Malaysian businesses spend just 1 percent of their advertising budget on online media despite Malaysians spending more time on the internet than any other media, a study has found.

The report by Google and McKinsey & Co released on Tuesday shows that Malaysian businesses placed in the bottom 10 percent of 57 countries surveyed in terms of budget allocated for internet media.

It also found that Malaysians spent more time on the internet than on newspapers, watching television or listening to the radio, with Malaysians in their 30's spending twice as much time on the internet than on TV, the next most popular medium.