Malaysia's big data analytics (BDA) market is set to experience significant and rapid expansion, largely driven by the growing demand for data-driven solutions and innovative technologies, according to Dr. Ian Tan, an associate professor in Computer Science and head of the School of Mathematical and Computer Sciences at Heriot-Watt University Malaysia.

Dr. Tan referred to a study conducted by the International Data Corporation (IDC) and commissioned by the Malaysia Digital Economy Corporation (MDEC), which revealed that Malaysia's BDA market is projected to grow substantially, increasing from US$1.1 billion in 2021 to an impressive US$1.9 billion by 2025. This reflects the nation's strong potential for leveraging data analytics to drive digital transformation across industries and support the evolving needs of businesses and governments.

Globally, the growth of the BDA market is equally noteworthy. The Statista global data and business intelligence platform forecasts the global BDA industry to reach a market value of US$103 billion by 2027. This underlines the critical role of data analytics in shaping competitive business strategies and fostering innovation on a large scale. Dr. Tan emphasized that data analytics serves as both a catalyst for economic growth and a driver of innovation, particularly in key sectors such as healthcare, finance, and technology.

He further highlighted the transformational potential of data analytics in enhancing operational efficiency, improving customer engagement, and enabling businesses to make informed strategic decisions. For instance, in the healthcare sector, predictive analytics plays a vital role in optimizing resource allocation, improving treatment outcomes, and addressing public health threats proactively. Similarly, in the finance industry, real-time data analytics supports risk management, fraud detection, and consumer behavior analysis, which are essential for maintaining trust and security.

Dr. Tan also noted that the accelerated adoption of digital tools during the Covid-19 pandemic has significantly boosted the integration of data analytics into business operations. Companies have increasingly relied on data-driven strategies to streamline processes, enhance customer satisfaction, and drive growth. Prominent examples include e-commerce platforms like Shopee and Lazada, which leverage big data to create personalized shopping experiences, ultimately boosting sales and customer loyalty.

On a broader scale, the World Economic Forum (WEF) estimates that data-driven applications could contribute an astounding US$13 trillion to the global economy by 2030. Countries that prioritize investments in data infrastructure and digital skills development are expected to position themselves as leaders in the emerging digital economy. In Malaysia, initiatives such as MyDIGITAL aim to enhance the country's digital capabilities, fostering innovation and strengthening its competitive edge within the region.

However, despite the promising growth of the BDA market, Dr. Tan identified a significant skills gap that could hinder progress. He highlighted that while demand for data analytics professionals continues to rise, many workers face barriers to acquiring the necessary skills, including high training costs and limited access to learning resources, particularly in rural areas. A survey by the World Economic Forum revealed that 50% of global employees will need reskilling by 2025 due to increased technological adoption. Similarly, a study by Economist Impact found that while 65% of Malaysian employees recognize the importance of digital skills, a mismatch often exists between industry demands and workforce capabilities.

To address these challenges, collaboration between government agencies, educational institutions, and industry players is crucial. Aligning training programs with market needs and improving access to affordable education will be key to building a workforce capable of driving Malaysia's digital economy forward. In this regard, Heriot-Watt University Malaysia has introduced a 30% inaugural scholarship for its BSc (Hons) Information Systems with Data Analytics program for January 2025 intake. This initiative aims to reduce financial barriers, attract a diverse group of talented students, and equip them with the necessary skills to succeed in the rapidly evolving field of data analytics.

Dr. Tan concluded that as Malaysia continues to embrace digital transformation, a strong focus on education, innovation, and collaboration will be essential to unlocking the full potential of big data analytics, driving economic growth, and shaping a competitive and resilient digital future.