In this new paper, we delve into fresh data-driven insights that show driving Malaysians to switch or stay with a mobile provider goes beyond surface-level digital changes. Instead, it requires a deeper understanding of customer behavior. We explore the key forces shaping the Malaysian telecom market.
Here are some highlights from our findings:
Shrinking Demand in an Oversaturated Telco Market
Following a surge in digital needs during and after the pandemic, search demand for telco products peaked in early 2022. Since then, it has steadily declined amid market saturation. Despite this drop in interest, competition has intensified, with providers expanding their offerings to stay relevant. As of January 2024, mobile connections in Malaysia stood at 129% of the population—a clear sign of a mature, oversaturated market where multiple SIM ownership is common.
Search Demand for Prepaid and Postpaid from 2022-2025
Malaysians are More Loyal and Locked-In with Their Current Providers
Searches about switching or terminating telco providers have steadily declined from early 2022 to early 2025. Switching intent, historically higher than termination, is also trending downward, indicating fewer consumers are exploring alternatives. Termination-related searches have stayed mostly flat with a slight decline.
This trend suggests easing churn pressure, with consumers appearing more loyal, locked-in, or less driven to switch due to similar service offerings and bundled packages.
The prepaid-to-postpaid shift may have stabilized, leaving telcos in a saturated market where boosting loyalty and user value matters more than aggressive acquisition.
Search Demand for Mobile Subscription ‘Termination’ vs. ‘Changing’ and ‘Switching’
A Polarised Market: Telco Brands Diverge on Price Perception, Converge on Network Quality
In a market where nearly every provider offers similar bundles and price points, what sets brands apart is no longer just what they offer — but how clearly and consistently they deliver value across multiple dimensions.
Consumer Perception Maps on Price &Value vs Network Quality
The Hidden Opportunity
The overall market is polarized: one all-round leader (CelcomDigi), one premium provider (Maxis), and a cluster of challengers. This leaves a notable gap, where high-quality service is paired with innovative value. We also see widening gaps in preference by region, indicating opportunities for brands to move into more region-based strategies.
Any brand capable of moving into the top-right quadrant of the Price–Network map stands to gain substantial market share.
Remaining in the low-value, low-quality quadrant, on the other hand, is a strategy that leads to irrelevance over time, unless supported by a focused niche, regional or significant service innovation.
Discover how Malaysian Telco Players can move beyond their current positioning and tap into deeper growth drivers.
Head to https://www.growthops.asia/signals-in-the-noise-winning-in-malaysia-mature-telco-market for in-depth insights and access to the full report.
