With 25.84 million active users, Malaysia's e-commerce development potential is huge

Last year, the United Nations trade and development agency released its 2018 Global E-Commerce Report with updated estimates.

Data shows that in 2018, global e-commerce sales surged to US$25.6 trillion, accounting for 30% of global gross domestic product (GDP) . In addition, developing and transition economies accounted for about half of the top 20 economies in terms of B2C e-commerce sales in 2018.

Among them, Malaysia ranks 18th among the top 20 economies, with B2C e-commerce sales reaching US$19 billion, accounting for 6% of GDP. It is worth noting that 53% of Malaysia’s Internet users shop online .

Malaysia’s strategic location , favorable business policies, and booming economy make it an attractive e-commerce market , and with the improvement of digital technology infrastructure , it further promotes the growth of e-commerce in the country.

It is understood that Malaysia has approximately 25.84 million active Internet users (80% of the population), and mobile phone penetration is extremely high .

According to data from the Malaysia Country Business Guide 2019 released by the US Department of Commerce , out of 32.7 million Malaysians, more than 25 million are social media users, and more than 24 million users use social media on their mobile devices , generating more than 40 million mobile subscriptions.

On the other hand, Malaysian consumers ’ e-commerce spending surged 24% in 2018, and Malaysia is set to maintain strong e-commerce growth in the coming years as the government makes the growth of the online economy a national priority .

The report released by the United Nations Conference on Trade and Development also showed that in 2018, Malaysia's online consumer goods category was close to US$3.1 billion, accounting for more than half of total e-commerce spending . Malaysia will become one of the five fastest-growing e-commerce markets in the world.

Therefore, Malaysia is also used by various Southeast Asian e-commerce platforms as an entry point to enter the cross-border market, leveraging Malaysia's cross-border logistics facilities to tap the potential for cross-border trade in ASEAN.

Looking at the e-commerce landscape in ASEAN, Malaysia saw the largest increase in total e-commerce activity in ASEAN from 2018 to 2019 (46.5%), followed by Indonesia (28.1%) and Thailand (17.3%).

Additionally, Austrade said Malaysia is expected to have the highest growth rate in e-commerce activity in ASEAN at 35%, followed by Indonesia (26.9%) and Thailand (17.9%).

The above data shows that Malaysia has great potential in the e-commerce market in the past few years. In the latest development process, many technology giants have also set their sights on Southeast Asia, and the development of the e-commerce market in the region is promising.

Cross-border e-commerce market

Southeast Asia