According to the Fintech Malaysia Report 2023, the total number of fintech companies operating in Malaysia increased from 291 to 313 in the year 2023. This growth underscores Malaysia's significant progress in the fintech sector compared to other countries. The widespread adoption of fintech solutions, such as e-wallets, is particularly striking, extending even to a small town like Engkilili in Sarawak. For instance, local businesses like grocery stores, pharmacies, and eateries in Engkilili are jumping on board with digital payment methods, including e-wallets, alongside traditional cash transactions. This exemplifies the accessibility and adaptability of fintech services across diverse regions of the country.
Internet connectivity remains a key driver of fintech adoption in Malaysia. Notably, Malaysia boasts the second-highest internet penetration rate in Southeast Asia, with approximately 94 percent of the population connected to the internet in 2022, as reported by Statista. Additionally, around 89 percent of Malaysians had access to mobile internet through their smartphones during the same period. By embracing digital payment methods, businesses can streamline transactions, reduce operational costs, and reach a wider customer base, thereby stimulating economic activity. As a result, the expansion of fintech services and digital payments contribute to a more efficient and dynamic economy, positioning Malaysia as a competitive player in the global marketplace.
Moreover, merchants in Malaysia are capitalising on this momentum by leveraging innovative solutions to cater to incoming travelers from China, as Malaysia is the fifth most popular destination globally for Chinese tourist, with an estimated 100,000 tourists spending RM1.5 billion in Malaysia during this year’s Chinese New Year. By accepting QR payments via the DuitNow QR feature through Alipay, one of China's preferred payment platforms, merchants are offering travelers a fast, convenient, and secure payment experience. This initiative not only enhances the overall travel experience for visitors but also contributes to Malaysia's economy and reputation as a tech-savvy destination.