Digital Commerce in Malaysia

Overview

Malaysia is an attractive market for eCommerce in Southeast Asia due to its dynamic economy and developed infrastructure for digital technologies. Malaysia has ~ 25.84 million active internet users (80 percent of the population) and the population has extremely high rates of mobile phone penetration.

Of the 32.25 million Malaysians (January 2019 data), 25 million are social media users, 40.24 million mobile subscriptions , and 24 million use social media on their mobile devices.

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Malaysia’s eCommerce sector is on a growth trajectory and is already benefiting from the implementation of programs under the National eCommerce Strategic Roadmap’s (NeSR) six thrust areas. The National eCommerce Council (NeCC), comprised of various ministries and agencies was established to drive the implementation of the roadmap towards doubling Malaysia’s eCommerce growth rate to reach a GDP contribution of USD 53 billion by 2020

Current Market Trends

As a result of Malaysia’s internet and mobile connectivity, as well as public sector encouragement, Malaysia has high rates of eCommerce usage. Malaysia boasts 16.53 million online shoppers (50 percent of the population) and 62 percent of mobile users use their devices to shop online. Online shoppers are motivated by price advantages, product range, and availability of reviews. Malaysian shoppers look for free shipping, convenience, and exclusive deals offered by online stores.

Percentage of internet users who report performing each activity in the month of January 2019:

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Ecommerce in Malaysia

Data from Statista’s Digital Market Outlook survey shows that Malaysians spent more than US$6 billion online in 2018, with purchases of consumer goods already outweighing spend on travel.

Malaysia’s online consumer goods category was worth a total of US$3.1 billion in 2018, accounting for 51 percent of total ecommerce spend.

Purchases of electronics made the greatest category contribution, at 27 percent of overall consumer goods spending. Fashion and beauty products weren’t far behind though, with annual spending of US$771 million accounting for a quarter of total online consumer goods market.

However, the average Malaysian ecommerce shopper spent just USD $159 on online consumer goods purchases in 2018 – significantly lower than the global average of USD $634.

Travel purchases are still an important component of Malaysia’s online economy though, with the country’s internet users spending more than US$2.7 billion on online travel purchases in 2018.

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How You Can Benefit From This Phenomenal Growth In Ecommerce

If you are thinking of going online but still unsure of which platform to use, below is a summary of the preferred ecommerce platform by countries in Southeast Asia.

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I would suggest for you to first have a presence online in one (or more) of the popular marketplace to start selling your products. Eventually, it is always preferred for you to have your own ecommerce site.

If you are not yet online, but want to go online you can send us an email at lisa@freemindworks.com.my or a WhatsApp message here http://bit.ly/go-ecommerce

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