Exploring Software Development in Malaysia: Growth Drivers and the Top Ten Companies

Statistics

Malaysia’s tech industry is growing rapidly, leading to an increasing demand for software development services. The continuous expansion of Malaysia’s software industry is illustrated through the following statistics.

• Malaysia’s application development software market is gaining momentum, with revenues projected to reach US$738.25 million by 2025. The sector is set to expand at a compound annual growth rate of 6.26% from 2025 to 2030, potentially hitting US$999.90 million by 2030. (Statista)
• During the third quarter of 2024, Malaysia witnessed a rapid growth in job titles like data engineer, full-stack engineer, full-stack developer, and more. (Malaysia Digital Economy Corporation)

Advantages of Software Development in Malaysia

Overview

When it comes to software development in Southeast Asia, in addition to Malaysia, the other top countries that come to mind are often Vietnam, the Philippines, and Singapore. This then begs the question – how does Malaysia’s software development market differ from them?

It’s easier if we put these countries into perspective and examine their strengths and focus.

• Singapore is known for its dynamic business ecosystem, government support, and a robust and efficient legal system. The country creates a great environment for investors, startups, and MNCs to carry out tech innovations.
• Vietnam is a prominent player in the software outsourcing market in Southeast Asia. By leveraging its vast labor market, the country offers competitive pricing policies and outsourcing services for its partners. Another thing that sets Vietnam apart from other countries is that a lot of its focus is on creating hardware, rather than just software.
• The Philippines’ workforce possesses excellent English communication skills, as English, along with Filipino, is the country’s secondary language. The country’s software development range of services is diverse, and Western countries may find it easier to work with a Filipino team, as the country shares many values with Western culture.

Malaysia’s Unique Advantages

Malaysia’s strengths lie in its unique blend of advantages that you can find in the aforementioned countries.

• Similar to the Philippines, Malaysia’s second language is English. English-speaking countries wouldn’t find it challenging to communicate with Malaysian teams due to their high English proficiency.
• The country possesses a balance between software development and IT services. It has developed a niche in the fintech and cybersecurity sectors.
• Both its software development and IT services are cost-efficient, especially when compared to Singapore.
• Malaysia’s education system is increasingly focusing on cultivating more tech talents in related fields to support the growing need in the industry.

Challenges

Even though Malaysia’s software development ecosystem is growing, there are still challenges ahead.

• Not yet a mature ecosystem: The country’s ecosystem isn’t as mature compared to countries like Singapore, especially when you take cutting-edge technology like AI. The
• Security concerns: Malaysia doesn’t have strong data security and intellectual property legal frameworks in place, so sensitive data may be at risk of malicious attacks.
• Competition from neighboring countries: The region consists of other countries with low-cost development services, so the competition can be fierce.

Strong Government Support

Malaysia’s government plays a key role in driving the country’s digital growth and strengthening its software development ecosystem. Through long-term strategies and targeted programs, it actively encourages innovation, investment, and local talent development. Major initiatives include:

• Malaysia Digital Economy Blueprint (MyDIGITAL): Aims to turn Malaysia into a digitally powered nation by 2030 by expanding 5G infrastructure, attracting foreign tech investment, and offering tax incentives for startups and IT firms.
• National Policy on Science, Technology, and Innovation (DSTIN): Focuses on building local innovation capacity by funding R&D, promoting collaboration between industry and academia, and strengthening STEM education.
• Economic Transformation Programme (ETP): Emphasizes IT and digital services as economic drivers through support for tech investments, smart city projects, and national technology parks like Cyberjaya and Penang Science Park (Malaysia’s leading innovation hubs).

Together, these policies have created a strong foundation for software development and outsourcing, helping Malaysia emerge as a competitive digital hub in Southeast Asia.

Growing Skilled Workforce

Malaysia’s IT industry thrives on its people; the growing pool of skilled engineers and developers is the foundation of the country’s rise as a regional tech hub. The country also prioritizes education and invests in higher education. With over 1000 technical and educational and training (TVET) colleges, and along with its universities and private institutions, Malaysia boasts a large pool of talent.

This strong foundation is further reinforced by Malaysia’s competent workforce, particularly in engineering, manufacturing, and IT. The government continues to support talent development through national initiatives, while private sector programs help bridge industry needs and academic training. Together, they create a skilled and diverse workforce, giving outsourcing companies access to a diverse and capable talent pool.

Tata Consultancy Services (TCS)

Established in 2023, Tata Consultancy Services (TCS) provides technology services for a range of industries, including banking, healthcare, consumer goods, education, and so on. TCS is a large company with over 2,000 employees, with its delivery center in Cyberjaya.

Key services of TCS include:

• Artificial Intelligence and Data & Analytics
• Enterprise solutions
• Cloud
• IoT and Digital Engineering
• Cognitive Business Operations and Consulting

Key clients of the company:

• Malaysia Airlines: TCS is providing IT infrastructure services and implementing a service management organization to support the airline’s strategic business transformation.
• Celcom: Partnering with Celcom, TCS helps the company transform from a traditional telecom provider to a digital services and platform business, a partnership that includes the use of TCS’s Twinex and Hops platforms.

Wipro Malaysia (Malaysia operations of Wipro)

Headquartered in Kuala Lumpur, Wipro Malaysia specializes in IT services, software development, business-process outsourcing, and knowledge-based services. The company has won multiple awards, operates globally, and has a couple of hundred employees in Malaysia, always ready to cater to customers’ needs.

Wipro’s key services are as follows:

• Application developments
• Wipro Intelligent, referring to the company’s AI-powered solutions and platforms
• Business Process services
• Cloud
• Consulting

Some of its success stories are:

• Chaitanya Godavari Grameena Bank (CGGB): The organization partnered with Wipro to modernize its outdated core banking system, resulting in 94% digital transactions, 5% improved onboarding speed, and 9% growth in MSME advances.
• Odido Netherlands: With the help of Wipro, Odido Netherlands replaced its outdated 18-year-old billing system with a cloud-native Ericsson Billing platform on AWS, achieving a fully automated, scalable system with real-time reporting and improved performance.

Lizard Global

Founded in 2012, Lizard Global specializes in web and mobile app solutions. Also located in the heart of Malaysia, Kuala Lumpur, the company is confident in its approach, using agile scrum methodologies to meet its clients’ needs. The company also boasts a global client base, from Asia to Europe.

Lizard’s core services include:

• Web application development
• Mobile application development, for both iOS and Android platforms
• UI/ UX design
• Digital transformation
• Quality Assurance

Some of its noticeable software projects are as follows:

• Perpetual Memorial Services: In order to modernize Chinese cemetery operations, Perpetual Memorial Services teamed up with Lizard Global to implement an e-commerce CRM and Service Facilitation Software. This partnership transformed family planning by delivering digital memorial services, online obituaries, and simplified funeral planning tools.
• The Better Sudoku app, created in collaboration with Lizard Global, updates the traditional problem by providing ad-free playback and cutting-edge OCR technology that enables users to play and scan paper puzzles. It sets a new benchmark for mobile gaming innovation with its customizable difficulty, progress monitoring, and premium subscriptions, providing a personalized gaming experience.

Webby Group

Located in Puchong, Malaysia, Webby Group specializes in ERP and CRM systems, e-commerce platforms, and custom software development. The company was founded in 2014 and has a portfolio that covers both startups and giant organizations.

Webby Group’s key services include:

• Custom-tailored solutions
• Mobile app development
• Web app development
• UX/ UI design
• IT staff augmentation

Notable clients of Webby Group are Korea Wallpaper and Caricarz.

• Korea Wallpaper partnered with Webby to upgrade its outdated WordPress system into a modern ERP solution that automates workflows and streamlines business operations. The new system improved productivity, stock management, and scalability.
• Caricarz worked with Webby to develop a user-friendly e-commerce website connecting car buyers and sellers across Malaysia. Webby created an intuitive site with key features like car valuation tools, trade-in requests, and dealer dashboards, while continuously enhancing functionality and user experience based on real feedback.

Veecotech

This Malaysian IT solution company was founded in 2011 and provides digital services that aid business growth, covering a wide range from app development to mobile app development, software solutions, to web design and digital marketing. In other words, Veecotech can provide its partners with a comprehensive digital experience.

Veecotech’s key services are:

• Software development
• Mobile app development
• Digital marketing
• Ecommerce
• Software customization

A notable client of the company is Penang Harmony Corporation (HARMONICO).

• Collaborating with Veecotech, Penang Harmony Corporation (HARMONICO) aimed to digitize its manual record system for non-Islamic religious affairs. Veecotech built a centralized data management platform that reduced manual paperwork, streamlined workflows, and allowed easy and convenient online interactions.

GR Tech Sdn Bhd

GR stands for Golden Ratio, as GR Tech aims to bridge the gap between business and a “digitized world”. The company started operations in 2010 and has delivered IT solutions globally to help companies grow sustainably.

GR Tech’s main services are:

• Custom software development
• Library solutions
• Higher education software
• Education mobile apps
• Facial recognition tech

A key client of GR Tech is Arizona’s leading community college.

Paradise Valley Community College (PVCC) experienced challenges with manual processes in student orientation, leading to low engagement and a lack of centralized analytics. GR Tech Sdn Bhd addressed this by implementing the “Orientus” platform, which included student and administrator portals, automated attendance via QR codes, gamified activities, and a custom design for winter orientation.

Shortcut Asia

Shortcut Asia was founded in 2016 and is a full-stack development and consultancy company. The company is committed to not only bringing ideas to life but also creating digital products that scale.

Key services of Shortcut Asia include:

• Web design
• Mobile app development
• E-commerce solutions
• Custom software development

A key client of Shortcut Asia is Gig Life Pro. The company helped Gig Life Pro build a scalable networking platform that connects music industry professionals worldwide through features like subscriptions, events, expert consultations, and real-time chat.

Using ReactJS, React Native, and Ruby on Rails, the team delivered a user-centric web and mobile app with seamless backend management, ensuring high performance, easy scalability, and customer satisfaction.

Operion Ecommerce

With the goal of simplifying business operations, Operion Ecommerce takes advantage of its nearly two decades of experience to deliver digital solutions with precision. A standout project from Operion Ecommerce is the Tree Planting Live Update Mobile Application Platform.

Key services of Operion Ecommerce:

• Web design
• Mobile app development
• Software development
• IoT solutions and consultancy

RootSquare Technologies

RootSquare Technologies covers a wide range of services, from information technology to system integration and custom applications. The company is known for maintaining strong relationships with its customers and adhering to regulations and standards.

RootSquare Technologies’ key services:

• Mobile app development
• Web app development
• IT consulting
• IT staff augmentation

Orient Software

Orient Software was founded in 2015 and has since established its presence in Malaysia. In 2017, Orient Software collaborated with partners from Norway and Singapore to develop an advanced profiling system that enhanced the Mega Careers and Study Fair 2017 in Kuala Lumpur, streamlining communication between thousands of graduates and over 100 employers and universities. This set of web and mobile apps allows online registration, CV uploads, profile creation, and QR-code scanning to connect job seekers with employers and universities efficiently.

Key services from Orient Software include:

• Custom software app development
• Mobile app development
• Web app development
• Data Strategy/ Analytics Consulting
• Dedicated software teams

Orient Software’s presence in Malaysia doesn’t end at the careers fair, as the company has proven time and time again its ability to streamline operations and foster sustainable growth. Open4, Marketplacer, and Pitch Portal are among Orient Software’s notable clients.