Malaysia’s thriving tech sector faces a significant challenge – the limited size of its domestic market. With a population of just 33 million, startups find it difficult to reach the critical user base and revenue growth necessary for scalability. This market constraint limits investment opportunities, potentially stifling innovation and preventing the rise of regional tech leaders. Without access to a broader user base, companies may struggle to create solutions with global relevance, thereby restricting their potential for scale and long-term impact.
As a result, Malaysian companies are increasingly looking beyond their borders for growth opportunities. In this increasingly interconnected global economy, regional expansion has become a strategic move that can set the stage for global success. This article explores how Malaysia Digital (MD) status companies can take advantage of Digital Exports CONNEX – a robust platform that connects 25 global markets on a single platform.
Significance of Global Expansion
Global expansion is a priority for businesses seeking sustained growth and resilience. By entering new markets, companies can tap into broader opportunities, reduce dependency on any single market and enhance their ability to navigate economic fluctuations and evolving consumer trends. This approach fuels revenue growth and strengthens a company’s ability to withstand localised challenges as follows:
Exploring Key Markets in ASEAN
The ASEAN region is a goldmine waiting to be tapped for digital companies. The Google e-Conomy SEA 2023 report highlights a 20% increase in the number of digital consumers in Southeast Asia during the pandemic alone. This double-digit growth will drive consumer and business adoption of digital tools. In addition, the ASEAN digital economy is also expected to hit a gross merchandise value (GMV) of USD 1 trillion by 2030.
This growth is partly driven by ASEAN’s young and digitally fluent population of over 400 million internet users. Bolstered by these demographics and mobile connectivity, ASEAN’s e-commerce market is projected to hit a staggering USD 130 billion by 2025, with a continuous growth rate of 15%. (e-Conomy, 2023)
Additionally, the same report estimates that ASEAN’s internet economy will reach USD 170 billion in gross merchandise value by the end of 2021 and exceed USD 360 billion by 2025. This broader estimate includes e-commerce and other digital sectors within the internet economy.
Recognising the potential of the digital economy, many ASEAN governments are also actively promoting digitalisation initiatives, creating a business-friendly environment for tech companies while cooperating with other ASEAN governments. Bilateral cooperation on frameworks like the ASEAN Digital Economy Framework Agreement will harmonise digital opportunities for the region, going beyond the existing bilateral or multilateral Digital Economy Agreements.
The ASEAN region offers a distinct combination of a thriving digital economy, a rapidly expanding tech-savvy population and strong government support. By entering this market, digital companies can access significant growth potential and capitalise on a wealth of untapped opportunities across the four key ASEAN markets:
Expanding new horizons in China, Africa, the Middle East, Europe and the Americas
Beyond ASEAN, Malaysia Digital Economy Corporation (MDEC) also supports companies in seizing global opportunities by emphasising specific tech verticals to penetrate new markets effectively. Key verticals include AgriTech, Artificial Intelligence, Semiconductor, Cybersecurity, Smart Cities, FinTech and more. This growth is driven by the increasing global demand for innovation across various sectors as countries worldwide seek advancements to accelerate their digital transformation in an interconnected world.
Recognising the immense potential of these tech verticals, many countries are actively promoting initiatives to attract innovative solutions. Governments are creating business-friendly environments and collaborating with international partners to foster the adoption of advanced technologies. This global trend presents a significant opportunity for Malaysian tech companies to expand their reach and impact across diverse markets. MDEC collaborates with governments, partners and industry associations to facilitate market entry and growth for Malaysian tech companies.
The global landscape is ripe with opportunities for tech companies ready to expand and innovate. MDEC ensures continuous support through virtual and physical business matching and trade missions to bridge opportunities for Malaysian tech companies. These interventions help companies gain insights into market dynamics, identify strategic opportunities and land significant business deals.
Understanding DEX CONNEX
DEX CONNEX, a flagship platform of the GAIN (Gateway, Amplify, Invest and Nurture) programme, connects Malaysian companies with global markets and tech ecosystems, fostering bilateral digital trade. MDEC’s GAIN programme has achieved RM31.9 billion in revenue since 2017 to 2023 with exports worth over RM11.2 billion. Success on this platform is driven by companies leveraging its features, which are rooted in MDEC’s extensive experience in export facilitation for tech companies. Features and advantages offered by DEX include the following:
Business matching – DEX CONNEX drives growth by matching Malaysian tech companies with global partners, clients or collaborators based on profiles, industries, and unique selling points.
Market Insights – The platform offers expert-led sessions on country trends, market data and industry analysis, providing essential insights into regulatory changes, market dynamics and emerging opportunities, helping companies make informed decisions.
Networking Events – Malaysian tech companies can join webinars, conferences and networking sessions to connect with industry peers and distributors, fostering cross-border relationships and exploring collaboration opportunities, including joint ventures and expansion.
Partner Network – DEX CONNEX links Malaysian companies with over 3,000 global and regional partners, including business chambers, industry associations and government bodies, amplifying their reach and providing access to resources and expertise for mutual growth.
Proven Methodology – DEX CONNEX’s structured approach has a track record of success, guiding Malaysian tech companies in entering new markets, securing investments, and forming strategic alliances to achieve their export goals.
What is Malaysia Digital X-Port Grant (MDXG)?
MDXG is focused on supporting Malaysian technology companies that have demonstrated export readiness and are seeking to expand their global market presence.
The grant aims to stimulate high-value digital exports that lead to the development and commercialisation of market-driven, disruptive, innovative, and sustainable products or services for the global market.
For more details please visit https://mdec.my/grants/mdxg
About Smart City Expo Kuala Lumpur (SCEKL) 2025
Companies are also gearing up for Smart City Expo Kuala Lumpur (SCEKL) from 17-19 September 2025 — a major platform for showcasing Malaysia’s digital capabilities to international stakeholders. The momentum generated through MDXG can extend into events like SCEKL, where export-ready solutions can gain visibility, forge partnerships, and build regional traction.
Hosted by the Ministry of Digital, co-organised by MDEC and Digital Nasional Berhad (DNB), Smart City Expo Kuala Lumpur (SCEKL) is the Southeast Asian edition of the world’s leading urban innovation event, the Smart City Expo World Congress brought to you by Fira Barcelona.
Smart City Expo Kuala Lumpur 2025 is themed "AI Cities: Shaping Our Digital Future". This high-impact event will bring together global thought leaders, cutting-edge innovators, and urban changemakers to explore how digital technologies and artificial intelligence are transforming the way we live, work, and connect in our cities.
The expo will feature notable international speakers, including Dr. David Hanson, the visionary behind the renowned Sophia the Robot and founder of Hanson Robotics, who will serve as the Keynote Speaker. Sophia the Robot - the humanoid robot will also make a special appearance at the event.
For more details, please visit https://www.smartcityexpokl.com/
This content is provided by MDEC
