Malaysia e-commerce: opportunities and challenges in parallel

With the rapid growth of online shopping and the overall digital economy, e-commerce has become a key driver of Malaysia's economic growth. In 2017, the Internet penetration rate in Malaysia reached 67%. The contribution of e-commerce to national GDP reached 5.8%, only 0.6% lower than the 2020 target merely.

Malaysia has always been an attractive market for e-commerce businesses. As a typical digital country, Malaysia currently has more than 22 million Internet users,And 2018 will also add another 5 million users.

E-commerce market compound annual growth rate of 33.6%

Malaysia's e-commerce market is entering a take-off stage and the market is expected to grow rapidly from USD700 million in 2013 to USD5.89 billion in 2020.

Mobile first, smartphone users 36% more than PC users

Mobile e-commerce has great potential in Malaysia, with 36% more smartphone users in Malaysia than PC users, while other countries: Indonesia (28%), Singapore (27%), India (17%), South Korea (15%), China(9%), the United States (-15%).

80% of Internet users have participated in online shopping, the highest in the ASEAN region

Among the six ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam), Malaysia has the highest penetration of electricity. In Malaysia, Internet users account for about 67% of the population (after Singapore), of whom 16 million have online purchases, accounting for 80% of the Internet population.

Malaysia domestic logistics

Malaysia's domestic logistics is mainly the Malaysian Post (POS MALAYSIA), is set up by the government investment, operation of the earliest, parcel mail service coverage throughout Malaysia. With the rise of e-commerce, more and more logistics companies are developing rapidly. For example, PFCEX has set up Malaysia's warehousing, Malaysia cash on delivery and Malaysia's order delivery services in Malaysia.

Malaysia online payment

MOL is the largest payment in Southeast Asia and was established in Malaysia in 2005. It has three main products, MOLPoints, MOLCards and MOLPay. According to the Nielsen report, 60% of Malaysian consumers prefer to pay in cash. For online e-commerce companies want to enter Malaysia, both online payment and offline cash on delivery should be valued.