Malaysian e-commerce market to reach $15.7b in 2028

Alternative payment methods are the most preferred.

The Malaysian e-commerce market is expected to grow at a compound annual growth rate (CAGR) of 8.5% between 2024 and 2028, reaching $15.7b (MYR67.1b), according to GlobalData.

Driven by the shift in consumer preference from offline to online shopping, Malaysia’s 2023 e-commerce market registered 12.2% growth, reaching $10.2b (MYR43.5b).

“Malaysia is amongst the fastest-growing e-commerce markets in Southeast Asia, supported by the rising internet and smartphone penetration and availability of secure online payment systems,” Ravi Sharma, lead banking and payments analyst at GlobalData said.  

In 2016, the government-backed National e-Commerce Strategic Roadmap (NESR) saw 1.51 million small and medium-sized enterprises embrace e-commerce during 2016- 2023.

Amongst payment tools, alternative payment methods are the most preferred with a market share of 35.7% in 2023.

It is followed by payment cards and bank transfers. Cards account for 24.9% share of e-commerce transaction value in 2023. Credit cards are preferred due to value-added benefits including interest-free instalment payment options, reward programs, cashback, and discounts.

(MYR1=US$0.23)