke arah unit ekonomi yang lebih sihat dan model perniagaan yang mampan. Walaupun terdapat cabaran luar dan pengembalian ke aktiviti makan dan membeli-belah secara fizikal, kami bersikap optimis bahawa ekonomi digital secara keseluruhan akan terus berkembang dalam jangka panjang,” kata Willy Chang, Rakan Kongsi, Bain & Company.
e-Conomy SEA 2023 report: Online travel recovery propels Malaysia’s digital economy to grow 7% and hit $23 billion in GMV. Widening digital participation remains critical to unlock potential
Google, Temasek and Bain & Company released the 8th edition of the e-Conomy SEA report titled “Reaching new heights: navigating the path to profitable growth”. The findings reveal that despite global macroeconomic headwinds, Southeast Asia’s (SEA) gross merchandise value (GMV) continues an upward trajectory and is set to reach $218 billion, growing 11% year-on-year (YoY). The revenue from Southeast Asia’s digital economy is poised to hit $100 billion this year, recording 8x growth over the past 8 years.
This is the first year the report shares revenue numbers in addition to GMV, providing a more detailed look at how businesses have accelerated growth amidst macroeconomic headwinds. It also takes a deep dive into the opportunities of increasing digital participation to unlock further growth in the region’s digital decade.
The e-Conomy SEA 2023 report shows that digital businesses in Southeast Asia have successfully monetised the digital economy - moving from user acquisition to deepening engagement with existing customers. The region consistently delivers on both GMV growth and revenue growth, which proves that monetisation and overall market growth are not at odds.
Here are the key insights from this year’s report on Malaysia.
Malaysia’s domestic demand stands resilient despite external headwinds
Household spending is on the rise, in tandem with employment and wages. As a result, domestic demand will drive economic growth in the market. However, in line with regional and global shifts towards high cost of capital and issues across the funding lifecycles, investments in Malaysian digital companies declined to the lowest level in 6 years after record highs.
Despite the increased prudence by investors, dry powder in Southeast Asia has risen to $15.7 billion at the end of 2022 from $12.4 billion in 2021. This shows that there is capital available for companies that can demonstrate clear pathways to profitability and prove to investors that they have strong exit options.
Malaysia’s travel recovery drives digital economy to $23B in 2023, e-commerce acceleration required to hit ~$30B by 2025
Online Travel is the main driver for Malaysia’s digital economy in 2023, reaching $4 billion. The sector recorded the fastest growth across the digital economy sectors - 49% YoY. Outbound travel demand remains elevated, providing support for continued recovery and near-term growth in the digital travel industry.
Malaysia has the fastest-growing Transport and Food Delivery sector in SEA. The sector grew 16%, boosted by Malaysian commuters’ return to offline activities and the continued preference for food delivery. Even though foot traffic in malls has recovered to pre-pandemic levels and the food and beverage industry is experiencing an uptick, Malaysian consumers have held onto the digital habits that make their lives easier, such as food delivery and e-commerce.
E-commerce growth is flattening after growing 4% between 2021 and 2022 from pandemic-driven growth, but it remains Malaysia’s biggest digital economy sector at $13 billion, accounting for 57% of the total GMV. E-commerce is seeing high adoption in Kuala Lumpur and Selangor. However, there is a persistent gap between demand and supply in other areas of Peninsular Malaysia and East Malaysia, which presents an opportunity for e-commerce players to expand in those areas.
Adoption of digital financial services (DFS) continues to grow from strength to strength, placing Malaysia as the 2nd biggest digital payment market in SEA
The irreversible offline-to-online behavior shift continues to drive growth in DFS adoption, and cash is no longer king with QR codes and other forms of digital payments becoming ubiquitous. Digital payments are the biggest value driver within the DFS categories in Malaysia - $165 billion GTV in 2023 - boosted by the government’s support for digital payments adoption and distributing benefits to lower-income communities through e-wallets. This has placed Malaysia as the 2nd biggest digital payment market in SEA in 2023.
Digital wealth grew 61% YoY - fastest of all the DFS categories - and is expected to be the second largest DFS sector in Malaysia by 2030. The increasing interest towards digital wealth presents a lucrative opportunity for established financial services institutions to retain high-net-worth customers. As the competition between DFS players intensifies, pure-play fintechs have extended their lending services to the underbanked segment, while established financial services institutions have been quick to shift their large existing customer bases to digitalised services.
Expanding depth of digital participation is needed to enable the next wave of growth
Malaysia has seen good progress on digital inclusion, making inroads into rural areas to bridge connectivity gaps. The percentage of households with internet access saw an increase from 76% to 97% for urban and 49% to 89% for rural, within the time frame of 2015 - 2022. However, consumers outside of metro areas are at risk of facing a widening digital economic divide when it comes to digital participation - active involvement in the digital economy through consumption of products or services across sectors.
Over 70% of digital economy transaction values in Southeast Asia are made by the top 30% of spenders. In Malaysia, these high-value users (HVUs) spend 5.3x the amount non-HVUs spend online. More than half of HVUs reside outside metros, proving that opportunities for digital businesses to grow exist beyond metros such as Kuala Lumpur and Selangor.
Bridging the digital participation divide is the collective responsibility of all digital economy stakeholders. Removing barriers, such as supply and security issues, can improve the participation of non-HVUs and enable Malaysia’s digital economy to reach its full potential - $30 billion GMV by 2025.
“Malaysia's GMV is projected to reach between $45B and $70B by 2030 and we've seen how the resurgence of tourism along with Malaysian consumers' sticky digital behaviors in e-commerce and food delivery can contribute to this economic growth. With Malaysia making good progress in bridging connectivity gaps, addressing the digital participation beyond metro areas can prove to be a key in unlocking the next wave of growth," said Samuele Saini, Country Director, Google Malaysia.
“It is remarkable that both Southeast Asia’s digital economy GMV and revenue continued their double-digit growth momentum, with revenue breaking the $100B mark in 2023. This shows the resilience of the Southeast Asian digital economy and that the key players are making progress towards more healthy unit economics and sustainable business models. Despite external headwinds and some return to in-person dining and shopping, we are optimistic that the overall digital economy will continue to grow in the longer run,” said Willy Chang, Partner, Bain & Company.
