Dublin, March 06, 2025 (GLOBE NEWSWIRE) — The “Malaysia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The gift card market in Malaysia is expected to grow by 13.5% on annual basis to reach US$1.98 billion in 2025.
The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 14.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 12.0% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 1.74 billion to approximately USD 3.12 billion.
With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics. It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
Key Insights
Malaysia’s gift card market is rapidly transforming, driven by increasing digital adoption, corporate demand, and strategic retailer collaborations. The shift towards digital formats, fueled by the rise of e-commerce and technological advancements, is expected to continue expanding market opportunities. Additionally, businesses are leveraging gift cards as effective tools for employee engagement and customer retention, contributing to overall market growth.
Regulatory changes also play a key role in shaping the industry, ensuring consumer protection and promoting market transparency. Addressing unredeemed balances and compliance with evolving regulations will be critical for business operations. Companies that innovate, collaborate, and align with regulatory frameworks will be well-positioned to capitalize on the growing demand and sustain long-term success in Malaysia’s expanding gift card market.
Competitive Landscape of the Malaysia Gift Card Market
Malaysia’s gift card market is poised for continued expansion, with digital adoption, regulatory compliance, and strategic collaborations driving growth. The increasing participation of fintech firms and e-commerce giants is expected to enhance competition, leading to more innovative and consumer-friendly offerings. Businesses that adapt to regulatory changes, invest in seamless digital experiences and differentiate their offerings will be well-positioned to capture the growing demand. As the market evolves, consumer trust and convenience will remain key factors in sustaining long-term success in Malaysia’s competitive gift card industry.
The growing preference for digital transactions has encouraged retailers and fintech companies to expand their gift card offerings. Consumers are using gift cards for gifting and self-use, further driving demand across retail, e-commerce, and corporate sectors.
Key Players and Market Share
- Prominent players in Malaysia’s gift card market include Lazada, Shopee, Grab, and Boost, which offer digital gift card solutions integrated with their platforms. These companies leverage their vast customer bases and digital ecosystems to facilitate easy purchasing and redemption of gift cards.
- New entrants, including fintech firms and payment service providers, are entering the market, offering innovative solutions such as multi-brand gift cards and e-wallet-integrated options. The increasing competition is expected to drive further digital adoption and diversification in gift card offerings.
Digital Transformation in Gift Card Offerings
- The increasing integration of digital payment systems and e-commerce platforms drives the transition towards digital gift cards in Malaysia. As consumers become more accustomed to cashless transactions, the demand for digital gift cards has surged, providing greater convenience and accessibility. Major retailers and online marketplaces have adapted to this trend by expanding their offerings to digital gift cards, enabling seamless purchases and redemptions through mobile applications.
- This shift is further accelerated by the rapid growth of Malaysia’s e-commerce sector and widespread smartphone adoption. As online shopping becomes more prevalent, digital gift cards serve as an ideal gifting option, allowing users to make instant transactions. Technological advancements in digital wallets and mobile payment solutions have made it easier for consumers to store and use their gift cards, reinforcing the trend toward digital transformation.
- Over the next two to four years, Malaysia’s digital gift card market is expected to expand significantly, with projections estimating a market size of US$1.7 billion by 2024. Businesses will likely introduce more personalized and user-friendly digital gift card options to enhance consumer engagement and brand loyalty. As digital gifting continues to evolve, companies that invest in seamless user experiences and innovative features will be well-positioned to capture the growing demand.
Strategic Collaborations Between Retailers and Gift Card Providers
- Retailers in Malaysia are increasingly collaborating with gift card providers to enhance accessibility and broaden the distribution of gift cards. This trend is driven by the need to offer consumers a more convenient and versatile gifting option across various retail channels. Online marketplaces such as Lazada and Shopee have leveraged these partnerships to provide customizable gift card solutions, allowing businesses to attract and retain customers more effectively.
- The rising demand for flexible gifting options is a key driver behind these collaborations, encouraging retailers to integrate gift card programs into their sales strategies. Additionally, technological advancements in digital payment infrastructure have facilitated the seamless adoption of gift cards within existing retail systems. As more businesses recognize the value of gift cards in driving sales and customer engagement, these partnerships are expected to become even more prevalent.
- Over the next two to four years, strategic collaborations between retailers and gift card providers are expected to expand the market reach of gift cards in Malaysia. As more businesses adopt these solutions, gift cards will become more available in both online and offline channels, leading to market growth. The continued integration of gift cards into digital platforms and retail ecosystems will further enhance consumer convenience and drive the overall expansion of the industry.
Corporate Utilization of Gift Cards
- The corporate sector in Malaysia is increasingly leveraging gift cards for employee recognition, customer incentives, and promotional campaigns. Due to their flexibility and ease of use, businesses are shifting towards gift cards as an alternative to traditional rewards. This trend reflects a broader corporate strategy to enhance engagement and strengthen relationships with employees and customers.
- Employee motivation and customer loyalty are key drivers behind this growing adoption of gift cards in corporate settings. Companies use them in performance recognition programs, sales promotions, and customer retention strategies. By integrating gift cards into reward programs, businesses provide a tangible and convenient benefit, improving satisfaction and brand loyalty.
- Over the next two to four years, corporate adoption of gift cards is expected to contribute significantly to market growth in Malaysia. Businesses may also explore customized gift card solutions tailored to specific corporate needs, further diversifying the product landscape. As companies increasingly recognize the advantages of gift cards in enhancing engagement and driving repeat business, this trend is likely to expand further.
Addressing Unused Gift Card Balances
- A significant portion of gift card balances in Malaysia remains unredeemed, leading to unused value within the market. Many consumers either forget about their gift cards or leave small remaining balances that are difficult to utilize effectively. This has raised concerns among both consumers and regulators regarding the full accessibility and usability of gift cards.
- Key factors contributing to this issue include small leftover balances that are insufficient for new purchases and consumer forgetfulness, leading to expired or lost gift cards. Businesses are beginning to recognize the need for solutions that help consumers maximize the value of their gift cards. This includes technological features such as automated reminders and digital integration with e-wallets to make redemption more convenient.
- Addressing unused gift card balances may lead to policy reforms aimed at improving consumer protection over the next two to four years. Regulators could introduce measures to ensure consumers can fully utilize their gift card balances before expiration. Additionally, businesses may develop new solutions, such as balance consolidation and auto-reload options, to enhance gift card usability and encourage full redemption.
Navigating Regulatory Changes in the Gift Card Industry
- The Malaysian government is introducing regulations to increase consumer protection within the gift card market. These measures are designed to ensure transparency and fairness and prevent potential consumer exploitation related to fees, expiration dates, and redemption policies. As the gift card industry grows, regulatory oversight is becoming more necessary to standardize market practices.
- Key drivers behind these regulatory changes include safeguarding consumers from unfair terms, such as unexpected fees or restrictive expiration policies. Additionally, regulators aim to ensure that consumers are fully informed about the terms and conditions associated with their gift cards before purchase. By enforcing industry-wide standards, authorities seek to create a more transparent and trustworthy gift card ecosystem.
- Over the next two to four years, these regulatory updates may increase business compliance costs as they align their gift card policies with new legal requirements. However, these changes are expected to enhance consumer confidence in gift cards, potentially driving higher adoption rates. Companies that proactively adapt to these regulations while ensuring customer-friendly policies will likely gain a competitive advantage in the evolving Malaysian gift card market.
Recent Launches and Partnerships
- Strategic partnerships between retailers and payment service providers are key to expanding the gift card market. For instance, Shopee and Lazada have partnered with multiple retail brands to offer customized and multi-brand gift cards, enhancing customer engagement and expanding digital payment adoption.
- While there have been no significant mergers or acquisitions in the Malaysian gift card industry in the last 12 months, the global trend suggests that fintech companies and e-commerce players may seek acquisitions or partnerships to strengthen their positions in the growing digital payment ecosystem.
Anticipated Market Evolution (Next 2-4 Years)
- The competition in Malaysia’s gift card market is expected to intensify as digital payment providers, fintech firms, and e-commerce platforms continue to expand their gift card offerings. The increasing demand for digital transactions and corporate adoption will further drive innovation and diversification in the sector.
- Companies that invest in technology, form strategic partnerships, and comply with evolving regulations will likely strengthen their market positions. The introduction of personalized gift cards, flexible redemption options, and loyalty program integrations will shape the industry’s competitive dynamics.
Regulatory Changes
- The Malaysian government has implemented new regulations to enhance consumer protection in the gift card market. These include policies ensuring clearer terms and conditions, transparent fee structures, and extended expiration periods to prevent unfair practices.
- These regulatory updates require businesses to align their gift card policies with consumer protection laws, which may increase operational compliance costs. However, these changes are expected to boost consumer confidence and further drive the adoption of gift cards.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 325 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $1.98 Billion |
| Forecasted Market Value (USD) by 2029 | $3.12 Billion |
| Compound Annual Growth Rate | 12.0% |
| Regions Covered | Malaysia |
Companies Featured
- Lotus’s Malaysia
- Giant
- Aeon
- 99 Speedmart
- Watsons
- Mr. D.I.Y.
- Aeon Big
- Ikea
- Apple
- Guardian
For more information about this report visit https://www.researchandmarkets.com/r/vfsomg
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- Malaysian Gift Card and Incentive Card Market
