Malaysia E-commerce Market Size

Malaysia E-Commerce Market Analysis

The Malaysia E-commerce Market size is estimated at USD 10.72 billion in 2024, and is expected to reach USD 20.93 billion by 2029, growing at a CAGR of 14.32% during the forecast period (2024-2029).

According to the International Trade Administration, Malaysia has a high e-commerce adoption rate, aided by a sizable population of active internet users (27.4 million, or 80%) and high mobile phone penetration (84.2%) in the previous year. Additionally, as of the last year, the nation had 39.9 million mobile connections and 28 million users on social media.

• The Malaysian government has been proactive in supporting and nurturing the e-commerce industry. Launching initiatives such as the Digital Free Trade Zone (DFTZ) and the Digital Economy Blueprint has provided a conducive environment for e-commerce businesses to thrive. These initiatives offer benefits such as tax incentives, infrastructure development, and regulatory support, attracting local and international players to invest in Malaysia's e-commerce market.
• Additionally, the government is taking several steps to promote the growth of e-commerce in the nation. The National E-Commerce Council, comprised of several ministries and government entities, was established by the government to improve the implementation of the National E-Commerce Strategic Roadmap 2.0 (NeSR2.0). The National Council of Digital Economy and 4IR have approved the National E-commerce Strategic Roadmap 2.0 (NeSR2.0), guided by three objectives: boosting e-commerce adoption, enhancing ecosystem growth, and bolstering e-commerce laws and regulations.
• According to Malaysia's Commercial Crime Investigation Department (CCID), e-commerce fraud cases have increased from 3,318 cases accounting for MYR 22.39 million in recent years to 8,162 cases accounting for MYR 57.73 million reported until the previous year. The tenacity of fraud has hindered the market's expansion, which has eroded purchasers' faith.
• The e-commerce market in Malaysia has increased due to the Covid-19 pandemic, which has shifted consumer behavior from offline to online shopping and prompted retailers to enhance their online presence. The industry has also benefited from government support, the increasing internet and smartphone penetration, the rising disposable income, and the growing demand for e-commerce logistics.
• Moreover, according to the Malaysian Communications and Multimedia Commission (MCMC), during the COVID-19 outbreak, internet traffic in Malaysia jumped by more than 30%. Malaysia's government has also acknowledged the expansion of e-commerce in the country and has assisted MSMEs in adopting e-commerce. Furthermore, the government actively supported e-commerce adoption through digital initiatives such as "Buy Malaysia" and #SayaDigital.