Mega Trends are defined as transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives.
According to Hazmi Yusof, Malaysia Country Head and Senior Vice President of Frost & Sullivan,“We want to help our clients use Mega Trends as a framework to think about how to innovate and drive their business. Mega Trends have diverse meanings and impacts for different industries, companies, and individuals. Companies able to grasp these trends and incorporate them into their future strategy, development, and innovation process, will have a leg up on the competition.”
“We are delighted to partner with MIDA to launch the Malaysian Edition of Frost & Sullivan’s Mega Trends report. MIDA is at the forefront of transforming the country’s international competitiveness and we feel that Frost & Sullivan’s Mega Trends Malaysia report is a perfect fit for their goal,” he continued.
Dato’ Azman Mahmud, Chief Executive Officer of MIDA said,“The content of the report concentrates on aligning Malaysia’s position to fit into the global trends. This is essential as it ensures more inclusive growth and sustainable development, which are necessary to move the economy up the value chain as well as rebranding Malaysia’s image as a centre for high technology and global activities.”
“As MIDA aims at generating quality investments in new and emerging technologies, this research will aid our efforts in strategising for the future roadmap and ecosystem for Malaysia as a natural FDI destination, together with relevant domestic investments, in both the industrial & services sectors” he added.
Three out of eleven Mega Trends were highlighted from the report at today’s launch Connectivity & Convergence, Economic Trends, and Health, Wellness, and Well-being.
Connectivity and Convergence
Malaysia is expected to have 125 million connected devices in 2025 with over 58 million mobile subscribers. 95% of all netizens, or Internet users, will be active social network users, presenting a huge potential for digital marketing and eCommerce. Social networking users in Malaysia are expected to nearly double to 25.6 million in 2020.
The Internet of Things (IoT) in Malaysia is expected to provide potential revenue of over US$64 billion over the next 10 years, with US$53 billion of this coming from the private sector.
The Internet economy (iGDP) market is expected to contribute 16% (US$90 billion) to the GDP by 2025, up from 4.3% in 2010 as the importance of Internet and digitally-connected solutions grows in the economy.
Malaysia is expected to record a GDP of over US$632 Billion by 2025 from US$313 Billion currently, capitalizing on a steady growth rate.
Intra-ASEAN trade to be boosted by the ASEAN Economic Community (AEC) integration in 2015 and will comprise almost 30% of total trade by 2025. China and Singapore to remain Malaysia’s top trading partners. Most key import sources are also Malaysia’s main export markets, driving intra-Asia trade.
Tourist arrivals in Malaysia are the highest among ASEAN countries and tourism contributes 12.5% to the country’s GDP. Malaysia will remain the ‘Tourism Capital of Southeast Asia’ with over 35 million tourists bringing in over US$50 billion in receipts by 2020.
Health, Wellness and Well-being
Healthcare spending in Malaysia will be valued around US$27.7 billion in 2020, with healthcare expenditure per capita rising from US$520, currently, to about US$800 in 2020. The medical tourism and senior-living industry will witness a surge, and focus will shift from therapeutic to preventive care.
Medical tourists are expected to account for 4.5% of total tourists by 2020, generating revenue of US$2.6 billion. Currently, 72 healthcare facilities and hospitals have registered with the Malaysian Healthcare Travel Council to participate in medical tourism.
The aged care industry in Malaysia is expected to reach US$1.4 billion in size by 2020. 19,488 retirees from 120 countries have moved to Malaysia since 2002, as part of programs like Malaysia My Second Home. Retirement villages are to be built at Kuching, Ipoh, Kuala Lumpur, and Johor Bahru, positioning Malaysia as the ‘retirement capital of Asia.’
Frost & Sullivan will present on Mega Trends in Malaysia on April 14 at its flagship Growth, Innovation & Leadership congress at the Mandarin Oriental Hotel in Kuala Lumpur.
About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
About The Malaysian Investment Development Authority (MIDA)
The Malaysian Investment Development Authority (mida.gov.my) is the government's principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA is the first point of contact for investors that want to take advantage of Malaysia’s vibrant economy, world-class infrastructure and business-friendly environment to set up their profit centre in Asia.