Malaysia digital economy projected to reach US$48 billion by 2026

Malaysia's digital economy is expected to reach a value of US$48 billion, or approximately RM196 billion, by 2026. According to the e-Conomy SEA 2026 report by Google, Temasek, and Bain & Company, the nation is among the fastest-growing digital economies in Southeast Asia, alongside Vietnam, with a projected 20% year-on-year growth.

E-commerce remains the primary driver, with transaction values expected to hit US$25 billion in 2026, a 22% increase. This growth is supported by the integration of artificial intelligence for product discovery, video-based commerce, and automated business management systems. Online tourism is also expanding, with a projected 15% growth to US$12 billion.

In the fintech sector, the Malaysia Fintech Report 2026 indicates that electronic payment transactions reached 18.4 billion in 2025, a 25% increase from the previous year. Retail e-payment transaction values rose to RM831 billion in 2025. The report notes a significant rise in contactless payments and DuitNow QR transactions, with the latter doubling to 3 billion. Additionally, Bank Negara Malaysia is exploring ringgit-denominated stablecoins and tokenised deposits to facilitate wholesale and cross-border payments.