4 Online Shopping Trends in Malaysia

Malaysia is witnessing a surge in online shopping trends, with a significant increase in the number of digital consumers. According to recent data, 90% of internet users in the country have made an online purchase, which is on-trend with the rest of Southeast Asia. In comparison, Singapore leads at 97%, followed by Indonesia (80%), Vietnam (71%), and the Philippines (68%).

Additionally, 9 out of 10 Malaysians are active internet users, with an internet penetration rate of 89.6%. During the pandemic, Malaysians spent more time online, which further fueled eCommerce usage. The median download speed in Malaysia for broadband and mobile internet stood at 91.50 Mbps and 36.34 Mbps, respectively.

The COVID-19 pandemic has permanently shifted digital adoption and consumption in Malaysia, with 94% of pandemic consumers continuing to use digital services, and 98% intending to do so in the future. Moreover, pre-pandemic users have also increased their use of digital services.

Mobile phone penetration is another significant driver of Malaysia’s eCommerce move. With 89% mobile phone penetration and an increase of 4% in 2021-22, more people are likely to shop online. In fact, 55.9% of eCommerce transactions in Malaysia are completed on mobile devices.

How Fast is eCommerce Growing in Malaysia?

eCommerce is experiencing rapid growth in Malaysia, with its income surpassing MYR 566.4 billion in the first half of 2022. This figure indicates that 2022 is likely to break the previous record income of MYR 1 trillion achieved in 2021, which grew by almost 22% from 2020. In 2021, eCommerce contributed 11.5% to Malaysia’s gross domestic product (GDP), up from 8.5% in 2019.

The COVID pandemic has played a significant role in accelerating eCommerce growth in Malaysia. With brick-and-mortar stores temporarily closing during lockdowns, the shift to online shopping became the norm, and government incentives provided an additional boost. As a result, 36% of total digital service consumers in Malaysia were new digital consumers, with 92% of them intending to continue using at least one digital service post-pandemic.

To further drive eCommerce adoption, the Malaysian government launched a campaign called “Go eCommerce” in June 2020, which allocated MYR 140 million to help small merchants expand their reach across Malaysia. With eCommerce becoming a way of life for most Malaysians, the growth trend is set to continue.

That the reason online presents is very important for any corporate.

How will Malaysian eCommerce evolve from 2023 to 2025?

Despite initial concerns that eCommerce growth would slow post-pandemic, Malaysia’s eCommerce market continues to flourish. Experts predict that the industry will continue to grow over the next few years, with eCommerce payments in Malaysia projected to rise from US$7.1 billion in 2021 to US$13.8 billion in 2025.

In fact, Malaysia is expected to have the highest growth rate for total eCommerce activities in ASEAN between 2018 and 2023, at 35%, followed by Indonesia at 26.9% and Thailand at 17.9%. The Southeast Asian eCommerce economy is also projected to reach US$234 billion by 2025, with the Malaysian eCommerce market alone expected to reach US$30 billion.

This growth can be attributed to several factors, including increasing mobile and internet penetration, rising education levels, and a consumption-driven middle-class. Moreover, the World Bank Group has projected that Malaysia will become a high-income economy between 2024 and 2028.

For brands looking to enter the Malaysian eCommerce market, this presents an exciting opportunity to capitalize on the rapidly expanding market and its potential for continued growth.