The number of active Internet users in Malaysia has reached 25.84 million, and the e-commerce market has great potential

In Southeast Asia, Malaysia's e-commerce market remains extremely attractive and has huge development potential, thanks to its rapidly developing economy, digital technology , huge demographic dividend and abundant talent pool .

Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said: “Malaysia’s e-commerce industry is experiencing rapid growth, fuelled by the implementation of the six key focus areas under the National e-Commerce Strategic Roadmap (NeSR).

The National E-Commerce Council (NeCC) was established to drive the implementation of a roadmap to double the growth of e-commerce in Malaysia.

The six focus areas include: increasing seller adoption of e-commerce ; increasing business adoption of e- procurement; removing non-tariff barriers (e-fulfillment, cross-border, e-payment, consumer protection) ; realigning existing economic incentives ; making strategic investments in selected e-commerce companies ; and promoting national and ethnic brands to drive e-commerce development .

“In fact, the size of Malaysia’s e-commerce market has tripled since 2015, exceeding US$3 billion in 2019 and is expected to reach US$11 billion by 2025,” Alexander said. “ The pandemic and the resulting lockdown restrictions have disrupted traditional business models and boosted the growth of e-commerce. ”

He added: “Malaysia has about 25.84 million active Internet users, accounting for 80% of the total population , and mobile phone penetration is extremely high. ”

In the context of the epidemic, many people use online shopping as their main shopping method to meet their purchasing needs while minimizing the possibility of contracting the virus. As the number of consumers increases, there are more and more unethical online retailers who may even steal users' identity information or bank card information.

“E-commerce platforms are increasingly vulnerable to illicit industries that manufacture unsafe, substandard or defective products, such as counterfeit and pirated products. To improve the situation, online shopping platforms should consider their policies to reduce such incidents and provide consumers with a satisfactory solution,” Alexander said.

Malaysia

Southeast Asia

E-commerce