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ECommerce Malaysia : Market Trend 2018

It is no longer news that the E-commerce business in Malaysia has witnessed a significant increase in 2018.

Before now, it was predicted years ago that Malaysia would experience a massive expansion and spike in the E-commerce industry.

We all can now see that those predictions and statistics are entirely accurate and coming to pass owing to the latest developments. The hot rise witnessed today is indeed not a fluke but as a result of some cogent factors.

While some of these factors owed to consumers, others were due to technological advances were as others were as a result of government’s efforts. Let us take an in-depth look at these factors and the role each of them played to give rise to the increase in the e-commerce business.





E-commerce is the activity of buying and selling of products, goods or services over the Internet.

These commercial transactions are carried out electronically on the internet. In Malaysia, e-commerce is becoming more popular by the day as there are new entrants in the industry.

Given this, we can deduce some of the reasons that have expanded the e-commerce industry. The growth is not just witnessed in the area of online shoppers but also regarding categories of products being bought online.

The following are some of the top reasons that contributed to the rise of e-commerce business in Malaysia this year.





One of the major reasons for the continued rapid growth in online shopping was due to consumers demand. For a product or trend to be successful, the users always have a role to play.

In the case of e-commerce, the consumers were happy to accept it because of the numerous benefits it brings with it. Millions of Malaysians preferred to shop online because of the ease and limited stress involved.

In fact, as at today, 59% of Malaysians shop online at least once a month while over 95% of Malaysian population are satisfied with their online shopping experience.

This goes to show the popularity and acceptance of this culture. Furthermore, several e-commerce websites in the country have also witnessed massive sales due to this development.

Apart from the new national online businesses springing up, foreign companies are also pushing their way into Malaysia’s attractive market.



One of the reasons why e-commerce has seen a significant increase is because of government’s support.

In its bid to ensure the e-commerce sector continues to grow, the government implemented the National E-Commerce Strategic Plan (NESR) in October 2017.

Since it contributes up to 5.8% of the nation’s gross domestic product, the government is entirely in support of online businesses.





Internet users in Malaysia have increased by a little over 25 million in 2018. This represents a considerable increase when compared to other years.

The access of Internet to Malaysian consumers has equipped these users to utilize the e-commerce services efficiently.

Because of this, large numbers of Malaysian consumers are now connected to these e-commerce marketplaces using their Internet-enabled handheld and desktops, which ultimately results in prospering the e-commerce industry in the country.



E-Commerce industry offers a varied range of options for a single product to their consumers. Due to the presence of numerous product websites, the consumers get varied range of options with competitive prices. Because of this, Malaysian consumers get the best deals with minimum rates.


5. RISE IN MOBILE USERS AND MARKETS The mobile user base has grown exponentially over the last few years.

With over 21 million unique mobile phone users with access to the internet and 24 million Social media users, we can confidently say that smartphones have increased the Web access to e-commerce services.

Now, Malaysian consumers can efficiently manage their electronic transactions using their handheld devices. Services such as ticket bookings, shopping, or paying bills can be carried out from the comfort of their homes.


How has the growth of e-commerce affected the lives of Malaysians?

How has it benefited the country and other businesses



According to a set of reliable data collected from the Statistics Department, it showed that e-commerce had contributed massively to an increase in Malaysia’s gross domestic product (GDP) over the years.

With a GDP of 5.9 percent or 68.3 billion in 2015 to a massive increase of 6.1 percent which is 74.6 billion in 2016. When implemented, this plan is set to double the e-commerce growth rate in Malaysia in the next two years from now.

An increase of 20.8 percent is expected by 2020 from an initial 10.8 percent in 2016. E-commerce contributes up to 5.8% of the nation’s gross domestic product.



Without a single iota of doubt, there has been a significant improvement in the standard of living of Malaysians. This is partly due to the boom in the online commerce.

Owing to an increase in GDP and availability of online jobs, the citizens have been enjoying a new lease of life.



Both foreign and local e-commerce companies will need the help of Malaysians to handle logistics and other related items.

Website designers, graphic artists, social media marketers are few of the professions that have benefitted from this boom.




The depicted factors above are actively responsible for the growth of e-commerce industries in Malaysia. From what we are currently experiencing, it is just a matter of time before the E-commerce industry in Malaysia stands toe to toe with that of other top countries.

The giant strides witnessed in this area is not a mere coincidence but an act of determination, hard work, and acceptance. Another good news here is that the government is not restricting the progress of this innovation and in turn has reaped its fruits in different ways.

From an increase in GDP to increase in the economy to the growth of jobs, the benefits of e-commerce cannot be overlooked. According to industry watchers, this is just the beginning of better things to come in the world of e-commerce.

As the world becomes more digitalized, the benefits of online business will be felt more from the world down to Kuala Lumpur and all the homes in Malaysia.

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