MALAYSIA AS THE NEXT FRONTIER OF E-COMMERCE BOOM“The evolvement of e-commerce sector will put Malaysia on track as a leading ASEAN logistics hub which will place it on the global logistics map”, says the Transport Minister, Datuk Seri Liow Tiong Lai. Yes, it is true. However, this is only one out of the hundreds of benefits e-commerce can bring to Malaysia. E-commerce has been recognized as a critical enabler to accelerate the revenue growth for the Malaysian economy, under the Digital Malaysia Initiative. Malaysia Digital Economy Corporation director of e-commerce enablement Wee Huay Neo mentioned internet penetration in Malaysia stands at 67%, while e-commerce contributes 5.8% to the nation’s gross domestic product, just 0.6% below the target set for 2020.
- The most popular types of products purchased by Malaysians online are fashion & beauty products, electronics, and sports products.
- 80% of shoppers use their smart phones for purchasing online
- The main factor Malaysians consider when shopping online is the price
- Nowadays, men tend to shop more than women
- 59% of Malaysians shop online at least once a month
- 95% of Malaysian population are satisfied with online shopping experience
LAZADA | The advice of e-commerce leader in Malaysia
M-COMMERCE | New TrendAccording to Digital News Asia, South-East Asian online payment gateway provider iPay88 Sdn Bhd said that based on transactions recorded on its platform, it expects mobile-commerce to grow three times faster than the overall e-commerce market in Malaysia. The company claims that about 70% of online transactions in Malaysia take place on its platform. It was also mentioned that the growth of m-commerce is clear, given the percentage of traffic from mobile channels recorded in its system: 27% in 2015; 38.4% in 2016; and 48.6% in 2017. “No doubt, the availability of cheaper smart phones and laptops have made the Internet accessible to a whole new demographic. The advent of tablets and smart watches has also broadened the spectrum of Internet usage.”
Customer Insights | What Malaysians think about e-commerceThe lack of security is perceived as a major stumbling block for doing business online. Electronic cash payment systems are becoming more important than ever to facilitate online transactions and thus replacing traditional payment methods such as checks. The security aspects of e-commerce technology are one of the key concerns for Malaysian online buyers nowadays. Every buyer wants to have privacy and security in the transaction. The personal data of the buyer such as name, address, phone number and also the transaction details of the buyer must not be disclosed to third parties. There is also some activities of sharing the info to the third party which is illegal. Malaysia has implemented personal data act on 2010. The Personal Data Protection Act (PDPA) is an act enacted by the Malaysian government to protect individual’s personal data in online commercial transactions. Other important factors taken into account by Malaysians have been presented in the Malaysian Journal of Social Sciences and Humanities by Nadiah Binti Tasin:
User Experience (UX) in mCommerce | Useful TipsThe full guide for the development of excellent UX experience can be found in our previous article, “UX in Mobile Apps”, while here we will provide the summary of those points:
- Simplistic Color Scheme
- Better Security
ConclusionWe live in a time where half of the population is digital buyers, which is why e-commerce is an important stepping block for the future of existing businesses while opening up market access. Malaysia’s e-commerce market will continue to be highly attractive with plenty of room to grow. The increasing consumer spending, the growing number of internet users and the greater acceptance of mobile e-commerce are the main drivers. Do you want Blueninja.io help you with the development of a great online shopping store for your business? Give us a call anytime! The highly-qualified team of Blueninja.io provides an unforgettable experience for businesses and their clients through innovative digital solutions. Website design & Mobile Development, Web Application Development services, E-commerce web systems, SEO, Google Adwords and Social Media Marketing are just a small part of a wide service portfolio, opening doors to enormous opportunities for your business success. Stay connected with Blueninja.io and be the first who will read our next article!
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