The mobile service revenue in Malaysia is expected to grow steadily from $5.1 billion in 2024 to $6.1 billion in 2029, reflecting a compound annual growth rate (CAGR) of 3.5 percent.
The growth in mobile service revenue in Malaysia is fueled by several factors, notably the rise in mobile data consumption, the adoption of 5G technology, and a marked consumer preference for over-the-top (OTT) communication platforms, GlobalData said in its report.
Mobile voice service revenue in Malaysia is projected to decline at a CAGR of 1.1 percent due to the widespread shift from traditional voice calls to OTT applications such as WhatsApp and Telegram, which offer more flexible and often cost-free communication options. This shift leads to a drop in mobile voice average revenue per user (ARPU), further accelerating the decline in this segment.
In contrast, mobile data services in Malaysia are experiencing robust growth, with revenue in this segment set to rise at a CAGR of 5.1 percent between 2024 and 2029. This increase is attributed to the expansion of mobile internet subscriptions, the rising consumption of data-heavy content like video streaming and social media, and the proliferation of 5G service plans that offer higher ARPU potential.
By 2029, average monthly mobile data usage in Malaysia is forecast to more than double, increasing from 21.6 GB in 2024 to 51.9 GB. This surge is being driven by several dynamics, including greater availability of affordable smartphones, improved 5G coverage, and strategic pricing and bundling of high-data plans by telecom operators.
The transition to 5G is particularly significant in Malaysia, as it unlocks higher speeds, lower latency, and improved network efficiency, encouraging more frequent and data-intensive usage patterns among consumers, Sarwat Zeeshan, Telecom Analyst at GlobalData, said.
In line with this trend, 5G subscriptions in Malaysia are projected to outpace 4G by 2025 and dominate the market with an 84 percent share of total mobile subscriptions by 2029. This shift is being facilitated by the government’s and operators’ investment in expanding the 5G infrastructure, with the country already achieving 82.4 percent 5G population coverage by the end of 2024.
The advent of 5G is also catalyzing growth in machine-to-machine (M2M) and Internet of Things (IoT) applications, sectors that rely heavily on fast, reliable, and low-latency networks.
M2M/IoT subscriptions in Malaysia are expected to expand at a CAGR of 14.7 percent through 2029, with telecom operators such as Telekom Malaysia and CelcomDigi rolling out tailored solutions that cater to enterprise and industrial demands for automation, remote monitoring, and smart infrastructure. These services are creating new revenue streams and diversifying the business models of operators in the country.
On the competitive front, CelcomDigi emerged as the market leader in mobile subscriptions in 2024 and is expected to maintain this position through 2029. Its sustained leadership is being driven by an aggressive strategy focused on 5G network expansion, infrastructure modernization, and the provision of comprehensive prepaid and postpaid offerings that feature unlimited calling and generous data packages.
Meanwhile, competitors like Maxis continue to invest in Malaysia in enhancing service quality and diversifying offerings to remain competitive in an increasingly data-centric mobile services market.
TelecomLead.com News Desk
