GlobalData’s latest report “Malaysia Enterprise ICT Country Intelligence Report,” reveals that the ICT market in Malaysia will grow from $23.2 billion in 2023 to $47.7 billion in 2028. This growth is in line with the positive investment sentiment among enterprises. GlobalData’s 2024 ICT customer insight survey* reveals that a majority i.e., 91.2% of respondents, who are key ICT decision makers in their respective enterprises, have confirmed that there has been an increase in their enterprise ICT budgets in 2024 as compared to previous year.

Among the three IT infrastructure segments—hardware, software, and services—the services segment is anticipated to see the highest cumulative revenue growth over the forecast period. This surge will be primarily driven by the strong performance of cloud computing services in terms of revenue which is expected to grow at a CAGR of 23.8%, during the forecast period.

Pragyan Tarasia, Technology Analyst at GlobalData, comments: “Businesses, governments, and educational institutions in Malaysia are increasingly leveraging cloud services for data storage and processing. This trend is poised to propel growth in the ICT market by fostering digital technology adoption, expanding the e-commerce sector, and driving the development of the 5G network. The overall impact of cloud services on the country’s digital landscape is expected to be transformative..

Manufacturing is the largest end-use vertical
GlobalData's forecast highlights that the manufacturing sector was the largest ICT revenue contributor in 2023. The vertical is set to witness a CAGR of 5.3% over the forecast period 2023-28 and will account for 9.0% of the total cumulative ICT revenue from 2023 to 2028.

Tarasia adds: “The rising adoption of ICT in manufacturing sector in Malaysia is primarily driven by the adoption of Industry 4.0 technologies, including IoT, robotics, AI, and advanced analytics, aimed at boosting operational efficiency and productivity. Government initiatives such as the Industry4WRD policy further incentivize manufacturers to embrace digital transformation, fostering smart factory implementations with automated production lines and predictive maintenance solutions.”

Tarasia concludes: Malaysia’s ICT market is expected to grow steadily in the coming years, supported by substantial financing guarantees, tax incentives, and digital grants aimed at fostering SME competitiveness and digital adoption driving ICT market growth.

* GlobalData’s ICT Customer Insight Survey carried out during H1 2024 highlights survey responses related to ICT investment priorities and budget allocations by enterprises in Malaysia.