Malaysia E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Malaysia E-commerce market is segmented by B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce.

Market Snapshot

Malaysia E Commerce Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 9.8 %

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Market Overview

The Malaysian e-commerce market is expected to register a CAGR of 9.8% over the forecast period from 2022 to 2027.

  • According to the International Trade Administration, Malaysia has a high e-commerce adoption rate, supported by a large population of active internet users (27.4 million or 80%) and high mobile phone penetration (84.2%) in 2021. Further, as of January 2021, there were 28 million social media users and 39.9 million mobile connections in the country.
  • Further, many government initiatives are being implemented to support the growth of e-commerce in the country. The government has established the National e-Commerce Council, comprising various ministries and government agencies, to drive the implementation of the National eCommerce Strategic Roadmap 2.0's (NeSR2.0).
  • The National eCommerce Strategic Roadmap 2.0's (NeSR2.0) is endorsed by the National Council of Digital Economy and 4IR and will be guided by three objectives: intensifying e-commerce adoption, enhancement of ecosystem development, and strengthening e-commerce policies and regulations.
  • According to the Commercial Crime Investigation Department (CCID) of Malaysia, e-commerce fraud cases have increased from 3,318 cases amounting to MYR 22.39 million in 2018 to 8,162 cases of e-commerce fraud with losses amounting to MYR 57.73 million, which were reported until October 31 in 2021. Such high tenacity of fraudulence has restrained the market's growth, disassociating the buyers' trust.
  • According to the Malaysian Communications and Multimedia Commission (MCMC), internet traffic in Malaysia has increased by more than 30% during the pandemic. The Malaysian government has also recognized the growth of e-Commerce in the country and has supported MSME in adopting e-commerce. Further, the government was also proactively promoting the adoption of e-Commerce through digital campaigns such as "Buy Malaysia" and #SayaDigital.

Scope of the Report

E-commerce consists of B2B and B2C and internal organizational transactions that support these activities. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period in Malaysia. The study further analyzes the overall impact of COVID-19 on the ecosystem. The scope of the report encompasses market sizing and forecast for segmentation by B2B and B2C, in which the B2C channel is further segmented by application.

By B2C ecommerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverage
Furniture and Home
Others (Toys, DIY, Media, etc.)
By B2B ecommerce
Market size for the period of 2017-2027

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Key Market Trends

Government initiatives supporting the increased adoption of digital solutions

  • According to the Finance Ministry of Malaysia, in 2020, Malaysia's digital economy accounted for 22% of the total Gross Domestic Product. It is expected to create more than 500,000 jobs by 2025. With such developments, the Government is strategically collaborating with the private sector to incentivize people to adopt digital services and provide grants and assistance to smaller businesses.
  • The Government has outlined a roadmap for intervention in six areas in recent times. These areas include accelerating seller adoption of e-Commerce, increasing adoption of eProcurement by businesses, lifting non-tariff barriers (e-Fulfillment, cross-border, e-Payment, consumer protection), and realigning existing economic incentives, Making strategic investments in select eCommerce player and Promote national brand to boost cross-border eCommerce.
  • Other initiatives by the Government include strengthening digitalization among micro, small and medium enterprises (MSMEs) through eCommerce and innovative technology adoption. Further, Digital Free Trade Zones were launched to facilitate cross-border eCommerce and widen the global market access for MSMEs.
Malaysia E Commerce Market Growth

Consumer Electronics Segment Accounts for Significant Share

  • According to the Department of Statistics Malaysia, in 2021, the sales value of manufactured consumer electronics in Malaysia was approximately MYR 38.59 billion. Over the years, the sales value of manufactured consumer electronics has varied. However, E-commerce has played a pivotal role with the commoners increasing buying goods through online channels.
  • Consumer electronics enhance people's lives through the power of technology. The emergence of Industry 4.0 has enhanced the development of new and advanced consumer goods that generate the demand for smarter consumer products embedding the latest technologies such as IoT (internet of things), AI (artificial intelligence), AR (augmented reality), and VR (virtual reality).
  • Consumer Electronics include smartphones, household appliances, computers, laptops, and other consumer electronics such as television, gaming consoles, wearables, etc. With the increasing number of product launches in the consumer electronics sector, there is a growing utilization of e-commerce for purchasing consumer electronics.
  • With advantages such as door shipping and reduced logistics spending by suppliers, there has been an increase in demand for e-commerce in consumer electronics. Also, as companies are involved in the continuous development of new products, e-commerce for consumer electronics is said to grow in the future.
Malaysia E Commerce Market Forecast

Competitive Landscape

The level of rivalry in Malaysia's e-commerce market is medium due to the presence of a few significant market players. The number of local and global brands in the e-commerce market is increasing, which increases the competition in the market.

  • April 2022 - Mouqy Eyeware has launched its new e-Commerce store to expand its reach across different regions in the country. The website also offers a convenient virtual try-on feature that will let customers preview how different frame designs will look on their faces before they purchase anything.
  • April 2022 - Unifi Business launched new features in its suite of solutions for Malaysia's Micro, Small, and Medium Enterprises (MSMEs). This includes Unifi e-Commerce Hub, which offers a single integrated platform with an easy-to-use interface. This suit enables businesses to sync their offline and online sales channels, manage product inventories and orders, monitor sales and revenue, as well as manage social media inquiries.

Recent Developments

  • April 2022 - Country Heights Holdings Bhd (CHHB) announced that it intends to invest RM 250 million in capital expenditure (CAPEX) in the following five years through a partnership with JD Worldwide's wholly-owned subsidiary, Beijing Wodong Tianjun Information Technology Co Ltd ( for the development of an omnichannel business model in Malaysia.
  • April 2022 - TikTok has announced the launch of its e-commerce platform known as TikTok Shop. The company aims to benefit the Small and Medium Enterprises (SMEs) conducting business without brick-and-mortar stores.

Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of e-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the e-commerce sales


    1. 5.1 Market Drivers

      1. 5.1.1 Increase in adoption of digital Solutions

      2. 5.1.2 Promotion of e-commerce by the Government Sectors

    2. 5.2 Market Challenges

      1. 5.2.1 Online Frauds and Cybersecurity Issues

    3. 5.3 Analysis of key demographic trends and patterns related to ecommerce industry in Malasiya (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the key modes of transaction in the ecommerce industry in Malasiya (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of cross-border ecommerce industry in Malasiya (Current market value of cross-border & key trends)

    6. 5.6 Current positioning of Malasiya in the ecommerce industry in South East Asia


    1. 6.1 By B2C ecommerce

      1. 6.1.1 Market size (GMV) for the period of 2017-2027

      2. 6.1.2 Market Segmentation - by Application

        1. Beauty and Personal Care

        2. Consumer Electronics

        3. Fashion and Apparel

        4. Food and Beverage

        5. Furniture and Home

        6. Others (Toys, DIY, Media, etc.)

    2. 6.2 By B2B ecommerce

      1. 6.2.1 Market size for the period of 2017-2027


    1. 7.1 Company Profiles

      1. 7.1.1 Shopee Pte. Ltd

      2. 7.1.2 Lazada Group

      3. 7.1.3

      4. 7.1.4 Zalora Group

      5. 7.1.5 Astro GS Shop Sdn Bhd

      6. 7.1.6 eBay Inc.

      7. 7.1.7 Presto Mall Sdn Bhd

      8. 7.1.8 ezbuy (EZbuy Holdings Limited)

      9. 7.1.9 Hermo Creative Sdn Bhd

      10. 7.1.10 Sephora Digital SEA Pte Ltd

    2. *List Not Exhaustive


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Frequently Asked Questions

The Malaysia E-commerce Market market is studied from 2020 - 2027.

The Malaysia E-commerce Market is growing at a CAGR of 9.8% over the next 5 years.

Shopee Pte. Ltd., Lazada Group,, Zalora Group, Astro GS Shop Sdn Bhd are the major companies operating in Malaysia E-commerce Market.

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