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.