TikTok Generates RM20 Billion for Malaysia’s Economy in 2025, Supports Over 147,000 Jobs
KUALA LUMPUR — TikTok’s growing presence in Malaysia has delivered a significant boost to the nation’s digital economy, contributing an estimated RM20 billion in gross value added (GVA) to the country’s gross domestic product (GDP) in 2025 while supporting more than 147,000 jobs nationwide.
The findings were revealed in the TikTok Socioeconomic Impact Report 2025, which highlights the platform’s expanding influence across Malaysia’s digital business ecosystem, particularly among small and medium-sized enterprises (SMEs), content creators and online entrepreneurs.
The report was launched in Kuala Lumpur by Economy Minister Akmal Nasrullah Mohd Nasir, who emphasised the importance of measuring digital growth through its tangible economic impact on businesses, employment and productivity.
Rapid Growth of Malaysia’s Digital Participation
According to the report, TikTok has become one of the most widely used digital platforms in Malaysia, reflecting the rapid transformation of the country’s digital economy.
In early 2024, TikTok recorded approximately 28.68 million users in Malaysia, representing around 84.4 per cent of the country’s internet population. This extensive reach has allowed businesses, entrepreneurs and creators to connect with audiences across the nation and beyond.
The platform has also played a major role in expanding opportunities for digital income. Around 80 per cent of surveyed Malaysian creators and users reported that TikTok Live helped them increase earnings through brand collaborations, content monetisation or direct product promotion.
This trend highlights how live-streaming and short-form content have evolved from entertainment tools into viable channels for entrepreneurship and digital marketing.
Driving Revenue Growth for Small Businesses
Small and medium enterprises across Southeast Asia have experienced significant benefits after incorporating TikTok into their marketing strategies.
The report revealed that SMEs in the region recorded nearly a 50 per cent increase in revenue after utilising the platform for promotional campaigns and product discovery.
Additionally, around 80 per cent of surveyed businesses transitioned from traditional offline marketing to digital promotion through TikTok, indicating a broader shift toward online commerce.
In Malaysia alone, the platform has helped onboard more than 100,000 micro, small and medium enterprises, including businesses located in semi-urban and rural communities.
This digital participation has enabled local entrepreneurs to expand their customer base beyond geographical limitations while strengthening Malaysia’s online business ecosystem.
Digital Discovery Influencing Consumer Behaviour
One of the report’s most notable findings is the growing “online-to-offline” purchasing trend among Malaysian consumers.
About 68 per cent of survey respondents said they discovered products on TikTok before purchasing them later at physical retail stores.
Researchers noted that this pattern demonstrates how digital content increasingly influences consumer decisions, even when the final transaction occurs offline.
For retailers and local brands, this shift means that digital visibility and social media engagement have become essential drivers of foot traffic and sales.
TikTok’s algorithm-driven content discovery has also helped smaller businesses compete more effectively by allowing their products to reach wider audiences without large marketing budgets.
Creator Economy Continues to Expand
Malaysia’s creator economy has matured significantly in recent years, with thousands of individuals now generating income through digital platforms.
Live-streaming, product reviews, storytelling and educational content have become viable revenue streams for many creators.
The report highlighted well-known Malaysian content creators such as Khairul Aming as examples of how community engagement and authentic storytelling can evolve into successful business ventures.
Through consistent content creation and audience interaction, creators are able to build loyal communities that support both digital products and physical businesses.
This model has helped transform social media into a powerful economic tool, particularly for younger entrepreneurs entering the digital marketplace.
Government Emphasises Responsible Digital Growth
Despite the impressive growth of Malaysia’s digital economy, the government has emphasised the need for responsible expansion and stronger regulatory oversight.
Akmal said digital transformation must ultimately translate into real benefits for society, including improved productivity, sustainable employment and stronger economic participation.
“Digital success must be measured by real economic value,” he said during the launch event.
He stressed that policymakers must evaluate whether digital platforms genuinely help businesses grow, improve efficiency and create meaningful income opportunities for Malaysians.
Looking ahead, the government has identified three major priorities for the next phase of digital development.
These include strengthening digital skills and talent development, improving digital commerce infrastructure and ensuring greater transparency and consumer protection within the digital ecosystem.
Strengthening Malaysia’s Digital Future
Akmal noted that maintaining trust within the digital economy will be essential for long-term growth.
A secure and transparent online environment will encourage businesses, creators and consumers to participate more actively in digital commerce.
To support these goals, the Ministry of Economy is working closely with agencies such as the Malaysia Digital Economy Corporation (MDEC) to strengthen policy coordination and ensure the digital sector continues to generate higher-quality employment opportunities.
As Malaysia accelerates its transition toward a technology-driven economy, platforms like TikTok are expected to play an increasingly influential role in shaping the future of digital entrepreneurship, innovation and job creation.
-wilayah.com.my
