The e-commerce market in Malaysia has experienced significant growth and is expected to remain profitable in 2023 and beyond. Factors such as growing internet penetration, improved connectivity, and the continued adoption of smart technology have bolstered the country’s overall digital economy, contributing to the e-commerce industry’s success. The market is forecasted to grow at a rate of CAGR 9.8% from 2022-27, with a projected revenue of 10.19 billion USD in 2023. The country’s e-commerce market is estimated to register a growth of 19.9% to reach MYR38.2 billion in 2022, supported by a rapidly growing shift from offline to online purchasing. The growth is supported by the rapid adoption of smartphones, growing internet penetration, and the availability of secure online payment systems. The Malaysian government has also taken various initiatives to support e-commerce, including the ‘Go-eCommerce Onboarding campaign’ to encourage SMEs to go online by providing them with the necessary support.
The growth of e-commerce in Malaysia is primarily driven by a growing number of digitally-savvy, middle-class people who are looking for great deals and access to international brands. The country’s top-three e-commerce sites by traffic are marketplaces Shopee, Lazada, and PG Mall, making it the most visited e-commerce platform in the country. Malaysia’s eCommerce market is projected to touch US$ 10.19 billion in 2023 and reach $16.98 billion by the year 2027, at 13.6% CAGR. The country is now catching up to bring its e-commerce infrastructure, including product availability, payments, delivery, and regulatory requirements, in line with more established online shopping markets. Malaysia has one of the highest internet penetration rates in Southeast Asia at 89%, making it an attractive market for e-commerce. The country’s youth population highlights the economy’s future potential as an e-commerce market. Malaysian consumers are often looking for great deals and access to international brands, but these trends may shift away if more local brands prioritize delivering superior customer products and prices than rival international brands. The growth of e-commerce in Malaysia has created significant potential for businesses, with the country’s dynamic economy and growing consumer preference for online shopping. The availability of customized payment options and the government’s support for empowering local micro, small, and medium enterprises (MSMEs) have further contributed to the growth of e-commerce in the country. The launch of Digital Free Trade Zones has facilitated cross-border e-commerce and widened the market, further driving e-commerce in Malaysia. The relevant laws governing Malaysia’s e-commerce and online businesses have been set out in several regulations, and the country’s shoppers do most of their shopping through mobile phones and other digital devices. Besides marketplaces and e-commerce platforms, about a third of Malaysians still shop through social media platforms like Facebook and Instagram.
