By Muhamad Nurazmi bin Abas, CEO, Gading Group Berhad
The New Space Economy is no longer merely a concept of science fiction—it’s a multi-billion-ringgit reality that is transforming industries and creating unprecedented opportunities for innovation and growth.
The New Space Economy refers to the commercialisation of space-related technologies and services, including satellite communications, earth observation, space tourism, and space-based manufacturing. Unlike the traditional space industry, which was dominated by government agencies, the New Space Economy is driven by private companies and innovative startups, making it more accessible and dynamic.
The global space economy is growing at an unprecedented rate, with the satellite internet market alone projected to grow at a CAGR of 20.5% from 2023 to 2030.
With the global space economy projected to reach USD 1 trillion (approx. RM4.7 trillion) by 2040, up from USD 447 billion (approx. RM2.1 trillion) in 2020.
For Malaysia, this represents a RM15 billion opportunity by 2030, driven by demand for satellite services, earth observation data, and space-related technologies. This growth is supported by the government’s National Space Policy 2030, which aims to position Malaysia as a regional hub for space technology and innovation.
Additionally, Malaysia’s MyDigital Blueprint aims to achieve 100% internet coverage by the end of 2025, but terrestrial infrastructure alone cannot reach remote and rural areas. Satellite technology, particularly High-Throughput Satellites (HTS), offers a cost-effective solution to bridge this gap, creating a RM10 billion market opportunity for satellite-based internet services. Early entrants can establish themselves as leaders in niche areas such as satellite manufacturing, data analytics, and ground station services, capturing significant market share before competition intensifies.
Malaysian companies can capitalize on this opportunity by developing satellite-based solutions to provide high-speed connectivity to remote and underserved areas, both in Malaysia and across Southeast Asia. Various Malaysian companies is already engaged in the potential of this industry and that includes QEW Communications, which holds a full-class telecommunication license, is also exploring the potential of this industry.
Specialized solutions industries such as maritime, aviation, and agriculture can also create new revenue streams. Satellites provide valuable data for environmental monitoring, disaster management, and urban planning, and companies can develop data analytics platforms to process and monetize this data, offering insights to governments and businesses.
Collaborating with international space companies can provide Malaysian firms with access to cutting-edge technology and expertise, while joint ventures and partnerships can help local companies expand their reach into global markets. Investing in R&D can help local companies develop innovative technologies and solutions that differentiate them in the market, with universities and research institutions in Malaysia, such as Universiti Teknologi Malaysia (UTM) and Universiti Kebangsaan Malaysia (UKM), serving as valuable partners.
The New Space Economy also offers opportunities to develop sustainable technologies, such as green propulsion systems and reusable satellites, allowing companies that prioritize sustainability to position themselves as leaders in the global push for environmentally responsible space exploration.
The economic impact of the New Space Economy is significant, with the potential to create thousands of high-skilled jobs in engineering, technology, and data analytics, boosting Malaysia’s economy and talent pool. Companies like SpaceX’s Starlink and OneWeb have demonstrated the immense potential of satellite internet, with Starlink alone aiming to serve millions of users worldwide by 2025. In Malaysia, where over 30% of the population still lacks reliable internet access, satellite-based solutions could revolutionise connectivity, particularly in rural and remote areas.
The Malaysian government is actively supporting the growth of the New Space Economy through initiatives like the National Space Policy 2030, which provides a clear roadmap for Malaysia’s space ambitions, including the development of satellite technology, earth observation, and space exploration. The Malaysia Space Agency (MYSA) also supports local companies through funding, partnerships, and regulatory frameworks to encourage innovation in the space sector. Additionally, the government offers tax incentives and grants for companies investing in R&D and space-related technologies, making it easier for local firms to enter the market.
In conclusion, the New Space Economy represents a once-in-a-generation opportunity for Malaysian technology companies to innovate, grow, and contribute to the nation’s digital transformation. With global growth projections, government support, and untapped market potential, there has never been a better time to enter this dynamic and lucrative sector.
