KUALA LUMPUR: A new report by local economic consultancy EconWorks revealed that Grab’s on-demand services, including ride-hailing and delivery, facilitated a substantial economic contribution of RM9.9 billion to the Malaysian economy in 2023, approximately 0.5% of the country’s GDP.
“Tech platform companies provide access to flexible earning opportunities and support the digital growth of small businesses. In its 12 years of operations in Malaysia, Grab has significantly contributed to the economic benefits for various communities across Malaysia. For every RM1 generated by Grab transactions, an additional RM1.50 of economic activity is created across the broader economy. This underscores the positive impact of the Grab ecosystem on millions of Malaysians in their daily lives,” said EconWorks managing director Dr Wan Khatina Nawawi.
The report quantifies the impact of Grab’s operations and the downstream impact of its on-demand services on gig workers and businesses that earn an income and sell their products on its platform.
The study also found that 88% of this value added contribution comes from Grab’s driver- and merchant-partners who operate across the different Grab services.
In 2023, driver-partners contributed RM4.6 billion in value added, accounting for 0.25% of Malaysia’s GDP.
Grab’s ecosystem supported up to 277,237 earning opportunities, providing income streams for driver-partners, merchant-partners, and workers in their combined supply chains. This means that 1 out of 64 individuals in Malaysia’s labour force benefit, directly or indirectly, from Grab-related activities.
Earning opportunities enabled by Grab have contributed an additional RM3.7 billion to household incomes. This increase in earnings by driver-partners and merchant-partners translates into more money in the pockets of Malaysians.
“The report highlights the advantages of Malaysia’s supportive business environment, which is now focused on the digital economy, enabling platform companies like Grab to thrive and contribute meaningfully to the economy. By quantifying these contributions, this study provides a comprehensive view of how Grab and its stakeholders interact with the broader Malaysian economy, facilitating economic growth,” said Wan Khatina.
