Malaysia SaaS Market is Expected to Register a CAGR of 18.48% Through 2030
Digital Transformation & Cloud Adoption and Growing
E-Commerce & Digital Payments are likely to propel the market during the
forecast period.
According to
TechSci Research report, “Malaysia SaaS Market – By Region,
Competition, Forecast and Opportunities, 2020-2030F”, Malaysia SaaS Market was valued at USD 1010.71 Million
in 2024 and is expected to reach USD 2,360.16 Million by 2030 with a CAGR of 18.48%
during the forecast period.
Malaysia's
rapid digital transformation is a significant driver of the Software as a
Service (SaaS) market. Businesses across industries are increasingly adopting
cloud-based solutions to improve efficiency, scalability, and
cost-effectiveness. The Malaysian government has been actively promoting
digitalization through initiatives like MyDIGITAL, which aims to enhance cloud
adoption and position Malaysia as a leading digital economy by 2030.
Small
and medium enterprises (SMEs), which form the backbone of Malaysia's economy,
are also shifting towards SaaS solutions. Traditional software requires
significant investment in hardware, IT infrastructure, and maintenance, which
can be costly for SMEs. SaaS eliminates these barriers, allowing businesses to
access advanced tools without heavy upfront investments. Cloud-based
applications enable remote work, real-time collaboration, and automation, which
have become essential in today’s competitive business landscape.
The
rise of hybrid and remote work models has accelerated SaaS adoption in
Malaysia. With companies embracing flexible work environments, cloud-based
solutions like Microsoft 365, Zoom, and Slack have become essential for
seamless operations. As more businesses integrate cloud technologies into their
operations, the SaaS market in Malaysia is expected to witness steady growth
Browse over XX Market
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Based
on Enterprise Type, The Large Enterprise held the largest market share in
2024. Large enterprises dominate the
Malaysia SaaS market due to their financial capacity, scalability requirements,
and focus on digital transformation. Unlike SMEs, large corporations have the
resources to invest in enterprise-grade SaaS solutions that enhance efficiency,
security, and automation across multiple departments.
One
of the key drivers is the need for scalable and integrated software solutions.
Large organizations require comprehensive SaaS platforms for enterprise
resource planning (ERP), customer relationship management (CRM), human resource
management (HRM), and cybersecurity. Solutions from global providers like SAP,
Salesforce, Oracle, and Microsoft cater specifically to large enterprises,
offering advanced functionalities such as AI-driven analytics, automation, and
cloud security.
Another
reason for enterprise dominance is regulatory compliance and data security.
Large companies, particularly in finance, healthcare, and government sectors,
must comply with stringent data protection laws such as Malaysia’s Personal
Data Protection Act (PDPA). As a result, they prefer SaaS solutions with
advanced security features, encryption, and compliance monitoring. Moreover,
large enterprises are at the forefront of digital transformation initiatives.
Government-backed programs such as MyDIGITAL and Industry4WRD encourage
corporations to adopt cloud technologies, further accelerating SaaS adoption.
These companies also invest in AI-powered automation, big data analytics, and
Internet of Things (IoT) integration, all of which require robust SaaS infrastructure.
Based on region,
East Malaysia, comprising Sabah and Sarawak, is emerging as the fastest-growing
region in Malaysia’s Software as a Service (SaaS) market due to several key
factors, including government initiatives, increasing digitalization, rising
cloud adoption, and expanding business sectors.
The Malaysian
government has been actively promoting digital transformation in East Malaysia
through initiatives like MyDIGITAL and the Malaysia Digital Economy Blueprint.
Programs such as JENDELA (National Digital Network Plan) aim to enhance
internet connectivity in rural and semi-urban areas, enabling businesses and
SMEs to adopt cloud-based SaaS solutions. Additionally, the Sarawak Digital
Economy Strategy 2030 focuses on increasing the use of cloud computing, AI, and
automation across industries, further accelerating SaaS adoption.
East Malaysia
has witnessed a surge in small and medium enterprises (SMEs) and tech startups,
particularly in sectors like e-commerce, tourism, and agriculture. These
businesses require cost-effective, scalable, and cloud-based software solutions
to manage operations efficiently. SaaS platforms offering e-commerce
management, digital payments, and customer relationship management (CRM) are in
high demand as more businesses shift online.
Improved
broadband connectivity and cloud infrastructure are driving SaaS adoption in
East Malaysia. Investments in 5G deployment, cloud data centers, and
fiber-optic networks are enabling businesses to access high-speed internet,
which is essential for running SaaS applications. This infrastructure
development is bridging the digital gap between East and West Malaysia,
fostering a more inclusive digital economy.
Major companies
operating in the Malaysia SaaS Market are:
- Gcloud Technology Sdn. Bhd. (Freshworks Inc.)
- clickTRUE Malaysia (HubSpot, Inc.)
- Oracle Corporation Malaysia Sdn. Bhd. (Oracle Corporation)
- SAP Malaysia Sdn Bhd (SAP SE)
- Microsoft (Malaysia) Sdn Bhd (Microsoft
Corporation)
- Transfingo (Malaysia) Sdn. Bhd. (Xero Limited)
- Amazon Web Services Malaysia Sdn. Bhd.
(Amazon.com, Inc.)
- Telcowin Sdn. Bhd. (Salesforce, Inc.)
- Google LLC (Alphabet Inc.)
- Adobe Inc
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“The Malaysia
SaaS market presents significant opportunities driven by rapid digital
transformation, increasing cloud adoption, and government-led initiatives such
as MyDIGITAL. The demand for industry-specific SaaS solutions in sectors like
healthcare, finance, and e-commerce is growing, while AI-driven automation and
cybersecurity-focused SaaS platforms are gaining traction. With a thriving SME
sector seeking cost-effective digital solutions, there is strong potential for
localized and scalable SaaS offerings. Additionally, the rise of low-code and
no-code platforms further expands market accessibility. As businesses
prioritize agility and innovation, Malaysia’s SaaS market is poised for robust
growth, attracting both local and international players.” said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based global management
consulting firm.
“Malaysia SaaS Market, By Offering (Horizontal SaaS, Vertical SaaS), By
Enterprise Type (Large Enterprise, Small & Medium Enterprise), By
Deployment Type (Public, Private, Hybrid), By Application (Customer
Relationship Management (CRM), Enterprise Resource Planning (ERP), Collaboration
& Communication, BI & Analytics, Human Capital Management, Labor
Management, Operation Management, Business Chat Services, Others), By Industry
(IT & Telecom, BFSI, Retail & Consumer Goods, Healthcare, Education,
Manufacturing, Others), By Expense Reimbursement (Subscription Fees & Usage
Costs, Invoice Management, Tax Considerations, Cloud Hosting & Data Storage
Costs, Others) By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth
potential of Malaysia SaaS Market and provides statistics & information on Market
size, structure and future Market growth. The report intends to provide
cutting-edge Market intelligence and help decision-makers make sound investment
decisions., The report also identifies and analyzes the emerging trends along
with essential drivers, challenges, and opportunities in the Malaysia SaaS
Market.
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