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Population
35.6M
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Online population
33.5M
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Currency
MYR
Population - 35.6M
At the start of 2024, 78.9% of Malaysia’s population lived in urban centres, while 21.1% lived in rural areas.
Internet penetration - 97.4%
There were 33.5M internet users in Malaysia at the start of 2024.
Malaysia is a major player in the FinTech space within the ASEAN region, boasting at least 549 FinTech companies. This ranks Malaysia third in the region, following Indonesia and Singapore. Malaysia’s FinTech sector is set for significant growth in 2024, with the market size expected to increase from $46.6B in 2024 to $96B by 2029, growing at a CAGR of 15.4%. The FinTech sector in Malaysia is diverse, with payments leading at 22%, followed by lending and digital wallets, each at 13%. Other notable segments include remittances, insurtech, and wealthtech, each holding a nine per cent share. Key FinTech companies based or founded in Malaysia include Jirnexu Sdn Bhd, MoneyMatch and PolicyStreet.
In the realm of Islamic FinTech, Malaysia mirrors its global dominance in Islamic finance. Alongside other key economies within the **Organisation of Islamic Cooperation (OIC)**, Malaysia, together with ASEAN and Gulf Cooperation Council (GCC) nations, dominates the global Islamic FinTech market.
The top six players in this market, accounting for 85% of transaction volume and assets under management, include Saudi Arabia, Iran, Malaysia, the UAE, Indonesia and Kuwait, according to the Global Islamic Fintech (GIFT) Report 2023/2024.
The rapid development of Malaysia’s FinTech sector is largely due to proactive government support. In 2015, the **Securities Commission Malaysia (SC)** launched the **Alliance of FinTech Community (aFINity)** to enhance the FinTech ecosystem. In 2016, **Bank Negara Malaysia (BNM)** – the country’s central bank – formed the **Financial Technology Enabler Group (FTEG)** to create a regulatory framework that supports the adoption of new technologies in the financial services sector. The central bank launched a regulatory sandbox later that year, enabling fintech innovations to be tested in a controlled environment.
Fintech-Map-Malaysia-2023-1.avif
In Malaysia, 2024 promises to be a vibrant year for venture capital, driven by initiatives like Penjana and the National Economic Recovery Plan. Penjana, a Malaysian government initiative, is set to boost innovation and digitalisation, particularly in venture capital.
The government has allocated RM1.2B to this sector, with a matching amount from the private sector. Penjana Kapital, a government entity, manages these funds, targeting key areas like FinTech, agritech, edutech, and healthtech.
The country is committed to creating a startup-friendly environment through efforts such as the Shared Prosperity Vision 2030 and the MYStartup platform. MYStartup manages the Startup Ecosystem Roadmap (SUPER) 2021-2030, aiming to make Malaysia one of the top 20 startup hubs globally. The Malaysia Digital Economy Corporation supports digital innovation and entrepreneurship. While Kuala Lumpur is the main startup hub, George Town is also developing its ecosystem.
Currently, Malaysia has over 17.4K startups and two unicorns, with the most recent being Edotco in October 2021. No new unicorns have emerged in 2024.
