Malaysia Fintech Market Size | 2019-2032

Malaysia Fintech Market Growth and Performance

Key Takeaways:

• The revenue of the Malaysia fintech market in 2023, stood at US$ 54.88 Billion.
• Furthermore, projections indicate that the fintech market in Malaysia is poised for sustained growth, with an anticipated annual growth rate of 25.9% from 2024 to 2032, as denoted by the Compound Annual Growth Rate (CAGR).
• In terms of market segmentation, fintech digital payment market emerges as the dominant segment, commanding a market value of US$ 328.70 Billion in 2032.

Malaysia Fintech Market Outlook

The Malaysia fintech market has witnessed significant expansion, particularly due to its strong foundation in Islamic finance. Kuala Lumpur is recognized as a global hub for Sharia-compliant financial services, ranking third worldwide in terms of Islamic financial assets, holding approximately 12% of the market. Malaysia stands alongside financial centers such as Dubai, Riyadh, and Jakarta in shaping the future of Islamic fintech solutions. This dominance has fostered innovation in the Malaysia fintech industry, positioning the country as a key player within the ASEAN region.

With over 550 fintech firms, the Malaysia fintech sector ranks third in the region, demonstrating a diverse ecosystem. Digital payments lead the market, followed by lending platforms and e-wallets. Other growing segments include remittances, insurtech, and wealthtech, each playing a critical role in the Malaysia fintech landscape. Companies such as Jirnexu Sdn Bhd, MoneyMatch, and PolicyStreet are among the prominent players driving fintech adoption in the country.

Regulatory Framework Boosting Fintech Market Growth in Malaysia

Government policies and proactive regulatory measures have been instrumental in accelerating the growth of the Malaysia fintech market.

• In 2015, the Securities Commission Malaysia (SC) introduced the Alliance of Fintech Community (aFINity) to enhance the Malaysia fintech ecosystem. That same year, CrowdPlus, the nation’s first equity crowdfunding platform, was established to support startups and SMEs in securing alternative funding.
• In 2016, Bank Negara Malaysia (BNM) launched the Financial Technology Enabler Group (FTEG) to create a regulatory framework that encourages innovation in financial services. The introduction of a regulatory sandbox allowed fintech firms to test and refine their solutions within a controlled environment.

The government remains committed to strengthening fintech infrastructure while ensuring economic stability and fostering a financial environment that supports inclusivity and innovation.

Malaysia Fintech Market Drivers

The rapid expansion of the Malaysia fintech market is fueled by a tech-savvy population, increasing smartphone penetration, and strong governmental support. Digital payments and e-wallet adoption have surged, driven by emerging technologies such as artificial intelligence, blockchain, and machine learning. Innovations in digital transfers, cryptocurrency, and alternative financing solutions like crowdfunding have further bolstered fintech development in Malaysia.

Mobile and internet banking usage has grown exponentially, supported by 4G advancements and affordable data plans. With commercial banks reducing their physical branch networks, mobile and online banking have become primary financial service channels. Additionally, Malaysia’s equity crowdfunding (ECF) and peer-to-peer (P2P) financing landscape remain among the most dynamic in the region, attracting a diverse investor base and fostering innovative financial solutions.

Malaysia Fintech Market Competitive Landscape

One of the defining trends in the Malaysia fintech industry is the rise of second-generation startups. Industry veterans with over a decade of experience are launching new fintech ventures, leveraging their expertise to drive market innovation. A notable example is the transition of Liew Ooi Hann and Lucas Ooi, former co-founders of Jirnexu (known for RinggitPlus), who have now established Halogen Capital, a licensed digital asset management firm. Halogen Capital specializes in Shariah-compliant cryptocurrency funds, catering to high-net-worth individuals and institutional investors.

As the Malaysia fintech sector continues evolving, consumers can expect more personalized and efficient financial services. However, cybersecurity and data protection remain critical concerns. To ensure sustainable growth, fintech companies must prioritize robust security frameworks while fostering user trust. The future of the Malaysia fintech market looks promising, with continued advancements enhancing financial accessibility and economic empowerment for all stakeholders.

Malaysia Fintech Market Scope