Table of Contents

Tertiary Sector

Taxi

Converting Miles Into Smiles: An outlook on Taxi services in Malaysia

MALAYSIAN TAXI INDUSTRY
The industry revenue in Malaysia is projected to reach $690 Million by 2024.

Projected Revenues (USD) and Expected Change in Revenues (%)

The taxi industry consists of offline taxi services such as street hailing and online taxi services in which ride-hailing platforms such as GrabCar and EzCab. According to Statista (2024), the revenue of the taxi industry in Malaysia is projected to reach USD 0.69 billion by 2024 with an estimated annual growth rate of 2.11% from 2024 to 2028, which would lead to an approximate revenue of USD 0.75 billion by 2028. However, it is important to note that the user penetration rate of the industry is on a downward trend despite the industry’s continuous growth. The user penetration rate of the taxi industry in Malaysia is estimated to be 10.3% by 2028, in contrast to the projected 11.2% in 2024. This may be explained by the country’s pre-existing taxi system before Grab’s domination in the industry. In the past, the taxi system of Malaysia operates under a leasing system that issues individual permits to tax drivers. Today, most of these drivers have become drivers of Grab to secure their jobs, further increasing the market share of the company in the taxi industry.

Courier, express and parcel (CEP)

Delivering Happiness, One Parcel At A Time: An outlook on CEP in Malaysia

MALAYSIAN CEP INDUSTRY
The Malaysia CEP market is projected to reach USD $2.24 Billion by 2030.

Fastest Growing Market by Speed of Delivery

6.98%

Projected CAGR, Express, 2024-2030

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Express delivery has been witnessing steady growth, with major global express delivery firms actively operating in Malaysia, supported by established networks.

The CEP industry consists of postal and logistics companies that provide transportation services for consignments of comparatively low weight and volume such as the delivery of letters, documents, and small packages. Owing to the rapid growth of e-commerce today, the CEP industry poses significant growth throughout the globe with an estimated market size of USD 457.38 billion in 2023 (Mordor Intelligence, 2024). It is also forecasted that the market will continue to grow to reach USD 758.17 billion by 2028 with a compound annual growth rate (CAGR) of 10.64%. The Malaysia CEP market size in 2024 is estimated at USD 1.58 billion and is projected to reach USD 2.24 billion by 2030 with a CAGR of 6.07%. According to Mordor Intelligence (2024), the CEP industry in Malaysia is currently the fastest growing market with a compound annual growth rate (CAGR) of 6.98%. With over 450 drop points and 25 gateways in the country, J&T Express stands as a market leader in the Malaysian CEP industry, followed by other players such as DHL, FedEx, and Pos Malaysia. It is also worthwhile to note that ride-hailing companies have been penetrating the CEP industry in Malaysia with Grab and inDrive (then known as inDriver) offering their own courier delivery services in the country.

Public Transportation

Mobility For All: An outlook on public transportation in Malaysia

MALAYSIAN TRANSPORTATION INDUSTRY
The public transportation industry in Malaysia is a market that is projected to generate a revenue of USD $530 Million by 2024.

Public transportation includes buses, trains, rapid transits, and subways with predetermined schedules and routes that are openly available to the public. The public transportation industry in Malaysia is a market that is projected to generate a revenue of USD 0.53 billion by 2024. Despite the introduction of new rail lines and buses in Malaysia, the industry is experiencing a downward trend, with a projected market volume of USD 0.50 billion by 2028, which is comparatively lower than its current market volume, with an annual growth rate of  -1.45% (Statista, 2024).

Wholesale & Retail

Generating Satisfaction Of Value: An outlook on wholesale and retail in Malaysia

MALAYSIAN WHOLESALE AND RETAIL INDUSTRY
The market size of the industry in Malaysia is projected at around USD $119.65 Billion by 2029.

According to Sakrabani, Teoh, and Amran (2019), the retail industry in Malaysia has been a major contributor to the country’s GDP, with over 45% of the country’s GDP generated from the industry. The market size of the industry in Malaysia is projected at around USD 89.66 billion in 2024, with anticipations that the market size will reach USD 119.64 billion by 2029, forecasted with a CAGR of 5.94% (Mordor Intelligence, 2024). In 2023, the wholesale & retail industry in Malaysia has reported an all-time high monthly sale of MYR 143.9 billion in December (The Edge, 2024). Hui (2023) has also reported an average monthly sales value of MYR 138.5 billion, with a year-on-year increase of 4.3%. Hence, it is evident that the wholesale and retail industry in Malaysia has been on a steady upward trend ever since the industry’s contraction in 2020 due to the movement control order (MCO) of the country. Despite being in the same industry known as wholesale and retail, wholesalers and retailers have distinctly different business models. For instance, wholesalers like NSK work with manufacturers and operate under a business to business (B2B) model to either serve as distributors to retailers or retailers to consumers of the low-income segment. On the other hand, retailers like AEON targets consumers of a higher purchasing power with a business to consumer (B2C) model that sells the products to individual end consumers. Subsequently, retailers like Jaya Grocer serve as a retailer for consumers of the highincome segment through the retailing of premium imported goods.

Banking

Investing Into Futures: An outlook on banking in Malaysia

MALAYSIAN BANKING INDUSTRY
The return on equity (ROE) of the banking system in Malaysia was reported at 11.6% in the second quarter of 2023.

The banking industry in Malaysia has a leading role in the financing of Malaysians with a bank account penetration rate of 92% being recorded in 2020, which puts the country in 6th place in terms of bank account penetration rate in Asia (Statista, 2024). The banking industry here mainly revolves around conventional banking which includes commercial and investment banks. According to Statista (2024), the return on equity (ROE) of the banking system in Malaysia was reported at 11.6% in the second quarter of 2023. With consumer loans outpacing business loans amid external uncertainties, the banking market in Malaysia is expected to lead a healthy loan growth of between 4% and 5% in 2024 (Dhesi, 2023). 

Tourism & Hospitality

Redefining Hospitality: An outlook on tourism and hospitality in Malaysia

MALAYSIAN TOURISM & HOSPITALITY INDUSTRY
This industry in Malaysia is expecting a market size of USD $4 Billion in 2024.

The tourism and hospitality industry mainly focuses on short term rental services like hotel stays. The hospitality industry is one of the most affected industries during the COVID-19 pandemic outbreak in 2020, with approximately 120 hotels shutdowns recorded with an overall loss in revenue of MYR 6.5 billion. Despite the industry’s struggle during the COVID-19 pandemic outbreak, the market for tourism and hospitality has recently recovered following the opening of international borders in 2022 and the Malaysian government’s strategies such as the National Tourism Policy (NTP) 2020-2023 to reform the tourism industry. Based on the findings of Mordor Intelligence (2024), the hospitality industry in Malaysia is expecting a market of USD 4 billion in 2024 with a CAGR greater than 6.5%. According to the Malaysian Investment Development Authority’s (MIDA), the upward trend of the market is looking optimistic with expectations that tourism-based revenue will reach around USD 110 billion by 2030.

Food Services (Restaurants)

Unique Cultures, Unique Flavours: An outlook on food services in Malaysia

MALAYSIAN RESTAURANT INDUSTRY
The restaurant industry in Malaysia is projected to reach USD $23.95 Billion in 2029.

The food service industry consists of businesses that prepare and serve food and beverages to customers as a service. The restaurant industry mainly focuses on inhouse dining experiences. As such, the industry is relatively similar to the hospitality industry as a dedicated eating space is provided to the customers in this industry. The market size of the food service (restaurant) industry in Malaysia is estimated at USD 13.11 billion in 2024 and is projected to reach USD 23.95 billion in 2029 with a CAGR of 12.81% between 2024 and 2029 (Mordor Intelligence, 2024). The fastest-growing segment of the industry is identified to be chained outlets with a 12.97% projected CAGR as consumer’s demand for convenience and standardized quality on a rise.

Fintech (Financial Technology)

Embracing The Future Of Banking: An outlook on financial technology in Malaysia

MALAYSIAN FINTECH INDUSTRY
The market size of fintech industry in Malaysia is projected to reach USD $96 Billion by 2029.

The fintech industry consists of financial institutions and technology companies that provide innovative technology to improve and automate the processes of financial services. The Malaysian fintech industry is another industry that has suffered severely from the country’s lockdowns and movement control orders (MCOs) during the COVID-19 pandemic outbreak in 2020 due to the overall reduce in transactions. However, the adoption of fintech in Malaysia may also be attributed to the country’s MCO as the industry started to report significant growth since the last 2 quarters of 2020. With mobile banking transactions recorded at a value of USD 100.79 million, the industry ultimately achieved an online banking penetration and mobile banking penetration rate of 112.5% and 61.8% respectively in 2020. Based on findings from Mordor Intelligence (2024), the market size of fintech industry in Malaysia is projected to reach USD 46.63 billion in 2024 and is expecting an exponential growth to reach USD 96.09 billion by 2029 at a CAGR of 15.56%. With coverage of internet increasing along with the affordability of data, it could be said that the upward trend for fintech industry in Malaysia will continue to thrive in the coming years.

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