A new report by local economic consultancy EconWorks has revealed that Grab’s on-demand services, including ride-hailing and delivery, contributed RM9.9 billion to the Malaysian economy in 2023, accounting for approximately 0.5% of the country’s Gross Domestic Product (GDP).

According to the report, Grab’s operations have had a far-reaching impact on gig workers and businesses that earn an income through its platform. The study highlights that for every RM1 generated by Grab transactions, an additional RM1.50 of economic activity is created across the broader economy, underscoring the company’s role in driving economic growth.

EconWorks Managing Director, Dr. Wan Khatina Nawawi, emphasised the significance of platform companies in Malaysia’s digital economy, noting that Grab has played a crucial role in providing flexible earning opportunities and fostering the digital growth of small businesses.

The report further quantifies the impact of Grab’s ecosystem, revealing that 88% of its total economic contribution comes from its driver-partners and merchant-partners. In 2023 alone, driver-partners contributed RM4.6 billion in value added, equivalent to 0.25% of Malaysia’s GDP. Grab’s operations also supported up to 277,237 earning opportunities, benefiting individuals across its network, including driver-partners, merchant-partners, and workers within their supply chains. This translates to one in every 64 individuals in Malaysia’s labour force benefiting, either directly or indirectly, from Grab-related activities.

Additionally, the report estimates that Grab-enabled earning opportunities have contributed an additional RM3.7 billion to household incomes, providing a financial boost to Malaysians. This increase in earnings for driver-partners and merchant-partners has resulted in more disposable income circulating within the economy.

“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,” Khatina said.

The full report can be accessed here.

• TAGS:
• Delivery
• Dr. Wan Khatina Nawawi
• Economy
• EconWorks
• Grab
• Gross Domestic Product
• Ride-hailing