Malaysia's Big Data Analytics Market Poised For Robust Growth, Says Expert

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Jan 24 (Bernama) -- The big data analytics (BDA) market is experiencing robust growth globally and in Malaysia, driven by the rising demand for data-driven solutions, said associate professor in Computer Science and head of the School of Mathematical and Computer Sciences at Heriot-Watt University Malaysia, Dr Ian Tan.

According to Tan, a study commissioned by Malaysia Digital Economy Corp (MDEC) and conducted by International Data Corporation (IDC) projects that Malaysia’s BDA market will grow from US$1.1 billion (US$1 = RM4.38) in 2021 to US$1.9 billion by 2025.

On a global scale, the Statista global data and business intelligence platform forecast the BDA market to reach US$103 billion by 2027, highlighting the increasing significance of BDA in driving business innovation and shaping competitive strategies across industries.

Tan emphasised the significant implications of data analytics for economic growth and job creation, describing it as a key driver of innovation in the healthcare, finance, and technology sectors.

“Data analytics is not only a catalyst for growth but also a key driver of innovation across sectors such as healthcare, finance, and technology.

“It has become a cornerstone of modern economies, helping businesses and governments harness diverse, vast amounts of data to inform strategic decisions,” he said.

Accelerated adoption of digitalisation and data analytics

Tan noted that the Covid-19 pandemic accelerated digitalisation and the adoption of data analytics in businesses.

He stated that data-driven strategies have helped companies enhance efficiency, optimise operations, and engage customers more effectively.

“For example, e-commerce giants like Shopee and Lazada use big data to personalise shopping experiences, which has led to increased customer satisfaction and higher sales. On a global scale, the impact of data analytics on economic growth is similarly significant,” he added.

Globally, the World Economic Forum (WEF) estimated that data-driven applications could contribute US$13 trillion to the global economy by 2030.

Countries investing in data infrastructure and digital skills are poised to reap substantial benefits and position themselves as leaders in the digital economy.

In this context, Malaysia’s digitalisation initiatives, such as MyDIGITAL, are crucial to boosting the country’s digital economy and enhancing its regional competitiveness.

Fostering innovation across sectors

Tan also highlighted data analytics’ role in transforming various sectors, such as healthcare and finance.

In healthcare, predictive analytics enhances patient outcomes by optimising resource allocation and treatment strategies, allowing healthcare providers to proactively address health threats, strengthen public health resilience, and deliver improved care.

In finance, data analytics enables risk assessment, fraud detection, and customer behaviour analysis, as financial institutions utilise big data to monitor transaction patterns in real-time, mitigating risks and building consumer trust.

“This proactive approach not only protects assets but also builds consumer trust, an essential element of successful financial services. The widespread use of data analytics in sectors like healthcare and finance highlights its potential to drive innovation, economic growth, and improved public services,” he said.

Addressing the skills gap

Tan said that the rise of data analytics has created new job opportunities, but Malaysia faces a significant skills gap in this rapidly growing field.

According to a WEF survey, 50 per cent of employees globally will need reskilling by 2025 due to increased technology adoption.

In Malaysia, while 65 per cent of employees consider digital skills essential, according to a survey by Economist Impact, there is often a mismatch between the skills needed by employers and those possessed by the workforce.

Tan noted that employees also face obstacles in acquiring new digital skills as high training costs and limited access to learning resources, particularly in rural areas, remain significant barriers.

The Economist Impact survey highlighted that around 39 per cent of employees cited the high cost of courses as a major challenge.

Collaboration between government bodies, educational institutions, and industry players is crucial to close the skills gap.

Tan noted that aligning training programmes with industry needs will help Malaysia build a workforce capable of driving its digital economy forward.

Heriot-Watt University Malaysia is currently offering a 30 per cent inaugural scholarship for students enrolling in the BSc (Hons) Information Systems with Data Analytics programme in January 2025 to widen access to education.

This scholarship is designed to make higher education more accessible and attract a diverse group of talented individuals eager to contribute to Malaysia’s expanding digital workforce.

By reducing the financial burden, the scholarship allows students to focus on their studies while preparing for careers in data analytics.

It is also part of a broader initiative to address the skills gap in the field and equip students with the necessary competencies to meet the evolving demands of the job market.

For more information on the scholarships, kindly visit Heriot-Watt University Scholarships - Heriot-Watt University Malaysia.

-- BERNAMA