Malaysia Pegged to Maintain Position as One of the Top E-commerce Markets in ASEAN
Accelerated e-commerce growth to bring in gross merchandise value of US$30 billion by 2025.
Acknowledged as one of the top e-commerce markets in ASEAN, Malaysia is riding high on market sentiment and expectation. Indeed, there has never been a better time to start a Malaysian company. The Malaysia Digital Economy Corporation (MDEC) stated that Malaysia’s gross merchandise value (GMV) was forecast to grow 6% in 2020. This would bring its GMV to US$11.4 billion in 2020 and estimated to be around US$30 billion by 2025.
MDEC was citing estimates provided by the e-Conomy SEA 2020 Report, which looks into the digital economies of Southeast Asia.
This is the fifth edition of the multi-year report, launched in 2016 by Google and Temasek, a Singapore-owned investment company. It is written in collaboration with research partner Bain & Company, a global consultancy firm.
NESR 2.0 to Help Malaysia Boost E-commerce Market
Malaysia is expected to hold firm and maintain its position as one of the top e-commerce markets in ASEAN. This is especially viable with recent Government initiatives. Prime Minister Tan Sri Muhyiddin Yassin recently led the National Council of Digital Economy and Fourth Industrial Revolution (MED4IR). On April 22, 2021, MED4IR endorsed the National E-commerce Strategic Roadmap (NESR) 2.0.
NESR 2.0 aims at boosting and driving Malaysia’s ASEAN e-commerce market and standing. Mandated to administer a successful implementation, MDEC will be leading NESR 2.0 Taskforce’s Project Management Office.
NESR 2.0 follows on from its predecessor NESR 1.0’s achievements and will build upon the Malaysian Digital Economy Blueprint (MyDIGITAL). E-commerce adoption will be prioritized amongst Malaysia’s micro, small and medium enterprises (MSMEs). MDEC stated that as of the end of 2020, MSME e-commerce adoption rates were at 489,000. As far as e-commerce training was concerned, approximately 378,000 SMEs had received it.
NESR 2.0’s implementation period between 2021 to 2025 has an aim to onboard 875,000 MSMEs. Under the agenda, the average revenue per person (ARPU) would increase to RM9,500. It would also boost 84,000 e-commerce export adoptions. Achieving these targets would act as an accelerator to the current adoption rates.
Digitalizing SMEs for Exponential Growth
Both MDEC and MyDIGITAL have vital objectives that are complementary to NESR 2.0. MDEC’s Malaysia 5.0 will empower a technology-integrated Malaysian society. The aim to achieve growth that is equitable, inclusive, and sustainable.
MyDIGITAL’s Thrust Two and Thrust Five are similarly aligned. Thrust Two utilizes digitalization to boost economic competitiveness while creating a digitally inclusive society is the aim of Thrust Five.
There has been a tremendous exponential growth of products being exported by SMEs, which grew from 1,800 to 27,000. The need for warehousing and shipping to be outsourced by e-commerce merchants also grew in tandem. This led to the rapid establishment of regional e-fulfillment hubs, and the sector saw investments of RM1.5 billion.
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