Grab makes up 0.5% of Malaysian GDP
Reading Time: 2 minutesSingaporean delivery app Grab contributed 0.5% to Malaysia’s GDP in 2023, according to a new report by Kuala Lumpur-based advisory firm Econworks.
The platform created up to MYR 9.9bn (USD 2.24bn) from 277,237 earning opportunities, generating MYR 3.7bn in household income, the report says, adding that Malaysia’s gig economy continues to evolve, and Grab’s collaboration with government and industry stakeholders will play a critical role in shaping the digital economy.
Grab’s Malaysian roots
Founded by two Malaysians as MyTeksi in 2012, Grab is SEA’s biggest technology startup and first one-billion-dollar startup (decacorn). By 2016, it was rebranded as Grab with an expansion of regional partnerships with the development of products for couriers. It has been publicly traded on the NASDAQ since 2021.
Grab’s impact extends to increased sales for local businesses offering transport, food, retail and professional services, and economic spillover effects for petrol sales, vehicle maintenance, food supplies, and digital payment services.
Malaysian Digital Minister Gobind Singh said, “For over a decade, Grab has been a key driver of economic growth and opportunity creation in Malaysia.”
Drivers drive growth
Grab drivers were responsible for the largest share of the economic impact, contributing MYR 4.6bn to Malaysia’s GDP. Merchants added MYR 4.2bn through increased sales via GrabFood and GrabMart. Grab’s corporate operations, including technology and support services, contributed MYR 1.1bn.
The report highlights that 1 in every 64 members of Malaysia’s labour force benefited from an earning opportunity enabled by Grab, which supported livelihoods for people working in the ecosystem. Many gig workers and small businesses leveraged the flexible platform for additional income.
Beyond economic figures, Grab’s presence in Malaysia has generated other benefits, Econworks writes, by filling public transportation gaps and encouraging SMEs to use digital. The growth of GrabPay has brought digital banking and lending options to partners who may lack access to traditional banking, Econworks adds.
Grab’s continued partnerships with government and industry stakeholders will help drive Malaysia’s economic growth and sustainable development, Econworks underlines.