,Malaysia
Photo by Thilipen Rave Kumar (Pexels).

Malaysian e-commerce market to see bigger revenues in coming years

The market is expected to see stronger growth in 2021 as consumer spending rises.

The Malaysian e-commerce market is expected to register a strong rise in revenues, following a year of slower growth, due to an accelerated shift towards online shopping among consumers, according to a report from GlobaData.

The market registered a robust growth for the last few years supported by rising Internet and smartphone penetration, growing middle class population and tech-savvy millennials, according to GlobalData’s payments senior analyst Nikhil Reddy.

Social distancing measures and closure of physical stores due to lockdown has made online shopping more convenient for consumers, but the country’s 2020 e-commerce market still saw slower growth than pre-pandemic levels due to reduced consumer spending, Reddy said.

Travel restrictions held back spending on services such as travel and accommodation, but a higher demand for day-to-day essentials products such as food and groceries is pushing e-commerce growth, he said.

“2021 is expected to be a stronger year for e-commerce providers, with gradual easing of travel and lockdown restrictions as well as rise in consumer spending,” Reddy said.

The government is also taking various initiatives to boost e-commerce sales. Under its ‘Go-eCommerce Onboarding campaign’ running between July to December 2021, the government is encouraging small and medium enterprises to go online by providing them with financial aid/subsidies.

“The shift in consumer buying behavior caused by the COVID-19 pandemic, coupled with the availability of various online payment options and government support will further drive e-commerce market in Malaysia,” Reddy said.

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Over 8% of ZALORA consumers in the region used the scheme for luxury items.
Access and action will drive these consumer trends, according to Euromonitor International.
Only 26% are confident on the revenue on dine-in operations in the CNY.
The trend is expanding in China, Hong Kong, and South Korea amongst others.
And Uniqlo raised prices for some products due to high production costs.
Changsha Qianbaizhi Food Trading was amongst the first to access e-CNY.
The high inflation in the country has led to a boost in sales in cheaper private brands.
The used goods market has seen rapid growth in the past decade.
The company is targeting to open more than 500 stores in Malaysia in five years.
It rose to 24% from 20% during the high alert period in Southeast Asia.
In Singapore, over 40% of Shopline merchants adopted social commerce.
Recovery of consumer spending relies on the vaccination against COVID-19.
Alibaba said these technology trends will rise in the next two to five years.