KUALA LUMPUR – Malaysia has emerged as the fastest-growing digital economy in Southeast Asia (SEA), experiencing a 19 per cent year-on-year (y-o-y) growth and poised to reach a gross merchandise value (GMV) of US$39 billion (US$1 = RM4.13) in 2025.
The 10th edition of the e-Conomy Southeast Asia (SEA) Report 2025, jointly published by Google, Temasek, and Bain & Company, attributes this rapid growth to strong consumer adoption and stable macroeconomic conditions, including controlled inflation.
According to Bernama, the report forecasts that Southeast Asia’s digital economy will exceed US$300 billion in GMV by 2025, marking a 15 per cent y-o-y growth. This exceeds initial projections by 1.5 times.
“As the world’s fifth-largest economy with a population exceeding 680 million, Southeast Asia has seen rapid digitalisation over the past decade, demonstrating resilience and monetisation capabilities despite global challenges like COVID-19, inflation, and supply chain disruptions,” the report states.
Bain & Company partner Amanda Chin noted that e-commerce remains the primary driver of Malaysia’s digital economy, with the sector set to hit US$20 billion by 2025. She highlighted a 21 per cent y-o-y growth in GMV, the second-highest rate in SEA, driven by platform consolidation and the rise of video commerce, which seamlessly converts consumer attention into sales.
“Artificial intelligence (AI) has also significantly influenced consumer decision-making and how e-commerce platforms offer product recommendations. It’s growing and diversifying, and we see it playing a vital role in building trust and providing more authentic recommendations,” Chin added during the e-Conomy SEA Report 2025 presentation.
The online travel sector also showed impressive growth, with a 19 per cent increase in GMV – the fastest in SEA. This surge is attributed to improved air connectivity, visa liberalisation, and large-scale digital tourism campaigns in anticipation of the Visit Malaysia 2026 initiative.
“Passenger arrivals to Malaysia are nearing pre-pandemic levels, and both inbound and outbound travel are maintaining strong pricing power. In high-demand markets like Singapore and Malaysia, hotel rates have risen by over 20 per cent, boosting profit margins,” Chin said. “Looking ahead to 2026, with Visit Malaysia 2026 on the horizon, we aim to attract 45 million visitors, so we’re optimistic about the future of online travel.”
For digital financial services, Chin highlighted the double-digit growth in this segment, with digital payments expected to reach US$213 billion by 2025 – a 16 per cent increase y-o-y.
The shift towards cashless transactions is accelerating, with Bank Negara Malaysia reporting a 28 per cent increase in digital payment usage. Additionally, cross-border payment acceptance has grown significantly, with the DuitNow QR standard now interoperable in more SEA markets. – November 25, 2025