Google Malaysia is in a sorry state of finance and our hearts go out to them.
Google’s global revenue amounted to USD134.81 billion in 2019 and in Q1/2020 its parent com-pany Alphabet (where Google advertising provides 82% of total revenue) made a net income of USD6.8 billion.
But in Malaysia, the Google bottom line tells a sad story.
Let’s take a moment to appreciate how one of the world’s largest companies is making losses doing business in Malaysia.
For financial year ending 2018, Google Malaysia declared a loss of over RM2 million. It was more dire the year before, where they suffered a massive loss of over RM8.7 million.
In comparison, Google Australia agreed to pay AUD481.5 million in tax last year.
According to Statista, Australia has 22 million internet users while Malaysia has 27 million. Puz-zling?
That’s why the tax math for Google Malaysia saddens me.
While it is common for new companies to experience losses in their first few years, they have been here 12 years, I urge you to sympathise with Google Malaysia.
They have done so much for our country with their free programmes and community projects that I feel they should not suffer an unprofitable future in Malaysia.
But I am still puzzled that since the Google and Facebook duopoly sucks up almost all digital advertising revenues in Malaysia while riding on other people’s content without paying a sen, how can this be so…?
As for the news content compensation battle, the Australian government is fighting that for us.
In the meantime, I am focusing on helping Google’s waning financial fortunes in Malaysia.