Every RM1 generated by Grab and its partners contributes an additional RM1.50 to Malaysia’s broader economy, highlighting its significant multiplier effect.
KUALA LUMPUR: A new report by the local economic consultancy EconWorks has revealed that Grab’s on-demand services, including ride-hailing and delivery, contributed a substantial RM9.9bil to the Malaysian economy in 2023, accounting for approximately 0.5% of the country’s Gross Domestic Product (GDP).
“Tech platform companies provide access to flexible earning opportunities and support the digital growth of small businesses,” said EconWorks managing director Wan Khatina Nawawi.
“In its twelve 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.”
The report quantifies the impact of Grab’s operations and the downstream impact of its on-demand services on the gig workers and businesses that earn an income and sell their products on its platform.
Over 80% of Grab's value-added contribution comes from its driver- and merchant-partners across various services.
Key highlights include:
> Grab contributed RM9.9bil to the Malaysian economy in 2023, equivalent to around 0.5% of the country’s GDP:
a) For every RM1 in value added directly generated by Grab and its partners, an additional RM1.50 was generated for the broader economy via multiplier effects.
b) 88% of this value added contribution comes from Grab’s driver- and merchant-partners who operate across the different Grab services.
c) In 2023, driver-partners contributed RM4.6bil 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 RM3.7bil to household incomes. This increase in earnings by driver-partners and merchant-partners translates into more money in the pockets of Malaysians.
Digital Ministry secretary-general Fabian Bigar (centre), Grab Malaysia managing director Adelene Foo (left) and Wan Khatina are posing with the report on Grab’s economic contribution to Malaysia in Kuala Lumpur.
“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," Wan Khatina concluded.
Digital Minister Gobind Singh Deo has also emphasised that Grab’s ongoing collaboration with the government and industry stakeholders will be crucial in driving Malaysia’s economic growth and sustainable development.
To access the full report, download it from this link.
