The State of E-Commerce In Malaysia

Jul 08, 2020

(Click to view the HD version of this infographic)

With an annual growth rate of 8.4%, Malaysia’s e-commerce growth revenue is expected to grow to US$5.9 billion by 2024. 

According to a study jointly conducted by Google, Temasek, and Bain & Company, Malaysia’s e-commerce sector has tripled in size since 2015 and exceeded US$3 billion in 2019. 

Cross-border spending is also considerably high in Malaysia; accounting for 40% of all e-commerce transactions.

This week, we examined the state of e-commerce in Malaysia and came away with three distinct findings:  

50% surge in shipment volume during the Ramadan period (May to June 2019)

Ramadan is the most sacred month of the year for Muslims around the world. Muslims mark the end of Ramadan with Eid where family and friends come together to celebrate – buying fresh clothes, gifts, and decorations to mark the festive occasion.

In a study by Google, the average Malaysian consumer spent MYR 900 per person each year during Ramadan and Hari Raya.

5.8% of parcels go to Collection Points

In 2019, Malaysia added the parcel locker network “Ninja Box” at 86 RapidKL Light Rail Transit (LRT) stations, providing shoppers with a convenient way to collect their parcels or drop off parcels for returns.

E-commerce marketplaces like Lazada Malaysia also offer shoppers the alternative to pick their parcels up from collection points – supporting the demand of these delivery alternatives. Whilst usage percentage is significantly lower to other countries like Singapore, these are encouraging signs and we predict usage of these delivery alternatives will increase over time.

55% of international shipments are from China, the US, and Singapore

Top e-commerce sites that Malaysians shop from are Lazada, Shopee, Taobao, Amazon, and eBay, which corresponds with these numbers.

Cross border spending in Malaysia accounts for 40% of e-commerce transactions, as with Malaysian shoppers shopping from international e-commerce sites. This has attracted investments from large global brands, especially from China. For instance, Chinese conglomerate Alibaba recently announced its plan to build a regional distribution hub in Malaysia. 

Since the Movement Control Order (MCO) began in the first quarter of 2020, Malaysia has seen a spike of 149% in gross merchandise volume growth for e-commerce businesses. Largely driven by domestic spending, Malaysia’s economy grew by 0.7% in the first quarter of this year despite the current economic situation, outperforming market expectations. How will the Malaysian economy perform as we approach the second half of 2020?

Continue reading: State of E-Commerce in Malaysia in the second half of 2020

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