Malaysia 5G Core Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Malaysia 5G Core Market Overview

• The Malaysia 5G Core Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet, the proliferation of IoT devices, the government's push for digital transformation across various sectors, and rising adoption of private networks in manufacturing and Industry 4.0 applications. The expansion of 5G infrastructure is also supported by investments from both public and private sectors, enhancing connectivity and enabling new applications.
• Key cities such as Kuala Lumpur, Penang, and Johor Bahru dominate the Malaysia 5G Core Market due to their advanced infrastructure, high population density, and significant economic activities. Kuala Lumpur, as the capital, serves as a hub for technology and innovation, while Penang is known for its manufacturing and tech industries. Johor Bahru benefits from its proximity to Singapore, fostering cross-border digital initiatives.
• In 2023, the Malaysian government implemented the National Digital Network (JENDELA) initiative, aimed at enhancing the country's digital infrastructure. This initiative includes a commitment of USD 1 billion to improve broadband access and accelerate the rollout of 5G technology, ensuring that urban and rural areas alike benefit from enhanced connectivity and digital services.

Malaysia 5G Core Market Segmentation

By Component:The market is segmented into Hardware, Software, and Services. Hardware includes RAN, Core, Edge, and CPE, while Software encompasses Network Management and Orchestration. Services are categorized into Consulting, Integration, and Managed services. The Hardware segment is currently leading the market due to the increasing demand for advanced network infrastructure to support 5G capabilities.

By Deployment Model:The market is divided into On-Premises, Cloud/Network-as-a-Service, and Hybrid deployment models. The On-Premises model is currently the most popular due to its reliability and control over data security, especially among large enterprises that require robust infrastructure for their operations.

Malaysia 5G Core Market Competitive Landscape

The Malaysia 5G Core Market is characterized by a dynamic mix of regional and international players. Leading participants such as Telekom Malaysia Berhad, Maxis Berhad, CelcomDigi Berhad, Digi Telecommunications Sdn Bhd, U Mobile Sdn Bhd, Huawei Technologies (Malaysia) Sdn Bhd, Ericsson Malaysia Sdn Bhd, Nokia Solutions and Networks (Malaysia) Sdn Bhd, ZTE (Malaysia) Corporation Sdn Bhd, Cisco Systems (Malaysia) Sdn Bhd, Samsung Malaysia Electronics (SME) Sdn Bhd, NEC Corporation of Malaysia Sdn Bhd, Qualcomm Technologies, Inc., YTL Communications Sdn Bhd, Digital Nasional Berhad (DNB) contribute to innovation, geographic expansion, and service delivery in this space.

Malaysia 5G Core Market Industry Analysis

Growth Drivers

• Increasing Demand for High-Speed Internet:The demand for high-speed internet in Malaysia is projected to reach 20 million broadband subscriptions in future, driven by a growing digital economy. The World Bank estimates that a 10% increase in broadband penetration can boost GDP by 1.38%. This surge in demand is fueled by the rise in remote work, online education, and digital services, necessitating robust 5G infrastructure to meet consumer expectations for speed and reliability.
• Government Initiatives and Investments:The Malaysian government has allocated approximately RM 15 billion (USD 3.6 billion) for the National Digital Infrastructure Plan, aiming to enhance 5G deployment. This initiative is part of the broader Malaysia Digital Economy Blueprint, which targets a 20% contribution of the digital economy to GDP in future. Such investments are crucial for establishing a competitive 5G ecosystem, fostering innovation, and attracting foreign investments in technology.
• Rise in IoT Applications:The Internet of Things (IoT) market in Malaysia is expected to grow to RM 9.5 billion (USD 2.3 billion) in future, driven by increased adoption across various sectors, including manufacturing, healthcare, and agriculture. The proliferation of IoT devices necessitates the deployment of 5G networks, which can support the massive data transfer and low latency required for real-time applications. This growth is further supported by the government’s push for smart city initiatives.

Market Challenges

• High Infrastructure Costs:The deployment of 5G infrastructure in Malaysia is hindered by high costs, estimated at RM 30 billion (USD 7.2 billion) for nationwide rollout. This includes expenses related to the installation of new base stations and upgrading existing networks. The financial burden poses a significant challenge for telecom operators, particularly smaller players, who may struggle to secure the necessary capital for investment in advanced technologies.
• Regulatory Hurdles:Regulatory challenges in Malaysia, including complex licensing processes and spectrum allocation issues, impede the swift deployment of 5G networks. The Malaysian Communications and Multimedia Commission (MCMC) has faced criticism for delays in spectrum allocation, which can take up to 18 months. These regulatory bottlenecks can slow down the market's growth and deter potential investors from entering the 5G space.

Malaysia 5G Core Market Future Outlook

The future of the Malaysia 5G core market appears promising, driven by technological advancements and increasing digitalization across sectors. As the government continues to invest in infrastructure and regulatory frameworks improve, the adoption of 5G technology is expected to accelerate. Additionally, the rise of smart cities and IoT applications will create new avenues for growth, enhancing connectivity and driving economic development. The focus on sustainability will also shape future investments in green technologies within the telecommunications sector.

Market Opportunities

• Expansion of Smart City Projects:The Malaysian government has earmarked RM 2 billion (USD 480 million) for smart city initiatives in future. This investment will facilitate the integration of 5G technology into urban planning, enhancing public services and infrastructure. The development of smart cities presents significant opportunities for telecom operators to provide innovative solutions and services, driving demand for 5G connectivity.
• Development of 5G-Enabled Applications:The market for 5G-enabled applications is projected to reach RM 5 billion (USD 1.2 billion) in future, driven by sectors such as healthcare, transportation, and entertainment. This growth will create opportunities for developers and tech companies to innovate and deliver new services that leverage the capabilities of 5G, enhancing user experiences and operational efficiencies across industries.